If you suspect someone has committed fraud or is attempting to commit fraud related to the Fair Entitlements Guarantee (FEG) you should report it by:
- Calling the FEG Hotline on 1300 135 040 and ask to provide a tip-off (9 am–5 pm Monday to Friday Canberra time excluding ACT and national public holidays), or
- Sending your report:
- via email to FEGcompliance@jobs.gov.au, or
- via post to FEG Compliance Team, Department of Jobs and Small Business, GPO Box 9880, CANBERRA, ACT, 2601.
You can use the Reporting Suspected Fraud Form to guide your report.
When reporting fraud to the Department:
- you don’t have to provide your name or contact details.
- be prepared and provide as much information as you can, including names and contact details of relevant individuals or organisations, how and when the fraudulent behaviour occurred, and supporting documentation.
- remember that all personal information collected by the Department is protected by the Privacy Act 1988 (Cth) (Privacy Act). For more information, refer to our Privacy Statement.
What happens after fraud is reported?
The Department takes all allegations of fraud seriously. Information reported is assessed and where appropriate investigated.
The Department endeavours to respond to people who report fraud. However, feedback will not always be provided.
How is the Department addressing fraud against FEG?
The Department has a robust fraud and non-compliance regime in place and takes all reasonable steps to prevent, detect and deal with fraud related to FEG. These steps include identity authentication measures, data sharing with other Australian Government agencies, the verification of owed entitlements based on company books and records, regular audits of randomly selected claims, and scrutinizing claims and cases with red flags for serious non-compliance and fraud. FEG payments are not made unless the evidence at hand supports that a legal entitlement exists.
The Department expects all persons making FEG claims or supporting the Department’s verification of claims to act honestly. Fraudulent behavior undermines the objectives of FEG, which is intended only for those employees who meet the FEG eligibility requirements due to being genuinely affected by termination of employment due to insolvency.
The Department demonstrated its willingness to pursue criminal prosecution after anomalies were detected in connection with payments made under the General Employee Entitlements and Redundancy Scheme, the predecessor to FEG.
The charges arose in relation to the lodgment of sixteen fraudulent claims, one of which resulted in a payment of $27,404. The parties were convicted of colluding to provide information to the Department to mislead the Department about the veracity of the claim.
In that case:
- The operator of the ‘insolvent business’ and another party linked to the fraud were convicted after entering pleas of guilty to charges relating to collusion with the liquidator.
- The business operator was sentenced to a total of 16 months imprisonment (suspended) and the associate was sentenced to 12 months imprisonment (suspended) and ordered to repay $27,404.
- The liquidator of the company was convicted in June 2017 after a trial. The liquidator was convicted of one charge of obtaining a benefit by deception and sentenced to 15 months imprisonment (suspended).
Any person who has any concern about the integrity of claims or payments under the Fair Entitlements Guarantee should contact the FEG Hotline at 1300 135 040 to report their concern.
- Fraud Statement for the FEG
- Reducing Illegal Phoenix Activity
- Fair Entitlements Guarantee (FEG) | Department of Jobs and Small Business
- How to report fraud | Department of Jobs and Small Business
- Australian Securities & Investments Commission (ASIC)
- Privacy | Department of Jobs and Small Business
- Office of the Australian Information Commissioner (OAIC)