Tradies’ Guide to Chasing Late Payments in Australia: Laws, Timelines and Your Real Options

You’ve done the work. The invoice went out weeks ago. The builder or head contractor isn’t answering calls about payment. You’ve got bills to pay and a team waiting on wages.

This is the reality for thousands of Australian tradies and subcontractors every year. The good news: Australia’s Security of Payment legislation exists specifically to help you recover unpaid debts—and quickly, compared to court action.

This guide walks you through the laws that apply in your state, the timelines you need to know, and the real options available to you when money goes missing.

How does Australia’s Security of Payment Act protect tradies?

Every Australian state and territory has a Security of Payment Act (or equivalent law). These laws were designed to stop the practice of head contractors sitting on invoices while subcontractors and workers wait unpaid.

The key protection: you have a right to lodge a payment claim, and your debtor must respond within a strict statutory timeframe with either payment or a formal payment schedule explaining what they dispute. If they don’t respond properly, you can escalate to adjudication—a fast, low-cost dispute resolution process that can force payment.

This is not a courtroom. It’s faster, cheaper, and designed for the construction industry.

Which Security of Payment Act applies to your state?

The Act you use depends on where the contract is performed, not necessarily where your business is registered. Here’s what applies:

State / Territory	Legislation	Adjudication Body
New South Wales	Building and Construction Industry Security of Payment Act 1999	NSW Adjudication Officer (appointed by court)
Queensland	Building Industry Fairness (Security of Payment) Act 2017	QBCC (Queensland Building and Construction Commission)
Victoria	Building and Construction Industry Security of Payment Act 2002	Adjudicator (appointed by court or VCAT)
Western Australia	Construction Contracts Act 2004	Adjudicator (appointed by Building Commissioner)
South Australia	Building and Construction Industry Security of Payment Act 2009	Adjudication Officer (appointed by court)
Tasmania	Building and Construction Industry Security of Payment Act 2009	Adjudication Officer (appointed by court)
Northern Territory	Construction Contracts (Security of Payments) Act 2004	Adjudication Officer (appointed by court)
Australian Capital Territory	Building and Construction Industry (Security of Payment) Act 2009	Adjudication Officer (appointed by court)

What is a payment claim under the Security of Payment Act?

A payment claim is a formal written demand for payment. It must:

• Identify the work or goods you’ve supplied;
• State the amount claimed (including any GST);
• Reference the contract or supply agreement;
• Include enough detail so the recipient knows what they’re being asked to pay for;
• Be served on the person or company that owes you the money (the “respondent”).

It doesn’t need to be fancy. But it does need to meet the statutory minimum requirements of your state’s Act, and it must be served correctly. Mistakes here can derail your claim later.

If you want to avoid drafting errors and get the formatting right, you can file a payment claim online through PayClaim for AUD $79—takes about 10 minutes and produces a claim document that meets your state’s legal requirements.

How long do I have to lodge a payment claim?

The deadline to lodge a payment claim depends on your state and the terms of your contract. Most Acts specify a period from the date you last performed work or supplied materials.

General rules (check your state for exact wording):

1. NSW: You can claim under section 13 of the Act for any work performed or materials supplied within the previous 12 months. The contract may set a shorter timeframe.
2. Queensland: Section 21 of the BIFS Act allows claims for work within the previous 12 months.
3. Victoria: Section 13 of the Act allows claims for work performed within the previous 12 months.
4. Western Australia: You can claim for work within the timeframe set by contract, or within 12 months if the contract is silent.
5. South Australia, Tasmania, ACT, NT: Generally 12 months from the date of last work or supply.

Don’t wait. Once 12 months (or your contract’s period) has passed, you may lose the right to claim under the Act. Other legal options (like debt recovery in civil court) are slower and costlier.

What happens after you serve a payment claim?

Once you’ve served a valid payment claim, your debtor (the “respondent”) has strict statutory deadlines to respond. They cannot ignore it.

In NSW (section 14): The respondent has 10 business days to issue a payment schedule. The payment schedule must either:

• Accept the claim and commit to a payment date, or
• Reject it (in whole or part) and explain why, citing specific defects or disputes.

If they do nothing, or give a late payment schedule, you can move straight to adjudication.

Other states have similar 10–14 business day response windows. Check your state’s Act for the exact deadline.

What is adjudication and how does it work?

Adjudication is a fast-track dispute resolution process built into every Security of Payment Act. Here’s how it works:

1. You lodge an adjudication application with the relevant authority (e.g., NSW court, QBCC in Queensland, Building Commissioner in WA).
2. You attach your payment claim and proof of service (showing you formally served it on the respondent).
3. An adjudicator is appointed (usually a lawyer or construction expert).
4. The respondent has a deadline to file a response (typically 5–7 business days).
5. The adjudicator makes a decision, usually within 10 business days of the adjudication application being valid.
6. If you win, the adjudicator issues a determination ordering the respondent to pay you. This determination is enforceable in court.

The whole process typically takes 3–4 weeks. Court would take months or years.

What are the costs of adjudication?

