- Proposed laws to enhance insolvency protections for subcontractors on State Government projects released for public comment
- Construction trust scheme to improve transparency, efficiency and protection of subcontractor payments
- Community feedback to be considered before bill is introduced into Parliament
The Cook Labor Government has released a new set of laws for consultation which will strengthen and streamline insolvency protections for subcontractors working on State Government construction projects.
The proposed laws build on Western Australia's nation-leading subcontractor protections by introducing a deemed construction trust scheme for State Government-led construction projects over $1.5 million.
The construction trust scheme will replace the existing use of project bank accounts on government projects to ensure clear insolvency protections for subcontractors, eliminate complex and lengthy paperwork for builders and remove the need for bespoke banking products.
The proposed laws will help ensure the WA Government continues to build safe and inclusive communities by delivering sensible and effective law reform so that all Western Australians feel secure at home, at work and in the community.
The proposed laws are available for public comment until Friday 14 November, 2025 at www.wa.gov.au/organisation/building-and-energy/have-your-say-strengthening-security-of-payment-subcontractors-government-construction-projects
The new laws will be introduced into the Parliament following consideration of community feedback.
As stated by Commerce Minister Dr Tony Buti:
"The Cook Labor Government is committed to protecting subcontractors and ensuring they are properly paid for their work on government construction projects in the event of an upstream insolvency.
"The construction trust scheme provides clarity and reduces the administrative burden for all parties. Builders and head contractors will not face any new obligations compared to the current project bank account arrangements and the trusts will be compatible with all common banking accounts.
"The provisions in the bill will set a new benchmark across Australia for subcontractor payment protections, further strengthening our nation-leading security of payment legislation."
