Changes to the NSW Security of Payment legislation soon to take effect

Jul 31, 2019

In November 2018, the NSW Government passed legislation amending the Building and Construction Industry Security of Payment Act 1999 (NSW) (the Act).

Recently, the NSW Government confirmed that the amendments introduced under the Building and Construction Industry Security of Payment Amendment Act 2018 (NSW) will come into effect on and from 21 October 2019. These changes will not apply retrospectively, with the amendments only applying to construction contracts entered into on or after the commencement date.

The amendments are aimed at strengthening the protections afforded to subcontractors under the Act. We have previously provided an update that summarised some of the more significant amendments to the Act.

It will be interesting to see whether the other ‘east coast’ jurisdictions (VIC, SA, QLD, ACT and TAS) follow a similar approach to NSW, especially given their history of modelling security of payment legislation on the NSW Act.

A full version of the amending Act can be found here.

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