Is FEG flogging a dead horse?

The Queensland Supreme Court has recently dismissed another application by FEG seeking s561 priority where the secured creditor is not owed any money (this time by reason of setoff). Re Condev Constructions Pty Limited (in liqu) [2025] QSC 173. 

This follows FEGs unsuccessful 2023 appeal in Commonwealth of Australia v Tonks [2023] NSWCA 285 running essentially the same argument. 

I posted about the lacuna in the legislation in December 2023, and on FEG's approach in April 2024.

It appears we are not any closer to a practical, equitable approach to dealing with employee entitlements and circulating assets.