The ALP has launched a "Protecting Workers' Entitlements Package", which proposes legislative reforms to target phoenix' companies and give ASIC "stronger powers to place companies into liquidation when they have been abandoned by their directors".
"The Gillard Labor Government will crack down on companies that undertake 'phoenix' company behaviour where a business closes down one day and opens up the next day with a different name to avoid paying its obligations," the proposal states.
"Directors will be made personally liable for the debts of companies that have deceptively similar names to failed businesses previously run by the same directors."
The Government said it would examine an extension of the promoter penalty regime to include schemes to avoid the payment of a tax, as well as an extension of the director penalty regime to include PAYG(W), the Superannuation Guarantee and indirect taxes.
The proposal states that the law will be developed through public consultation and draw on existing legislation in the UK and New Zealand.
The policy package also proposes replacing the existing General Employee Entitlements and Redundancy Scheme (GEERS) with a Fair Entitlements Guarantee, which will cost an additional $60.8m over four years.
This would protect redundancy pay up to a maximum of four weeks for every year of service, and apply to all Australian workers, except company directors and "their close associates".
"Currently only 16 weeks of redundancy pay is covered by GEERS, even if employees have worked fore the same company for decades," the proposal notes.
Meanwhile, the Coalition has made small business a key part of its election platform, promising to "ensure more government work for small business and introduce new rules to ensure the government pays its bills on time" if it is elected.
The election is set to take place on 21 August.
Click here for the latest headlines from across the printing industry.