WHEN DOES A BENEFICIAL INTEREST ARISE? 

A beneficial interest arises:

• when a claim is received,
• when a payment schedule is given,
• when a court order or adjudication decision orders an amount to be paid.

All changes to a beneficial interest must be recorded in the trust ledger within 3 business days. The ledger entry should reflect the date the event occurred (e.g. the date the claim was received), not the date it was entered.  

WHEN CAN I WITHDRAW FUNDS AS A TRUSTEE?

From the Project Trust Account (PTA): Funds can be withdrawn at any time if:

• you are entitled to payment under the head contract, and
• sufficient funds remain to cover amounts LIABLE to subcontractor beneficiaries.

From the Retention Trust Account (RTA): Funds can ONLY be withdrawn:

• after the end of the defects liability period (DLP), and
• for amounts you are entitled to, such as costs incurred for correcting defects or omissions.

WHEN DOES AN AMOUNT BECOME LIABLE TO BE PAID?
Liability arises (and funds cannot be withdrawn from the PTA) when:

• an amount has been certified or approved for payment,
• a payment schedule or RCTI has been issued,
• the payment due date passes and a payment schedule has not been issued,
• an amount has been ordered to be paid by a court; or
• a decision is made by an adjudicator or through a dispute resolution process.

WHEN DO I HAVE TO TOP UP THE ACCOUNT?

As trustee, you must top up the account BEFORE the due date for payment to ensure all beneficiaries are paid on time and in full.

You are not required to top up based on amounts recorded as beneficial interests or liabilities until the payment due date. (e.g. you do not have to top up the account when you have received a payment claim).