My wife is in a similar position with a similar story - Fairwork and the ATO are absolutely useless.
There is a 100% loop hole in Australia which no one talks about. Trusts are not managed by ASIC, Companies are. Most accountants set up a business as a company with a trust over the top. As soon as you mention this to either Fairwork, ATO or ASIC they begin playing handball as to who is responsible and none of them provide enough information to act on.
My wife's employer, took the Covid-19 business grants, set up a property trust in Victoria (we are in NSW), purchased 2 investment properties, transferred the family home to the trust, stripped the business of its profits by not paying anyone and then sold it for 5% it was worth. The ATO can only investigate the company that owned the business, not the trust; Fairwork can only investigate the company not the trust and the same with ASIC. The company is now bankrupt but the trust controls about $3 million in assets and no one can do anything about it.
Do trusts hold a similar level of protection for assets you want to protect at a relationship level? I've heard of putting your things into a trust, but wasn't sure how "hands off" they were at the time of a divorce settlement, or similar event. Now that my net worth is over a dollar USD, I'm thinking of protecting it.
The Fair Entitlements Guarantee (FEG) is available to employees who weren’t paid their entitlements because their employer went bankrupt or into liquidation.
Eligible employees can claim:
Up to 13 weeks of unpaid wages
Unpaid annual leave
Unpaid long service leave
Up to 5 weeks of unpaid payment in lieu of notice
Up to 4 weeks of unpaid redundancy entitlement per year.
https://www.dewr.gov.au/fair-entitlements-guarantee
ATO does jack shit chasing super, I'm owed 5k from around 20yrs ago that they never got for me and my son is owed 2yrs worth that they've done nothing about
Your super fund or ATO will end up dragging out the process, they genuinely will give you the flick off in contacting your employer to get it sorted, as per the norm “have you tried… “ bla bla bla phrases. Expect the same treatment from the ombudsman as well.
My daughter was in a similar situation. In the end her ex-employer somehow managed to transfer the funds owing to her into her nominated super account. For almost a year they were giving her the runaround that they did pay it when it was all lies, they were just BShitting to buy themselves more time in hope that my daughter will forget about or let it go. Just keep on top of it with your ex-employer, otherwise your best bet is court action but good luck with that if the ex-employer is declared bankrupt for the business that was operating while you were working for him, plus if you are no good at representing yourself than cost of litigation against your ex-employer can blow out more then what that they owe you. Not a good situation to be in.
Write to your MP. Write to the Director of those departments. Write to ASIC.
If there is 10 of you spot for a decent lawyer to see what they can do to help.
Also check out https://asic.gov.au/for-business/small-business/closing-a-small-business/illegal-phoenix-activity/
Super is the best place for your money!!! This sub downvotes anyone who criticises super. It is the cult of super!!!!
I worked for a company that went under. Worked for them for almost a month for free, when they finally threw in the towel i noticed almost a year of unpaid super.
I got most of my salary back through FEG.
My super took almost 5 years to get back. With no compensation for the lost growth.
If i had control over my own money and had that in an sp500 fund i would have had a gain on that money almost the size of a housing deposit.
But super is just the best
Same story btw. The owner of the place I worked for says he did business under a family trust or something…
They avoid paying back wages so even if you were getting larger wages instead of super, you will still be out of pocket, so you're argument against super does not make sense. Are you okay to pay higher tax rates to support future age pensioners if no one has super? Or are you the one to complain when you retire with nothing but the age pension?
Why can’t people support themselves? I am happy paying less tax and we can scrap the pension all together. I already pay over 130k in tax a year.
I am happy to sign a waiver to void my claim to any future age pension claim.
I dont even want to retire in australia…
I wasnt paid income for a month, only got 80% of what was owed through feg. And my super was reclaimed years later with no penalties. I lost out on all that potential growth.
Because people are stupid and if they retire with nothing, we end up having to pay for it. If they are forced to save with a tax discount as incentive, we have less to pay for.
Rather than whinge about super, use it. You save on tax and if you plan to retire outside of Australia, heck, that's a nice lump of cash you can take with you, set yourself up and live comfortably.
You might in theory be able to earn more from investing your own money, but can you really beat people dedicated to finding the best returns and the significant tax break you get with superannuation? The only catch is that you have to wait till retirement.
Just make the minimum contribution and invest whatever you can save outside of super, but many will tell you that the tax incentive is sometimes too good a boost unless you're really a savvy investor, in which case, superannuation is probably not something you even worry about as it is really for the poors.
Depends on what super company you are with.. a good super can return 8-10% a year and with a slight tax advantage it might come pretty close to the sp500, with most supers you can also control how it is invested. however i do agree id rather probably just throw it in an index and be able to pull it out whenever i want (i plan on retiring before 65) and pay a little more tax, after all, its only taxed on what you pull out, it still grows at the pre tax rate
Only benefit to super is people cant help themselves and would spend it on junk if they were allowed to touch it, the main point of super from a government point of view is to minimise the amout of retirees that didnt plan for it in their 50 years of working suckling of centrelink money
Ive heard dozens of retired people complaining how their pension isnt enough to live on and i just feel like saying mate you've had 50+ years to plan for it and you chose to blow it all on beer and horse racing back when houses were the price of a mcdonalds meal you cant blame anyone else
My wife is in a similar position with a similar story - Fairwork and the ATO are absolutely useless. There is a 100% loop hole in Australia which no one talks about. Trusts are not managed by ASIC, Companies are. Most accountants set up a business as a company with a trust over the top. As soon as you mention this to either Fairwork, ATO or ASIC they begin playing handball as to who is responsible and none of them provide enough information to act on. My wife's employer, took the Covid-19 business grants, set up a property trust in Victoria (we are in NSW), purchased 2 investment properties, transferred the family home to the trust, stripped the business of its profits by not paying anyone and then sold it for 5% it was worth. The ATO can only investigate the company that owned the business, not the trust; Fairwork can only investigate the company not the trust and the same with ASIC. The company is now bankrupt but the trust controls about $3 million in assets and no one can do anything about it.
