The peak body for the superannuation industry today welcomed proposed laws to hold directors of Phoenix companies liable for any unpaid superannuation entitlements.
The Association of Superannuation Funds of Australia (ASFA) said the strength of Australia's superannuation system was in its universality.
"Any loopholes in the system affect the integrity of the whole," said ASFA chief executive, Pauline Vamos.
Reports on the extent of so-called Phoenix activity - where a company closes down leaving a raft of unpaid debts only to reopen with a new name and the same directors - are a significant concern, said ASFA.
"This is impacting the retirement outcomes of thousands of Australians, given that the ATO [Australian Taxation Office] estimates there to be currently around 6,000 Phoenix companies," said Ms Vamos.
"It is vitally important that all Australians receive the superannuation contributions they are entitled to.
"The average person is not on a high wage and for most, the only way they can achieve dignity in retirement is by putting a small amount away over the long-term and benefiting from compound interest.
"The level of an individual's super savings at retirement is affected whenever there is a break in contributions.
"We support any move to close down activity undertaken to avoid paying Australian workers their entitlements."
Media contacts:
Pauline Vamos, 0433 169 342
Rebecca Glenn, GM marketing and communications, 0416 170 439
Megan McDougall, communications and media co-ordinator, (02) 8079 0849
About ASFA - the voice of super
The Association of Superannuation Funds of Australia is the peak policy, research and advocacy body for Australia's superannuation and retirement industry. It is a not-for-profit, non-party political and non-sector aligned association representing fund members, corporate, industry, retail and public-sector funds, as well as service providers to the superannuation sector.