Developer Stockland says it is committed to upholding fair payment legislation after one of its companies copped a $150,000 fine for failing to pay money into a trust account.
The Queensland Building and Construction Commission took action against Stockland Kawana Waters under the Building Industry Fairness (Security of Payment) Act 2017 over payments it made to PBS before the company collapsed during construction of The Curl at Bokarina.
In a Queensland first, Stockland was prosecuted for transferring funds owed under a head contract to an account other than a prescribed project trust account (PTA).
QBCC interim CEO and commissioner Skye Bowie said this was the first prosecution related to PTA offences against the Building Industry Fairness (Security of Payment) Act 2017.
“This action is a strong outcome that reflects the QBCC’s regulatory focus on deterrence, education and proportionate enforcement,” Ms Bowie said.
The offending occurred on 12 separate occasions between June 2022 and March 2023. The payments were made to the wrong account as a result of human error.
A Stockland spokesperson said the developer was committed to upholding the Building Industry Fairness (Security of Payment) Act 2017.
“We have accepted the magistrate’s decision and complied with all requirements to resolve the matter,” the spokesperson said.
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“Our payments processes have been audited and strengthened to support our ongoing compliance.”
Ms Bowie said the PTA framework was established so that financial safeguards were in place to help secure payments for subcontractors and other creditors during and after a construction project.
The court imposed a $150,000 penalty on Stockland Kawana Waters but no conviction was recorded.
“This outcome reflects the QBCC’s risk-based enforcement approach and its role in ensuring all persons subject to the Act’s requirements are held accountable for non-compliance where serious risks are identified,” Ms Bowie said.
She said the prosecution by the QBCC reflected direct action on the key industry issue of security of payments, which was a priority area in the QBCC’s compliance and enforcement strategy.
“The strategy is clear that the QBCC actively monitors compliance with the broad suite of legislated payment protections to ensure prompt payment to sub-contractors,” she said.
