Perth builder Western Luxury Homes goes into liquidation

A building company with a number of housing projects still on the go has collapsed, leaving customers in the lurch.

Twelve customers hoping to have their homes built by a West Australian building company have been left disappointed after the business collapsed.

Perth builder Western Luxury Homes Pty Ltd was placed into liquidation on Friday, according to a notice published by ASIC.

The failing business has now been handed over to RSM liquidators Travis Kukura and Jerome Hall Mohen who will take charge of finding a solution to the company’s financial woes.

Western Luxury Homes was placed into liquidation. Picture: NCA NewsWire / Luis Enrique Ascui

It is understood 12 homes were left incomplete when the building company folded, with signed contracts dating back to mid-2020.

Clients are being urged to contact their home indemnity insurance provider, QBE Insurance, following the shock collapse.

“This enables homeowners to begin the process of engaging another registered builder to complete the work or managing other remedies they may be entitled to,” Building and Energy executive director Saj Abdoolakhan said.

The failed business joins a long line of companies going belly up in Western Australia.

Building and Energy said an average of 22 registered residential building contractors become insolvent every year in the state.

Western Luxury Homes joins the ranks of other failed building companies, including Modco Residential, Slatter Group, WA Housing Group, Flexible Homes, Individual Developments, Hamlen Homes and City Residence.

An average of 22 building companies go bust in WA annually. Picture: NCA NewsWire / Luis Enrique Ascui

Subcontractors also affected by Western Luxury Homes’ insolvency should contact RSM Australia directly.

It comes as experts warn Aussie businesses are more at risk of becoming insolvent due mounting legacy debt owed to the ATO.

The annual Corporate Insolvency Index revealed there was a 57 per cent increase nationally in the total administration appointments made to help businesses dig themselves out of a financial hole in Q4 of the 2022-23 financial year.

The report, which is produced by Insolvency Australia and sponsored by G & H Financial, found there 3008 businesses had been appointed an administrator compared with the previous corresponding period, which saw only 1921 were assigned.

Originally published as Perth builder Western Luxury Homes goes into liquidation