Our CEO, Kate Raymond, has been actively engaging with politicians and department officials nationwide, including Senator Murray Watt (pictured). MEA is committed to securing better protections for subcontractors, particularly through security of payment reform.

“We must find effective solutions to ensure subcontractors are paid following builder or head contractor insolvency,” Kate said during her meetings.

MEA’s current policy position advocates for a federal scheme, similar to the one in place for unpaid workers, where subcontractors can be compensated up to $50,000 for completed work if the builder goes into liquidation. Kate has been informing federal and state/territory political leaders that existing measures have been ineffective, necessitating new approaches. The advantage of our advocated federal scheme is that it allows regulators to pursue directors of insolvent companies for non-payment of subcontractors, thereby reducing phoenixing arrangements.

Kate has also been advocating strongly for improved processes for the return of retention money. She asserts that there should be a retention facility established, similar to rental bond schemes, where builders must pay the amount into a government fund. This approach offers multiple benefits, including reducing the incentive for builders to withhold retention money and placing the onus on builders to justify access to these funds. Interest earned on these central holdings could also help fund the federal insolvency payment scheme.

MEA holds strong policy positions on several issues impacting trade contractors, including unfair contract terms, small business red tape relief, workforce and skills development, licensing, and consumer energy resources. We are here for you and the overall industry. You can read more about our initiatives and how you can support them here.