Phased rollout of Queensland’s Project Trust Account regime delayed to 2025

21 March 2023
Paul Calvert, Partner, Brisbane Jim Demack, Chairman, Brisbane Russell Ensbey, Special Counsel, Brisbane

Project Trust Accounts (PTAs) are required for eligible building contracts for:

  • State Government and Hospital and Health Services valued at $1 million or more (ex.GST); and
  • Since 1 January 2022, for contracts in the private sector and local government contracts valued at $10 million or more (ex. GST).

On Sunday, 19 March 2023, the Queensland Government announced a 2 year extension to the timeline for the remaining phases of the PTA regime:

Revised timeline for remaining phases

PhaseEligible contractCommencement date
Old DateNew Date
3Project and retention trusts will also apply to private sector and local government building and construction contracts valued at $3 million or more (excluding GST).1 April 20231 March 2025
4Project and retention trusts will apply to all building and construction contracts valued at $1 million or more (excluding GST).1 October 20231 October 2025

A link to the press release is here, and a link to the QBCC’s useful project trust account tool that can help determine whether a project trust account may be required is here.

The revised timeline will give industry participants in general, and builders in particular, more time to prepare for the introduction of the PTA regime to smaller value projects.

If you need assistance navigating the requirements of the PTA regime, please contact the Gadens team.

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Authored by:
Jim Demack, Partner
Paul Calvert, Partner
Russell Ensbey, Special Counsel
Natalie McNeill, Solicitor

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

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