Queensland Consolidated Acts

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 21

21 Ending project trust

(1) Once a project trust is established for a contract, the trustee may dissolve the trust only if—

(a) there are no longer any subcontractor beneficiaries for the trust; or

Note—

A subcontractor beneficiary ceases to be a beneficiary when paid all amounts the contracted party is liable to pay the subcontractor in connection with its subcontract. See section 11A (5) (b) .

(b) the only remaining work to be carried out under the contract is maintenance work.

(2) A project trust is dissolved by the trustee—

(a) closing the project trust account; and

(b) giving written notice to the commissioner of the trust having been dissolved.

(3) A trustee is taken not to dissolve the project trust by closing the project trust account if the account was only closed for the purpose of transferring the account to another financial institution under section 18C .

(4) When dissolving the project trust, the trustee may pay itself the following amounts—

(a) any amount for interest that the trustee is entitled to under section 51D ;

(b) any remaining amount that is not owing to a subcontractor beneficiary.

(5) In this section—

"maintenance work" see section 15D (2) .