Budget 2018: The federal government has introduced new measures to deter illegal phoenix activity and stop small business rip-offs.
More on Budget 2018:
- Government to claw back $300m from welfare debtors
- The winners and losers
- Tax relief for workers, refugees wait longer for welfare
- Foreign aid frozen but Pacific to get funding bonanza
New federal government measures to combat illegal phoenix activity - where a new company is created to continue the business of a company that has been deliberately liquidated to avoid paying its debts:
* Directors prevented from improperly backdating resignations to avoid liability or prosecution
* Directors limited from resigning when this would leave the company with no directors.
* The Director Penalty regime extended to GST, luxury car tax and wine equalisation tax, making directors personally liable for company debts.
* Australian Taxation Office to get expanded powers to retain refunds where there are outstanding tax lodgements.