Tradies Still Waiting on Consistent Security-of-Payment Laws

Quasar Constructions entered voluntary administration in September 2024. The company was working on several large projects including the Western Sydney International (Nancy-Bird Walton) Airport project, a marquee infrastructure project. It’s one of many instances where subcontractors are waiting to hear whether they’ll be compensated for their work on a contract.

GALLERY  

During the Albanese Government’s election campaign, the commitment to protect the rights of small businesses and ensure security of payment in the building and construction industry was a cornerstone of its election platform. The incoming government mentioned implementing the changes suggested in the Review of Security of Payment Laws: Building Trust and Harmony report (Murray Review) by John Murray in 2018.

A similar commitment was made to Senator David Pocock in November 2022, where the Federal Government agreed to “consider and respond” to the Murray Review recommendations within the current term in exchange for Senator Pocock’s support of the Secure Jobs, Better Pay Bill.

Fast forward a few years and the suggestions from the Murray Review haven’t been implemented and the Western Sydney International Airport project now stands as a glaring example of the severe challenges facing the construction industry, particularly concerning security of payment.

Despite the scale and importance of this project, the situation surrounding Quasar Constructions illustrates how vulnerable subcontractors are in the current framework.

It is unacceptable that those who contribute to such significant national projects are left at risk of non-payment and financial instability.

This situation not only undermines the integrity of the project itself but also casts a shadow over the entire construction sector, highlighting the urgent need for reforms to ensure that all workers are fairly compensated for their contributions.

To date, The Federal Government has established the National Construction Industry Forum (NCIF) which has been tasked with advising the Government on a range of matters, including security of payment reform.

There have been no formal recommendations passed to the government on security of payment reform by the NCIF, as Australia surpassed 3,000 construction industry insolvencies within the first six months of 2024.

With less than 12 months to the next federal election, the NCIF continues to expand in scope with Master Builders Australia and the Australian Constructors Association being added to the forum last month. Tradies have to hope that something changes after the 2025 election.

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