Labor to guarantee pay for tradies if government project employers go bust

Tradies working on Government projects will have their paycheques preserved if their employer goes bust, under a new policy announced by the Labor opposition.

The Tradie Pay Guarantee would require businesses down the supply chain to get paid on time.

As a consequence, subcontractors would get what is owed to them even if the business running the project goes under.

In a statement released today, Opposition Leader Bill Shorten also announced $7 million for a so-called Tradie Litigation Fund to allow regulators to take "dodgy bosses" to court.

"Not only will this give tradies their day in court, it will also act both as a punishment and deterrent for dodgy directors," the statement read.

"People who deliberately burn their companies should be subject to the full consequences of failing directors’ duties, including being liable for compensation, fines of up to $200,000 or five years behind bars."

The statement also accused the Morrison Government of "going soft on corporate crooks".