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1. GigSuper liquidation news
2. GigSuper holding company closure
3. Impact of GigSuper closure on gig workers
GigSuper holding company, for gig workers and sole traders, enters voluntary liquidation
The GigSuper Group, a superannuation fund catering to gig economy and self-employed workers, has gone into voluntary liquidation after owing creditors $2.7 million. Both the holding company, GigSuper Holdings Pty Ltd, and the subsidiary company, GigSuper Pty Ltd, entered voluntary administration in 2022. The subsidiary company’s debts were resolved through a Deed of Company Arrangement, but the holding company has now entered liquidation. The controversial partnership with Deliveroo aimed to allow gig workers to make their own superannuation contributions. The Transport Workers Union criticized the partnership, stating that many delivery riders were being paid below minimum wage and unable to cover their super entitlements.
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The GigSuper Group, a holding company of a superannuation fund established seven years ago to cater to gig economy workers and self-employed individuals, has recently made headlines for entering voluntary liquidation. This move comes just over two years after the company reportedly owed creditors a substantial $2.7 million.
Both the holding company, GigSuper Holdings Pty Ltd, and its subsidiary, GigSuper Pty Ltd, found themselves in voluntary administration in 2022. It was the subsidiary company, GigSuper, that had accumulated millions in debt. However, these debts were “extinguished” when creditors placed the company under a Deed of Company Arrangement in 2022.
Following a meeting on June 24 of the company’s members, the holding company has now entered voluntary liquidation. DW Advisory principal Paul Weston was appointed as the liquidator for the process. Weston explained that the debt owed to related party creditors had been forgiven before shareholders decided to wind up the company.
According to Weston, GigSuper Holdings Pty Ltd had not been operational since 2021 and had no superannuation members or customers at that time. Thus, the decision to wind up the company was made as it was deemed to have reached the end of its useful life.
One controversial aspect of GigSuper’s history was its partnership with the now-defunct food delivery service, Deliveroo. Founded in 2017, GigSuper had collaborated with Deliveroo to allow gig workers, who are often paid per job and not included in a company’s payroll, to make their own superannuation contributions instead of having Deliveroo do it for them.
However, this partnership faced criticism from the Transport Workers Union (TWU), which deemed it an insult to food-delivery riders. The TWU highlighted that three out of four delivery riders were being paid below the minimum award, making it difficult for them to cover their super entitlements.
The collapse of GigSuper Group serves as a cautionary tale for companies operating in the gig economy space. It underscores the importance of financial stability and responsible business practices, especially when managing funds for workers in non-traditional employment arrangements.
As the gig economy continues to grow, it is essential for companies like GigSuper to prioritize transparency, accountability, and compliance with regulations to ensure the financial well-being of their members. The lessons learned from this incident can guide future endeavors in providing financial services to gig workers and self-employed individuals.
In conclusion, the voluntary liquidation of GigSuper Holdings Pty Ltd and its subsidiary highlights the challenges faced by companies catering to gig economy workers and sole traders. By learning from this experience, the industry can strive to create more sustainable and secure financial solutions for those operating in non-traditional work environments.
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