Executive Summary
The statutory trust regime established under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) is legislated to complete its rollout by the end of 2025. Currently applying to State Government, Health and Hospital Services, and contracts valued above $10 million, the regime will broaden its scope in two stages across 2025. From 1 March 2025, all eligible building contracts exceeding $3 million will require the establishment of project and retention trust accounts. Later, on 1 October 2025, the threshold will lower to include contracts valued above $1 million.
Introduction
The Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) establishes a trust account regime with the objective of securing payments to subcontractors in the Queensland building industry by requiring the establishment of a project trust account for each eligible project alongside a retention trust account to hold any retention monies.
The scope of the trust account regime is due to broaden through 2025 with its application extending to eligible contracts greater than $3 million on 1 March 2025, and those greater than $1 million on 1 October 2025.
What has previously happened?
Since 1 March 2021, Queensland’s statutory trust regime has been progressively rolled out to a broader range of government and privately funded projects. The table below provides a summary of the regime’s rollout to date:
Commencement | Phase |
---|---|
1 March 2021 | Project and retention trust accounts required for all new State Government building contracts valued between $1 million and $10 million, with State authorities having the option of adopting the requirements. These projects are currently subject to the project bank accounts regime. |
1 July 2021 | Expansion to eligible State Government and Health and Hospital Services building contracts of $1 million or more. |
1 January 2022 | Extended to the private sector, local government, statutory authorities and government owned corporations for eligible building contracts valued at $10 million or more. |
What’s next?
These changes are legislated. The October 2024 State election has resulted in a change in Government. So far, the new Government has not announced changes to the already legislated timetable . Further updates will be provided if the planned rollout of the regime is amended, however as at the date of publication the table below provides a summary of the regime’s final rollout in 2025:
Planned Commencement | Phase |
---|---|
1 March 2025 | Extended to all eligible building contracts valued at $3 million or more. |
1 October 2025 | Final implementation with the regime applying to all eligible building contracts valued at $1 million or more. |
This article has been written by Colin Harris, Partner and Jaike Salmon, Graduate.