The Victorian Government is moving to reset the balance on jobsites across Victoria, with new legislation designed to give subcontractors more security and confidence that their hard work will be paid for, on time and in full.
This week, Housing and Building Minister Harriet Shing introduced the Fairer Payments on Jobsites Bill to Parliament, promising stronger protections for tradies and tougher consequences for those who withhold payments.
The reforms aim to tackle one of the construction industry’s most persistent pain points: subcontractors chasing money long after the work is done.
Why the Bill Matters
For decades, delayed and unpaid invoices have been part of the construction game, but it’s the subbies at the end of the chain who feel it most. When cashflow dries up, subcontractors are often left with little leverage against bigger businesses.
The Allan Government says this Bill will strengthen the Security of Payment Act 2002, making dispute resolution faster and more effective. It will also open clearer pathways for recovering unpaid claims, including variations, which have historically been a grey area.
Minister Shing was clear:
“All workers including subcontractors deserve to be paid fairly and promptly. This legislation is focussed on providing more certainty and confidence to subcontractors, which will in turn boost productivity across the industry.”
A Broader Reform Framework
The Fairer Payments on Jobsites Bill isn’t just about money. It forms part of a broader suite of reforms aimed at shoring up confidence in Victoria’s building sector.
Other measures include:
- Registration for building surveyors and inspectors: formalising processes to boost the supply of skilled workers.
- Consumer protection: reinforcing confidence for homeowners engaging builders.
- Industry stability: addressing insolvency risks by strengthening payment practices and cutting disputes before they spiral.
For subbies, the reforms are timely. With the holiday period around the corner, traditionally a financially stressful time for sole traders and small businesses, the promise of faster, fairer payments could make the difference between stability and hardship.
Union and Industry Backing
The reforms have won support from across the building landscape.
Amanda Threlfall, Assistant Secretary of the Victorian Trades Hall Council, welcomed the move:
“This Bill sends a clear message to anyone in the building industry who refuses to pay subcontracted tradies: Victorian workers must be paid for their work on time and to the full agreed amount.”
The Plumbing and Pipe Trades Employees Union echoed the sentiment. Assistant Secretary Paddy McCrudden said plumbers and other subbies spend too many hours chasing payments that should never have been withheld in the first place:
“The building industry relies on hard-working subcontractors. The reforms in this Bill will ensure subbies are paid fairly and won’t be forced to spend hours out of their week chasing money they are owed for completed works.”
Industry veteran John Murray AM added weight, calling it a long-overdue shift:
“The Bill will significantly reform Victoria’s current security of payments regime. It will ensure that the adjudication process will be able to deal with disputed payment claims quickly and fairly, addressing the imbalance of power that has had a devastating impact on subcontractors.”
Building Confidence in a Shaky Sector
Confidence in construction has taken repeated hits in recent years, from the collapse of major builders to supply chain breakdowns and rising material costs. For many subcontractors, the risk of not getting paid has become almost baked into the job.
By tightening payment laws, the Government is aiming to restore trust, not just for workers but also for homeowners. After all, when subcontractors are paid properly, jobs are less likely to stall, disputes are less likely to end in litigation, and projects are more likely to finish on time.
As Shing noted, the ripple effects are significant:
“We’re working with consumer groups, businesses, unions and industry groups to make sure we get the balance right – so builders, tradies and suppliers can get on with delivering more safe, high-quality homes for Victorians.”
The Good Builder Take
For builders and subcontractors alike, this Bill marks an important cultural shift. It puts timely payment at the centre of how Victoria wants its building industry to operate.
It’s not a silver bullet. Cashflow management, builder insolvencies, and tight margins will continue to test the sector. But the principle is clear: if work is done, it should be paid for on time.
For subbies, that means fewer unpaid invoices hanging over their heads. For builders, it means a more reliable supply chain with trades who know they’ll be looked after. And for consumers, it means a stronger, more stable industry delivering the homes Victoria desperately needs.
Whether it delivers will depend on how effectively the reforms are enforced. But for now, subcontractors across Victoria have reason to feel that their voices are finally being heard.
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