How Long Do I Have to Claim Unpaid Contractor Work in Australia?

If a builder or head contractor owes you money, time is not on your side. Australia’s Security of Payment laws give you a window to lodge a claim—but that window closes. Once it does, you may lose your right to recover the debt through the statutory process.

This guide explains the time limits you face, state by state, so you know exactly when you must act.

What’s the overall deadline for claiming unpaid contractor work?

Under Australian Security of Payment legislation, you typically have 12 months from the date you became entitled to payment to lodge a payment claim. This is the golden rule across all states and territories.

The clock starts ticking when the work was done or the goods were supplied—not when you invoice, not when you follow up, and not when you realize you won’t get paid. It starts on the date you became entitled to the money under the contract.

Miss that 12-month window and you lose the right to use the Security of Payment process. You’ll have to pursue the debt through ordinary court proceedings, which are slower, more expensive, and don’t include the fast-track adjudication mechanism that Security of Payment laws provide.

How long do I have to lodge a payment claim?

You must lodge your payment claim within 12 months of the date you became entitled to payment under your contract. This applies across NSW, Queensland, Victoria, Western Australia, South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory.

The 12-month period is strict. Courts interpret it literally. If you became entitled to payment on 15 March 2023, your deadline is 14 March 2024. Lodging on 15 March 2024 is too late.

“Lodging” means the claim must be served on the head contractor, developer, or builder you’re claiming from. Preparing it doesn’t count. File a payment claim online to ensure your claim is properly drafted and served within your deadline.

What happens if I miss the 12-month deadline?

If your 12-month window closes, you cannot use the Security of Payment process to recover the debt. The head contractor or builder can legally refuse to respond to your claim, and you lose access to adjudication.

You still own the debt—the head contractor still owes you the money. But you’ll need to pursue it through the District or Supreme Court, which involves hiring a lawyer, paying court fees, and waiting months or years for resolution.

This is why lodging your claim before the deadline is critical, even if you’re still negotiating or unsure about the exact amount.

Is the deadline the same in every Australian state?

Yes and no. All states and territories use a 12-month deadline to lodge a payment claim. But there are small differences in how the clock starts and how the deadline is defined in each Act.

Here’s a quick reference:

State / Territory	Legislation	Time Limit to Lodge Claim	Clock Starts
NSW	Building and Construction Industry Security of Payment Act 1999 (s 17)	12 months	Date entitled to payment under contract
Queensland	Building Industry Fairness (Security of Payment) Act 2017 (s 18)	12 months	Date entitled to payment under contract
Victoria	Building and Construction Industry Security of Payment Act 2002 (s 17)	12 months	Date entitled to payment under contract
Western Australia	Construction Contracts Act 2004 (s 31)	12 months	Date entitled to payment under contract
South Australia	Building and Construction Industry Security of Payment Act 2009 (s 17)	12 months	Date entitled to payment under contract
Tasmania	Building and Construction Industry Security of Payment Act 2009 (s 17)	12 months	Date entitled to payment under contract
Northern Territory	Construction Contracts (Security of Payments) Act 2004 (s 31)	12 months	Date entitled to payment under contract
Australian Capital Territory	Building and Construction Industry (Security of Payment) Act 2009 (s 17)	12 months	Date entitled to payment under contract

The 12-month deadline is uniform, but the precise wording in each Act can affect edge cases (e.g., whether a retention sum is “due” on practical completion or at the end of the retention period). If you’re close to your deadline, check with a lawyer licensed in your state.

When does the 12-month clock start?

The clock starts on the date you became entitled to payment under the contract. This is not necessarily the invoice date.

Under most contracts, you become entitled to payment on the date the work is completed or the goods are supplied. For example:

• If you finished a plumbing job on 10 May, the 12-month clock starts 10 May.
• If you supplied materials on 3 July, the clock starts 3 July.
• If your contract says you’re entitled to payment on completion (not 30 days later), the clock starts on completion, not 30 days later.
• If part of your fee is retained, the clock may start on the date the retention is due under the contract, not when work was done.

