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.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
