IP Pack - Recoveries
In accordance with the GEERS Operational Arrangements (OAs), GEERS advances will only be made where the Commonwealth’s right to recovery is protected.
- In bankruptcy cases, the Department will require claimants to sign a Deed of Undertaking (DoU) before any payments are made, which will provide for amounts which are owing or become owing to the claimant, to be paid to the Commonwealth.
- The DoU is usually provided and collected by the Department.
- In liquidations, a condition of GEERS advances is that they attract a right of priority repayment pursuant to Section 560 of the Corporations Act 2001.
- To ensure that these rights are preserved, the Department requests that you advise of the likelihood of a dividend as soon as this information becomes available.
- In the case of a dividend, both in bankruptcy and liquidation, if the employer cannot meet the debts to former employees in full, the former employees and the Commonwealth are to be paid from available funds proportionally and without preference up to the amount paid by the Commonwealth as prescribed by the Bankruptcy Act and Corporations Act.
- When funds become available, please forward them to the Department with the cheque made payable to the Collector of Public Moneys and include details of the case and the amount paid.