Trusts Accounts Are Here!
Building industry trust accounts are here
Trust accounts will be required for private sector construction projects from 1 January 2022. Trust account laws will be expanding to certain private sector, local government and other ‘eligible’ construction contracts.
What you need to know:
From 1 January 2022 – head contractors will need to have project and retention trust accounts for eligible private sector, local government and state authority projects valued $10 million or more.
Principals and developers may also require retention trust accounts for cash retentions withheld under these construction contracts.
Subcontractors working on project trust projects will be paid from a trust account.
A retention trust training package to be specified in legislation is being developed by the Queensland Government.
Future phases expand the trust requirements:
from 1 July 2022 to eligible private sector, local government and state authority projects valued $3 million or more, and
from 1 January 2023 to ALL projects valued $1 million or more AND retention trust accounts for all parties withholding cash retentions on eligible projects – read more about the trust account rollout.
Work out if you need a project trust account?
Trust accounts are required in certain circumstances – there are different criteria determining when project trusts and retention trusts are required. Use the trust account tool to help you quickly and easily determine if your contract is eligible and requires a project trust account OR if the cash retentions you’re withholding need to be kept in a retention trust account.
Register for upcoming trust account webinars
Hosted by QBCC trust account experts, the webinars will look at all aspects of the trust account framework, when a trust account is required and what you need to do to comply with new legislation.
Trustee information sessions – webinar 1
Trust account overview and eligibility
Wednesday 24 November 2021 9:30–11.30am Click here to register
Trustee information sessions – webinar 2
Managing a trust
Tuesday 30 November 2021 9:30–11.30am Click here to register