Collapsed builder owes tradie $88k
A GOLD Coast tradie does not believe he will see a cent of the $88,000 he is owed after the collapse of Cullen Group Australia.
Bernard Moolman, the director of Nerang company Ozzie Electrical and Solar, was one of the 520 creditors left empty-handed following the voluntary winding up of the company in 2016.
A recent report by a Federal Taskforce shows Mr Moolman is not alone with thousands of similar collapses costing the Australian economy up to $5.1 billion each year.
The impacts are estimated to strip $3.2 billion from small businesses, $300 million from employees, and $1.6 billion from ATO collections of government revenues.
Mr Moolman said his business had to let go of at least 30 staff and the company was still working to find its feet.
"It is hard for us to keep a straight face and keep paying our suppliers, the ATO and our staff while we are owed so much," Mr Moolman said.
"It is a shame to see so many small companies hurt while the big boys can continue on."
"You have had sleepless nights and some times you don't want to wake up to face the next day, because you know you are going to be dealing with it again," Mr Moolman said.
Shadow Assistant Treasurer Andrew Leigh MP said the Labor Party has committed to a number of measures to combat the major issues, including the introduction of a Director Identification Number.
"It is harder to open a bank account than be registered as a company director," Mr Leigh said.
The Opposition also plans to give the Commissioner of Taxation the power to name individuals and entities as a penalty for the most serious tax offences.
Under the policy the Commissioner will also be able to apply to the consumer watchdog to have them formally seek disqualification orders for directors who engaged in or oversaw serious noncompliance.
The announcements follow statements of support from the LNP Government over 18 months ago.
Draft legislation to establish Director Identification Numbers was only produced as of October 1.