FEDERAL Parliament has passed new anti-phoenixing laws, which will force directors within the construction industry, from 2021, to get an ATO-registered identification number. 

Master Builders ACT has welcomed these laws, saying it’ll prevent directors from creating a new company to continue the business of a company that has been deliberately liquidated to avoid paying its debts. 

“Master Builders has been lobbying various levels of government to implement tougher anti-phoenixing laws for some time now and is pleased to hear the announcement of these new laws,” says Master Builders ACT CEO Michael Hopkins. 

“This is a step in the right direction which will have a positive impact on the building reform process and hopefully will provide more confidence in the sector and in government regulators. 

“This new system, which is expected to be implemented in 2021, will prevent homeowners, local subcontractors and suppliers being left out of pocket should a company become liquidated.”

Shadow planning minister Mark Parton has welcomed the anti-phoenixing laws, too, saying too many dodgy builders have had a free ride in the ACT.

By requiring company directors to verify their identity, Mr Parton says it will have a flow on effect on building quality in the ACT.

“This is a positive and practical measure to crack down on phoenixing and provide the community with greater building quality assurance,” he says.