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ARTICLE · 20 SEPTEMBER 2025

Victorian Security Of Payment Act Reforms Have Landed With A Retrospective Bite

Corrs Chambers Westgarth
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The Bill represents the most radical overhaul of the SOP Act since it was introduced two decades ago.

AustraliaReal Estate and Construction
Jey Nandacumaran
Jey Nandacumaran
Harrison Frith
Harrison Frith
Robert Kalenderian
Robert Kalenderian
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One year after the Victorian Government's response to a 2023 Parliamentary Inquiry into revising the Building and Construction Industry Security of Payment Act 2002 (SOP Act), the first tranche of reforms has landed in Parliament.

On 11 September 2025, the detail in the Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Bill 2025 (Bill) was made public. Consistent with the analysis in our previous Insight, the Bill seeks to strengthen and simplify the regime, and achieve harmonisation with the rest of Australia.

This first package of reforms contains the 16 Inquiry recommendations which the Government endorsed in full in October 2024, with the balance to be implemented after further stakeholder consultation. The reforms are slated to take effect by no later than 1 September 2026 and also apply retrospectively to construction contracts entered into before that date.

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