The NSW Parliament has recently passed legislation amending the Building and Construction Industry Security of Payment Act 1999 (NSW). The changes were partly in response to the recommendations made by the Murray Review of Security of Payment Laws across Australia, and were aimed at strengthening the protections afforded to subcontractors under the Act.
Some of the most significant changes are as follows:
These changes mark a departure from the Security of Payment legislation currently in force in other States under the East Coast model (Victoria, South Australia, Queensland, ACT and Tasmania). It remains to be seen whether the other States will follow suit and adopt the same approach.
While the commencement date for the amendments is yet to be announced, the changes will not apply to construction contracts entered into prior to the date of commencement of the amendments.
A full version of the amending Act can be found here.