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GOLD COAST SUBBIES SUFFERING AS LNP DELAYS ON PHOENIXING

March 07, 2018

 

Gold Coast subbies and home buyers continue to suffer, as their Federal LNP MPs stall on crucial building reforms.

Last week we saw another Gold Coast construction company collapse, leaving subcontractors and homeowners tens of thousands of dollars out of pocket.

Most alarmingly, we see ongoing evidence of local phoenix activity, where a business transfers assets to a related company before intentionally collapsing their business, all to avoid paying their debts to employees, the Government and honest businesses.

This is unacceptable and damaging to our community. The Queensland Government has taken action to stop it, but the Federal Government needs to do more.

Federal Labor has announced a number of policies to crack down on dodgy directors that are engaging in illegal phoenix activity, including:

  • Require all company directors to obtain a unique Director Identification Number with a 100-point identification check.
  • Increase penalties associated with phoenix activity
  • Introduce an objective test for transactions depriving employees of their entitlements
  • Clarify the availability of compensation orders against accessories
  • Consult on targeted integrity measures based on the recommendations of the Melbourne Law School / Monash Business School Phoenix Research Team recommendations.

Almost 6 months since the Government was dragged kicking and screaming to matching Labor on a Director Identification Number, there is no sign of legislation.

The Government still hasn’t clarified whether acquiring a director identification number will require a 100-point identity check – a fundamental aspect of the proposal Labor announced in May and backed by everyone from the Australian Institute of Company Directors to the Master Builders Association.

It is disappointing to see the Turnbull Government continue the delays, while locals suffer.

On the Gold Coast, we have seen no action from the wall to wall LNP MPs, instead preferring to turn a blind eye to repeated examples of local businesses being ripped off.

Today I will be meeting with subcontractors that have been ripped off by dodgy builders, to discuss what Federal Labor has proposed to tackle phoenix activity and what more I can do to further support Gold Coast subbies.

Unlike the LNP, Labor isn’t taking the Gold Coast for granted.

The rorts have got to stop.

A FAIR GO FOR AUSTRALIA