How to Report Fraud and illegal phoenix activity

Fraud Tip Offs

If you have information about someone you think may be deliberately making or assisting in making a false FEG claim, contact the FEG Hotline at 1300 135 040 (9 am–5 pm Monday to Friday Canberra time excluding ACT and national public holidays). All reports made are confidential.

Phoenix Taskforce

Government agencies are working together through the Phoenix Taskforce to protect public revenue, businesses and employee entitlements by reducing 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:

  • non-payment of wages, superannuation and other entitlements
  • 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.

Illegal phoenix activity impacts the entire community as revenue lost could have contributed to hospitals, roads, education and other essential services. The Department of Employment is committed to reducing this activity and prosecuting offenders.

How is the Department of Employment addressing fraudulent phoenix behaviour?

The Department of Employment administers the Fair Entitlements Guarantee (FEG). FEG is a safety net scheme to provide assistance for certain employee entitlements after employees lose their job due to bankruptcy or liquidation of their employer. The information collected through the claim assessment process can provide useful intelligence about the corporate activities of employing entities. This data is routinely provided to the Phoenix Taskforce to form part of the sophisticated cross agency data matching undertaken to identify, monitor and manager suspected illegal phoenix operators.

The Fair Entitlements Guarantee Act 2012 provides the Department of Employment with statutory authority to share information collected in the claim assessment process with other Australian Government agencies. Where potential breaches of the law are identified during the FEG claim assessment process, the Department also refers such conduct to regulatory agencies.

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