The Australian Financial Review --- Page: 5 : 3 January 2008 Original article by Patrick Durkin
LexisNexis Summary
Alterations to Australia's Corporations Act came into effect on 1 January 2008. The changes are the first made to insolvency laws since 1993 and will ultimately provide employees with a greater chance of recovering their superannuation entitlements in the event their employer enters liquidation. Specifically, the reforms mean super guarantee payments and employee entitlements will rank equally. Australia's super guarantee requires companies to pay nine per cent of an employee's salary into their super fund, with businesses late in making payments forced to pay a charge to the Australian Taxation Office. David Porter, of Deacons, claims the new reforms are significant, in that companies facing insolvency commonly fail to make super contributions.
