Subcontractor rights in Australia
Australian subcontractors have statutory rights that no contract can take away: the right to claim progress payments, to have an unanswered claim become a debt, to fast adjudication of disputed amounts, and to suspend work for non-payment. Pay-when-paid clauses are void in every state. The rights come from each state's Security of Payment Act, and the deadlines differ by state.
AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.
Your eight core rights
The right to make a payment claim
Every state and territory has a Security of Payment Act that gives anyone who carries out construction work or supplies related goods and services under a contract a statutory right to progress payments. In every state except the NT, you serve a payment claim and the builder must answer it with a payment schedule inside a fixed number of business days.
Security of Payment explainedSilence becomes a debt
If the builder doesn't serve a payment schedule in time, the full claimed amount generally becomes a debt due, and the builder loses the right to argue about it at adjudication. It is one of the strongest positions a subcontractor can hold.
No payment schedule: what happensThe right to be paid on time
QLD, NSW, VIC and WA cap how long a builder can take to pay a subcontractor, whatever the contract says. In the other states the contract mostly governs, which makes the payment clause worth negotiating before you sign.
Payment terms in AustraliaPay-when-paid is void
A clause that makes your payment depend on the builder being paid by its client is of no effect under the Security of Payment Act in every state and territory. You are owed for your work whether or not the client has paid the builder.
Is pay-when-paid legal?The right to adjudication
If a claim is disputed or unpaid, you can apply for adjudication: a fast, documents-based decision by an independent adjudicator, usually within weeks, at a fraction of the cost of court. An adjudicated amount is enforceable as a debt.
How adjudication worksThe right to suspend work
Each state's Act gives a statutory right to suspend work for non-payment in defined circumstances, after written notice. Follow the steps exactly: walking off site without them can hand the builder a reason to terminate.
Suspending work for non-paymentProtection for retention money
Some states require retention to be held in trust: NSW on larger projects, QLD through statutory trusts on some projects, and WA through a retention trust scheme that is phasing in. Elsewhere, retention is usually an unsecured debt if the builder fails.
Retention explainedProtection from unfair standard form terms
Since November 2023 unfair terms in standard form contracts with small businesses (fewer than 100 employees or under $10 million turnover) can be void, and penalties apply. A builder's take it or leave it subcontract can be a standard form contract.
Subcontract review checklistThe numbers in your state
| State | Builder must answer a claim within | Payment terms capped at | Retention trust | Adjudication through |
|---|---|---|---|---|
| Queensland | 15 business days | 25 business days | Statutory trusts apply on some projects | QBCC Adjudication Registry |
| New South Wales | 10 business days | 20 business days | Retention on larger projects must be held in trust | Authorised Nominating Authorities (NSW Fair Trading maintains the list) |
| Victoria | 10 business days | 20 business days | No general scheme | Authorised Nominating Authorities (list via the Building and Plumbing Commission, formerly the VBA) |
| Western Australia | 15 business days | 25 business days | A retention trust scheme is phasing in | Building and Energy, WA (DEMIRS), authorised nominating authorities |
| South Australia | 15 business days | The contract governs | No general scheme | Authorised Nominating Authorities (list via Small Business Commissioner SA) |
| Tasmania | 10 business days | The contract governs | No general scheme | Authorised Nominating Authorities (guidance via CBOS Tasmania) |
| Australian Capital Territory | 10 business days | The contract governs | No general scheme | Authorised Nominating Authorities (guidance via Access Canberra) |
| Northern Territory | No schedule step: 90 days to adjudicate once a dispute arises | The contract governs | No general scheme | Registered adjudicators / prescribed appointers (via NT Government) |
Business days exclude weekends and public holidays. The contract can shorten some windows. WA contracts entered into before 1 August 2022 sit under the older Construction Contracts Act 2004. Work out your own dates with the deadline checker.
Rights are strongest before you sign
The Act protects you after a dispute starts. The contract decides how often you get there. Time bars, set-off without notice and uncapped liquidated damages are all legal, and they are in most subcontracts. Read them with the subcontract review checklist, or see the clauses by trade on the trade pages.
Before you sign, or already owed money?
Common questions
What rights does a subcontractor have in Australia?
Under each state's Security of Payment Act a subcontractor has the right to make progress payment claims, to have unanswered claims become a debt, to apply for adjudication of disputed or unpaid amounts, to suspend work for non-payment after notice, and to ignore pay-when-paid clauses, which are void. Several states also cap payment terms and protect retention in trust.
What can a subcontractor do if the builder doesn't pay?
Serve a valid payment claim under your state's Act if you haven't, then use the deadlines. If no payment schedule arrives in time, the amount is generally a debt you can recover. If the builder disputes or short-pays, you can apply for adjudication. Statutory windows are short, so check the dates first with the free deadline checker.
Can a subcontractor stop work if not paid?
Yes, in defined circumstances and after written notice under the state's Security of Payment Act. The steps and notice periods differ by state. Stopping work without following them can be treated as abandoning the contract, so get the sequence right first.
Do subcontractors have rights if the builder goes broke?
Usually as an unsecured creditor, which often means cents in the dollar. Protection comes from steps taken earlier: retention held in trust where the state requires it, PPSR registration over materials and plant you supply, claiming promptly so less is owed, and checking the builder before you sign.