In June 2021, the ºÚÁÏÕýÄÜÁ¿ passed into law the Building and Construction Industry (Security of Payment) Act 2021 (the Act).
The Act is designed to provide better payment protections to contractors working in the building and construction industry.
One measure included in the Act is a Retention Trust Scheme to protect retention money even in the case of disputes or insolvencies.
From 1 February 2023, the Act will introduce a new trust account framework which will require the creation of retention trust accounts for certain eligible contracts.
The requirements will expand out to more contracts in a phased approach and will be fully implemented by 1 February 2024.
This guidebook provides information on the rights and responsibilities of contractors and other entities in the construction industry that will be impacted by the implementation of the Retention Trust Scheme (the Scheme).
