Dodgy builders crackdown planned for Tasmania

The Tasmanian government wants to come down on dodgy builders “like a tonne of bricks” and is ready to hand regulators the right tools to do so.

HAI representative Jacob Sertori, business owner Ken Saville, business owner, Minister Felix Ellis, COW representative Robyn Pearce and David Clerk from Master Builders at Invermay on Tuesday, February 25, 2025.

The state government it will come down on dodgy builders “like a tonne of bricks”, announcing plans to introduce measures to stop corporate phoenixing and to tighten regulation of the construction industry.

Minister for Housing, Planning and Consumer Affairs Felix Ellis said he wanted to ensure that when Tasmanians put their trust in a company to build their dream home, that trust isn’t broken.

“We will introduce strong new legislation to prevent corporate phoenixing of building companies, and importantly, provide more powers to our building licensing regulator,” he said.

“Our building and construction industry is the backbone of the Tasmanian economy, building our homes, roads, and communities.

“Unfortunately, like any industry, there are some operators who may try to take advantage of Tasmanians trying to get ahead.

“While we have already commenced work on a Home Warranty Scheme to support those who fall victim to corporate phoenixing, this is targeting the root of the problem and stopping it from happening in the first place.”

Business owner Ken Saville with Minister Felix Ellis at Invermay on Tuesday, February 25, 2025.

Mr Ellis said the government would produce draft legislation before consulting with the public and industry on the changes — which would include ramping up the powers of the Administrator of Occupational Licensing to take action against dodgy builders, plumbers, gasfitters, electrical workers and other licence holders.

Consumer Building and Occupational Services executive director Robyn Pearce welcomed the plan.

“As a regulator, it’s just really important that we have the right tools to be able to protect consumers and make sure that they don’t come to harm,” she said.

“So as it stands at the moment, over the last three years, about a quarter of those building businesses that have become insolvent have recreated themselves under another company.

“The way the law stands at the moment, we license the builder, we license the contractor, we license an organisation if they don’t employ a builder, but those who do employ builders, the actual owners have no accountability.

“It’s important that we make sure that people who are running the business are fit and proper and sound financially to be able to be in charge of those businesses.”

Master Builders Tasmania CEO David Clerk said better protections would boost confidence.

“Not only is it important that consumers know they will be protected, it’s vital that sub-contractors have confidence in the sector,” Mr Clerk said.

“We’ve seen that when a builder faces difficulties not only does it have a terrible impact on the homeowner, the flow on effects through the industry are also an issue, with sub-contractors often left out of pocket.

“Anything we can do to provide more certainty and confidence is welcome.”

Originally published as Dodgy builders crackdown planned for Tasmania