Commonwealth Consolidated Acts

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Simplified outline of this Act

  (1)   This section is a simplified outline of this Act.

  (2)   Under Part   2, a person is eligible for financial assistance under this Act (called an advance) if:

  (a)   the person ' s employment by an employer has ended; and

  (b)   the employer is being wound up or bankrupt; and

  (c )   the end of the employment is connected with the insolvency or bankruptcy of the employer; and

  (d)   the person has not been fully paid his or her entitlements relating to that employment; and

  (e)   the person has made a claim for the advance.

  (3)   A person ' s claim for an advance is decided by the Secretary, who also decides the amount of the advance if the person is eligible for it ( see section   15 ) .

  (4)   Part   3 explains how to work out the amount of an advance for a person , taking account of the person ' s unpaid entitlements relating to unused annual leave, unused long service leave, payment in lieu of notice, redundancy pay and wages for a 13 - week period. The amount may be reduced because:

  (a)   the person owes debts to his or her employer; or

  (b)   the liquidator or bankruptcy trustee expects to be able to pay those entitlements in full soon.

  (5 )   Part   4 deals with payment of an advance by the Commonwealth, either:

  (a)   directly to the person eligible for the advance ; or

  (b)   to the liquidator, the bankruptcy trustee or another intermediary who will pass it on to the person.

  (6 )   Part   5 lets the Commonwealth recover some or all of the advance , by:

  (a)   substituting the Commonwealth for the person eligible for the advance as a creditor in the winding up or bankruptcy of the employer; and

  (b)   requiring the person to pay the Commonwealth if he or she is later paid amounts for the entitlements the advance related to.

  (7 )   Part   6 deals with administrative matters, including:

  (a)   review of decisions made by the Secretary on eligibility for advances and amounts of advances (see Division   2 of Part   6); and

  (b)   use and disclosure of personal information in connection with the administration of the Act (see Division   3 of Part   6).

  (8 )   Part   7 deals with various matters, including:

  (a)   letting the Secretary extend the scheme for advances to persons whose employment has ended and whose employer is in administration under the Corporations Act 2001 ; and

  (b)   allowing regulations to provide for other schemes of financial assistance for persons who work ed as contractors ( rather than employees ) but have not been paid because of the insolvency or bankruptcy of the persons they worked for.

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