Victoria’s Far-reaching Security Of Payment Reforms Have Now Commenced

From 15 April 2026, far-reaching changes to construction contracts and payment claim processes in the Victorian building and construction industry will take effect. These will have a significant, immediate and retroactive impact on the rights and obligations of parties to construction contracts in Victoria.

In very simple terms, Victoria’s security of payment regime is now much broader, allowing a greater scope of claims and defences to be brought through the security of payment claim process. A range of new provisions significantly affect the commercial risk allocation on Victorian construction projects, regardless of what may have been agreed in the contract.

We summarise in this article the key changes to the law, with a view to alerting construction participants to the new risks and opportunities faced on their projects.