Hansen v Queensland Building Services Authority

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CITATION: Hansen v Queensland Building Services Authority [2013] QCAT 613
PARTIES: Phillip Anthony Hansen
(Applicant)
v
Queensland Building Services Authority (Respondent)
APPLICATION NUMBER: OCR344 -12
MATTER TYPE: Occupational regulation matters
HEARING DATE: 24 October 2013
HEARD AT: Brisbane
DECISION OF: Member Gardiner
DELIVERED ON: 6 November 2013
DELIVERED AT: Brisbane
ORDERS MADE: 1.   The decision of the Authority dated 31 August 2012 refusing to categorise Mr Hansen as a permitted individual in relation to the event the liquidation of City Landscape Supplies Pty Ltd is confirmed.
CATCHWORDS:

PERMITTED INDIVIDUAL – Where the applicant director of a landscaping supply company as adjunct to his main business – Where previous business had been successful – Where new business started in now location with some equipment from previous business – Where company undercapitalised – Where Brisbane floods interrupted business – Where company unable to pay its tax  – Where director relied largely on previous business experience with little outside professional advice

Queensland Building Services Authority Act 1991 ss 56AC, 56AD, 58

Younan v QBSA [2010] QDC 158 followed

APPEARANCES and REPRESENTATION (if any):

APPLICANT: Mr Hansen appeared in person
RESPONDENT: Ms S Van Eyk Solicitor represented the QBSA

REASONS FOR DECISION

  1. On 31 August 2012, the Queensland Building Services Authority refused an application by Mr Phillip Hansen to be categorised as a permitted individual under s 56 AD(1) of the Queensland Building Services Authority Act 1991 (QBSA Act).

  2. Mr Hansen is a licensed builder, holding an open license.  Mr Hansen was also a director of City Landscape Supplies Pty Ltd.    

  3. On 29 February 2012, liquidators were appointed for City Landscape Supplies Pty Ltd.  The company had outstanding debts of $40,850 to the Australian Taxation Office[1].

    [1]        Copy of Tax Agent Portal for company 3 June 2011 to 29 February 2012.

  4. Under the current Queensland licensing system for builders, if a builder is a director or influential person in a company that has become insolvent, the builder is an excluded individual and the building license is cancelled for 5 years[2].  

    [2] QBSA Act s 56AC.

  5. However an excluded builder can apply to be a permitted individual allowing him to retain his building license if the builder can satisfy the Authority that he took all reasonable steps to avoid the coming into existence of the circumstances that resulted in the happening of the relevant event, here the liquidation of City Landscape Supplies[3].

    [3] Ibid s 56AD.

  6. The QBSA Act also sets out the matters the Authority (and therefore this Tribunal) must have regard to when examining any action by the excluded builder to show that he took all reasonable steps to avoid the coming into existence of the circumstances that resulted in the happening of the two  relevant events in this matter[4].   The Authority is also able to have regard to other matters when deciding if a builder took all reasonable steps[5].

    [4] Ibid s 56AD(8A).

    [5] Ibid s56AD(8B).

  7. The leading decision of Judge McGill in Younan v QBSA[6] identifies a four step process…

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Details
Case
[2013] QCAT 613
Decision Date

CaseChat Overview and Summary

Phillip Anthony Hansen, a licensed builder and director of City Landscape Supplies Pty Ltd, sought to be categorised as a permitted individual under the Queensland Building Services Authority Act 1991. The Queensland Building Services Authority (QBSA) refused Mr Hansen's application, leading to this appeal before the Queensland Civil and Administrative Tribunal. The primary issue before the Tribunal was whether Mr Hansen took all reasonable steps to avoid the circumstances leading to the liquidation of City Landscape Supplies Pty Ltd, thereby qualifying him as a permitted individual.

The Tribunal examined the evidence provided by Mr Hansen, including his reliance on his previous business experience, financial contributions, and the impact of the 2010 Brisbane floods and the economic downturn on the landscaping industry. The Tribunal also considered the QBSA's submissions that Mr Hansen failed to take external professional advice, did not provide sufficient financial documentation, and did not make adequate provision for tax debts. The Tribunal applied the four-step process outlined in Younan v QBSA, focusing particularly on whether Mr Hansen took reasonable steps to avoid the circumstances leading to the liquidation.

The Tribunal concluded that Mr Hansen did not take all reasonable steps to avoid the circumstances leading to the liquidation. It found that Mr Hansen's reliance on his previous business experience without external advice was not reasonable, especially given the financial difficulties faced by City Landscape Supplies. The Tribunal also noted that Mr Hansen did not seek external advice until February 2012, despite months of financial instability, and did not make adequate provisions for tax debts. Consequently, the Tribunal upheld the QBSA's decision to refuse Mr Hansen's application to be categorised as a permitted individual.

The final orders confirmed the QBSA's decision dated 31 August 2012, refusing Mr Hansen's application to be categorised as a permitted individual in relation to the liquidation of City Landscape Supplies Pty Ltd.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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