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“Illegal phoenixing is the deliberate and systematic liquidation of companies with the fraudulent or illegal intention to avoid tax and other liabilities,” said Stuart Collins, HIA Executive Director Tasmania.
“While there may be only a small number of instances of this occurring in Tasmania when it does it causes significant cost and reputational damage to industry.
“It also creates an uneven playing field and represents an inefficiency in the industry which leads to a misallocation of resources, additional costs and lower productivity.
“While it is difficult to quantify its impact, according to the Fair Work Ombudsman and PwC, the cost of illegal phoenix activity nationally is estimated to be in the range of $2.85 to $5.13 billion, with the estimated direct cost on business being between $1,162 – $3,171 million per year.
“The introduction of tighter controls to prevent illegal phoenixing In Tasmania will undoubtedly provide industry and consumers with greater ‘peace of mind’ when proceeding with their housing projects,” concluded Mr Collins.
HIA is calling on the Federal Government to act urgently to support Australia’s building product manufacturers and suppliers, an industry worth more than $130 billion and critical to the delivery of new housing across the country,” HIA Managing Director, Jocelyn Martin said today.
With the delay to decisions on the content of NCC 2025, the ABCB has published a further amendment to the current NCC 2022 which applies from 29 July 2025. The purpose of this minor amendment is to align the NCC with recent changes to the Premises Standards which apply to Class 3 to 9 public buildings, common areas of Class 2 apartment buildings and short-term accommodation
“HIA alongside a group of construction leaders and Standards Australia came together today at Parliament House, to present a united front in getting easier access to Australian Standards in the hands of those who need them most,” said HIA Managing Director, Jocelyn Martin.
HIA has made a comprehensive suite of submissions to the Productivity Commission ahead of the upcoming Treasurer’s Economic Reform Roundtable on 19-21 August.