The Federal Government has passed tax reform legislation through Parliament that will  strengthen the director penalty regime and protects workers' superannuation entitlements and amendments to the taxation of financial arrangements and consolidation regimes.

 

The Bill will strengthen directors' obligations to arrange for their companies to meet Pay As You Go (PAYG) withholding and superannuation obligations and help counter phoenix activity.

 

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

 

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