JMR Fitting and Labour restructure after $415,000 hole

A Tasmanian construction boss says people “not paying for jobs” led to choppy waters for the company, leading to a significant restructure in the wake of a large ATO debt. UPDATED >>

Sunnyside company director Jason Rayner. Picture: Facebook

UPDATED: A Tasmanian construction boss says he is “living in a shed” after repeated non-payment for his services pushed his company to the wall, leading to a significant restructure of the firm in the wake of a $415,000 debt owed to the Australian Taxation Office.

Sunnyside man Jason Rayner, the owner of Railton-based JMR Fitting and Labour Hire, founded in late-2013, said the restructure, first commenced in late-2019, is in the process of being finalised.

As part of the restructure, JMR Fitting and Labour Hire Services Pty Ltd, which ceased trading at the time the restructure commenced, is now being wound up, with its debts in the process of being paid off.

Documents lodged with corporate regulator ASIC show the company owes $415,858.49, balanced against $11,826 cash at bank.

All bar $526.56 is owed to the ATO.

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A total of $23,475 is owed in unpaid employee superannuation benefits. The rest, $391,856.93, is in unpaid GST and PAYG.

As part of the restructure, the business assets were transferred to a new entity, the similarly named JMR Fitting and Labour Hire Pty Ltd. It’s understood this company continues to operate JMR’s business, with Mr Rayner remaining at the helm.

Mr Rayner said the restructure has pushed him to the wall.

“I’m living in a shed,” he said.

He said the business’ issues were caused by “people not paying for jobs”.

He said the outstanding superannuation bill related to his own entitlements.

Mr Rayner said the company did previously owe approximately $50,000 in unpaid employee superannuation, but that this had already been paid off as part of the restructure.

“It all got finalised the other week,” he said.

The business has continued to trade as normal through the restructure. It’s understood to have dozens of employees.

EARLIER: Tasmanian welding and fabrication firm has entered liquidation owing the Australian Taxation Office more than $400,000 in unpaid income tax, GST and employee superannuation.

Railton company JMR Fitting and Labour Hire Services Pty Ltd, owned by Sunnyside man Jason Rayner, was voluntarily wound-up on November 21. It was first registered in November 2013.

According to documents lodged with the corporate regulator ASIC, the company owes a minimum of $415,858.49, balanced against $11,826 cash at bank.

All bar $526.56 is owed to the ATO.

A total of $23,475 owed in unpaid employee superannuation benefits. The rest, $391,856.93, is in unpaid GST and PAYG.

An undisclosed amount is also owed to secured creditor Capital Finance Australia Ltd.

According to the documents, the company ceased trading on September 17, 2019.

However, this was not the end of the business, JMR Fitting and Labour, as one month prior, company director Mr Rayner registered a new entity, the similarly named JMR Fitting and Labour Hire Pty Ltd. It’s understood this company continues to operate JMR Fitting and Labour.

When contacted by the Mercury, Mr Rayner, the company’s director, said the “business has sold”. He declined to answer further questions.

Mr Rayner’s phone number is still listed as the primary contact on JMR’s Facebook page, which most recently posted on December 8.

A previous employee of JMR – who “hasn’t worked there for a few years now” – alleged that during his time there, JMR did not pay his superannuation for a period of time.

“I wasn’t paid super for a couple years until other employees caught onto it,” the ex-employee said. It’s understood his benefits were subsequently paid.

The winding-up process is being handled by Jarvis Archer, of southeast Queensland firm Revive Financial.