ASFA backs laws targeting phoenix company directors
The Association of Superannuation Funds of Australia (ASFA) has backed moves by the Government to make directors of 'phoenix' companies personally liable for any unpaid superannuation contributions.
A phoenix company is a firm that closes down with a number of unpaid debts, only to reopen with a new name and the same directors.
Under the new laws, the Australian Taxation Office will be able to pursue a director whose company is three months behind in its Pay As You Go withholding or its superannuation guarantee contributions without issuing a director penalty notice.
ASFA chief executive Pauline Vamos said it was important to quickly close off any loopholes in the system to safeguard the integrity of superannuation.
"It is vitally important that all Australians receive the superannuation contributions they are entitled to," Vamos said.
"The average person is not on a high wage and for most, the only way they can achieve dignity in retirement is by putting a small amount away over the long term and benefiting from compound interest," she added.
Superannuation balances are affected any time there is a break in contributions, Vamos said.
"We support any move to close down activity undertaken to avoid paying Australians their entitlements," she added.
According to the ATO, there are about 6,000 phoenix companies in Australia.
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