Master Electricians Australia (MEA) is calling on the QLD State Government to provide assurances to electrical subcontractors that their payments will be protected on all building projects.

The Government has announced a raft of building reforms, including a pause on retention trust accounts that holds money belonging to subcontractors.

MEA CEO Kate Raymond said the changes benefit builders, without supporting subcontractors.

“Electrical contractors are vital to our building sector, and protection of payments and retention money is essential to small businesses. The announcement of building industry reforms helps builders, but we also need to help electrical subcontractors,” Ms Raymond said.

“MEA members are reporting to us that they’re experiencing non-payment, including not getting their retention money back.

“When a builder goes bust, they’re holding onto money belonging to subcontractors. That money won’t be returned to subcontractors if it’s not protected. A separate trust account protects retention money from liquidators and doesn’t see hardworking small businesses losing their own cash.

“Project trust accounts are complex, but retention trust accounts are much simpler. These should continue to be rolled out to lower value projects, and money held by residential builders that belong to subbies should also be protected.

“If retention trust accounts aren’t appropriate for the building sector, government should step in and hold retention money the same way it does with rental bonds – with a quick and easy process to pay money in and out. Retention money protections should also be expanded to residential subcontractors.

“MEA welcomes the Productivity Commission review, but subcontractors need an assurance now that their payments will be protected on lower value projects.”

Kate Raymond is available for media interviews.
For further information please phone The SAS Group on (07) 3221 9222 or 0467 792 013.