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BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 12A
Trust account requirements for retention money
12A Trust account requirements for retention money
(1) The regulations may make provision for or with respect to requiring
retention money to be held in trust for the subcontractor entitled to the
money and requiring the head contractor who holds retention money to pay the
money into a trust account (a
"retention money trust account" ) established and operated in accordance with
the regulations.
(2) The regulations may provide for the trust account into
which retention money is to be paid to be a trust account established with a
financial institution by the head contractor or a trust account established
and operated by the Small Business Commissioner.
(3) Without limitation, the
regulations under this section may include provision for or with respect to
the following-- (a) the procedures to be followed in connection with the
authorisation of payments out of a retention money trust account,
(b) the
keeping of records in connection with the operation of a
retention money trust account and the inspection of those records by the Small
Business Commissioner or the subcontractor entitled to the retention money,
(c) the resolution of disputes in connection with the operation of a
retention money trust account.
(4) A regulation may create an offence
punishable by a penalty not exceeding 1,000 penalty units for any failure to
comply with the requirements of the regulations under this section.
(5) In
this section,
"retention money" means money retained by a head contractor out of money
payable by the head contractor to a subcontractor under a
construction contract, as security for the performance of obligations of the
subcontractor under the contract.
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