Tasmanian Security of Payment Act: A Tradie’s Plain-English Guide

If you’re a tradie or subcontractor in Tasmania and a client owes you money, you’ve got legal rights. The Building and Construction Industry Security of Payment Act 1997 (Tas) exists to help you get paid—fast. But most tradies don’t know how to use it, which means they leave money on the table or chase invoices for months.

This guide breaks down what the Act does, how it works, and what your next move should be if you’re owed money.

What Is Tasmania’s Security of Payment Act?

The Building and Construction Industry Security of Payment Act 1997 (Tas) is a state law designed to stop payment disputes from dragging on forever. Unlike other states—NSW has the Security of Payment Act 1999, Victoria has the Security of Payment Act 2002, and Queensland has the Building Industry Fairness (Security of Payment) Act 2017—Tasmania’s version applies specifically to building and construction work.

Here’s the key idea: if you’ve done work or supplied materials on a construction project, you have the right to lodge a payment claim. The person who owes you money then has to respond within a set timeframe. If they don’t pay, you can go to fast-track adjudication—a quick, binding decision by an independent adjudicator.

It’s not a debt recovery service, and it’s not a law firm. But it’s a formal process designed to move things faster than a court case.

Who Can Make a Payment Claim Under the Act?

You can lodge a payment claim if you:

• Did work on a construction project in Tasmania (or supplied materials)
• Haven’t been paid in full
• Are a contractor, subcontractor, labourer, supplier, or professional (architect, engineer, etc.)
• Entered into a construction contract with someone in the chain

You don’t have to be the direct contractor. A sub-subcontractor can make a claim. You don’t have to be a formal company either—sole traders and partnerships count.

The one catch: the work or supply must be under a construction contract. The Act defines this fairly broadly, but it’s got to relate to building, construction, or demolition work.

How to Serve a Payment Claim in Tasmania

Here’s the process in plain terms:

1. Prepare your payment claim. You’ll need to outline what work you did, when, how much you’re owed, and attach supporting evidence (invoices, timesheets, photos, quotes). It has to be in writing.
2. Serve it on the head contractor or principal. This means delivering it to the person who owes you money. Hand delivery, post, email—methods vary, but it has to be done properly under the Act.
3. Wait for a payment schedule. The respondent (the person owing the money) has 10 business days to issue a payment schedule. This document says what they’ll pay, what they dispute, and when. If they don’t respond, you can assume they’re not going to argue about your claim.
4. Negotiate or escalate. If there’s a dispute, you can try to sort it out. If not, you can apply for fast-track adjudication, where an independent adjudicator decides the outcome within a short timeframe.

The whole point is speed. Unlike court cases that drag on for years, this process is designed to get a decision quickly so you’re not financing someone else’s cash flow problem.

What Happens Next If You’re Not Paid?

If the head contractor or whoever owes you money ignores your claim or disputes it, you’ve got options:

Fast-track adjudication. You can apply to an adjudicator (appointed under the Act) to make a binding decision on your payment claim. The adjudicator looks at your evidence, their response, and makes a call. This usually happens within two to four weeks of lodging your application. It’s faster and cheaper than court.

Enforcement. Once an adjudicator decides you’re owed money, it’s binding. If the debtor doesn’t pay the adjudication decision, you can take steps to enforce it—which might include court proceedings to recover the debt plus costs.

Keep in mind: adjudication isn’t a magic wand. It decides whether you’re owed money based on the evidence. But the point of the Act is to stop disputes from stalling your cash flow indefinitely.

Getting the Paperwork Right

The technical part that trips people up is the notice requirements. Your payment claim has to meet specific legal requirements or it might be rejected. This is where mistakes happen.

Your claim needs to:

• Identify the construction contract (or reference it clearly)
• State the amount claimed
• Describe the work or materials supplied
• Include payment terms and due dates
• Be served properly (hand delivery, post, or email—depending on what’s agreed)

If your claim is sloppy or doesn’t follow the rules, the other party can reject it. Then you’re back to square one. That’s why getting the form and process right is critical.

If you want to file a payment claim, PayClaim handles the formatting and documentation so you don’t have to guess whether you’ve done it right. The flat fee is $79.

Why This Matters for Your Business

Unpaid invoices kill small construction businesses. They slow your cash flow, force you to chase debtors instead of doing work, and create stress. The Security of Payment Act exists because the construction industry is notorious for late payment and disputes.

Using it isn’t complicated—it’s just a formal process that applies pressure and deadlines to someone who’s ignoring you. Many debtors choose to pay or settle rather than face fast-track adjudication, because the adjudicator’s decision is binding and enforceable.

If you’re owed money and you’ve tried asking nicely, it’s time to escalate. That’s what this Act is for.

Know your rights. Document your work. Serve your claim properly. Get paid.