This is why it’s crucial to review your contract early. If you’re unsure when you became entitled, ask the head contractor or your lawyer to confirm the date.

What if the contract says I’m entitled to payment at a later date?

If your contract specifies that payment is due on a date after the work is completed (e.g., “30 days after invoice” or “upon practical completion”), the 12-month clock typically starts on the date you became entitled under the contract, not when you invoiced.

Some contracts also include retention clauses. If your contract says 5% is retained until final handover, your entitlement to the retention sum arises on the date the retention is due under the contract, not the date the work was completed.

Always check your contract’s payment terms carefully. If they’re ambiguous, the safest approach is to lodge your claim well before 12 months have passed.

Do I have to lodge the full claim amount, or can I claim in instalments?

You can lodge multiple claims within the 12-month window, each with its own deadline.

Each progress payment, retention release, or variation sum has its own date of entitlement. If you became entitled to a $5,000 progress payment on 1 April and a $3,000 retention on 1 September, you have 12 months from 1 April to claim the progress payment and 12 months from 1 September to claim the retention.

This means you don’t have to wait until the job is finished to lodge your first claim. You can lodge a claim for each payment as soon as you’re entitled to it.

What happens after I lodge my payment claim?

Once you lodge your claim, the head contractor or builder has a set time to respond. Here’s the timeline:

1. You lodge your claim: You serve the payment claim on the respondent (builder, head contractor, etc.).
2. Respondent issues payment schedule (10 business days in most states): Under section 14 of the NSW Act (and equivalent sections in other states), the respondent has 10 business days to issue a payment schedule that either agrees to your claim or sets out the amount they will pay and their reasons for any reduction.
3. If no payment schedule is issued: You can apply for adjudication.
4. Adjudication (21 days in most states): An adjudicator reviews both parties’ submissions and issues a determination, typically within 21 days.
5. Respondent must pay or provide a payment dispute notice: If they don’t pay after the adjudicator’s determination, they must lodge a construction dispute (in most states) or you can enforce the adjudication decision in court.

The Security of Payment process is designed to be faster than litigation, but it still takes time. Lodging early gives you the best chance of recovery.

Can I extend the 12-month deadline?

No. The 12-month deadline is not extendable under Security of Payment legislation. It is a hard statutory limit.

Some states allow parties to agree in writing to extend a deadline for a respondent to issue a payment schedule, but this does not extend your right to lodge a claim in the first place.

If you’re approaching month 11 and haven’t filed, act now. Don’t rely on goodwill or verbal agreements from the other party to extend the deadline.

What if I’m still negotiating with the builder?

Negotiation does not stop the clock. Even if you’re in discussions with the builder about the debt, the 12-month deadline still applies.

Many tradies delay lodging a claim because they’re still trying to settle the issue informally. This is understandable, but it’s risky. If negotiations break down in month 11, you’ll be forced to lodge urgently or lose your right entirely.

The safer approach is to lodge your claim within a reasonable timeframe (e.g., within 6 months of the work being completed). Lodging a claim doesn’t prevent negotiation—in fact, it often accelerates settlement because the respondent knows you’re serious.

What if the builder goes into liquidation or insolvency?

If the head contractor or builder enters liquidation, administration, or receivership, you still have the same 12-month deadline to lodge a claim under the Security of Payment Act. However, the practical landscape changes.

An insolvency practitioner (liquidator, administrator, or receiver) will take control of the company’s assets and liabilities. You can still lodge a Security of Payment claim, but recovering money becomes more difficult because the company may not have funds.

If you suspect insolvency, lodge your claim immediately. Contact the liquidator or administrator to register as a creditor, and ask them what funds are available for distribution.

Should I use the Security of Payment process or go to court?

