- Bill introduced to better protect subbies on State Government projects
- Construction trust scheme will replace Project Bank Accounts to ensure consistency and certainty in the protection of subcontractor payments
- Security of payment reforms lead nation
New laws which streamline insolvency protections by replacing Project Bank Accounts with a trust scheme for subcontractors working on State Government construction projects will be introduced to Parliament this week.
The Building and Construction Industry (Security of Payment) Amendment Bill 2026will introduce a deemed construction trust scheme for State Government-led construction projects worth more than $1.5 million, eliminating the need for complex paperwork and banking products.
Western Australia has led the nation in the wide-scale use of Project Bank Accounts as part of landmark reforms made in 2021, including the retention trust scheme.
This Bill builds upon the State Government's commitment to subcontractor protection with sensible and effective laws to ensure subcontractors on government projects are paid on time, every time.
As stated by Commerce Minister Dr Tony Buti:
"The Cook Government is committed to protecting subcontractors and ensuring they are appropriately paid for their work on government construction projects in the event of an upstream insolvency.
"These laws will provide clarity and certainty to all parties, while reducing the administrative burden of the current project bank account regime.
"I would like to thank the building industry, peak bodies, and others who provided comments and feedback during the preparation of the Bill. This government is always committed to working with stakeholders to achieve sensible reform.
"This Bill will again place Western Australia at the national forefront when it comes to subcontractor protections and supports the Cook Government's record investment in infrastructure, social housing, schools, roads, and hospitals."
