Head contractors in the building and construction industry need to be aware of additional reporting requirements created by recent changes to Security of Payment regulations in NSW.
Separately, in a move likely to impact many organisations including large builders, the Commonwealth Government has introduced legislation requiring all large entities to report on their small business payment practices and terms.
The Building and Construction Industry Security of Payment Regulation 2020 (NSW) came into effect on 20 September 2020, repealing the previous 2008 version of the regulations. A key change to the Regulation is the introduction of a requirement for head contractors to provide individual retention money trust account ledgers to subcontractors every three to six months.
The Payment Times Reporting Act 2020 (Cth) came into effect on 1 January 2021. The Act requires entities earning over $100 million in revenue to report every six months on payment times of small business invoices, as well as payment practices, terms, and small business supply chain finance requirements.
We've taken an in-depth look at the changes to the Security of Payment Regulations and the reporting requirements introduced by the Payment Times Reporting Act legislation, including the penalties for non-compliance. Read the full report here.
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