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BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 36 Limited purposes for which money may be withdrawn from retention trust account

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 36

Limited purposes for which money may be withdrawn from retention trust account

36 Limited purposes for which money may be withdrawn from retention trust account

(1) A trustee must not withdraw an amount from the retention trust account for any purpose other than—
(a) paying a beneficiary who is a contracted party from whom a retention amount was withheld from payment; or
(b) paying the trustee, as contracting party, for the purpose of correcting defects or omissions in contracted work, or otherwise to secure, wholly or partly, the performance of a contract; or
(c) paying another person for the purpose of correcting defects or omissions in contracted work.
Note—
As the contracting party for a contract, the trustee’s ability to make a payment mentioned in paragraph (a) , (b) or (c) would be governed by the contract under which the retention amount was withheld.
Penalty—
Maximum penalty—300 penalty units or 2 years imprisonment.
(2) A trustee must not withdraw an amount from the retention trust account for a payment mentioned in subsection (1) (b) until after the defects liability period, applying to the amount, ends.
Penalty—
Maximum penalty—300 penalty units or 2 years imprisonment.
(3) The trustee must repay all amounts the trustee withdraws in contravention of subsection (1) as soon as practicable after withdrawing the amount.
Penalty—
Maximum penalty—300 penalty units or 2 years imprisonment.
(4) The trustee is taken to have withdrawn an amount from the retention trust account if—
(a) the trustee authorises any person to make the withdrawal; or
(b) the trustee knowingly contributes to the withdrawal being made.
(5) This section does not apply to that part of a retention amount withheld from payment under a contract that is beyond the amount that may be lawfully withheld under the contract.
Note—
See the Queensland Building and Construction Commission Act 1991 , part 4A for limits on retention amounts that may be withheld from payment under a contract.