Security of Payments: retention trust accounts on $10 mill projects

The NSW Government is proposing to repeal the current 2008 regulations to the Building and Construction Industry Security of Payment Act 1999 (NSW) replacing them with a new set of regulations: the Building and Construction Industry Security of Payment Regulation 2020.

A key change is the requirement for head contractors to maintain retention money trust accounts on projects with a value of $10 million or more (the current threshold is $20 million). The new regulation will commence on 1 September 2020 with the trust account requirements applying to head contracts entered into after 31 December 2020.

The proposed regulation is in draft form and can be viewed here.

Feedback on the draft can be provided up until 24 July 2020.

For further information, contact Mark Irwin– Partner:

E  mark.irwin@vincentyoung.com.au

T  +61 2 9261 5900

M +61 419 972 281