This article is from the Australian Property Journal archive
THE Victorian government wants to give the Victorian Building Authority (VBA) the powers to investigate illegal phoenix activity in the building sector, where companies deliberately go into administration to avoid liability for work before re-emerging as a new entity.
The Andrews government has introduced changes into Parliament this week.
The Bill strengthens the fit and proper person tests required for practitioner registration by incorporating financial probity requirements. This will allow greater scrutiny of company directors, secretaries and influential persons as part of the registration process.
The VBA will be able to refuse applications for new registration, or renewal of registration, if the applicant is suspected to have engaged in illegal phoenix activity at any time over the previous two years.
The Bill also expands existing suspension powers for building practitioners responsible for unsafe works to ensure that plumbers and architects can also face immediate suspension. This power was introduced for building practitioners in 2018 and has already been used by the VBA.
Minister for Planning Richard Wynne called on the federal government to stamp out illegal phoenix activity by making changes to national company laws.
“This bill is about giving Victorians more confidence in the building sector and helping the VBA to weed out those doing the wrong thing. Plumbers and architects can face immediate suspension under these new laws, as well as not having their industry registration renewed.
“We’re taking action to help curb illegal phoenix activity and it’s about time our Commonwealth counterparts did the same.” Wynne said.
The Bill will also modernise and strengthen the Architects Registration Board of Victoria to ensure that the board can effectively respond to present and future challenges and improve consumer protection and confidence in the industry; and wind up the Building Practitioners Board and transfer its outstanding inquiries to the VBA for a more streamlined, efficient assessment.
