On 1 March 2021, a new trust account framework commenced under the Building Industry Fairness (Security of Payment) Act 2017 .
Why have trust accounts?
The Project Trust Account framework is designed to strengthen the security of payments to subcontractors in Queensland’s building and construction industry.
Subcontractors are especially vulnerable to payment delay or non-payment as they are at the end of the contractual supply chain. Trust accounts are aimed at ensuring money paid by those at the top of the chain, is secured for the benefit of subcontractors, ensuring they are paid on time and in full.
Types of trust accounts
Under Queensland’s trust account framework there are two types of trust accounts, project trust accounts (PTA) and retention trust accounts (RTA). These trust accounts are used to hold progress payments and retention amounts on behalf of the parties entitled to them.
An RTA is an account where ‘eligible’ cash retention amounts are withheld until they are due to be paid.
While a PTA is needed for each eligible contract or project a business undertakes, only one RTA is needed, as the same account can be used across multiple projects. For more detailed information about how RTAs are managed see, Operating a trust account or, refer to the guide below.
Note: If you are required to have an RTA, you (or the person that administers your RTA) must complete compulsory training and attain a completion certificate, issued when you successfully pass your training assessment.