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Security Of Payment Act Purpose

Law made to help people who aren’t getting paid for their work.

The Security of Payment Act Legislation is state based, and had its genesis in New South Wales in 1999

Victoria followed in 2002.

Queensland came next in 2004.

Followed by Australian Capital Territory, Tasmania and South Australia in 2009.

The actual legislation can be found by clicking on the links below and if you are especially keen you can also find caselaw in the “Noteup” section of these linked sites. ( No need to spend money unnecessarily on the “Annotated Act” which is sold by one particular ANA – it’s all in Noteup !! )

For help understanding how the Security Of Payment Act laws can help you in you current situation browse our site using the search window in the top right hand corner of the RECOUP Home Page

Endless Disputes Called Out For The Security Of Payment Act

The building & construction industry is known to have more disputes than any other industry.

This means that dispute resolution is vital to people getting paid for their work.

Up until 1999 the main mechanism for dispute resolution was court proceedings which are very costly, very time consuming, and a massive distraction. And it is important to note that the prospects of success in court proceedings must be presumed to be 50-50.

And because court proceedings are such a deterrent, many claimants just gave up on getting paid and moved on. Those that did commence court proceedings were often worn down and gave up after some time, and then walked away from the money they were owed.

Other forms of dispute resolution such as mediation and tribunals were available but were rarely used.

All of this meant that deep pockets, big companies, were able to abuse small business and sole traders.

Enter The Security Of Payment Act

It really was a miracle that the Security Of Payment Act Laws were ever passed through parliament. They meant significant changes for the way disputes in the building & construction industry would be handled from thereon in.

All of a sudden there was a strict prohibition on withholding payment without a legal right.

All of a sudden claims of payment couldn’t be ignored and dragged out forever and a day.

All of a sudden it was about who had the deepest pockets – it was about genuine justice.

The Security Of Payment Act has now been in operation for 16 years and is working well, ensuring cash-flow and full remuneration are received in a timely fashion without costing the earth.

Call RECOUP To Have All Of Your Security Of Payment Act Questions Answered And For Debt Recovery Assistance

1300 RECOUP Debt Recovery Contact Us For Security Of Payment Act Help