Trust account framework
The Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) establishes a trust account framework to protect progress payment and retention amounts for industry contractors and subcontractors.
The framework has been implemented in phases so industry has time to prepare for the changes. It currently applies to eligible Queensland Government contracts of $1 million or more and private sector, local government, statutory authority and government-owned corporation contracts of $10 million or more.
From 1 March 2025, it will apply to all eligible construction contracts of $3 million or more. And from 1 October 2025, it will apply to all eligible contracts of $1 million or more and to retention trust accounts throughout the contractual chain.
In the interim, industry can continue to use the other available security of payment protections including adjudication, payment withholding requests, charges over property, subcontractors’ charges and monies owed complaints.