Public Consultation Opens On Phoenixing Crackdown

Tasmanian Government

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.

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