The Bill focuses on stamping out phoenixing activities that costs the Australian Economy anywhere between $2.85 billion to $5.13 billion per year according to The Economic Impacts of Potential Illegal Phoenix Activity Report.

This now means:

  • Directors will have a personal obligation to ensure that the companies they run either pay their GST debts otherwise, the ATO can issue a Directors Penalty Notice to make the directors personally liable for the GST, WET and LCT .
  • This also extends to estimates made by the ATO for GST.
  • Prevent directors from backdating their resignations and prevents directors from all resigning and leaving a company as an empty shell.
  • Targets advisers, including lawyers and accountants that facilitate illegal phoenix transactions and broadens the powers of ASIC and Liquidator to combat “creditor–defeating dispositions”.
  • Expand the ATO’s power to retain refunds where there are tax lodgements outstanding.