Amendments passed in the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2024 commenced on Monday 1 July 2024 and included a number of changes to the trust account framework.
Passed in Parliament on 16 April 2024, the amendments are intended to reduce the complexity and costs of complying with the framework.
Changes to the trust account framework include:
- Simplifying the definition of a ‘subcontractor beneficiary’ of the project trust
- Simplifying the trust record keeping requirements, working with software providers to ensure there are compliant products available and continuing a transitional regulatory approach for the keeping of records until software is readily available.
- Pausing the requirement for independent account reviews in recognition of the record keeping and software constraints
- Removing requirements for mandatory retention trust training
- Clarifying that trust account balances are not included in minimum financial requirements reporting
- Clarifying the transitional provisions that apply to new phases of the framework.
The department will work with the Queensland Build and Construction Commission (QBCC) to provide more information about security of payment protections and the final rollout of the trust account framework over the coming months and into 2025.
More information on the security of payment amendments is available on the Department’s website.
For more information on when a trust account is needed and the future phases of the trust account framework, visit the QBCC.