Payment claim vs invoice: security of payment for tradies

If you're a subbie or a builder, you've probably heard that a "payment claim" gets you paid faster than an invoice. That's partly true. Every state and territory has a security of payment law for building and construction work. It gives you a statutory right to progress payments, strict deadlines for the other side to respond, and a fast adjudication process if they don't pay. But you only get those rights if your claim meets the rules. This guide explains the difference between a payment claim and an invoice, and what each of NSW, Victoria and Queensland requires.

Payment claim vs invoice: what's the difference?

An invoice is a request for payment under your contract. If it's unpaid, your options are the slow ones: reminders, a letter of demand and, in the end, a court or tribunal. Our guide on when a customer won't pay walks through those.

A payment claim is a request for a progress payment made under your state's security of payment Act. It starts a statutory clock. The person you've claimed from (the "respondent") must either pay by the due date or serve a payment schedule saying how much they will pay and why. If they do neither, the law in each of these three states gives you a fast path to recover the money.

The two aren't always separate documents. In Queensland, the QBCC says your usual tax invoice can be a payment claim if it contains the right information. In NSW and Victoria, an invoice can work as a payment claim too, but it has to carry a statement that it is made under the Act.

What a payment claim needs, state by state

Security of payment in NSW

The NSW Government says that from 21 October 2019, payment claims must state that they are made under the Building and Construction Industry Security of Payment Act 1999. If your contract doesn't set a payment date, the defaults are 15 business days for a head contractor claiming from the principal and 20 business days for a subcontractor. Subcontract work that relates to an exempt residential contract is due in 10 business days, and those claims must carry this exact wording: "This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 NSW". The NSW Government also says owner occupier construction contracts came under the laws from 1 March 2021, so check the NSW pages if you work directly for homeowners.

Security of payment in Victoria

Victoria's Act changed on 15 April 2026. The Building and Plumbing Commission says reference dates are gone: you can serve a claim from the last day of each month you carried out work, one claim a month, and you now have 6 months after practical completion to make it, up from 3. A contract can't push the due date past 20 business days after the claim. If the contract is silent, the default is 10 business days. Contracts directly between a builder and a homeowner aren't covered by the Victorian Act; they come under the Domestic Building Contracts Act. A subcontractor working for that builder is covered. For work directly for a homeowner, the contract and deposit rules in deposit limits by state are the ones to know.

Security of payment in Queensland

Queensland's law is the Building Industry Fairness (Security of Payment) Act 2017. If the contract has no due date, payment is due 10 business days after the claim. For subcontracts, a contract term longer than 25 business days is void, and for commercial building contracts the limit is 15. You must give a non-final claim within 6 months after the work is finished (or a later date in the contract), and a final claim within 28 days after the last defects liability period, if that is later. The QBCC says adjudication can't be used where the contract is for domestic building work with the resident owner.

Payment schedules and adjudication

A payment schedule is the respondent's answer. It identifies your claim, says how much they will pay, and gives their reasons for paying less. In Victoria they can't introduce new reasons later in adjudication that weren't in the schedule, so read every schedule carefully when it lands.

If you disagree with the schedule, or you aren't paid, you can apply for adjudication. The deadlines are short and they are counted in business days:

• NSW: 10 business days after you receive a schedule for less than you claimed; 20 business days after the due date if they don't pay the scheduled amount. If you got no schedule and no payment, you must first notify the respondent within 20 business days of the due date, give them 5 business days to provide a schedule, and then apply within 10 business days after that. (NSW Government)
• QLD: 30 business days after a schedule you disagree with; 20 business days after the due date if you got a schedule but weren't paid; 30 business days after the later of the due date or the last day for a schedule if you got neither. (QBCC)
• VIC: you apply through an Authorised Nominating Authority. Check the Building and Plumbing Commission's adjudication page for the current time limits after the 2026 changes.

A payment claim checklist (NSW, VIC and QLD)

People search for a "payment claim template NSW", but a checklist is more useful than a form, because the details depend on your contract:

• Your business name and ABN, and the respondent's name.
• The contract, the project address and the work, goods or services the claim covers.
• The amount you claim, broken down by stage or line item.
• A clear request for payment of that amount.
• In NSW and Victoria, a statement that it is a payment claim made under your state's security of payment Act, using the exact wording NSW sets out for subcontract work connected with a residential job.
• The date you serve it, the way your contract allows it to be served, and proof that it arrived.
• A diary note of the payment schedule deadline and the due date.

Claims for approved variations belong on the claim too. Get every variation approved in writing before you do the work. Our post on the variation approval trail explains why that record matters.

How BizzMate helps

BizzMate doesn't lodge payment claims or adjudication applications. What it does is keep the paperwork straight. Invoices carry your ABN, GST on its own line and a notes and terms section printed on the document, where you can add the statement your state requires. Invoices are locked once sent, so the claim you served is the claim on record. Variations are approved online by the customer with a dated history, and payment reminders can go out automatically at 7, 14 and 30 days overdue. Try it free for 14 days.

This guide is general information, not legal or financial advice. Security of payment deadlines are strict and a missed step can cost you the right to adjudication, so get advice from a construction lawyer or your state's regulator on a real dispute.