Security of payment law is working. The contracts are drafted around It.
All Australian jurisdictions now have security of payment laws, 27 years after NSW introduced the first Act. The legislation is functioning as intended across the country.
27 years since NSW passed Australia's first security of payment Act, now adopted in every Australian jurisdiction.
Are security of payment laws still protecting tradies if contracts are being drafted around them?
Builders, plumbers, electricians and other contractors rely on security of payment laws to recover unpaid debts. If contracts are being drafted around the Act, cash flow protections may be undermined.
Key takeaways
- Every Australian state and territory now has a security of payment Act in place.
- NSW was the first jurisdiction to pass the legislation, 27 years ago.
- The laws are considered functional, but contracts are increasingly being drafted to work around them.
- Tradies relying on these protections for unpaid work may find their rights weakened by contract terms.
Related
Social housing, another potential Budget casualty
Master Builders Australia warns that Federal Budget decisions risk worsening the collapse in public housing construction, a trend four decades in the making.
Why it matters: Builders and associated trades like plumbers and electricians may see fewer social housing project opportunities if government investment continues to decline.
Inquiry into the financial and operational performance of TasWater
HIA's Tasmanian Executive Director Benjamin Price addressed the Public Accounts Committee regarding TasWater's financial and operational performance. The statement covers issues relevant to the water utility's impact on the building and construction industry in Tasmania.
Why it matters: Builders and plumbers in Tasmania may be affected by TasWater's performance, including connection delays, infrastructure capacity, and cost impacts on new developments.
Brick supply and allocation update
HIA is working with government and manufacturers on brick supply and allocation issues affecting home building in WA. No specific outcomes or changes have been announced yet.
Why it matters: Builders in WA may face ongoing project delays due to brick shortages. Supply constraints can affect scheduling, contract timelines, and cash flow.