The Victorian Government has introduced reforms designed to protect subcontractors from late or incomplete payments, as part of its effort to strengthen confidence in the state’s construction sector.
Minister for Housing and Building Harriet Shing introduced the Fairer Payments on Jobsites Bill, which includes new measures to help subcontractors recover money they are owed for completed work. The Bill also builds on the Security of Payment Act 2002, giving tradies greater access to dispute resolution and enforcement processes.
Shing said the changes would deliver greater certainty for workers and support industry growth. “All workers – including subcontractors – deserve to be paid fairly and promptly. This legislation is focussed on providing more certainty and confidence to subcontractors, which will in turn boost productivity across the industry.”
She added that the Government was working closely with industry and consumer groups to ensure balance. “We’re working with consumer groups, businesses, unions and industry groups to make sure we get the balance right—so builders, tradies and suppliers can get on with delivering more safe, high-quality homes for Victorians.”
The Bill also addresses workforce pressures by formalising registration processes for building surveyors and inspectors, with the aim of boosting the supply of skilled workers.
Union leaders have welcomed the reforms. Assistant Secretary of the Victorian Trades Hall Council Amanda Threlfall said, “This Bill sends a clear message to anyone in the building industry who refuses to pay subcontracted tradies: Victorian workers must be paid for their work on time and to the full agreed amount. Workers in the building industry will be protected by the reforms in this Bill.”
Paddy McCrudden, Assistant Secretary of the Plumbing and Pipe Trades Employees Union Victoria, highlighted the impact on tradespeople. “The building industry relies on hard-working subcontractors like plumbers. The reforms in this Bill will ensure subbies are paid fairly and won’t be forced to spend hours out of their week chasing money they are owed for completed works.”
John Murray AM, who has long advocated for reform in this area, said the measures would address a longstanding imbalance. “The Bill will significantly reform Victoria’s current security of payments regime. It will ensure that the adjudication process will be able to deal with disputed payment claims quickly and fairly, addressing the imbalance of power that has had a devastating impact on subcontractors. The reforms will now enable subcontractors to recover payments for all work carried out under a building contract, including variation work.”
The changes come ahead of the holiday period, a time that often adds financial strain for smaller operators, and are intended to provide more stability in an industry central to Victoria’s housing supply.
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