Boost for tradies as Labor vows to bring in new laws guaranteeing workers will get paid even if their employer goes bust
- Labor is vowing tradies working on government-funded projects WILL get paid
- If elected, Bill Shorten will guarantee tradies will be protected under new laws
- It's in a bid to rule out dodgy businesses from folding to avoid paying their debts
- A $7 million fund would also help ASIC take more phoenix activity cases to court
Tradesmen working on federal government-funded projects will continue to be paid even if their employers go bust, under proposals announced by Labor.
Federal Opposition Leader Bill Shorten has vowed to create a national framework to ensure no subcontractor or small business is left out of pocket by dodgy activity if Labor wins the next election.
The 'Tradie Pay Guarantee' requirements would apply to all large federal government-funded construction projects in a bid to make sure tradies are protected and paid on time.
Federal Opposition Leader Bill Shorten (pictured) has also pledged to create a national framework to ensure no subcontractor or small business is left out of pocket by companies that go bust then set up again under another name
Under the plan, directors won't be allowed to fold their company, only to then set up under a different name in order to avoid paying their debts in a practice known as illegal phoenix activity.
The national framework would include a new process for handling disputes and laws supporting payment security.
'These measures, along with previous commitments such as naming and shaming directors and increasing penalties associated with phoenix activity, will help protect Australian jobs and the economy,' Mr Shorten said in a statement.
Labor would also set up a $7million fund to help the Australian Securities and Investments Commission take more phoenix activity cases to court in order to help subcontractors get justice.
Labor has vowed that tradies working on federal government-funded construction projects will be guaranteed to get what they're owed even if dodgy businesses go bust
The flow on effects of dodgy phoenix activity have been dire for the Australian economy and small business.
According to July 2018's Phoenix Taskforce Report, dodgy construction business cost the economy up to $5.1 billion in 2015-16, with an estimated $300 million in lost wages for workers, as well as $1.6 billion in lost taxes never paid to the Australian Tax Office.
