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A Bill for an Act to amend the Fair Entitlements Guarantee Act 2012, and for related purposes
Administered by: Employment
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 04 Sep 2014
Introduced HR 04 Sep 2014
Table of contents.

2013‑2014

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Presented and read a first time

 

 

 

 

Fair Entitlements Guarantee Amendment Bill 2014

 

No.      , 2014

 

(Employment)

 

 

 

A Bill for an Act to amend the Fair Entitlements Guarantee Act 2012, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Amendments                                                                                                3

Fair Entitlements Guarantee Act 2012                                                                   3

 


A Bill for an Act to amend the Fair Entitlements Guarantee Act 2012, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Fair Entitlements Guarantee Amendment Act 2014.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day after this Act receives the Royal Assent.

 

2. Schedule 1, items 1 to 12

The later of:

(a) 1 January 2015; and

(b) the day after this Act receives the Royal Assent.

 

3. Schedule 1, item 13

1 July 2015.

1 July 2015

4. Schedule 1, item 14

The later of:

(a) 1 January 2015; and

(b) the day after this Act receives the Royal Assent.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

                   Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendments

  

Fair Entitlements Guarantee Act 2012

1  After section 7

Insert:

7A  Tax withholding or deduction

                   Nothing in this Act affects any requirement for a person to withhold or deduct an amount as required by law.

Note:          The Secretary or another person may be required to withhold or deduct an amount because of the Pay as you go (PAYG) withholding rules, or because of any other Commonwealth, State or Territory law that requires a person to withhold or deduct an amount.

2  Paragraph 10(1)(f)

Repeal the paragraph.

3  Subsection 10(1) (note)

Omit “Note”, substitute “Note 1”.

4  At the end of subsection 10(1)

Add:

Note 2:       The amount of an advance may be reduced where a person has not taken reasonable steps to be paid a debt: see section 17A.

5  After section 17

Insert:

17A  Reduction of advance for certain debts to the person

             (1)  Subsection (2) applies if:

                     (a)  a person is (or would, apart from the discharge of the bankruptcy of the employer, be) owed one or more debts wholly or partly attributable to all or part of one or more employment entitlements; and

                     (b)  the person was owed any of the debts before an insolvency event happened; and

                     (c)  the person did not take reasonable steps before the insolvency event happened to be paid some of those debts (the unclaimed debts).

             (2)  The Secretary may reduce the amount of an advance worked out under section 16 for a person’s employment by the employer by an amount not exceeding the sum of the person’s unclaimed debts.

6  Paragraph 23(b)

Repeal the paragraph, substitute:

                     (b)  does not exceed 16 weeks’ pay (at the rate relevant to working out the entitlement).

7  Section 24

Repeal the section, substitute:

24  Basic amount for wages entitlement

                   The basic amount for a person’s wages entitlement is the person’s wages entitlement.

Note:          Sections 25 and 27 may affect the basic amount.

8  Paragraph 28(1)(b)

Omit “, subject to the liquidator or trustee withholding or deducting an amount as required by law”.

9  Paragraph 28(1)(c)

Omit “, subject to the payee withholding or deducting an amount as required by law”.

10  At the end of subsection 28(1)

Add:

Note:          The Secretary or another person may be required to withhold or deduct an amount because of the Pay as you go (PAYG) withholding rules, or because of any other Commonwealth, State or Territory law that requires a person to withhold or deduct an amount: see section 7A.

11  After subsection 32(2)

Insert:

          (2A)  If, after reducing the amount of the advance for the person’s employment entitlement to nil under subsection (2), an amount of the debt remains, the remaining amount is taken to have applied proportionally to what would (apart from the reduction of that amount) have been the amounts of the advance that would have been for the other employment entitlements.

12  After section 49

Insert:

49A  Death does not affect eligibility for, or payability of, an advance

                   The death of a person at or after the end of the person’s employment does not prevent:

                     (a)  the person from being eligible for an advance; or

                     (b)  an advance that the person is eligible for from being paid to the person’s estate (either directly or by being paid to someone else to pass an amount on to the estate).

13  Section 51

Repeal the section, substitute:

51  Appropriation

                   The Consolidated Revenue Fund is appropriated for:

                     (a)  the purposes of payments under this Act or a regulation made for the purposes of section 50; and

                     (b)  the purposes of paying amounts to another person in respect of legal costs incurred by the Department in relation to:

                              (i)  an application to the Administrative Appeals Tribunal made under section 40; or

                             (ii)  an appeal to a court in respect of such an application.

14  Application

(1)       The amendment to section 51 of the Fair Entitlements Guarantee Act 2012 made by this Schedule applies in relation to a payment made on or after 1 July 2015 (whether or not the liability to make the payment was incurred before or after that date).

(2)       All other amendments of that Act made by this Schedule apply to an insolvency event that happens to an employer on or after the commencement of this item.