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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.
Recent changes to planning controls made by the NSW Government further extend permissibility for dual occupancy development in NSW.
Western Australia’s construction industry has faced significant disruption over the past five years, with rising costs, supply chain challenges, and economic uncertainty contributing to the loss of hundreds of registered builders and many more contractors across the state. As the housing market continues to grow and demand for new homes intensifies, rebuilding the builder base is critical — and that starts with supporting new entrants through the builder registration process.
Over the past five years, Western Australia’s construction industry has experienced significant disruption. Rising costs, supply chain challenges and economic uncertainty have contributed to the loss of hundreds of registered builders and many more contractors across the state. As demand for new housing continues to grow, rebuilding our builder base is essential — and that starts with supporting new entrants through the builder registration process.
The Housing Industry Association (HIA) welcomes the Premier’s acknowledgment in Question Time today that he is “...less than satisfied with Homes Tasmania’s performance…”.