Commerce Minister statement – Security of payment laws reinforce subcontractor protections

Media statement from Commerce Minister – Hon Roger Cook BA GradDipBus MBA MLA

  • Building and Construction Industry (Security of Payment) Act 2021 commences today
  • First of a three-stage reform package to improve protections for subcontractors
  • Industry education and resources to help with transition to new contract laws

The McGowan Government is delivering on its election commitment to strengthen payment protections for subcontractors in Western Australia's building and construction sector.


The Building and Construction Industry (Security of Payment) Act 2021 takes effect from today, marking the first stage of landmark reforms to ensure subcontractors and suppliers receive timely payments for their work.


The new Act applies to construction contracts entered into from today. The Construction Contracts (Former Provisions) Act 2004 will continue to apply to existing contracts.


The first stage of the new Act expands contractors' rights to claim regular payments to avoid large outstanding invoices. It also delivers more structure and transparency to payments and an effective dispute resolution pathway to recover money owed. This aligns WA's security of payment laws with related legislation elsewhere in Australia.


Education initiatives are underway to help the industry adjust to the new legislation, including a suite of resources at the Building and Energy website ( and forthcoming information sessions and regional roadshows.


Further security of payment reforms will commence from February 2023 and February 2024. These stages will include a mandatory retention trust scheme, fairer contracting practices and expanded powers against unscrupulous registered builders.


Comments attributed to Commerce Minister Roger Cook:


"The recent surge in building and construction activity across Western Australia has reinforced the industry's pivotal place in the State's economy.


"The McGowan Government is proud to deliver this important law to ensure greater payment protections across the contracting chain in the event of an upstream insolvency.


"I encourage all industry participants to learn more about the new laws, which will deliver sector-wide benefits through a fairer, more efficient and robust payment protection system."


Building and Energy
Media release
01 Aug 2022

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