roofer worker builder working on roof structure at construction site
roofer worker builder working on roof structure at construction site

Regions where Qld’s builders are going bust

DOZENS of builders in regional Queensland were put in liquidation last financial year as activity in the sector continues to stagnate, new data reveals.

Queensland Building and Construction Commission figures revealed 178 construction insolvencies were recorded in the 2018-19 financial year.

While the majority, 100, were in Brisbane, the pain was littered across Queensland's regions.

In Rockhampton 14 building and construction insolvencies were recorded.

Its council has responded by offering $5000 for people to build a home in the region.

The success of the program is not yet measurable.

Maryborough on the Fraser Coast recorded eight insolvencies while in north Queensland Cairns had seven and Townsville six.

In the southeast corner the Gold Coast had 18 builder busts and the Sunshine Coast recorded 16.

While the 178 insolvencies were bad news for the industry, there were 954 new builder licensees in 2018-19.

Industry insolvencies are also at a five-year low, a QBCC spokesman said.

"Our most recent quarter showed a 31 per cent decrease in insolvencies compared to the five year average while the quarter prior to that was the lowest number of insolvencies we have seen in any quarter over the past five years," he said.


Industry insolvencies are at a five-year low.
Industry insolvencies are at a five-year low.


The spokesman said the commission was working to better understand the trends and risk factors in the industry.

"The QBCC is working to guard against the long-lasting effects that a company collapse can have on builders, tradies and homeowners," he said.

"In addition to researching insolvency trends in our industry, the QBCC has contributed funding for Federal Court public examinations into large-scale construction company collapses."

The collapse of the JM Kelly group of companies, which caused a $50 million hit to the industry and resulted in 1183 creditors being owed money, was one of several large recent liquidations.

Queensland One Homes collapsed in 2017 owing more than $5 million to more than 130 subcontractors.

Two creditors were reportedly owed more than $1 million each.

A public examination will look into the collapse of the Cullen Group in December 2016, leaving 500 creditors owed more than $18 million.

"When just one of the highest turnover licensees goes down, or starts to experience financial distress, we see the domino effect taking out smaller licensees in every category all the way down to our lowest financial categories because of the nature of subcontracting arrangements," the spokesman said.

Active builder contractors

Brisbane: 13,446

Cairns: 1600

Gold Coast: 3294

Mackay: 801

Maryborough: 1132

Rockhampton: 807

Sunshine Coast: 3249

Toowoomba: 1687

Townsville: 1118


Brisbane: 100

Cairns: 7

Gold Coast: 18

Mackay: 2

Maryborough: 8

Rockhampton: 14

Sunshine Coast: 16

Toowoomba: 7

Townsville: 6


In October dozens of businesses were placed into liquidation.

See The Courier-Mail's full list here.