Subbies Win With New Laws

Sub-contractors and their families will have better financial security thanks to new laws which passed the NSW Parliament overnight.

Minister for Better Regulation Matt Kean said the security of payment laws will help stop subbies being left out of pocket for work completed each month.

“All too often we hear about families falling behind or missing out entirely because they weren’t paid by the head contractor who hired them to do the work,” Mr Kean said.

“These are good, honest and hard-working people who have been left out of pocket through no fault of their own. These laws will help to address that.”

Under the changes:

  • Head contractors will have 20 business days to pay sub-contractors, instead of 30 business days;
  • A new payment structure will allow sub-contractors to make a claim at least once a month for completed work, and a final claim if a contract is terminated; and,
  • There will  be  increased  compliance  and  enforcement  powers  for  NSW  Fair Trading.

Mr Kean said the Government is also considering additional reforms to help sub-contractors get paid sooner.

“We’re doing a regulatory impact statement to analyse whether statutory trusts are a suitable option. This model would require contractors to quarantine money for paying sub- contractors,” Mr Kean said.

“We want to make sure there are no unintended consequences for the construction sector, which is an important driver of economic growth in NSW.

“In the meantime, these new laws will give sub-contractors financial security and allow them to better plan for their futures.”

Mr Kean said Fair Trading will consult with industry groups before determining when the laws will come into effect.

“We want subbies and their families to see the benefits as soon as possible,” Mr Kean said.

For more information on the reforms, visit