Reforms to address corporate misuse of the FEG scheme

Under the Fair Entitlements Guarantee (FEG) scheme, the Australian Government provides financial assistance for certain unpaid employee entitlements to eligible employees who have lost their jobs due to the insolvency of their employers. It is a scheme of last resort to support redundant workers.

Costs of the FEG scheme have been increasing in part due to the adoption of certain practices by select employers and parties associated with them, resulting in cost shifting to the scheme and through it, to taxpayers.

To address these issues and ensure the FEG scheme remains viable, the Australian Government is consulting on options for targeted law reform to address corporate misuse of the FEG scheme and to improve the recovery of FEG payments.

The consultation paper is now available.

Interested parties are invited to make a submission by Friday, 16 June 2017.