DEPARTMENT OF FINANCE —
PROJECT BANK ACCOUNTS
1334. Hon SIMON O'BRIEN to the minister representing
the Minister for Finance:
I refer to the government's
media statement of 4 December 2018 advising of changes to project bank account
arrangements, which apply to some projects administered by the Department of
(1) When was the
current PBA arrangement introduced, and what are the parameters that define
projects currently covered by PBA arrangements?
(2) What are the changes referred to on 4 December
2018 that are scheduled to come into effect on 1 July 2019?
(3) To what proportion of Department
of Finance projects do PBAs currently apply?
proportion of Department of Finance projects will be covered by PBA
arrangements after 1 July?
On behalf of the Minister for
Environment, I provide the following answer that has been provided by the
Minister for Finance.
(1) Since 30
September 2016, the Department of Finance has progressively implemented and
refined the use of project bank accounts on construction projects tendered by
Building Management and Works. Due to the administrative cost associated with
their operation and differing risk profiles, project bank accounts are not
typically used for low-value works, construction projects valued under $1.5 million,
or when subcontractors are not utilised.
(2) The most
significant change announced by the government is that project bank accounts
will be applied to projects managed by other government agencies. Details of
the rollout will be known in early 2019, when implementation planning is
is estimated that project bank accounts are currently applied to approximately
80 per cent of construction projects valued over $1.5 million that are managed
by the department. This figure is not expected to immediately change as a result
of the recent announcement, but the figure will increase over time as existing
projects are finalised and new projects commence.