Master Builders welcomes moves to crackdown on illegal phoenix company activity, and views the Australian Labor Party’s commitment to implement a Director Identification Number (DIN) for company directors as an important step in the right direction.
Master Builders has long advocated this simple but effective approach, which was recommended by the Cole Royal Commission into the Building and Construction Industry. The implementation of a DIN will help regulators make better use of existing laws and resources.
Whilst the vast majority of participants in the construction industry do the right thing, it is important that the minority of rogue operators that deliberately hold themselves above the law are held accountable for their actions.
It should be noted that in addition to the negative impact illegal phoenix company activity has on employees, creditors and the public revenue, victims of ‘phoenix activity’ also include contractors – many of whom are the small businesses which make up 98 per cent of our industry.