Master Electricians Australia has joined with trades associations across the nation calling for the Albanese Government to protect sub-contractors.

The lack of national payment protection laws is hurting the building and construction sector, which employs approximately 1.2 million Australians.

MEA and eight other industry bodies have called for three actions to be taken to be taken to protect subbies:

• Urgently enact federal Security of Payment laws to implement the Murray Report
• Strengthen prohibitions for unfair contract terms
• Ensure the government procurement practices support fair contracting down the construction supply contractual chain

The Murray Review into national payment protection for subcontractors called for nationally harmonised Security of Payments laws. Four years later, nothing has been done.

Master Electricians Australia CEO Malcolm Richards said security of payment reform was overdue.

“This is about more than just saving business and families from the impacts of financial failures in the construction industry. This is about a deep cultural change that we need to bring about,” he said.

“It’s obvious that the current system isn’t working to protect businesses or consumers. We need law reform to ensure that money spent on a job stays on that job.

“Both sides of politics say they support the Murray Review recommendations, so it’s time we got started on implementing them.”

What we want to happen

Read the full letter sent to the Federal Government

Urgently enact federal Security of Payment laws to implement the Murray Report

• Remove the confusion and inconsistency between current laws by enacting a single framework for security of payment that will apply consistency across Australia.
• Within three months, prepare the draft legislation for consultation with industry and other stakeholders.
• Ensure that the draft legislation reflects the recommendations in the Murray Report including provision for cascading statutory trusts in favour of sub-contractors and sub-sub-contractors.

 Strengthen prohibitions for unfair contract terms

• The use of unfair contract terms in construction subcontracts is strongly linked to security of payment issues and greater protections against unfair contacting are urgently required.
• In addition to immediately implementing the recommendations stated in the Murray Report in relation to unfair contract provisions, the federal government must urgently progress the enhancement of business-to-business unfair contract laws under the Australian Consumer Laws (ACL). However, these enhancements must go further for the construction industry.
• The federal government must also prohibit the use of specified types of unfair contract terms which have become common in the construction industry to make it clear that the use of such terms will not be tolerated.

 Ensure the government procurement practices support fair contracting down the construction supply contractual chain

• Procurement policy and procedure for government construction projects must be reviewed and enhanced to proactively require head contractors to strictly comply with security of payment and unfair contract laws.
• Government must take steps to ensure that the content of head contracts is not contributing to unfair payment practices down the sub-contracting supply chain.

Participating industry bodies

• Master Electricians Australia
• National Electrical and Communications Association 
• Master Plumbers Australia
• National Fire Industry Association Australia
• Electrical Trades Union
• Refrigeration and Airconditioning Contractors Association 
• Specialist Contractors Association 
• Airconditioning and Mechanical Contractors Association
• Australian Small Business and Family Enterprise Ombudsman

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