Advocacy update - reforms announced to Security of Payment legislation

NECA WA is delighted by the State Government’s recent announcement that it will implement many of the reforms to the Security of Payment legislation that NECA WA has vigorously supported.

 The Attorney General and Minister for Commerce,  John Quigley MLA, has pledged to enact changes to current legislation that will introduce:

  • Cascading statutory trusts – this means that head contractors will not be able to use funds allocated to a specific projects trust for any purpose other than the payment of sub-contractors and to return retention funds.
  • 15 days “explain why not” deadline – a contractor will have 15 days to inform a sub-contractor of any dispute regarding payment of an invoice. If the contractor does not provide an explanation of the dispute within 15 days, they will be liable to pay the entire amount of the invoice.
  • Stricter laws against Phoenix companies

Whilst NECA WA supports the government’s plans, we are disappointed by the slow pace with which it plans to implement new legislation. The government has only committed to introduce the new legislation by the end of the year. 

NECA WA will keep members informed of further developments on this important issue as it endeavours to have the government make these changes as soon as possible.