Adjudication fees vary by state:

• NSW: Court filing fee (approximately AUD $200–500 depending on claim value).
• Queensland: QBCC adjudication fee (approximately AUD $200–400).
• Victoria: Court or VCAT filing fee (approximately AUD $200–500).
• Western Australia: Building Commissioner appointment fee (approximately AUD $150–300).
• Other states: Similar ranges (AUD $150–500).

Some adjudication rules also allow the adjudicator to award costs to the winning party, though this is not automatic. You may also need to pay for a lawyer to draft your adjudication application, though many tradies self-represent.

What if the respondent doesn’t pay after adjudication?

An adjudicator’s determination is enforceable. That means:

• It’s a binding decision (not just advice).
• The respondent can appeal in limited circumstances (usually only on procedural grounds).
• If they don’t pay within the timeframe ordered, you can take enforcement action in court (e.g., court order for payment, or referral to a debt collector).

The determination gives you legal muscle. Most respondents pay rather than face enforcement.

What if your claim is rejected in the payment schedule?

If the respondent issues a payment schedule rejecting your claim (in whole or part), you have options:

1. Accept their rejection and negotiate (if there are genuine disputes about scope or quality).
2. Lodge an adjudication application anyway, arguing their rejection is wrong. The adjudicator will decide the dispute.
3. Negotiate a settlement. Many disputes resolve before adjudication.

Don’t assume rejection means you’ve lost. The Security of Payment Act exists partly because dishonest respondents use false rejections to avoid payment. An adjudicator will assess the merits.

Can you be sued for lodging a claim?

No. The Security of Payment Acts include protection against legal action for making a claim in good faith. You cannot be sued for defamation, breach of contract, or other torts simply because you lodge a payment claim or adjudication application—as long as you’re doing so honestly.

This protection encourages tradies to stand up for unpaid invoices without fear of retaliation.

What if you don’t have a written contract?

You can still lodge a claim. The Acts cover work performed under an oral agreement or even implied contract (e.g., you started work and the head contractor accepted the benefit without objecting).

However, without a written contract, you’ll need to prove:

• What work you performed (invoices, photos, timesheets, emails);
• The agreed price (email quotes, text messages, standing industry rates);
• When work was completed or materials supplied.

Documentation is your best friend. Keep everything.

Should you hire a lawyer?

Not always. Many tradies successfully lodge claims and adjudications without a lawyer. However, a lawyer is helpful if:

• The claim is large (e.g., AUD $50,000+);
• The dispute is complex (e.g., disputes over scope, quality, or contract interpretation);
• The respondent is well-resourced and likely to fight hard.

For straightforward invoices (AUD $5,000–20,000) and clear-cut non-payment, self-representation is realistic and will save you legal fees.

What should you do right now if money is owed?

Follow this checklist:

1. Gather proof of work: Invoices, quotes, timesheets, photos, emails, delivery dockets.
2. Send a final written reminder (email is fine) giving 5–7 days to pay before you lodge a claim.
3. Check your state’s Security of Payment Act and the lodgement deadlines. Don’t miss the 12-month window.
4. Draft a payment claim meeting your state’s statutory requirements, or use a compliant template.
5. Serve it correctly (usually personal delivery, email, or registered post—check your Act).
6. Keep copies of everything: Payment claim, proof of service, responses from the respondent.
7. If no payment schedule arrives within 10 business days, lodge an adjudication application.

The sooner you act, the sooner you recover.

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Frequently Asked Questions

Q: Can a builder refuse to pay because the work “isn’t finished yet”?

No. The Security of Payment Acts protect your right to payment for work completed, even if the overall project is ongoing. You can claim for work you’ve finished. However, the respondent can dispute the claim if they argue the work was defective or incomplete. If you did the work properly, an adjudicator will order payment. Don’t wait until the entire project is done.

Q: What if I’m owed money by a company that’s insolvent or “about to go broke”?

Adjudication still works, and a determination is a legal debt. However, you may struggle to enforce payment if the company has no assets. In that case, you can pursue unsecured creditor claims in the company’s formal insolvency process. Act quickly—the earlier you lodge a claim, the better your creditor position. Speak to an insolvency accountant or lawyer about your options in this situation.

Q: Do I need to send a formal demand letter before lodging a claim?

Not legally required by the Acts, but it’s good practice. Send a friendly email or letter (5–7 days notice) giving the respondent a chance to pay without formal process. If they ignore it, you lodge the claim. This also shows good faith if adjudication happens later. Keep the email or letter for your records.

Q: What if I’ve already been paid part of the invoice?

Claim the unpaid balance. Your payment claim should clearly state the original invoice amount, what’s been paid, and what remains due. The respondent cannot dispute a part-payment unless it was explicitly conditional or applied to a specific item. An adjudicator will order payment of the balance.

Q: Can the respondent counter-claim if they say you owe them money?

In adjudication, the respondent can raise set-off (claiming they have the right to deduct money owed to them from your claim). However, set-off claims are limited and must be properly documented. An adjudicator will assess whether any set-off is valid. Don’t assume a counter-claim will defeat your claim. If your work is done and properly invoiced, you’ll likely recover the bulk of what’s owed.