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BIF Act 2017 (Qld): Queensland's payment-and-trust regime for builders

Qld Building Industry Fairness (Security of Payment) Act 2017: payment claims, adjudication, project trust accounts (private $10m+ current; expansion paused).

By Dan Waring. Last updated 16 May 2026. Verified 16 May 2026.

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In plain English

The Building Industry Fairness (Security of Payment) Act 2017 (Qld), known as the BIF Act, is Queensland’s combined security-of-payment-and-construction-trust legislation. It replaced the prior Building and Construction Industry Payments Act 2004 (BCIPA) when it commenced 17 December 2018. BIF runs the equivalent of NSW SOPA on its progress-payment side (statutory payment claim, payment schedule, adjudication) and adds a project trust account (PTA) and retention trust account (RTA) regime for larger contracts that has no NSW counterpart.

The two things every Qld builder should know about the BIF Act:

  1. Payment-and-adjudication side. Every construction contract in Qld carries the BIF Act payment claim framework: claimant lodges a payment claim, respondent issues a payment schedule, adjudication is available if the schedule is short or missing. The structure mirrors NSW SOPA closely.
  2. Project trust regime. On contracts above the current threshold the head contractor must establish a project trust account at an authorised deposit-taking institution and pay subcontractors through it. Retention money held under the same contract sits in a separate retention trust account.

The expansion of the trust regime has been paused since 31 January 2025 (verified 2026-05-16 against QBCC and TGLaw confirmations). The phased drops to $3m (was 1 March 2025) and $1m (was 1 October 2025) thresholds have not commenced and have no current scheduled commencement date.

What it requires

For a Qld head contractor:

  1. Payment claim under s.68 of the BIF Act. Must be made on or after the reference date in the contract, identify the work, state the claimed amount, and serve on the respondent. Unlike historical practice under BCIPA, the claim does not need a separate statutory endorsement to be valid for SOP purposes (under BIF, any payment claim that meets the s.68 requirements engages the Act).
  2. Payment schedule under s.69. The respondent must serve a payment schedule within 15 business days of receiving the claim (or sooner if the contract specifies). The schedule must identify the claim, the scheduled amount, and reasons for any reduction.
  3. Adjudication under s.79 onwards if the schedule is short, late or missing. Adjudicators are appointed via a Qld-registered Authorised Nominating Authority. Determinations are enforceable as judgment debts.
  4. Supporting statement on head contractor claims. A head contractor must include a supporting statement declaring that all subcontractors have been paid for the period of the claim. False statements are an offence.
  5. Project trust account for contracts at or above the trust threshold (currently $10m for eligible private contracts, $1m for government/local-government contracts). Head contractor opens the PTA at the authorised institution, pays subcontractors through it, and reports on movements under the QBCC oversight regime.
  6. Retention trust account for any contract that holds retention at the threshold-triggered level. Retention funds sit in a separate trust account.

What it doesn’t cover

  • Builder licensing. Sits under the Queensland Building and Construction Commission Act 1991, administered by QBCC.
  • Home warranty insurance (QHWS) for residential. Sits under the QBCC scheme, not BIF.
  • Civil construction contracts not within the “construction work” definition. Some mining and major resource work falls outside BIF.
  • Performance of subcontract obligations beyond payment. BIF is a payment statute; it does not adjudicate scope, quality or completion disputes (those go to contract dispute resolution, QCAT, or the District / Supreme Court).
  • The lower private-contract trust thresholds. The $3m (Phase 3) and $1m (Phase 4) thresholds were never commenced; the rollout is paused. Trust obligations on private contracts kick in at the $10m threshold currently.

Practical implications

  • The trust pause is a programme reality, not a permanent removal. Builders should design their internal systems and contract templates with PTA capability available, because the rollout could resume at short notice once the Productivity Commission review concludes. The pause makes things easier for the next year or two; it does not remove the obligation on $10m+ private contracts and government contracts $1m+.
  • Adjudication is fast and binding. A Qld adjudicator’s determination is enforceable as a judgment in 5 business days. The respondent must pay first and litigate later if they want to challenge the merits.
  • Supporting statements are non-negotiable on head contractor claims. Most procedural defects defeating an otherwise valid payment claim involve a missed or non-compliant supporting statement.
  • Domestic building contracts have their own consumer rules. A residential builder contracting directly with a homeowner under the Domestic Building Contracts Schedule to the QBCC Act has BIF rights, but the QBCC consumer-protection layer overlays. The two layers do not interfere with each other but the builder must hold both in mind.
  • QBCC oversees the trust framework, not the courts. Compliance reporting on PTAs and RTAs goes to QBCC; non-compliance is a regulator-prosecuted offence rather than a court-led action.

References

See also

Last updated: 2026-05-16. Verified: 2026-05-16. Quarterly review for currency.

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