POWERED BY MOMENTUM MEDIA
Government aims to protect super with phoenix measures
The Federal Government has sought submissions on new laws to protect workers’ superannuation from fraudulent phoenix company activity by making directors personally liable.
The Budget measure was designed to prevent employees missing out on entitlements like superannuation when a company is deliberately liquidated and restarted under a different entity.
Assistant Treasurer Bill Shorten said there would be three amendments to accomplish this.
These include extending the director penalty regime to make directors personally liable, and allowing the Australian Taxation Office to pursue directors where taxes and superannuation have not been paid after three months.
The Commissioner will also be given discretion to prevent directors from obtaining PAYG withholding credits where the company has an outstanding PAYG liability.
“The Government is committed to ensuring employees receive their entitlements and to taking strong action to deter phoenix activity,” Shorten said.
“However, we recognise the importance of ensuring these changes do not discourage entrepreneurialism and commercial risk-taking or impact unnecessarily on genuine businesses.”
Submissions close 1 August 2011, with the measure expected to be introduced in the spring sittings of Parliament.
AUTHOR
Ashleigh McIntyre
Recommended for you
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
