Tax debt hampers local fire firm

GEELONG Fire Services Pty Ltd has been placed into voluntary administration due to debts with the Australian Taxation Office.

But the company, which has 52 staff and provides the design, fabrication, installation and servicing of fire protection systems, had “no outstanding wage payments to its employees”, directors said.

Despite “working hard” since Covid-19 to pay off the debts, the directors said it had been determined the company needed a financial restructure.

“The (ATO) and GFS have been in negotiations regarding outstanding amounts over the last year, during which time GFS has been actively paying down its outstanding balance to the ATO and have continued to engage on a payment plan regarding legacy PAYG tax and GST contributions,” the directors said.

They said it would not be “financially feasible” for GFS to try to resolve the debt under a new ATO payment plan without putting employees and trade creditors at risk.

Thomas Birch, Jeremy Nipps and Glenn Spooner, of Cor Cordis, have been appointed as administrators.

“During the voluntary administration process, GFS will continue to operate at its contracted projects in Victoria, intends to maintain its workforce of 52 employees and is confident in its ability to continue delivering to its clients,” the GFS directors said.

A GFS spokesperson said: “We have instigated this administration process with the long-term benefit of GFS’s employees, clients, and creditors – including the ATO, at the forefront.

“This will also ensure that GFS can keep on delivering for its valued clients across Victoria, while continuing to provide a livelihood for all its workforce. We expect the administration process to conclude rapidly.”