Retention Trust Scheme
The retention trust scheme under the Building and Construction Industry (Security of Payment) Act 2021 requires retention money withheld under eligible construction contracts to be held in a retention money trust account with a recognised financial institution.
Timeline for the requirements:
- After 1 February 2023 – Construction contracts over $1,000,000 (including GST) that require the holding of retention monies will be required to hold the funds in a retention trust account.
- From 1 February 2024 – Construction contracts over $20,000 (including GST) that require the holding of retention monies will be required to hold the funds in a retention trust account.
Contracts entered into before 1 February 2023 do not require retention money to be held in a trust account.
Retention Trust Scheme fact sheet
Information on when the scheme applies and how it works
The guideline document below is written to assist current and future parties that are using, or will use, retention money as a method of performance security to understand their rights and obligations under the Retention Trust Scheme.
This guide provides information on:
- Determining whether a retention trust is required.
- How and when to open a retention trust account.
- How to operate a retention trust account.
- How to end a retention trust.
- The rights and obligations of the parties involved.
Retention Money Trust Accounting Guidelines
Rights and obligations under the Retention Trust Scheme
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