Comlek Group director Michael Donaldson speaks out on voluntary administration

A one-off $10m tax bill has up-ended a star Mackay business but the managing director says the company will lodge an official objection and will do everything it can to protect its 140 employees.

Comlek managing director Michael Donaldson says he will do the right thing by employees.

Comlek Group’s managing director has pledged to do “the right thing” and protect his 140 employees as the company moves through the choppy waters of voluntary administration.

The company entered administration this week after being hit with a one-off $10m tax bill from the Queensland Revenue Office.

“The office of state revenue issued a notice on me a month ago, which I knew nothing about at all, and they have just slammed it,” managing director Michael Donaldson said.

The QRO claims the company underpaid or did not pay its payroll tax from 2010 until 2022.

Mr Donaldson said he would lodge an official objection to the claim in the near future.

“We have gone through some of the documentation and we feel there have been miscalculations on the assessment from the Queensland Revenue Office,” he said.

“It is incorrect.”

Comlek Group managing director Michael Donaldson. Picture: Contributed

Mr Donaldson said the company had proffered an interim repayment plan to the QRO.

“They wanted a payment plan on their terms,” he said.

“The terms and conditions they put forward were not achievable.”

Mr Donaldson said the company was trading profitably and paid its creditors.

“We are a very good company, we are very loyal with our employees, our clients, our customers and also the creditors,” he said.

“They are all paid up on 30 days, every time at the end of the month.

“We have never missed a payment.”

Mr Donaldson expressed confidence his company would get through the process and grow to be a “recognised leader” in the industries it services.

“I am a man of my word, I’ll do the right thing by the employees and the company,” he said.

“We have the full support of our employees, creditors and customers to get us through this process.”

The Comlek Group warehouse at Mackay Harbour. Picture: Duncan Evans

The company consists of a range of entities offering services to Mackay and the Bowen Basin including labour hire, electrical, engineering and mechanical services.

The company has serviced BMA and Lucas Drilling and alongside mining, it has branched out into tourism and entertainment, providing workers to islands on the Reef.

It is understood the future of the company hangs on a crucial meeting in mid January between Comlek and its creditors.

The company’s directors will propose a deed of company arrangement that would allow the company to continue to trade and preserve all employees and their entitlements.

Creditors and employees will vote on whether to accept the proposal.

The QRO is Comlek’s largest creditor.

Administrators Andrew McCabe and Joseph Hayes from Wexted Advisors are running the company in the interim.

“We are continuing to trade on the business while we undertake a review of the financial position of the company,” Mr McCabe said.

“Absent the Queensland Revenue Office claim, the company is trading profitably.”

Originally published as Comlek Group director Michael Donaldson speaks out on voluntary administration