Ending Project Trusts
How is a Project Trust 'ended'?
The Project Trust is dissolved by closing the Project Trust Account and giving written notice to the Queensland Building and Construction Commissioner within 5 business days after closing the Project Trust Account. The information to be included in the notice can be found here.
On dissolving the Project Trust, the head contractor is permitted to pay itself any amount for interest that it is entitled to and any remaining amount in the Project Trust Account as long as there is no money still owing to a subcontractor.
- the new bank must be an Approved Financial Institution;
- all moneys held in the Project Trust Account must be transferred to the new account;
- the head contractor must notify all subcontractors, the principal and the Queensland Building and Construction Commissioner within 5 business days after transferring the Project Trust Account ((max penalty: 200 PU ($27,570)). The information to be included in the notice can be found here; and
- there must not be two accounts open for longer than necessary to transfer the Project Trust Account.
The head contractor may withdraw any interest that has been deposited into the original Project Trust Account prior to the transfer by the bank provided the withdrawal does not cause a deficiency in the Project Trust Account.
This page considers the situation where Project Trusts apply to head contracts. Unless noted otherwise, all references to a ‘subcontractor’ in relation to a head contract Project Trust refers to a subcontractor that is a beneficiary of the Project Trust.
If a subcontract also requires a Project Trust, the rules set out on this page are the same but the subcontractor is the ‘trustee’ and its subcontractors are ‘subcontractor beneficiaries’.
Last updated: 1 January 2022