Security of payment
The Queensland Government implemented security of payment reforms in the building and construction industry through the Building Industry Fairness (Security of Payment) Act 2017.
Following recommendations by the Building Industry Fairness Reforms Implementation and Evaluation Panel and the Special Joint Taskforce, the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2020 (the Act) was assented to on 23 July 2020. The Act is supported by the:
- Building Industry Fairness (Security of Payment) and Other Legislation Amendment Regulation 2020
- Building Industry Fairness (Security of Payment) (Transitional) Regulation 2020.
On 1 October 2020, the government’s security of payment reforms continued with the following commencing:
- Head contractors must provide a supporting statement with their payment claims declaring that all their subcontractors have been paid, or if they have not been paid, the reasons why
- Respondents are encouraged to pay adjudicated amounts by:
- requiring them to advise the Adjudication Registrar when payment is made and provide evidence of the payment
- giving all claimants the ability to issue a payment withholding request to the higher party of the respondent (including a financier for head contractor non-payment)
- giving claimants who are head contractors the ability to place a charge over the property where the work was undertaken and to which the adjudication relates, (where the property is owned by the respondent or a related entity of the respondent)
- It is an offence to underpay a scheduled amount.
On 1 March 2021, Project Bank Accounts (PBA) were replaced with a new trust account framework. The trust account framework is being gradually phased in to all eligible building and construction contracts valued at $1 million or more, including the government and private sector. This approach will make sure that industry has time to adapt and get ready for the changes.
Read more about these and other security of payment reforms to protect contractor payments:
- Project Bank Accounts
- New trust account framework
- Progress payment changes
- Adjudication changes
- Retention requirement changes
- Minimum financial requirements
Learn how to comply with security of payment laws on the Queensland Building and Construction Commission website.
- Last updated:
- 13 July 2022