Subbies United says State Government delay of project trust accounts will cost businesses

Subcontractor support groups say a State Government decision has condemned scores of small and medium construction businesses to collapse. Find out why

Kathleen Skene Follow 2 min read March 31, 2023 - 2:00PM Gold Coast Bulletin

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Subcontractor support groups say a State Government decision to delay implementation of project trust accounts has condemned scores of small and medium construction businesses to collapse.

Laws were brought in more than five years ago requiring builders to set up a designated trust account to protect subcontractor payments for every building project over $1m.

However, the State last week announced full implementation of the new laws wouldn’t take effect until October 2025, leaving subcontractors exposed in the event of a builder collapse.

John Goddard, founder of support group Subbies United, said the delay meant another two years of tradies potentially losing months of progress payments every time a builder went under.

As well as leaving invoices unpaid, a builder liquidation also dissolves subcontractor retentions..

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