The Tasmanian Government has taken the bull by the horns with its planned legislation to combat corporate Phoenixing in the building industry.

Login or signup to continue reading

What's Phoenixing? Phoenixing occurs when a company is liquidated to avoid paying its debts, only for a new company-often run by the same individuals-to emerge and continue operating as if nothing happened.

The government plans to pass legislation to protect consumers, suppliers, and legitimate businesses, which is a good policy in any language.

Minister for Housing, Planning, and Consumer Affairs Felix Ellis has made it clear that those engaging in fraudulent business practices will be held accountable. He has put on the boss hat and said the government will come down on dodgy construction company directors "like a tonne of bricks."

Every sheriff needs a deputy; in this instance, that's the Consumer, Building, and Occupational Services (CBOS). The new legislation will give CBOS more power to regulate and penalise those engaging in Phoenix activity.

The practice of leaving behind unpaid suppliers, contractors, and customers has damaged trust in the construction industry; this legislation aims to regain that trust by whacking unscrupulous........

© The Examiner