What is Fraud?
Fraud is dishonestly obtaining a benefit, or causing a loss, by deception or other means. A benefit may be money, objects, information or power.
Examples of fraudulent actions related to the Fair Entitlements Guarantee (FEG), include:
- misuse of identify;
- lodging a false claim;
- intentionally providing false information to support a claim;
- lodging altered or falsified documents;
- falsifying verification data;
- diverting funds advanced under FEG;
- collusion (secret or illegal cooperation or conspiracy in order to deceive others); and
- theft of confidential information.
How do I report suspected Fraud?
If you suspect someone has committed fraud or is attempting to commit fraud related to the FEG, you can report your concern by phone, email or mail, visit reporting FEG related fraud for more information.
What is Illegal Phoenix Activity?
Illegal phoenix activity is when a new company is created to continue the business of an existing company that has been liquidated to avoid paying taxes, creditors and employee entitlements.
Illegal phoenix activity includes:
- getting an unfair competitive advantage over other businesses
- non-payment of suppliers
- loss of government revenue and increased monitoring and enforcement costs
- avoidance of regulatory obligations.
For information on how the department is working to address fraudulent phoenix behaviour, visit reducing illegal phoenix activity.
How do I report Illegal Phoenix Activity?
You can call a dedicated phoenix hotline to report illegal phoenix activity on 1800 060 062.
Illegal phoenix activity can be reported:
- by phone on 1800 060 062
- by email at PhoenixReferrals@ato.gov.au
- by completing a Tip-Off form available from the ATO website.
Information on how to make a complaint to the Australian Securities and Investments Commission (ASIC) is available on the report misconduct section of the ASIC website.
FEG Recovery Program – protecting the integrity of the FEG scheme
All employers are required to provide for their employees’ benefits. Where employers attempt to rely on the FEG scheme instead of paying it themselves, the Government is committed to strongly pursuing recovery action against them. The FEG Recovery Program, the Government, funds recoveries activities that would otherwise have not been possible to improve the recovery of FEG amounts. Further information is available at FEG Recovery Program. The Government is also pursuing targeted law reforms to strengthen the recovery of FEG amounts and deter corporate misuse of the FEG scheme. Further information is available at Reforms to address corporate misuse of FEG.
Want to know more?
For more information, visit:
- Fraud Statement for the FEG
- Reporting FEG related Fraud
- Reducing Illegal Phoenix Activity
- FEG Recovery Program
- Reforms to address corporate misuse of the FEG
- Illegal phoenix activity | Australian Taxation Office
- Fair Entitlements Guarantee (FEG) | Department of Jobs and Small Business
- Australian Securities & Investments Commission (ASIC)
- How to report fraud | Department of Jobs and Small Business
- Privacy | Department of Jobs and Small Business
- Office of the Australian Information Commissioner (OAIC)