Trust account rollout

 

The new trust account framework will be rolled out between 1 March 2021 and 1 January 2023. 

Delivered over five major phases, the framework progressively expands over time to capture more projects and contractors. 

Click on dates below for details about each phase of the trust account rollout between 1 March 2021 and 1 January 2023. 

1 March 2021

Project trust account

  • Queensland Government contracts valued between $1 million to $10 million (these are the same contracts currently applicable to project bank account requirements)
  • state authorities who opt-in early and require a project trust account for contracts valued at $1 million or more.

Retention trust account

  • only contractors** who also require a project trust account and who are withholding cash retention amounts for contracts related to the eligible project trust contract
  • **state government principals are exempt from the requirement to hold cash retentions in a retention trust account.
1 July 2021

Project trust account

  • all Queensland Government contracts – also now including Hospital and Health Services (HHSs) - valued at $1 million or more (that is, the upper $10 million threshold has been lifted)
  • state authorities who opt-in early and require a project trust account for contracts valued at $1 million or more.
Retention trust account
  • only contractors ** who also require a project trust account must hold eligible cash retention amounts in a retention trust account
  • **state government and HHS principals are exempt from the requirement to hold cash retentions in a retention trust account
  • #state authorities can continue to opt-in early and require a project trust account for contracts valued between $1 million and $3 million.
1 January 2022

Project trust account

  • all Queensland Government contracts (including HHSs) valued at $1 million or more – AND
  • private sector, local government, Queensland statutory authorities# and government-owned corporations – for contracts valued at $10 million or more
  • #state authorities can continue to opt-in early and require a project trust account for contracts valued between $1 million and $10 million.

Retention trust account

  • both the contracting party (that is, the principal)** and contracted party (that is, head contractor) to the project trust contract must hold eligible cash retention amounts in a retention trust account
  • **state government, statutory authority and local government principals are exempt from the requirement to hold cash retentions in a retention trust account.
1 July 2022

Project trust account

  • all Queensland Government contracts (including HHSs) valued at $1 million or more – AND
  • private sector, local government, Queensland statutory authorities# and government-owned corporations – for contracts valued at $3 million or more
  • #state authorities can continue to opt-in early and require a project trust account for contracts valued between $1 million and $3 million.

Retention trust account

  • both the contracting party (that is, the principal)** and contracted party (that is, head contractor) to the project trust contract must hold eligible cash retention amounts in a retention trust account
  • **state government, statutory authority and local government principals who are exempt from the requirement to hold cash retentions in a retention trust account.
1 January 2023

Full implementation

Project trust account

  • all Queensland Government contracts valued at $1 million or more – AND
  • all private sector, local government, statutory authorities and government-owned corporations contracts valued at $1 million or more.

Retention trust account

  • Any contracting party (this includes principals**, head contractors and any subcontractors down the contractual chain) withholding eligible cash retention amounts where a project trust is required for the head contract
  • **state government, statutory authority and local government principals are exempt from the requirement to hold cash retentions in a retention trust account.

This infographic outlines how project trust accounts and retentions will be progressively rolled out.