Industry responds to Project Bank Account legislation

The Property Council has provided a submission to the Public Works and Utilities Committee’s investigation of the Building Industry Fairness (Security of Payment) Bill 2017 – which will give effect to the Government’s Project Bank Accounts (PBA) policy. Legislative changes contained in the Bill also aim to clamp down on shadow directors and phoenixing activities.

The Property Council’s submission reiterates the industry’s opposition to the proposed PBA model, which will create a significant new cost for construction sector without resolving the underlying issue of industry insolvencies. Particular concerns were outlined in relation to provisions to create new legal obligations and responsibilities on project proponents.

Amendments to the Bill were proposed by the Property Council to ensure that a full review of the PBA model is conducted prior to its application to non-government projects.

To access a copy of the Bill and Explanatory notes, click here.