Security of payment laws in Australia: a plain guide for tradies
Security of payment laws give anyone who does construction work, or supplies materials for it, a fast way to claim progress payments. You send a payment claim, the other side has a set number of business days to reply with a payment schedule, and if they don't pay or pay less, you can apply for adjudication. Each state has its own Act and deadlines.
Who it covers
Head contractors, subcontractors, suppliers and consultants working under a construction contract. The contract can be written, verbal or a mix. "Pay when paid" clauses generally don't apply. Contracts with homeowners are treated differently in some states, so check yours.
Step 1: the payment claim
A payment claim is your written request for a progress payment. It identifies the work or goods and states the amount. In some states it must also say it's made under the Act. Check the exact requirements in your state before you send it.
Step 2: the payment schedule
The person you claimed from can reply with a payment schedule saying how much they'll pay and why it's less, if it is. If they don't reply in time, in most states they can become liable for the full amount claimed. The deadlines are in the table below.
Step 3: adjudication
If you're paid less than claimed or not at all, you can apply to an authorised nominating authority for adjudication. An independent adjudicator decides quickly what has to be paid. Strict time limits apply at every step.
Things that catch people out
Deadlines are counted in business days, and each Act defines business days differently, including over Christmas. Missing a deadline can end your claim. Keep proof of when you served every document.
Where Churnproof fits
Churnproof follows up ordinary overdue invoices for you by text and email, and keeps you posted by SMS. It does not prepare or serve payment claims under these Acts, and it does not run adjudication. For formal claims, use your state's official guidance or get advice.
Important
This is general information only, not legal advice. Laws change and differ by state. Check the official source or speak to a lawyer before acting.
| State | Act | Payment schedule due |
|---|---|---|
| New South Wales | Building and Construction Industry Security of Payment Act 1999 (NSW) | 10 business days |
| Victoria | Building and Construction Industry Security of Payment Act 2002 (Vic) | 10 business days |
| Queensland | Building Industry Fairness (Security of Payment) Act 2017 (Qld) | 15 business days |
| Western Australia | Building and Construction Industry (Security of Payment) Act 2021 (WA) | 15 business days |
| South Australia | Building and Construction Industry Security of Payment Act 2009 (SA) | 15 business days |
| Tasmania | Building and Construction Industry Security of Payment Act 2009 (Tas) | 10 business days (20 for some residential claims) |
| Australian Capital Territory | Building and Construction Industry (Security of Payment) Act 2009 (ACT) | 10 business days |
| Northern Territory | Construction Contracts (Security of Payments) Act 2004 (NT) | Works differently (payment disputes). Check the Act |
Always confirm against the Act itself. Contracts can set shorter times.
Sources
- NSW Fair Trading: security of payment
- QBCC: getting paid
- Building and Construction Industry Security of Payment Act 2002 (Vic)
- Building Industry Fairness (Security of Payment) Act 2017 (Qld)
- Building and Construction Industry (Security of Payment) Act 2021 (WA)
- Building and Construction Industry Security of Payment Act 2009 (SA)
- Building and Construction Industry Security of Payment Act 2009 (Tas)
- Building and Construction Industry (Security of Payment) Act 2009 (ACT)
- Construction Contracts (Security of Payments) Act 2004 (NT)
- Australian Small Business and Family Enterprise Ombudsman
Last checked 6 November 2026.
Questions people ask
- Who can use security of payment laws?
- Anyone who does construction work, or supplies materials for it, under a construction contract.
- What happens if they don't reply to my payment claim?
- If they miss the deadline for a payment schedule, or pay less, you can apply for adjudication. Each state has its own Act and deadlines.