Addressing corporate misuse of the Fair Entitlements Guarantee – Discussion Paper
Submission Date: 31 March 2025
This submission concerning the Discussion Paper1 is made by the Insolvency and Restructuring Committee of the Business Law Section of the Law Council of Australia (the IRC).
The IRC is made up of experienced senior legal practitioners working in the insolvency and restructuring field.
This response answers the questions raised in the Discussion Paper and proffers suggestions for law reform.
As a broad observation, the IRC considers that any changes to Australia’s insolvency laws, including any which might result from the Discussion Paper, should be considered holistically with the recommended independent, comprehensive review of Australia’s insolvency law proposed by the Parliamentary Joint Committee on Corporations and Financial Services in its Corporate Insolvency in Australia report dated July 20232 (Comprehensive Review). While there is room for obvious and simple reforms in some areas, such as those identified in the Comprehensive Review, the risks of piecemeal review of Australia’s insolvency laws, which involve difficult questions of policy, such as those canvassed in the Discussion Paper, in the Law Council's submission, outweigh any benefit in addressing FEG reform as a standalone priority.
1 Department of Employment and Workplace Relations, Addressing corporate misuse of the Fair Entitlements Guarantee (Discussion Paper, February 2025) (‘Discussion Paper’).
2 Parliamentary Joint Committee on Corporations and Financial Services, Corporate Insolvency in Australia, Report (2023), Rec 1.
Last Updated on 27/05/2025
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