Deadline extended for building industry to prepare for trust account framework


Queensland’s building industry is being given more time to prepare for the further expansion of the trust account framework which provides additional security of payment to smaller industry players.

Minister for Public Works Mick de Brenni said the building industry had been hard hit by COVID shortages, the overheated HomeBuilder grants and now the floods.Mr de Brenni said the new timeframes – which would grant nine months more for smaller operators to adopt the changes – had come after industry groups and participants had asked for more time.

Already the framework includes eligible private, local government, statutory authorities and government-owned corporations’ contracts valued $10 million or more.It had been planned to expand it on 1 July 2022 to include eligible private, local government, statutory authorities and government-owned corporations’ contracts valued at $3 million or more (Phase 3), and on 1 January 2023 to include all eligible contracts valued $1 million or more (Phase 4).

Phase 3 would now begin on 1 April 2023 and Phase 4 on 1 October 2023.“The $47 billion building and construction industry plays a critical role in Queensland’s economy,” Mr de Brenni said.

“The industry is experiencing an Australia-wide shortage of skilled trades and building materials which is resulting in delays and cost increases in the building process.

“Now, on top of all that we’ve had the floods, causing even more pressure for the industry.

“We understand people need time to recover and for everything to stabilise before pushing ahead further with these much-needed reforms.”

Mr de Brenni said analysis of industry readiness for expansion of the trust account framework has enabled application to large contractors from 1 January 2022 however it identified additional time for smaller contractors would be beneficial to the framework’s overall success.
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