Security of Payments

Each State and Territory has its own Security of Payments legislation which provides legislative protections for contractors to receive payment for building work performed under a contract.  Whilst similar, the State and Territory schemes are different and may operate in slightly different ways. 

The ABCC has involvement in security of payments in two important respects:  through the national Security of Payments Working Group established by the Commonwealth Building and Construction Industry (Improving Productivity) Act 2016 and through the Code for Tendering and Performance of Building Work 2016 (Building Code). 

State and Territory Schemes

New South Wales

You can seek specific information on the scheme that applies in New South Wales from Fair Trading NSW Link opens external website in new tab

Victoria

You can seek specific information on the scheme that applies in Victoria from the Victorian Building Authority Link opens external website in new tab

Queensland

You can seek specific information on the scheme that applies in Queensland from the Queensland Building and Construction Commission Link opens external website in new tab

South Australia

You can seek specific information on the scheme that applies in South Australia from the Office of the Small Business Commissioner Link opens external website in new tab

Western Australia

You can seek specific information on the scheme that applies in Western Australia from the Building Commission Link opens external website in new tab

Tasmania

You can seek specific information on the scheme that applies in Tasmania from the Department of Justice Link opens external website in new tab

Australian Capital Territory

You can seek specific information on the scheme that applies in the ACT from the Land, Planning and Building Directorate Link opens external website in new tab

Northern Territory

You can seek specific information on the scheme that applies in the Northern Territory from the Construction Contracts Registrar Link opens external website in new tab

The ABCC

The ABCC may be able to assist contractors in relation to security of payment issues through the Building Code.  Contractors that are covered by the Building Code 2016 must:

  • strictly comply with State and Territory security of payment laws.  Where a contractor does not, they may be sanctioned and rendered ineligible to do Commonwealth funded work; 
  • have documented dispute settlement processes detailing how disputes about payments to subcontractors will be resolved.  The process provide for referral to an independent adjudicator;
  • ensure disputes about payments are resolved in a reasonable, timely and co-operative way;
  • comply with any project bank account or trust arraignment that may apply on a Commonwealth funded project.

The ABCC will monitor the conduct of Building Code contractors to ensure they comply with these security of payment obligations.   A failure to meet the Building Code’s security of payment requirements can result in an exclusion sanction that prevents the contractor being awarded Commonwealth funded work

The ABCC Commissioner is a member of the Security of Payments Working Group.  In that capacity, the ABCC will provide support, information and assistance to the Working Group in undertaking its functions.

Further guidance on security of payments under the Building Code can be found in our Building Code - Security of payments section.

Need more information?

For further information, advice or assistance please contact the ABCC at 1800 003 338 or enquiry [at] abcc.gov.au.