Every state and territory has a Security of Payment law. It gives anyone who does construction work, or supplies materials for it, a fast way to claim progress payments and sort out disputes. Know how it works, whether you're making a claim or getting one.
Who it covers
- Head contractors, subbies, suppliers and others working under a construction contract. The contract can be written, verbal or a mix of both.
- “Pay when paid” clauses don't work. Nobody can make you wait to be paid until the person above them gets paid.
- Homeowners are treated differently. In Victoria and the ACT, for example, the law doesn't cover a contract with a homeowner who lives in (or will live in) the home. NSW does cover owner-occupier contracts, with some differences. Tasmania gives a residential home owner more time to respond. Check your state.
Step 1: the payment claim
A payment claim is your written request for a progress payment. It must:
- identify the work, or the goods and services, you're claiming for
- state the amount you're claiming
- in some states, say it's made under the Act. Victoria and Tasmania need this on every claim. NSW needs it on some residential claims.
When you can claim. Most Acts let you claim once a month, from the last day of the month, or on the dates your contract sets. Queensland calls the day you can claim the “reference date”. Victoria (from 15 April 2026) and the ACT have swapped reference dates for a simple monthly right to claim.
In Footing, you set up the head contract with your state, retention and response days. Each claim is % complete per line, and you can make it under the Security of Payment Act. When you serve it by email, Footing sends the claim PDF and starts the payment-schedule clock with a due date. See progress claims.
Step 2: the payment schedule
If the other side won't pay the full amount, they must give you a payment schedule before the deadline. It must:
- identify the claim it's answering
- say how much they will pay (it can be nothing)
- give all their reasons for paying less
The reasons matter. In Victoria and Tasmania, for example, a reason left out of the payment schedule can't be raised later in adjudication.
Footing lets you record the client's payment schedule line by line, with their reasons.
If they don't respond or don't pay
If no payment schedule arrives in time and they don't pay by the due date, they generally owe the full amount claimed. Your options usually include:
- going to court to recover it as a debt
- applying for adjudication. In Victoria you must first give notice, and they then get 5 business days to give a payment schedule.
- suspending work after written notice. In NSW the notice period is 2 business days.
Stopping work without following the Act's notice rules can put you in breach of your contract. Check your state's rules first, or get advice.
Adjudication in plain English
- An independent adjudicator decides how much is owed now, based on the documents both sides give them. It isn't mediation.
- You apply through an authorised nominating authority (or in the NT, a registered adjudicator or appointer). Fees apply.
- The time limits to apply are strict. In NSW, for example, you have 10 business days after getting a payment schedule you disagree with. In the NT, it's 65 working days after the payment dispute arose.
- The decision can be enforced like a court judgment. It's a fast step, not always the last word: in the ACT, for example, either side can still go to court later over the contract.
State by state
How long the other side has to give you a payment schedule, unless your contract sets a shorter time.
| State | The law | Payment schedule due within |
|---|---|---|
| NSW | Building and Construction Industry Security of Payment Act 1999 | 10 business days |
| Vic | Building and Construction Industry Security of Payment Act 2002 | 10 business days |
| Qld | Building Industry Fairness (Security of Payment) Act 2017 | 15 business days |
| WA | Building and Construction Industry (Security of Payment) Act 2021 | 15 business days |
| SA | Building and Construction Industry Security of Payment Act 2009 | 15 business days |
| Tas | Building and Construction Industry Security of Payment Act 2009 | 10 business days (20 if the respondent is a residential home owner) |
| ACT | Building and Construction Industry (Security of Payment) Act 2009 | 10 business days |
| NT | Construction Contracts (Security of Payments) Act 2004 | Works differently. Check your contract and the NT rules. |
Business days don't include weekends or public holidays. Some states also skip days over Christmas. From 15 April 2026, Victoria skips 22 December to 10 January.
Sources
Checked September 2026. Rules change, and they differ between states. This is general information, not legal or tax advice.
- NSW Government — Making a payment claim under Security of Payment laws
- Building and Plumbing Commission (Vic) — Making a payment claim under the SOP Act
- Building and Plumbing Commission (Vic) — Responding to a payment claim under the SOP Act
- Building and Plumbing Commission (Vic) — Changes to the SOP Act
- QBCC — Respond to payment request
- WA Building and Energy — Responding to a payment claim
- SA Legislation — Building and Construction Industry Security of Payment Act 2009
- CBOS Tasmania — Responding to a security of payment claim
- ACT Legislation Register — Building and Construction Industry (Security of Payment) Act 2009
- NT Government — Get help to resolve a construction dispute
Related guides
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