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Recommendations for addressing phoenix activities
Over the past two decades there have been a significant range of proposals for addressing phoenix activity. Most of these options have focused on legislative change and reform.
In the late 1990s Minister Reith, then Minister for Employment, Workplace Relations and Small Business, proposed the introduction of a national insurance scheme to protect employee entitlements.
It was argued that the scheme could be funded by a levy on business, with the levy amount dependent on the businesses wages costs. Companies would be excluded if they provided evidence that they were protecting employee entitlements.
An insurance scheme again received attention in 2004 when the Stockdale Report recommended that "the Government explore the various measures proposed for safeguarding employee entitlements such as insurance schemes or trust funds, giving particular attention to the costs and benefits involved in the schemes".
However, the Stockdale Report also warned "the proposals for the establishment of insurance schemes or trust funds are a major departure from the current system and would require thorough examination and extensive consultation before even a preliminary model could be produced".
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In the paper Action against Fraudulent Phoenix Activity: Proposals Paper, Treasury made a range of recommendations to amend director's liability provisions and taxation law. Rec
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