Further Rollout Of Trust Accounts To Private Projects Paused

Tranche 1 of the new Queensland Building Reg Reno paused the further rollout of trust accounts to private projects below $10 million. This will help smaller contractors focus on building and gives more time to educate builders and subcontractors on existing payment protections, ensuring they know their rights and options.

On 10 February 2025, the Queensland Government introduced the Building Reg Reno (Building Regulation Renovation) initiative to reduce red tape and unnecessary costs for builders, tradies and subbies, and to help ensure homes can be built sooner.

The Building Reg Reno is being delivered through a series of tranches. The first tranche paused the further rollout of trust accounts to private projects below $10 million. 

Trust Accounts

The Project Trust Account framework is designed to strengthen the security of payments to subcontractors in Queensland’s building and construction industry.

Subcontractors are especially vulnerable to payment delay or non-payment as they are at the end of the contractual supply chain. Trust accounts are aimed at ensuring money paid by those at the top of the chain, is secured for the benefit of subcontractors, ensuring they are paid on time and in full.

Trust accounts are one of the tools that help people in Queensland’s building industry to get paid for the work they have done. They provide additional protection for subcontractor progress payments and retentions, particularly in the event of insolvency.

Tranche 1: Pausing the Rollout of Trust Accounts

The first tranche paused the further rollout of trust accounts to private projects below $10 million to help smaller contractors focus on building. The framework will continue to apply to eligible Queensland Government contracts of $1 million or more and private sector, local government, statutory authority and government-owned corporation contracts of $10 million or more.

This also gives more time to educate builders and subcontractors on existing payment protections, ensuring they know their rights and options.

There are a range of security of payment measures and contract protections available to help contractors and subcontractors in the building industry get paid for their work. Security of payment will be considered by the Queensland Productivity Commission as part of its review of the building and construction sector. 

For more information, read more about Project Trust Accounts here.