25 February, 2020 –
The Palaszczuk Government made history in the first week of Parliament for 2020, by introducing nation leading reforms that will protect Queensland tradies so that they get paid in full, on time, every time.
Since coming to government, Labor has created 235,000 jobs, and already Project Bank Accounts have seen $803 million paid to Queensland tradies.
The introduced reforms will:
- Extend project trusts to the private sector, so that all tradie money is protected whether they work on government or private projects.
- Enable a tradie who hasn’t been paid an adjudicated amount, to secure their money by placing a withholding request over a higher party in the contract chain.
- Provide improved security of payment for builders by allowing them to place a change over the property of a developer for non-payment of an adjudicated amount.
- Introduce a fine when a builder does not pay a scheduled amount owed to a tradie.
This is a great outcome for tradies and their families – for too long our community has seen dodgy developers run out leaving hard-working tradies and subbies shouldering the financial burdens of non-payment.
The building and construction industry is worth around $46 billion annually to the Queensland economy and employs around 240,000 people.
The modelling has been done and these reforms will boost the Queensland economy by $12.6 billion over the next 20 years, sustaining thousands of jobs for hard-working front-line construction workers.
Project Trusts will be rolled out in four phases:
- From 1 July 2020, Project Trusts will apply to eligible government and Health and Hospital Services’ building contracts of $1 million or more.
- From 1 July 2021, Project Trust Accounts will be extended to the private sector and local government for eligible building contracts valued at $10 million or more.
- From 1 January 2022, Project Trust Accounts will cover eligible building contracts worth $3 million or more.
- On 1 July 2022, Project Trust Accounts will be required for all eligible building contracts valued at $1 million or more. At this point, retention trusts will benefit all subcontractors in the chain where there is a project trust.
I’m proud to be part of a Government committed to the job of getting Queensland’s building industry back on the level.
You can show your support and sign our pledge of support for local tradies at http://queenslandlabor.org/tradiepay
To find out more download the Security of Payment Reforms fact sheet [PDF], the Building Industry Fairness fact sheet [PDF] or visit www.hpw.qld.gov.au/about/initiatives/security-of-payment