How to Make a Security of Payment Claim in Every Australian State (Step by Step)

Security of Payment (SOP) is the fastest legal tool a subbie or builder has to get paid. It turns “I will pay you when I get paid” into a statutory debt in a matter of weeks. But the process is deadline-driven, and one missed date can kill your claim. Here is how it works and what you must do in each state.

How Security of Payment works (all states)

1. You serve a payment claim. A written claim that identifies the work, states the amount, and (in most states) says it is made under the relevant Act.
2. They must respond with a payment schedule within a fixed number of business days. The schedule must say how much they will pay and why they are withholding the rest.
3. No schedule? The full claimed amount becomes a debt. You can sue for it in court and they are barred from raising defences, or you go to adjudication.
4. Schedule for less? You apply for adjudication. An independent adjudicator decides within about 10 business days.
5. Adjudication certificate can be filed in court as a judgment. You can also suspend work and, in some states, claim from the principal directly.

Important: most states exclude contracts with a home owner who lives (or intends to live) in the property. SOP is mainly for commercial work and for subcontractors claiming against head contractors. Check the exemptions for your state before relying on it.

State by state

New South Wales

Building and Construction Industry Security of Payment Act 1999. Payment claim must state it is made under the Act. Respondent has 10 business days to serve a payment schedule. If they do not, notify them within 20 business days of the due date that you intend to apply for adjudication. They then get 5 business days to provide a payment schedule, and you apply within 10 business days after that (Building and Construction Industry Security of Payment Act 1999 (NSW) s 17). Head contractors must include a supporting statement declaring subbies have been paid. Subcontractors are entitled to payment within 20 business days of the claim, head contractors within 15.

Victoria

Building and Construction Industry Security of Payment Act 2002. Payment schedule due within 10 business days. Watch the “excluded amounts” rules: certain variations and time-related costs cannot be claimed through adjudication in Victoria, so keep your claim tied to work under the contract.

Queensland

Building Industry Fairness (Security of Payment) Act 2017. Since 2018 a payment claim no longer needs to say it is made under the Act, meaning every invoice for construction work is effectively a payment claim. Respondent has 15 business days (or less if the contract says so). Failing to give a schedule is an offence and can attract QBCC penalties. Adjudication applications go through the QBCC Adjudication Registry.

Western Australia

Building and Construction Industry (Security of Payment) Act 2021 replaced the old Construction Contracts Act for contracts entered after 1 August 2022. Payment schedule due within 15 business days. Claims must state they are made under the Act. Retention money trust rules also apply to larger contracts.

South Australia

Building and Construction Industry Security of Payment Act 2009. Payment schedule due within 15 business days. Claim must reference the Act.

Tasmania and the Australian Capital Territory

Both have a Building and Construction Industry Security of Payment Act 2009. Payment schedule due within 10 business days. Claims must reference the Act.

Northern Territory

Construction Contracts (Security of Payments) Act 2004. Different model. Instead of payment schedules, you apply for adjudication of a “payment dispute” within 65 business days of the dispute arising.

What to put in the payment claim

• Your business name, ABN and the respondent’s correct legal name (check ASIC and the contract).
• A description of the work and the period claimed.
• The amount claimed, with GST shown.
• The statement “This is a payment claim made under the [Act name]” where required.
• Attach invoices, timesheets, delivery dockets and approved variations.
• Serve it the way the contract says, and keep proof (email read receipt, registered post).

Where a letter of demand fits

SOP is powerful, but it costs money to run an adjudication and the other side will sometimes pay up as soon as they realise you know the process. A letter of demand that references your rights under the SOP Act, names the payment schedule deadline and warns of adjudication and suspension of work often produces payment without the fight. If it does not, you have lost nothing and you are already documented.

Get paid faster

Claim Done drafts your Letter of Demand for $49, referencing the Security of Payment Act for your state and putting the head contractor or principal on notice. If they still will not pay and you need to escalate to a tribunal or court, Claim Done drafts your Tribunal Application for $97 with the correct claim wording.

Start my Letter of Demand – $49  |  Start my Tribunal Application – $97