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Q. Legislative options for addressing phoenix activity?
There are a range of legislative options for addressing phoenix activity and the following legislative options were explored with stakeholders.
Garnishee Orders
The ATO has the power to issue garnishee orders which allow recovery of debts from a person's bank account, wage or from people who owe the debtor money. Legislative change could be introduced so that the FWO could garnish unpaid entitlements from bank accounts, wages and debtors. Stakeholders emphasised that this would be a significant expansion of the FWOs role.
Dual appointment of FWO Inspectors
An additional legislative option would be for FWO Inspectors to be appointed under the Tax Act and the Corporations Act giving them greater powers in their investigations. Stakeholders had significant reservations about the practicalities, viability and effectiveness of such an option.
Joint employment provisions
One option that was raised in consultation with stakeholders was the introduction of joint employment provisions, whereby both the employing entity and the entity that receives the labour are liable for employee expenses. Though some stakeholders were broadly supportive of such measures, others highlighted that this option would have significant implications for corporations law and sub-contract arrangements in Australia.
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