Release type: Joint Media Release


Consultation on reforms to stop misuse of employee entitlements scheme


Senator the Hon Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate
Acting Minister for Revenue and Financial Services
Senator the Hon Michaelia Cash
Minister for Employment
Minister for Women
Minister Assisting the Prime Minister for the Public Service

The Government is seeking public comment on its consultation paper on reforms to stop corporate misuse of the Fair Entitlements Guarantee (FEG) scheme.

The FEG is a scheme of last resort funded by taxpayers that provides payment of employee entitlements following the insolvency of their employer.

The Government is seeking views on a range of options to reform the law to ensure businesses cannot exploit the federally-funded scheme and avoid their responsibilities to their employees.

Corporate misuse of the FEG scheme means liabilities that can and should be met by businesses are effectively being passed on to the taxpayer, which is unacceptable.

Options outlined in the paper include reforming the law to prevent abuse of corporate group structures designed to avoid employee entitlements in the event of insolvency.

A series of roundtable sessions will be held in Sydney and Melbourne in late May and early June 2017 to discuss the proposed reforms. To register, send your details, including the organisation you represent, to

Submissions on the consultation paper ( are sought by 16 June 2017.