Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2020
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
Referred to Transport and Public Works Committee
As the Minister responsible, moved the second reading and strongly advocated for the bill as delivering nation-leading security of payment reforms for Queensland tradies, ensuring they get paid on time, in full, every time.
“Labor's nation-leading Building Industry Fairness (Security of Payment) Act is a game changer for Queensland tradies. Tradies deserve to be paid on time, in full, every time, and this is what our security of payment reforms have been delivering.”— 2020-07-14View Hansard
Announced the LNP will not oppose the bill, supporting the principle that tradies deserve to be paid, but heavily criticised the government's implementation delays, noting the 2015 election promise would not be fully delivered until 2023 for private sector contracts.
“I say at the outset that the LNP will not be opposing this bill. The LNP's position is firm on the principle that everybody deserves to be paid for the work they do.”— 2020-07-14View Hansard
Assent date: 27 October 2017
Plain English Summary
Overview
This bill strengthens protections for subcontractors in the building industry who often go unpaid. It extends Project Bank Account requirements to more contracts, gives new tools to recover unpaid money, improves QBCC enforcement powers, and strengthens regulation of building certifiers, architects and engineers.
Who it affects
Subcontractors gain trust account protections and new payment recovery tools. Head contractors must establish trust accounts and declare subcontractor payments. Building certifiers face a new demerit point system. Architects and engineers are subject to compliance audits.
Project Bank Accounts
Extends trust account requirements to protect subcontractor payments across the industry, reaching all contracts over $1 million by July 2022.
- Project trust accounts required for eligible contracts
- Retention trust accounts protect money held back until work complete
- QBCC can freeze trust accounts and require audit reports
Payment recovery tools
New mechanisms help subcontractors and head contractors recover money when payments aren't made.
- Payment withholding requests can freeze money owed to non-paying parties
- Statutory charges can be lodged on developer property for unpaid adjudicated amounts
- Head contractors must declare subcontractor payment status
QBCC enforcement
Strengthens the regulator's ability to address fraudulent and dishonest practices in the building industry.
- New offence for giving false financial information
- Longer timeframes to start prosecutions
- Can publish details of excluded individuals
- Executive officers liable for company MFR breaches
Building certifier regulation
Improves professional standards and compliance within the building certification sector.
- Demerit point system - 30 points in 3 years means disqualification
- Primary duty clarified as acting in public interest
- Additional inspections required
- Documentation must be kept for 7 years instead of 5