Property a bankrupt can keep

The property that the trustee cannot take from a bankrupt is set out in the Act [Bankruptcy Act 1966 s 116(2), Bankruptcy Regulations 1996 Regs 6.03 and 6.04]. This property includes:

ordinary clothing
necessary household goods (such as lounge suite, kitchen furniture, ordinary domestic refrigerator, washing machine, educational material, television set, stereo, video recorder)
tools of trade, plant and equipment to the value of $3050 (indexed) (used to earn income)
certain policies of life assurance, endowment assurance, policies of
the bankrupt's interest in certain superannuation funds or approved
money received as damages or compensation for injury to the bankrupt, his or her spouse or family (including death). Also any property (such as a house or car) bought with, or mostly with, that money. Where those assets have been purchased partly but not substantially with compensation for injuries, for example 10%, on the sale of that asset the bankrupt is entitled to receive that same percentage from the proceeds of the sale
amounts paid by the State to the bankrupt under certain rural assistance agreements between the Commonwealth and the States
the separate property of a non-bankrupt spouse or held on trust for another person
motor vehicles with a net equity of less than $6000 or $12 000 for a jointly owned vehicle may not be taken by the trustee. Where a vehicle of higher value is sold the bankrupt will be given $6000 (or $12 000) in order to buy a cheaper vehicle which he or she can keep, see motor vehicles.

In determining what household goods can be retained, the trustee must regard:

the number and age of members of the bankrupt's household
any special health or medical needs
any special climatic, geographical isolation factors
whether the assets are reasonably necessary for the household to run properly
whether the cost of storage and sale would exceed the sale price