The Turnbull government is proposing new laws to crack down on phoenix activity and corporate restructures after a blowout in the Fair Entitlements Guarantee scheme saw it shoulder $1 billion in employee entitlements for companies that went bust.
The reform options, raised in a consultation paper on Thursday, flag a big push by the government to tackle illegal phoenix activity and include potential sanctions on company directors who “improperly” rely on the scheme and contribution orders against companies associated with insolvent employers.
In a joint statement, Employment Minister Michaelia Cash and Minister for Revenue Kelly O’Dwyer said FEG costs had “dramatically increased” between 2012-13 and 2015-16 to more than $1 …
Read the full article at: http://www.afr.com/news/policy/industrial-relations/fair-entitlements-guarantee-costs-blowout-spurs-crackdown-on-corporate-restructures-20170517-gw6tdm