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What is illegal phoenix activity?
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt.
Phoenixing causes significant harm to the community because:
- Employees miss out on wages, superannuation and entitlements.
- Other businesses are put at a competitive disadvantage.
- Suppliers or sub-contractors are left unpaid.
- The community misses out on revenue that could have contributed to community services.
Phoenix taskforce
The Phoenix Taskforce brings federal, state and territory agencies together to combat illegal phoenix activity.
The Phoenix Taskforce comprises 39 agencies, including:
- Australian Taxation Office (ATO)
- Australian Securities and Investments Commission (ASIC)
- Department of Employment and Workplace Relations (the department)
- Fair Work Ombudsman
How the department addresses illegal phoenix activity
The Fair Entitlements Guarantee Act 2012 provides the department with authority to share information from the claim assessment process with other Australian Government agencies.
The department routinely shares data and intelligence with the Phoenix Taskforce to support cross-agency efforts to combat illegal phoenix activity. Where the department has identified potential breaches of the law, it will also refer that to the appropriate regulatory agencies.
Reports and tip-offs about suspected phoenix activity are also forwarded to the Phoenix Taskforce. Please note due to privacy laws, the department is unable to provide updates on progress or advise on outcomes.
How to report illegal phoenix activity
You can report suspected illegal phoenix activity by:
- Calling the Phoenix Hotline: 1800 060 062
- Emailing: PhoenixReferrals@ato.gov.au
- Completing a Tip-Off form on the ATO website
For more information, visit illegal phoenix activity.
Making a complaint about a company
If you want to make a complaint about the actions of a company, go to ASIC’s report an issue page.