Read this first
General information only, not legal advice. Whether a security of payment Act applies to a design engagement, and what a valid payment claim under it must contain, are legal questions that differ by state. Check the current Act and your regulator’s guidance, or get advice, before you rely on any document as a payment claim.
Two documents that get confused
A staged invoice is a tax invoice for a stage of an agreed fee, issued when a trigger in your fee proposal is met. A progress claim asks for payment for work done so far, often as a share of a stage or contract that is part-complete. A document called a payment claim under a security of payment Act is a third thing: a claim that must meet that Act’s own requirements.
| Question | Staged invoice | Progress claim |
|---|---|---|
| What it asks for | The agreed fee for a stage whose trigger has been met | Payment for work completed to date, often a percentage of an agreed amount |
| Typical use | Fixed-fee design stages with clear triggers | Longer stages, or contracts that provide for progress payments |
| Must also be a GST tax invoice? | Usually issued as one if you are GST-registered | A tax invoice is still needed to record the sale for GST (invoice template) |
| Formal rules | Your contract, and GST rules | Your contract; and, if it is intended as a payment claim under an Act, that Act’s rules |
Where the security of payment Acts come in
Every Australian state and territory has a security of payment Act for the construction industry. Each has its own definitions, time limits and requirements for a payment claim, so we do not summarise them here. Start with the security of payment basics guide and the state pages, which link to the official sources.
DrafterShare is not planned to prepare or serve payment claims under any security of payment Act.
A progress claim layout
PROGRESS CLAIM No. [n] [Your business name] ABN: [your ABN]
Project: [site address] Client: [client name(s)] Agreement: [fee proposal date or number] Claim date: [date] Work completed to: [date]
WORK COMPLETED Stage 1: [stage name]. Agreed fee [A$]. Complete to [%]. Previously claimed [A$]. This claim [A$]. Stage 2: [stage name]. Agreed fee [A$]. Complete to [%]. Previously claimed [A$]. This claim [A$]. [Repeat for each stage.]
APPROVED VARIATIONS [Variation reference and description]: [A$ amount]
TOTAL THIS CLAIM (excluding GST): [A$ amount] GST (10%): [A$ amount] TOTAL (including GST): [A$ amount]
Payment due: [date, as set by your agreement] How to pay: [payment details]
[If you intend this document to be a payment claim under a security of payment Act, get advice on the wording and service your state requires. This layout does not do that.]
Layout only. It is not a payment claim under any Act unless it meets that Act’s requirements.
- Stage 2: planning drawings, agreed A$4,000, 50% complete
- A$2,000.00
- GST (10%)
- A$200.00
- Total this claim (including GST)
- A$2,200.00
Sample figures only.
Which should you use?
- Fixed-fee stages with clear triggers, such as “on issue for lodgement”: a staged invoice per stage is usually simplest.
- A stage that runs long, or an agreement that provides for progress payments: a progress claim against the agreed stage fee.
- A dispute is likely: keep every document and approval, and get advice early on whether a security of payment Act applies.
Records that help either way
- The accepted fee proposal (template).
- Every stage invoice or claim, with dates.
- Written approvals of variations.
- Payment records: what was paid, when, and against which invoice.
Questions
Is a progress claim the same as an invoice?
Not necessarily. An invoice asks for payment for a supply; a progress claim asks for payment for work done so far. A GST-registered business still needs a tax invoice for the sale.
Is a progress claim the same as a payment claim under a security of payment Act?
No. A payment claim under an Act must meet that Act’s requirements, which vary by state. Check the Act and your regulator’s guidance, or get advice.
Does DrafterShare prepare payment claims?
No. DrafterShare is not planned to prepare or serve payment claims under any security of payment Act.