Queensland's BIF Act statutory trust account expansion paused – what it means for you

The Queensland Government has paused the commencement of the next phases rolling out the trust account framework under the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act). Those phases were set to expand the range of eligible construction contracts that the framework applies to.

The table below highlights the key changes.

The reason for delaying the next phases of the BIF Act

The Queensland Government explains that its decision to pause the commencement of the remaining phases will allow:

• the Queensland construction industry (particularly smaller contractors) more time to prepare for the changes and additional compliance requirements;
• the Government to provide additional transitional support; and
• the outcomes of the current Queensland Productivity Commission review of the building and construction industry to be considered.

This is aimed at achieving a smoother roll-out.

What this means for you

We are monitoring developments and will update you when the new commencement dates are determined. Until then:

Principals: The pause does not affect contracts that are currently subject to the trust account framework. Principals need to be aware of their existing trust account obligations under the BIF Act and be ready for when new commencement dates expanding those obligations are announced.

Contractors: The pause does not affect contracts that are currently subject to the trust account framework. There is also no indication that the remaining phases will never commence. Now is the time for contractors to fully understand future regulatory requirements, assess the impact on their cash flow, and explore software solutions to support their compliance with the current framework in readiness for when the new commencement dates for expanded application are announced.

Subcontractors: In notes explaining the pause, the Government recognises that the pause could temporarily reduce protection for those subcontractors whose contracts would otherwise have come within the expanded application of the framework, but considers that the extension will offer a smoother rollout. Subcontractors can still rely on existing security of payment mechanisms, including adjudication, subcontractors' charges and payment withholding requests.