Nicheliving directors fear being pursued for cash as tax bill eclipses $7m, tribunal told

Nicheliving owes more than $7 million to the Australian Tax Office and its directors worry that being deregistered will mean it has to pay back State Government-underwritten indemnity insurance. The Building Services Board decided a fortnight ago not to renew the group’s registration, leaving it unable to carry out construction works. But it also opened the door to long-suffering customers to apply for up to $200,000 in home indemnity insurance to cover, or go towards, the completion cost. Niche then appealed to the State Administrative Tribunal for an urgent stay of that decision, with its lawyer Martin Cuerden SC telling a hearing on Tuesday that the group was able to pay its debts when due. But the de-registration was affecting the group’s banking arrangements, Mr Cuerden said. “There is, in effect, this sword of Damocles hanging over the group’s head, triggered by the board’s decision,” he said. “Our 215 customers are not going to be better off: in fact, they are going to be worse off if we are not going to be able to complete the works.” He said the contracts were “at an advanced stage” but if terminated and insurance claims were made, then the scheme administrator QBE could pursue Niche to recover the payments. The Attorney-General’s office has intervened in the case, with State Solicitor’s Office counsel Tania Jeyamohan telling the tribunal that the group had a complex structure and had proposed to the ATO last month to pay it an owed $7.17 million over six-and-a-half years. One of its managing directors Ronnie Michel-Elhaj had claimed to have access to a number of “undisclosed” financing arrangements, she added. When de-registered, Niche was building 240 homes — not including an Inglewood apartment project — with 80 of these past the lock-up stage, 35 close to lock-up and about 110 “nowhere near completion or anticipated completion”, Ms Jeyamohan said. SAT president Justice Kathleen Glancy said the customers would have different stances, with some just wanting the insurance so they could pay a different builder to complete their homes. The matter will return to the tribunal on August 21. Outside, Richard Hamilton, who had been waiting almost four years for his three-by-two Orelia townhouse to be completed by Niche, said it had been an emotionally traumatic experience. He says he’s part of a WhatsApp group of about 120 directly affected people and he’s very concerned for the mental health of several of them. “We want this to be over as quickly as possible,” Mr Hamilton told reporters. “It’s kind of torture. It’s almost like a situation of emotional abuse that this is dragging out. “And we are quite angry that Niche is deciding to drag it out rather than just admitting the game is up and letting us get on with our lives. “Our lives have been on hold for, in many cases, up to three years.”