Subcontractors

Over the past 10 years the building and construction industry has contributed approximately 10 percent of Australia’s GDP and accounts for nearly the same proportion of employment. However, over the same period the construction industry has experienced nearly one quarter of all insolvencies in Australia. There is a culture of non-payment of subcontractors in the construction industry, as well as serious allegations that phoenixing activity has become an acceptable way to make a profit.

We successfully negotiated for changes to legislation to enhance protections for subcontractors in the building and construction industry. We also negotiated a comprehensive review into security of payment laws, which commenced on 21 December 2016. 

Examples of what needs to be done:

• Implementation of all of the Senate Economics Committee’s recommendations in their report on insolvency in the construction industry.
• National legislation for a security of payment regime, and rapid adjudication processes in the commercial construction industry, in line with the recommendations from the review conducted by Mr John Murray AM.
• Close the legal loopholes that allow phoenixing activity to take place.