Rules requiring building contractors to hold progress payments in separate trust accounts until subcontractors are paid are necessary in order to protect trade contractors from financial loss, subcontractor representatives say throughout Australia say.

The Northern Territory is debating new legislation which, among other things, would require building contractors to set up special trust accounts through which progress payments would be paid and from which contractors would be unable to draw until payments owed to their subcontractors had been made. The proposed legislation is being…