Amendments to the Building Industry Fairness (Security of Payment) and Other Amendments Act 2024 (BIFOLA) and associated regulation, to clarify and simplify the trust account framework, will take immediate effect from 1 July 2024.

In relation to accounting, these amendments aim to reduce administrative complexity and cost to the industry by: 

• simplifying what records need to be kept, making it easier to comply with trust account requirements and respond to emerging software or accounting practices 
• pausing the requirement for independent account reviews in recognition of the record keeping and software constraints (trustees no longer need to engage an auditor to review retention trusts) 
• confirming a transitional regulatory approach for the keeping of records until software is readily available 
• clarifying that trust account balances are not included in minimum financial requirements reporting. 

The Department of Energy and Public Works (The Department) has been working closely with more than 30 digital software providers to clarify record keeping requirements for trust accounts and support the development of software solutions. 

They have informed industry stakeholders that a list of software solutions that meet the requirements for various sized businesses will be published on their website (no timeline has been provided as yet, once provided we'll be sure to provide timely updates). This will give trustees confidence the products will enable them to comply with record keeping requirements. It is expected software will progressively become available in the market throughout late 2024 and early 2025. 

Industry will be encouraged to consider the best solution based on their current systems and business needs. Existing trustees will have time to consider all options and will not need to rely on the earliest available solution. 

The Department and the Queensland Building and Construction Commission (QBCC) are informing other key stakeholder groups of the amendments. We understand the QBCC will be including a suggestion to licensees to have a tax-time conversation with their accountants to consider their readiness for the next phases of the framework. The Department will also be working with the QBCC to provide more information about security of payment protections and the final rollout of the trust account framework in coming months and into 2025. 

If you would like more information, please send your enquiry to [email protected].