Project Bank Account Bill Passes

The State Parliament has passed the Building Industry Fairness (Security of Payment) Bill 2017, giving effect to the Government’s Project Bank Accounts policy. Changes contained in the Bill also aim to clamp down on shadow directors and phoenixing activities.

A two-stage adoption process will see the requirement for mandatory PBAs rolled-out across Queensland. An initial stage, to being on 1 January 2018, will see the requirement applied to government building and construction projects. A second stage, to begin 1 January 2019, will expand the application of the mandatory PBA to all building and construction projects over $1 million. 

Late amendments to the Bill adopted the Property Council’s call to legislate for a full review of the operation and effectiveness of the PBA model prior to its application to non-government projects. This proposal had been accepted by the Public Works and Utilities Committee in their report into the legislation.

The Property Council has been a vocal opponent of 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 by the Property Council through the consultation process in relation new legal obligations and responsibilities on project proponents.