NSW security of payment laws have come into effect which require head contractors to provide the principal with a supporting statement when serving a payment claim.

The supporting statement is a legal declaration stating that the head contractor has paid all money due to subcontractors for any work carried out.
A head contractor who makes a false or misleading statement may breach the NSW security of payment legislation.

The Australian Building and Construction Commission (ABCC) is responsible for monitoring the new security of payments requirements. If they find a head contractor has breached the new laws, they might refer the matter to us for compliance action.

The maximum penalty for providing a false or misleading supporting statement is $22,000 or three months imprisonment, or both.

For more information on your obligations with security of payment rights you can contact the ABCC on 1800 033 388 or email [email protected].

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