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No more rising from the ashes for Tasmanian dodgy builders

26 MAR 2026 By Mathew Williams 3 min read Tax & Legal
Builders who close down to avoid debt before emerging under a new name have been targeted by the Tasmanian government as part of a new bill making its way through Parliament.
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The Tasmanian government has begun its crackdown on dodgy builders, with stamping out “phoenixing” firmly in the sights of new proposed reforms.

As part of the government’s proposed Occupational Licensing Amendment Bill 2026, additional protections for consumers would be implemented, including cracking down on dodgy builders who close down to avoid debts, before reopening under a new name, known as “phoenixing”

Phoenixing often leaves consumers, subcontractors, and workers out of pocket, with no way to recover the funds.

Minister for Small Business, Trade and Consumer Affairs Guy Barnett said the reform would close loopholes and ensure licence holders maintain high standards.

 
 

“This Bill improves consumer protections for people building homes across the State by providing stronger powers to crack down on dodgy operators,” Barnett said.

“The vast majority of tradespeople working in Tasmania’s building industry are highly skilled and work to high standards.”

“These reforms protect Tasmanians but also the industry as a whole from the few who do the wrong thing.”

Barnett said the reform would strengthen the integrity of the building industry and create a greater sense of certainty regarding home delivery

“These reforms are designed to ensure Tasmanians will have greater confidence in the integrity of the building industry,” Barnett concluded.