Govt crackdown on dodgy firm administrators

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Companies who use dodgy practices to avoid paying their workers entitlements when they go belly up will face harsher penalties under draft laws which have passed the first hurdle of federal parliament.

The proposals give the Australian Securities and Investments Commission greater power to disqualify company directors when they have a track record of misusing the Fair Entitlements Guarantee scheme, putting the burden on tax payers.

The bad practice also creates unfair commercial advantage over businesses who do the right thing by their employees, government minister Darren Chester said as the draft laws passed the lower house on Wednesday.

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