Project Bank Accounts

The Building Industry Fairness (Security of Payment) Act passed the Queensland Parliament in late 2017. Amongst other elements, the Act foreshadowed the introduction of Project Bank Accounts (PBAs) on Queensland Government projects valued between $1 million and $10 million.

While PBAs were expected to take effect on Government projects from 1 January 2018, due to the State Election, the start date has now been confirmed for 1 March 2018.

It is anticipated that PBAs will be required for private sector projects valued from $1 million after 1 January 2019.

During public consultation on the draft legislation, the Property Council raised many concerns with the introduction of PBAs, including the added cost and complexity associated with administering the numerous required trust accounts.

The Property Council was successful in securing a commitment to review the implementation of PBAs on Government projects before their application is extended to private sector projects. This review must take place before the anticipated private sector start date of 1 January, 2019.

To ensure that any concerns with the operation of PBAs can be addressed prior to the extension to private sector projects, the Property Council and its members are working together with Master Builders to identify issues as they arise.

If you have any experience – positive or negative – with the use of PBAs, we would be keen to hear from you.

Further information on PBAs and Security of Payment is available from the Department of Housing and Public Works