Security of Payment Legislation in Australia
Australia-wide, companies are navigating the uncertainties arising from COVID-19. Our previous White Papers identified the risks arising for construction projects and observed that the fallout is likely to give rise to disputes at all contracting levels. Projects will experience delay and disruption, or suffer from supply-chain impacts and the financial hardship of project participants. These impacts will continue as more projects fall into distress.
State and Federal governments have increased spending on public infrastructure projects as part of economic recovery and stimulus spending. Any hasty planning or execution will increase the risk of time and cost overruns on such projects, which still face the risks and challenges posed by the COVID-19 era.These factors are likely to cause an increase in payment disputes under statutory security of payment regimes in every Australian jurisdiction, which differ in key procedural aspects. Given this, it is more important than ever for businesses to be up to date with the regimes in each jurisdiction, especially for companies operating in multiple jurisdictions. This White Paper provides an overview of security of payment legislation in each Australian State and Territory, along with recent legislative developments and case law trends. Given the differences in the security of payment regimes across the country, we have also included comparison tables that provide a quick reference guide on key differences between each State and Territory.
Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.