Significant Reforms on the Horizon for Security of Payment in Victoria’s Construction Industry

Like similar regimes in other States, the Building and Construction Industry Security of Payment Act 2002 (VIC) (“Victorian SOPA”) was intended to reduce insolvency in the construction industry and enhance cash flow for subcontractors. Inconsistencies with other States and perceived deficiencies led to a parliamentary inquiry in March 2023, resulting in 28 recommended legislative reforms. On 17 October 2024, all of those recommendations received official support from the Victorian Government (in full, in part or in principle).