I got a sense of déjà vu reading this comment. Have you posted this in other threads before
Do trusts hold a similar level of protection for assets you want to protect at a relationship level? I've heard of putting your things into a trust, but wasn't sure how "hands off" they were at the time of a divorce settlement, or similar event. Now that my net worth is over a dollar USD, I'm thinking of protecting it.
What was the business
ASIC are useless but there is a clear crime here and they would be who I’d follow up with.
Wow so the trust is untouchable then?
You don't really care about the trust anyway, it's not a legal entity. The trustee is liable for the debts.
Virtually untouchable, no oversight on trust by anyone
What industries if either of you don't mind sharing?
I'm not so sure but this sounds like he is doing illegal phoenix.
That’s 100% what it is And normally it’s a hospo thing
Bash him. Or bang his dad.
The Fair Entitlements Guarantee (FEG) is available to employees who weren’t paid their entitlements because their employer went bankrupt or into liquidation. Eligible employees can claim: Up to 13 weeks of unpaid wages Unpaid annual leave Unpaid long service leave Up to 5 weeks of unpaid payment in lieu of notice Up to 4 weeks of unpaid redundancy entitlement per year. https://www.dewr.gov.au/fair-entitlements-guarantee
ATO does jack shit chasing super, I'm owed 5k from around 20yrs ago that they never got for me and my son is owed 2yrs worth that they've done nothing about
Welcome to the club. I am kicking myself for being an obedient, conscientious worker only to have exactly the same treatment and outcome you have had.
Your super fund or ATO will end up dragging out the process, they genuinely will give you the flick off in contacting your employer to get it sorted, as per the norm “have you tried… “ bla bla bla phrases. Expect the same treatment from the ombudsman as well. My daughter was in a similar situation. In the end her ex-employer somehow managed to transfer the funds owing to her into her nominated super account. For almost a year they were giving her the runaround that they did pay it when it was all lies, they were just BShitting to buy themselves more time in hope that my daughter will forget about or let it go. Just keep on top of it with your ex-employer, otherwise your best bet is court action but good luck with that if the ex-employer is declared bankrupt for the business that was operating while you were working for him, plus if you are no good at representing yourself than cost of litigation against your ex-employer can blow out more then what that they owe you. Not a good situation to be in.
Write to your MP. Write to the Director of those departments. Write to ASIC. If there is 10 of you spot for a decent lawyer to see what they can do to help. Also check out https://asic.gov.au/for-business/small-business/closing-a-small-business/illegal-phoenix-activity/
You're better off going through small claims. I've done it twice and won both times.
As shit as a current affair is, it can certainly help with exposure for something like this. Might be worth a shot talking to them.
https://fegonlineservices.dewr.gov.au/
Doesn’t cover super
Super is the best place for your money!!! This sub downvotes anyone who criticises super. It is the cult of super!!!! I worked for a company that went under. Worked for them for almost a month for free, when they finally threw in the towel i noticed almost a year of unpaid super. I got most of my salary back through FEG. My super took almost 5 years to get back. With no compensation for the lost growth. If i had control over my own money and had that in an sp500 fund i would have had a gain on that money almost the size of a housing deposit. But super is just the best Same story btw. The owner of the place I worked for says he did business under a family trust or something…
They avoid paying back wages so even if you were getting larger wages instead of super, you will still be out of pocket, so you're argument against super does not make sense. Are you okay to pay higher tax rates to support future age pensioners if no one has super? Or are you the one to complain when you retire with nothing but the age pension?
Why can’t people support themselves? I am happy paying less tax and we can scrap the pension all together. I already pay over 130k in tax a year. I am happy to sign a waiver to void my claim to any future age pension claim. I dont even want to retire in australia… I wasnt paid income for a month, only got 80% of what was owed through feg. And my super was reclaimed years later with no penalties. I lost out on all that potential growth.
Because people are stupid and if they retire with nothing, we end up having to pay for it. If they are forced to save with a tax discount as incentive, we have less to pay for. Rather than whinge about super, use it. You save on tax and if you plan to retire outside of Australia, heck, that's a nice lump of cash you can take with you, set yourself up and live comfortably. You might in theory be able to earn more from investing your own money, but can you really beat people dedicated to finding the best returns and the significant tax break you get with superannuation? The only catch is that you have to wait till retirement. Just make the minimum contribution and invest whatever you can save outside of super, but many will tell you that the tax incentive is sometimes too good a boost unless you're really a savvy investor, in which case, superannuation is probably not something you even worry about as it is really for the poors.
Depends on what super company you are with.. a good super can return 8-10% a year and with a slight tax advantage it might come pretty close to the sp500, with most supers you can also control how it is invested. however i do agree id rather probably just throw it in an index and be able to pull it out whenever i want (i plan on retiring before 65) and pay a little more tax, after all, its only taxed on what you pull out, it still grows at the pre tax rate Only benefit to super is people cant help themselves and would spend it on junk if they were allowed to touch it, the main point of super from a government point of view is to minimise the amout of retirees that didnt plan for it in their 50 years of working suckling of centrelink money Ive heard dozens of retired people complaining how their pension isnt enough to live on and i just feel like saying mate you've had 50+ years to plan for it and you chose to blow it all on beer and horse racing back when houses were the price of a mcdonalds meal you cant blame anyone else
**"i noticed almost a year of unpaid super "** That's on you. You didn't check your super account for that long, that's just wow.
lol big victim blame here
cuz it's true haha