Queensland’s Trust Account Rollout Paused – What Builders Need to Know

The Queensland Government has officially paused the next phases of the trust account rollout, delaying changes that were originally set to take effect in 2025.

What’s Changing?

The trust account requirements were meant to expand in two key stages, but these changes have now been put on hold.

From 1 March 2025 – The threshold for Local Government and Private sector projects was supposed to drop from $10 million to $3 million.

From 1 October 2025 – The threshold was set to drop further to $1 million, and subcontractors were going to be required to have retention trust accounts.

With these changes now postponed, there is no confirmed date for when, or if, they will be implemented in the future.

Why the Delay?

The Queensland Government has put the rollout on pause for several key reasons.

• Financial pressure on builders – Rising costs, shrinking profit margins, and ongoing cash flow  struggles have made it difficult for many businesses to take on additional compliance requirements.
• Increase in insolvencies – The construction industry in Queensland has seen a sharp rise in insolvencies, ranking third-highest in the country.
• Compliance difficulties – Many builders and contractors have found it challenging to set up trust accounts due to the lack of easy-to-use software solutions.
• Lack of awareness and education – Smaller contractors, in particular, need more time to fully understand what’s required and how to meet their compliance obligations.

What Does This Mean for You?

For larger builders and those working on State Government projects, it’s business as usual. You still need to comply with existing trust account rules if you’re handling:

• Local Government & Private sector projects valued at $10 million or more.
• State Government & HHS projects valued at $1 million or more.

If you’re a smaller builder or subcontractor, this delay is a welcome reprieve. Although there are no guarantees, we don’t expect a reduction in the threshold for project trusts to happen in the near to medium term.

Will the Rollout Continue?

The Government hasn’t scrapped the trust account framework entirely—it has just put the move to a lower threshold on hold. The newly formed Queensland Productivity Commission (QPC) is currently reviewing regulations within the building and construction industry. This review will assess whether the trust account requirements are practical and beneficial or if they need further adjustments before being implemented.

Until the review is completed, no new rollout dates have been set.

How is the Industry Reacting?

The response from the industry has been overwhelmingly positive. Many builders and contractors feel relieved, as the pause means they won’t have to immediately adjust to new administrative and financial burdens.

What Should You Do Now?

Review your current financial processes – Make sure your business is running efficiently and that you’re prepared for future compliance requirements.

Keep your records in order – The QBCC is still monitoring compliance, so maintaining good record-keeping and trust account management is important.

Stay informed about industry updates – The QPC’s review could lead to further changes, so keeping up with announcements will help you stay prepared.

Need Help?

Navigating trust account requirements can be complex, and with the uncertainty surrounding these changes, it’s important to have the right advice.

If you’re unsure how this pause affects your business or need guidance on managing your trust accounts efficiently, contact us today.

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