A change in state legislation means Queensland tradies risk having their building licences revoked if they leave debts unpaid, the local government announced last week.
State housing and public works minister Bruce Flegg said building contractors who failed to pay judgment debts could have their licence suspended or cancelled under the new laws.
"If a person goes to court and gets a court order or judgment for the licensee to pay a debt, there is no legal excuse for the licensee to refuse to pay," Mr Flegg explained.
"The licensee has a statutory obligation to pay the debt and if it is not paid, their licence could be suspended or cancelled under the changes I am announcing today (September 28)."
Mr Flegg said while all licensed contractors are required to pay their debts if they want to maintain an active licence, there were some exceptions including when money is held for a genuine reasons such as contractual breaches or defective work.
Amendments to Queensland Financial Requirements for Licensing (FRL) are in addition to existing legislation that stipulates demerit points can be issued for unsatisfied judgement debts.