Security of payment law is working. The contracts are drafted around It.
All Australian jurisdictions now have security of payment laws, 27 years after NSW introduced the first Act. The legislation is functioning as intended across the country.
27 years since NSW passed Australia's first security of payment Act, now adopted in every Australian jurisdiction.
Are security of payment laws still protecting tradies if contracts are being drafted around them?
Builders, plumbers, electricians and other contractors rely on security of payment laws to recover unpaid debts. If contracts are being drafted around the Act, cash flow protections may be undermined.
Key takeaways
- Every Australian state and territory now has a security of payment Act in place.
- NSW was the first jurisdiction to pass the legislation, 27 years ago.
- The laws are considered functional, but contracts are increasingly being drafted to work around them.
- Tradies relying on these protections for unpaid work may find their rights weakened by contract terms.
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