Trust Account Framework Simplified To Support Industry

The trust account framework is intended to protect subcontractors, who in their work, are most significantly impacted by late payment, non-payment, and insolvency. Amendments commencing on 1 July 2024 will support industry by reducing complexity and the cost of complying with the framework while still maintaining important protections.

The key changes to the trust account framework include:

• simplifying the definition of a ‘subcontractor beneficiary’ of the project trust (making it easier for trustees to understand who must be paid from the trust)
• simplifying the trust record keeping requirements, working with software providers to ensure there are compliant products available and continuing a transitional regulatory approach for the keeping of records until software is readily available
• pausing the requirement for independent account reviews in recognition of the record keeping and software constraints (trustees no longer need to engage an auditor to review retention trusts)
• removing requirements for mandatory retention trust training (industry has a range of non-mandatory training and resources available)
• clarifying that trust account balances are not included in minimum financial requirements reporting
• clarifying the transitional provisions that apply to new phases of the framework.

Check out the links below for more detailed information:

• Security of payment amendments
• When a trust account is needed
• Future phases of the trust account framework

Many of the changes to the framework have come about through your feedback and our interaction with the government.

We will be working with the Queensland Building and Construction Commission to provide more information about security of payment protections and the final rollout of the trust account framework in the lead-up to 2025.