The ATO has recovered $8m in worker's superannuation entitlements from phoenix operators of labour-hire companies in South Australia and Victoria. According to the ATO, these companies were involved in the seasonal fruit picking and meat packing industries and were not paying superannuation entitlements for workers.
New powers, known as Superannuation Guarantee Estimates (SGE) allows the ATO to issue director penalty notices to try and protect worker's entitlements before companies liquidate to try and avoid their responsibilities. These powers allow the ATO to deal with phoenix-type behaviour in real-time, by making a reasonable estimate of a company's superannuation obligations, and raising a debt on the company or its directors before the company can be put into liquidation.
Phoenix behaviour involves the deliberate liquidation of companies to avoid paying superannuation obligations, tax liabilities and payments to creditors and suppliers.