Security of payment for tradies

Extension provided for smaller contracts

Key points

• Nearly $10 billion is now protected for tradies under Project Trust Accounts
• Qld Government extending commencement date for eligible contracts for up to two years – between $3 and $10 million to 1 March 2025, and over $1 million to 1 October 2025.

The Queensland Government has announced an extension of the commencement date for eligible contracts under the Project Trust Accounts (PTA) framework, providing further security of payment for tradies.

The extension allows for eligible contracts between $3 and $10 million to commence by 1 March 2025, and contracts over $1 million to commence by 1 October 2025.

The government is committed to leading the nation in the security of payment frameworks, including Minimum Financial Requirements, Retention Trust Accounts, and PTAs, which all aim to strengthen payment security for tradies and ensure safe workplaces and quality construction.

In recognition of the challenges faced by smaller builders in complying with the PTA framework, the government has formed a Steering Committee to work with software providers to develop a suitable solution for compliance.

More information about PTAs

A Project Trust Account (PTA) is an account through which project payments are received and paid. A PTA is needed for all eligible construction contracts in Queensland. A separate PTA is required for each eligible contract.

Typically, a PTA is:

• paid into by the project owner or developer
• managed by the head contractor
• the account from which all subcontractors are paid
• the account from which the head contractor pays themselves.

All other protections, including payment terms, reporting, and financial obligations (including existing Project Trust Account thresholds), will continue to require compliance and will be enforced by the building regulator.

Source: QLD Government