Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Hansard source

The aim of this bill is certainly not to have a negative impact on honest directors that are potentially affected, whether it be by illegal phoenixing by other organisations that owe them money or by late payment, which affects cash flows. We are very aware of this, though. The government understand the effects of illegal phoenixing generally are very widespread and that's why we are committed to stopping it.

There are certainly some circumstances where a director who is doing the right thing is unfairly impacted by the actions of other companies and whose business may well be left unable to pay what it owes to creditors, and that includes the ATO if they themselves have not been paid and might be left out of pocket. That's not a new problem for all businesses, particularly small businesses. In circumstances where a business is clearly doing the right thing and cannot meet its tax obligations, the ATO will of course work with those businesses to set up a payment plan and to find a way to repay the debts in a timely manner.