The Federal Government has released draft legislation aimed at helping protect worker's superannuation entitlements.

 

Announced by Assistant Treasurer David Bradbury, the legislation will strengthen existing legal frameworks regarding director's obligations to ensure their companies meet  Pay As You Go (PAYG) withholding and superannuation obligations, the measure will also help counter phoenix behaviour.

 

"This legislation makes it clear that directors have an obligation to ensure that provision is made for the ongoing payment of workers' superannuation," Mr Bradbury said.

 

"It also ensures that fraudulent directors who use phoenix companies to try and avoid their debts will be held personally liable for their PAYG withholding and superannuation obligations."

 

The Government held further consultation with industry after withdrawing an earlier version of the legislation in November. Following this consultation, the Government has made amendments to the draft Bill, including to ensure that new directors have time to familiarise themselves with corporate accounts before being held personally liable for corporate debts and requiring the ATO to serve director penalty notices on directors in all cases before commencing action.

 

The draft legislation, explanatory memorandum, and a summary of the policy changes can be found on the Treasury website.

 

Public submissions close on 2 May 2012 to allow for the introduction and passage of the legislation in the Winter 2012 sittings of Parliament.