In recent months, a spike in the number of Australian building companies entering administration has led to concerns from consumers and practitioners about the industry's viability, amid supply chain issues, cost of materials and other economic factors.
The VBA is concerned by reports of companies facing financial difficulty, noting the significant impact that insolvencies have on consumers, practitioners and their suppliers.
Some common misconceptions around lawful debt management and the suspension of Victorian building and plumbing licences and registrations that you should be aware of are:
- Debt restructuring does not automatically result in the suspension or cancellation of licences and registrations by the VBA. Where it involves the liquidation or other external administration of a company, the Authority will need to consider some form of regulatory action.
- Practitioners are encouraged to engage early with the VBA to seek advice and guidance on compliance with statutory requirements, including payment plans and other resources that may be available to assist in managing financial distress.
- Engaging early with the VBA, especially where the liquidation or other external administration of a company is being considered, can help to ensure that practitioners are able to continue operating and providing services to their clients in a compliant and sustainable manner.
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