Yesterday, (Friday 14th of March 2025 if you’re reading this later on), the Australian Government responded to the Murray Review, marking an important step towards addressing payment issues within the building and construction industry. With an election on the horizon, what do we know, and what should we be paying attention to?

A Quick Recap

The Murray Review, conducted by John Murray AM, was commissioned in 2017 to evaluate Australia’s security of payment laws within the building and construction industry. It made recommendations aimed at ensuring prompt and fair payments for subcontractors and tradies by addressing inconsistencies and improving regulatory effectiveness across states and territories.

The (some would say long overdue) response to the Murray Review applies broadly across the whole building and construction industry, including residential home builders and contractors involved in constructing new homes. The focus of the Murray Review and the subsequent response by the government specifically targets improving payment security for subcontractors, tradies, and small businesses in all sectors of the industry.

Security of payment laws typically apply to projects regardless of size or scale, meaning they generally cover both large and small construction projects. However, each state and territory has specific thresholds or exclusions that can vary. The Murray Review recommended harmonising these inconsistencies to create greater uniformity across states. Therefore, builders involved in residential projects, including new homes, will undoubtedly be affected by these reforms.

Improving Security Payments

At the heart of the response are initiatives aimed at improving payment security, including timely payments to subcontractors and increased protection against unfair trading practices. Minister for Small Business, Julie Collins, emphasised:

“These measures will ensure small businesses are paid in full and on time, strengthening their financial stability and setting fair standards across the sector.”

Master Builders Australia CEO Denita Wawn welcomed the government’s commitment, highlighting the significance of aligning state and territory regulations,

“The Government’s acknowledgment that it has a stewardship role to address issues arising from state and territory regulation is an important recognition of the need to reduce inconsistencies between jurisdictions and restore their focus back to their original intent.”

A particularly important measure is the provision of additional funding to the Australian Securities and Investments Commission (ASIC) to strengthen enforcement through the Director Identification Number (DIN) scheme. This scheme was specifically created to combat illegal phoenix activity, where businesses deliberately liquidate to avoid paying creditors.

Denita Wawn emphasised the importance of this scheme but noted room for improvement:

“The introduction of the DIN has not worked as effectively as the industry would’ve liked to see.”

Assistant Minister for Financial Services Stephen Jones further clarified the government’s stance: “There is no place in our economy for dodgy directors who phoenix their companies and leave behind unpaid creditors.”

Assistant Minister for Competition, Charities and Treasury Andrew Leigh highlighted ongoing issues faced by small businesses, noting,

“Too often, small construction businesses are left chasing payments from bigger players who treat them as an interest-free loan.”

Minister for Employment and Workplace Relations Murray Watt also emphasised urgency, saying, “The insecurity and financial stress faced by subcontractors due to payment delays is unacceptable. Our response is aimed squarely at providing the fairness and transparency the industry deserves.”

Have Your Say

Last month, we published an article on “What Makes A Good Builder?“, where we asked some of Queensland’s most respected voices in the industry to tell us what they think makes a good builder. One of the pillars that our community has identified that makes a good builder is to “Build long-lasting loyal relationships with good trades, pay them on-time, with clear communication and accountability on both sides.“

With that in mind, as these developments continue, we want to hear from The Good Builder community:

• Do you believe these changes will bring practical improvements?
• What additional measures do you think are necessary to create a fairer and more sustainable industry?

Author: Jonathan Tibbits

Starting his career as a lawyer, Jonathan transitioned into project management, compliance, and certification for companies throughout the industry supply chain in Australia and New Zealand. With international experience in green building, sustainability and stakeholder communication, he is passionate about innovation and building transparency and trust.