Hundreds of subcontractors and their employees are left in the lurch as Senator Bob Day’s The Home Australia group has gone into liquidation and construction on 207 properties around the country has been put on hold.
Home Australia Group operates under different brand names in five states:
While the home buyers were protected by mandatory insurance worth up to $100,000, thousands of contractors working directly for the company would not be entitled to compensation under the Federal Government’s Fair Entitlements Guarantee scheme.
The effects of this collapse will be catastrophic to many and it’s time something is done about it.
Senator Nick Xenophon is fighting in our corner, calling for national reforms to ensure the security of payments for subcontractors in the construction industry and has said how he decides to vote on the government’s bid to re-establish the Australian Building and Construction Commission (ABCC) is “contingent on an effective national approach to security of payments laws, including considering having a statutory trust to protect subcontractors.”
The Turnbull government is pushing to have its two double dissolution industrial relations bills passed by the Senate before year's end, as it ramps up its campaign to curb excesses across the construction industry.
At ConX, we are working hard and moving as quick as we can to come up with completely new model to protect subcontractor payments. Watch this space and we’ll keep you update as we progress.