Security-of-Payment Legislation in Australia

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.

Read the White Paper.

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