Security of Payment Act clarified by Government, review announced
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As members are aware, significant changes have been made to the Building and Construction (Security of Payment) Act 2009 (“SOPA”) effective 11 March 2024.
From the time of these amendments being published, there have been lingering questions about the application of these changes to existing contracts and their effect on the industry. The Government has now created an explanatory page with an aim to answer the common questions raised by industry, you can access the page here.
Amongst others, Government confirms that the amendments apply to both existing and new construction contracts from 11 March 2024.
The ACT Government has also announced a review of the SOPA in its current form, with consultation to commence later this year. The findings of the review will be presented to the ACT Government in 2025. Members who wish to be included in the consultation list for this review should send an email to EPSDDBuildingReform@act.gov.au titled Security of Payment laws review – consultation list.
In the interim the MBA will make a flowchart and FAQ Sheet available to assist members in navigating the SOPA.
If you have any questions in regard to the Building and Construction (Security of Payment) Act 2009, please reach out to our Workplace Relations and Legal Team on 02 6175 5900.
