On 5 October 2017, the Australian Government announced it would introduce new laws to address corporate misuse of the Fair Entitlements Guarantee (FEG) Scheme.
The proposed laws will provide a significant disincentive for employers that exploit the taxpayer-funded scheme and avoid their responsibilities to their employees.
The exposure draft includes amendments to:
- strengthen civil recovery action, plus criminal and civil penalties available against company directors and other persons, who engage in transactions that are directed at preventing, avoiding or reducing employer liability for employee entitlements;
- ensure recovery of outstanding employee entitlements of an insolvent corporate group member, where it would be just and equitable and where other entities in the group have benefited from the work done by the insolvent entity’s employees; and
- strengthen the ability to sanction directors and company officers with a track record of insolvencies where FEG is repeatedly relied upon.
The proposed laws follow extensive public consultation undertaken in 2017.
You can submit responses to this consultation up until 9 July 2018.
Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
How to respond
Address written submissions to:
Recovery and Litigation Branch
Workplace Relations Programmes Group
Department of Jobs and Small Business
10 Mort Street
CANBERRA ACT 2600
Corporations Policy Unit
Consumer and Corporations Policy Division
Level 5, 100 Market Street
Sydney NSW 2000