MONTHLY TRUST ACCOUNT UPDATE – JULY 2024
Here’s a copy of what was sent to parties that are subscribed to our monthly trust account update.
JULY Queensland trust account statistics
In July, we’ve seen an increase in the number of project trust accounts opened compared to recent months. Here are the key statistics:
- Total Trust Accounts: 1,731 currently open
- Trustees: 338 builders and developers managing active trust accounts
- New Accounts Opened: 45 PTAs and 7 RTAs in July.
More detailed statistics are available in the attached PDF, which includes a snapshot of the information published on the QBCC Trust Account Register.
When to close the PTA
This is a question that often comes up and when looking at the trust account data, it appears that head contractors are leaving their accounts open for a lot longer than necessary.
There are certain rules and restrictions in place for when you can close a project trust account (PTA).
The PTA is intended to be closed shortly after practical completion has been reached.
The account can only be closed once there are no longer any subcontractor beneficiaries for the trust – this means that you have paid all amounts that are liable to be paid to subcontractors under their relevant subcontracts.
This excludes retention amounts that may still be withheld in the retention trust account (RTA).
How to close the PTA
- Determine whether all amounts that are owed to beneficiaries have been paid.
- Withdraw any remaining interest and amounts in the account that are not owed to a subcontractor beneficiary.
- Organise for the account to be closed with the financial institution.
- Notify the QBCC and contracting party that the account has been closed.
Reminder – it’s important to keep all associated documentation and records for at least 7 years after closing the account.
Rectification work during DLP
If there are any defects or omissions in work performed by a subcontractor beneficiary and you organise for another party to correct these. Pay the other party directly from the RTA (and notify the original subcontractor of the payment).
Want to know more? Click here to download the detailed factsheet – there are further scenarios and questions that frequently come up when closing a PTA including if there are any disputed or unclaimed amounts left in the account.
Need further information?
As always, please reach out if you have any questions, feedback, or just want to discuss trusts!
Thanks kindly,
Laura and the Building Trusts team
Call 0481 194 000 or email [email protected].