Brisbane building firm goes under owing tax man six-figure sum

A Brisbane construction company has collapsed after being targeted in a crackdown by the state’s building watchdog on struggling firms in the sector.

A Highgate Hill construction company has collapsed after being targeted in a crackdown by the state’s building watchdog.

Bill Karageozis, of McLeod and Partners, was appointed liquidator of Skymark Construction, after more than 120 Queensland building firms were told to stop undertaking new jobs until they could prove their financial health.

Mr Karageozis said investigations into the collapse of the firm were continuing, but it appeared the Australian Taxation Office was the main creditor and is owed about $795,000.

According to the Queensland Building and Construction Commission (QBCC), Skymark has undertaken more than 40 projects over the past five years totalling about $11m.

A QBCC spokesperson said the company’s licence was cancelled on June 16 for its failure to submit its mandatory annual financial report.

“The QBCC prohibited the company from providing tenders or quotes, or entering into any new contracts for building work until it submitted its reporting,” the spokesperson said.

The watchdog said it had started appropriate exclusion action against office holders of the company, including its directors.

“If an individual is excluded, they are unable to hold a QBCC contractor, nominee supervisor or site supervisor’s licence or be a director, secretary or influential person for a QBCC-licensed company for three years,” the spokesperson said.

Queensland’s building watchdog has launched a new blitz on recalcitrant builders with more than 120 told their licences were in jeopardy if they did not provide updated financial data.

QBCC commissioner Brett Bassett said the annual financial reporting system provided homeowners with reassurance that builders had the financial resources to complete projects. “Similarly, subcontractors and suppliers can be more assured that they are doing business with viable operators,” said Mr Bassett.

Financial reporting allowed the watchdog to monitor the viability of small businesses and means it can step in sooner if there is a risk that the licensee is operating above their means

“The majority of licensees have lodged their reporting but those who haven’t could face regulatory action that starts with licence conditions and could end with cancellation,” he said.