Submission: Crackdown on corporate misuse of FEG

The Government has today released a discussion paper as part of its public consultation on addressing corporate misuse of the Fair Entitlements Guarantee (FEG).

The discussion paper focusses on:

• use of corporate groups structures to avoid or minimise payment of employee entitlements,
• reforms to Part 5.8A of the Corporations Act (transactions to avoid, prevent or significantly reduce the recovery of employee entitlements) and creditor-defeating dispositions
• including superannuation guarantee charge to the list of entitlements included in Part 5.8A
• access to information; and
• director accountability.

Submissions are due by 31 March 2025 and ARITA will be making a submission. Should members wish to provide any comments to ARITA, they can email [email protected].

Read the discussion paper.