The AICD has provided a submission to the Treasury and the Department of Jobs and Small Business in relation to proposed reforms to address corporate misuse of the Fair Entitlements Guarantee (FEG) scheme.
The FEG is a federal government safety net scheme which provides assistance to eligible employees who lost entitlements due to the liquidation or bankruptcy of a former employer.
In its submission, the AICD expressed strong support for measures which would improve the ability of government agencies to address corporate misuse of the FEG scheme. However, the AICD expressed concerns regarding a number of aspects of the Exposure Draft put forward by the government, including unintended consequences which may follow from the introduction of a new civil penalty provision, and a new employee entitlements contribution order, which would pierce the corporate veil.
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