Regulators could be granted more power to address and prosecute dodgy directors who deliberately bring down companies to avoid paying liabilities.
Assistant Treasurer Stuart Robert says the proposed legislation would also be paired with $8.7 million over four years to help the Australian Securities and Investments Commission investigate the behaviour, known as phoenix activity.
"This bill will give our regulators better enforcement regulatory tools to better detect and address illegal phoenix activity and to prosecute and penalise directors and others who facilitate this illegal activity," he told the lower house on Wednesday.
