Stage 2 of the Building and Construction Industry (Security of Payment) Act 2021, which starts on 1 February 2023, will see the introduction of a Retention Trust Scheme to better protect retention money held under eligible construction contracts.
Stage 1 of the Act commenced on 1 August 2022.
From 1 February 2023, the scheme will apply to new eligible contracts where the value of the works or supply is $1 million or greater (including GST) and retention money is withheld.
From 1 February 2024, the scheme will extend to all new construction contracts where the value of the works or supply is $20,000 (including GST).
To help you prepare for the introduction of the Retention Trust Scheme, the Department of Mines, Industry Regulation and Safety (DMIRS) has published a suite of educational materials on their Retention Trust Scheme web page.
For more information from DMIRS about the new Security of Payment laws, see their Contractor Payment Disputes (Security of Payment Act) web page.