Government responds to Murray Review changes

Federal Government targets construction payment issues

Government responds to Murray Review changes

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The Federal Government’s response to the Murray Review has drawn attention from Master Builders Australia, which described the move as a necessary step to address payment issues and regulatory inconsistencies in the building and construction industry. 

The building and construction sector includes more than 260,000 independent contractors and self-employed tradespeople, supported by over 450,000 businesses across the country. Nearly 99% of these businesses are small and medium enterprises. Ensuring that payments are made on time and in full is considered essential for the sustainability of these businesses and the overall stability of the industry. 

A key measure in the government’s response is the provision of additional funding to the Australian Securities and Investments Commission (ASIC) to enhance enforcement through the Director Identification Number (DIN) scheme.  

The DIN system was introduced to address illegal phoenix activity, where businesses deliberately liquidate to avoid paying creditors, and to target other types of commercial misconduct. 

Master Builders Australia chief executive Denita Wawn said the director identification number is designed to reduce phoenixing and other improper practices that undermine businesses complying with the law. 

Master Builders has long supported a DIN as a way to help government agencies and regulators enforce existing laws far more effectively while avoiding the need for higher levels of red tape and regulation," said Wawn. "Unfortunately, the introduction of the DIN has not worked as effectively as the industry would’ve liked to see." 

Wawn added that the additional funding for ASIC to focus on high-risk individuals is a positive step but called for stronger collaboration between ASIC and other agencies, including the Australian Taxation Office, to identify potential phoenix activity at an earlier stage. 

The association also welcomed the government’s acknowledgment of its responsibility to address inconsistencies across state and territory regulations.  

Wawn said the recognition of this issue is significant, as regulatory differences between jurisdictions have created administrative complexities for businesses.  

She said that restoring the original intent of these laws and aligning them nationally is an important part of improving the regulatory framework. 

Beyond the DIN reforms, the Federal Government has outlined a range of other proposed changes, which will undergo further consultation.  

Master Builders Australia said it is reviewing these proposals and plans to work with the government to ensure the changes do not impose additional costs or regulatory burdens on businesses. 

The association continues to call for broader reforms to address ongoing challenges in the construction industry. These include improving economic conditions and productivity, reducing regulatory complexity, promoting fairer risk allocation in construction contracts, enforcing existing laws more effectively, and supporting small businesses to operate sustainably. 

As discussions on the government’s response to the Murray Review continue, questions remain about how these measures will shape the future regulatory landscape for the construction industry.  

What is your view on the government’s proposed changes? Share your thoughts below. 

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