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SCC – Subcontractors Charges ACT 1974

Click here to read the Subcontractors Charge (SCC) Act 1974.

Please note that we do not provide legal advice. It is always important before taking any collection action, to get independent legal advice as there is no "one cap fits all" situation.

SCC's can be effective in limited circumstances.

  • If you are a trade that finished early in the project and the amount is large (say over 40k) the Subbies Charge can be handy.
  • If you are a later finishing trade and the amount owed is small then it is a cost-benefit issue and BCIPA can be a cheaper option.

The effectiveness of Subcontractors Charges (SCC) depends on the time that you serve them, who the developer is, the amount owed to you and the amount the developer owes to the builder.

If the builder is tottering on collapse, the best scenario is to serve SCC before the QBCC cancels the builders license.

  • If their license is cancelled, the developer can cancel their contract and my understanding is that the Subbies Charges have less chance of success.
  • As of today (20.02.17) Subcontractors Charge cost is $2200 to set up, $275 to certify and then 1 month after  it's served, it will cost a further $3000 to prepare the paperwork and forms for Magistrate Court proceedings.
  • They are only effective if the developer is holding money owed to the builder. 
  • If the builder liquidates, it then becomes a Supreme Court action (more expense).

Is Lodging a Subbies Charge cost Effective?

  1. If you are owed less than say $40,000, it may not be cost effective considering the initial fees then the preparation of documents for the Magistrates Court.
  2. If the developer owes the builder say a total of $150,000 but the builder owes the subcontractors a total of $500,000, it would be uneconomical to issue a SCC as the value is not there to support the cost of the claim taking into account other claims.
  3. Other Subbies may have charges lodged and the funds pool would be too small.

Its imperative that you have the correct details for the developer. If you don't have it, your solicitor can request it from the builder.

This Act has the effect to 'freeze' the funds that are owed until a resolution is reached in court or by negotiation.

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ABOUT US

SubbiesUnited is not “anti builder”, we support strong builders.
We are “anti theft” of hard working subbies money.

It’s not just about the builders who go broke, businesses all over Australia Liquidate every day for a variety of reasons.

It’s about the ones that engage in calculated criminal behaviour such as providing false information to the regulators or inducing subbies to work on a site when they know they cannot or are not going to pay them because of a fraudulent scheme. Its about the participation of the banks, pre insolvency advisors and builder appointed Liquidators to fraudulently defeat creditors.

Liquidators should always be appointed by creditors to ensure a thorough investigation takes place.

We want the rogues investigated and prosecuted for fraud. 


  • SubbiesUnited was created to provide subbies with collaborative information on building companies that are showing signs of insolvency or struggling to pay their creditors. The signs are always there, we just need to get the message to each other before it happens.
  • We provide subbies with up to date news on builders in Administration or Liquidation and the best strategies to get a return.
  • There are some extremely litigious builders out there who would rather sue you than pay you. Often they sue you so they don’t have to pay you. We will expose them.
  • The construction industry is renowned for building companies setting up illegal Phoenix operations, shifting assets, then liquidating sending subbies broke. We work with other subcontractor & supplier organisations & Governments to stop what amounts to legalised theft on a massive scale though pre packaged liquidations. Insolvency is used as a means to defraud Subbies.
  • Our aim is to limit the financial damage before it happens with our “members only forum”, an early warning system for the benefit of all our members.

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