Victorian Security of Payment Act: Amendment effective 1 February 2024

A new authorised version of the Victorian Building and Construction Industry Security of Payment Act 2002 (SOP Act) was published on 1 February 2024. This authorised version incorporates an amendment to section 49 of the Act.

In summary, section 49 of the SOP Act has been amended to permit and extend the use and disclosure of information received by the Victorian Building Authority (VBA) under the SOP Act to the extent necessary for the performance of any functions or duties or the exercise of any powers of the VBA under Subdivision 2 of Division 1A of Part 11 of the Building Act 1993 (re: registration of building practitioners) and Division 3 of Part 11 of the Building Act 1993 (re: practitioner discipline).

The old wording under section 49 was:

49   Confidentiality

The Authority, a Commissioner (within the meaning of the Building Act 1993), the chief executive officer of the Authority and any member of staff of the Authority must not use or disclose any information received by the Authority under this Act except to the extent necessary for the performance of any functions or duties or the exercise of any powers of the Authority under this Act.

The new wording is:

49   Confidentiality

The Authority, a Commissioner (within the meaning of the Building Act 1993), the chief executive officer of the Authority and any member of staff of the Authority must not use or disclose any information received by the Authority under this Act except to the extent necessary for the performance of any functions or duties or the exercise of any powers of the Authority under this Act or under Subdivision 2 of Division 1A of Part 11 or Division 3 of Part 11 of the Building Act 1993.

The underlined wording is the addition.

A copy of the updated authorised SOP Act can be accessed here: vic_act_20070330.pdf (adjudicate.com.au)

About May – June 2024, the Victorian Government is expected to announce major reforms to the SOP Act that will align it with the NSW and WA SOP Acts. These reforms will probably reflect the unanimous recommendations of the cross-party parliamentary inquiry into non-payment of building industry subcontractors. Refer laepc-60-01-nonpayment-of-subcontractors.pdf (parliament.vic.gov.au).

The author of this article, Bob Gaussen, is the owner of Adjudicate Today. He has been deeply involved in building industry reform since the 1992 Royal Commission into the NSW building Industry commenced.