Submissions Sought on ‘Phoenixing’ Crackdown

Media release – Guy Barnett, Minister for Small Business, Trade and Consumer Affairs, 23 January 2026

Public consultation opens on phoenixing crackdown

Feedback has opened on the Tasmanian Government’s plans to crack down on dodgy builders and improve protections for people building homes across the state.

Changes to the Occupational Licensing Act 2005 will strengthen disciplinary action against builders, plumbers, gas-fitters, electrical workers and other licensed professionals, without needing to rely on lengthy disciplinary panel processes.

Minister for Small Business, Trade and Consumer Affairs, Guy Barnett, said while Tasmania has a fantastic building industry with the vast majority of the industry doing the right thing, a small number of dodgy operators can cause major pain.

“The Government is cracking down on rogue operators in the building industry by bringing in stronger laws through this Bill,” Minister Barnett said.

“One of the key issues being addressed is phoenixing, where building companies unfairly avoid paying debts, only to reappear under a new name.

“This practice impacts consumers, subcontractors and workers, often leaving them with no way to recover lost funds.

Under the Bill, builders and contractors will become an ‘excluded individual’ if they:
• become bankrupt, or
• were a director, secretary, or ‘influential person’ of a construction company up to two years before the company experienced an insolvency event, such as liquidation or administration.

An excluded individual will be unable to hold a prescribed building services licence and cannot be a director, secretary or influential person in a licensed company for three years from the date of the insolvency.

“Importantly these reforms are designed to ensure Tasmanians can have greater confidence in the integrity of the building industry,” Minister Barnett said.

Community consultation is now open and will build on the input already received from industry stakeholders.

A copy of the Bill and supporting documents along with details on how to make a submission can be found here.

Submissions must be received by midnight on Friday 20 February 2026.

Media release – Shane Broad MP, Shadow Minister for Consumer Affairs, Shadow Minister for Building & Construction, 23 January 2026

Action on phoenixing welcome after three years of Liberal delay

Phoenixing is a real problem that has caused serious financial harm to Tasmanian families, subcontractors and small businesses, and I’m glad the Government is finally doing something about it.

I first raised the issue of phoenixing and builder insolvency more than three years ago during Budget Estimates with then Minister, Michael Ferguson.

At the time, I warned the Liberals that existing laws were failing to protect Tasmanians, and that reform was urgently needed. To his credit, Michael Ferguson promised to meet with me to discuss this issue and he did. However, the ferries fiasco led to Michael Ferguson resigning as a Minister.

It has taken three years and three different Ministers for the Government to finally move. While the action is long overdue, it is better late than never.

What matters now is making sure these measures actually deliver real protection for people who have been left exposed when builders collapse, walk away from projects, or reappear under new company names.

Labor will continue to work with the Government to ensure this crackdown is not just another headline but delivers real outcomes for Tasmanians who have been hurt by phoenixing.