On 15 August 2013, the government agency that administers bankruptcies in Australia changed its name from the Insolvency & Trustee Service Australia (ITSA) to the Australian Financial Security Authority (AFSA).

Prior to the name change, ITSA had many different functions, including operating the bankruptcy registry, maintaining the National Personal Insolvency Index (the public record of bankruptcies in Australia) and supervising registered bankruptcy trustees.

One of ITSA's most important roles was acting as the Official Trustee in Bankruptcy. When an application for bankruptcy is made, either by someone declaring themselves bankrupt or by a creditor pursuing a debtor, the applicant can provide a consent form signed by a registered trustee, who would then normally become the trustee in bankruptcy. If no consent was provided, ITSA would act as the trustee. In practice, most appointments went to ITSA, in part because a registered trustee will normally require certain indemnities for their fees.

However ITSA also did other things, such as assisting other government agencies to locate and sell property under proceeds of crime legislation. And at the beginning of last year, it became responsible for the administration of the Personal Property Securities Register (PPSR), of which much has been written in these updates in the last 18 months. The change of name to AFSA does not change the functions fulfilled by ITSA; it is simply intended to better reflect the full range of activities undertaken by the agency.

But anyone chasing insolvent debtors in Western Australia should bear in mind that late last year ITSA, as it then was, largely wound down its Perth office. This was partly due to the move towards online lodgement of documents through ITSA/AFSA's impressive and efficient website.

This reorganisation means that, in most cases where AFSA acts as the trustee in bankruptcy, the administration of the bankruptcy will be largely run from the eastern States. Usually, this will be perfectly sufficient. However, if you are about to initiate a bankruptcy that could involve complex or contentious issues arising in Western Australia, or valuable property located in Western Australia, then nominating a registered trustee based in Perth could be a sound investment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Kott Gunning is a proud member of