If you’re within 12 months, use the Security of Payment process. It is faster, cheaper, and designed specifically for construction disputes. You can file a payment claim online for a flat $79, which is a low-cost way to lodge properly formatted claims.

The adjudication process usually resolves the dispute within 4–8 weeks. Court proceedings can take months or years.

If you’re outside the 12-month window, you’ll have to pursue the debt through the courts, which requires a lawyer and is significantly more expensive.

Is there a time limit on adjudication itself?

Yes. Once you lodge a claim, the adjudicator must issue a determination within 21 days (in most states) or within any extended period agreed by the parties. This is set out in each state’s Security of Payment Act and ensures the process stays fast.

The respondent has 10 business days to issue a payment schedule, and if they fail to do so, you can apply for adjudication, which then runs on the 21-day timeline.

What about claims for GST or interest?

GST and interest can be included in your payment claim if your contract or invoice entitles you to them. They’re subject to the same 12-month deadline as the principal amount.

Make sure your claim clearly itemises these amounts so the adjudicator can assess them.

Key deadlines: a checklist

Use this checklist to stay on track:

• Month 1–6: Identify the date you became entitled to payment. Check your contract.
• Month 6–9: Prepare your payment claim. Gather invoices, contracts, and evidence of work done or goods supplied.
• Month 10: Lodge your claim well before the 12-month deadline. Don’t wait until month 12.
• Days 1–10 after lodgement: Respondent issues a payment schedule or fails to do so.
• Days 11–31 after lodgement: If no payment schedule, apply for adjudication. Adjudication runs for up to 21 days.
• After adjudication: Respondent pays the adjudication amount or you enforce the determination in court.

What should I do right now?

If you’re owed money by a builder or head contractor:

1. Check your contract and identify the date you became entitled to payment.
2. Calculate your 12-month deadline and mark it in your calendar.
3. Gather all invoices, delivery dockets, photos of work, and communications showing what you did and when.
4. Prepare your payment claim. Include the amount claimed, a clear description of the work or goods, and the date you became entitled.
5. Lodge your claim before the deadline. Filing online ensures it’s properly served and dated.

Time is your enemy in unpaid contractor debt. Act now.

Final note

This article is general guidance only and does not constitute legal advice. Security of Payment laws are complex, and edge cases exist. If you’re unsure about your deadline, your contract terms, or how to calculate your entitlement date, consult a lawyer licensed in your state before the 12-month window closes.

Frequently Asked Questions

What if I invoice the builder but they don't acknowledge it—does that stop the 12-month clock?

No. The clock starts on the date you became entitled to payment under the contract, not the invoice date or when the builder acknowledges it. If you finished work on 1 May but didn't invoice until 15 May, the clock started 1 May. Invoicing late doesn't reset the deadline.

Can I claim for work done more than 12 months ago if I only just realized it was unpaid?

No. The 12-month deadline is measured from when you became entitled to payment, not when you realized it was unpaid. If you did work 18 months ago and are only now chasing payment, you've missed the Security of Payment window. You'll need to pursue the debt through court.

If the builder says they'll "sort it out next month," can I rely on that to wait beyond month 11?

No. Verbal promises don't extend the deadline. If the builder doesn't pay and you've waited, you'll lose your right to use the Security of Payment process. Lodge your claim before month 12, even if negotiations are ongoing. You can always withdraw it if the builder pays.

Do different states have different time limits I should know about?

All Australian states and territories use a 12-month deadline. The legislation is different in each jurisdiction, but the 12-month rule is consistent. Some edge cases (e.g., when retention is due) may be interpreted differently—consult a lawyer in your state if you're unsure.

If I lodge a claim in month 12, is it valid?

It depends on the exact date. If your deadline is 14 March and you lodge on 14 March, you're within the deadline. But if you lodge on 15 March, you've missed it. Courts interpret the deadline strictly. Always lodge before month 12 is complete to be safe.