The Building and Construction Industry (Security of Payment)Act2021 (Act) retention money trust scheme now applies to construction contracts valued over AU$1 million in Western Australia.
What Do I Need to Know?
From 1 February 2023 to 31 January 2024, construction contracts valued at over AU$1million will be subject to the retention trust scheme under the Act (save for minor exclusions).
During this time, if your construction contract is valued at less than AU$1 million at the time it is entered into, but the contract value is later varied to exceed AU$1 million, the statutory trust scheme for retention money will apply to retention money retained after the contract value exceeds AU$1 million.
This AU$1 million contract value threshold will apply until 1 February 2024, when the threshold will be lowered and the retention trust scheme will apply to construction contracts valued at over AU$20,000.