sec.35All retention amounts withheld must be deposited in retention trust account

### sec.35 All retention amounts withheld must be deposited in retention trust account This section applies if, under section 32 , a retention trust is required for a retention amount withheld from payment under a contract. The contracting party must deposit the retention amount withheld under the contract in a retention trust account (the deposit obligation ) as follows— if the retention trust is required under section 32 (1) —when the retention amount is withheld; if the retention trust is required under section 32 (2) and there is an existing retention trust account into which the retention amount may be deposited—within 5 business days after the contract becomes a withholding contract; if the retention trust is required under section 32 (2) and there is no existing retention trust account into which the retention amount may be deposited—when the retention trust account is opened. Maximum penalty—200 penalty units or 2 years imprisonment. A term of a contract is of no effect to the extent it is inconsistent with the deposit obligation. The retention amount to which the deposit obligation relates is inclusive of any GST related to the amount. s 35 amd 2018 No. 17 s 176U sub 2020 No. 24 s 63 amd 2024 No. 14 s 41 (sec.35-ssec.1) This section applies if, under section 32 , a retention trust is required for a retention amount withheld from payment under a contract. (sec.35-ssec.2) The contracting party must deposit the retention amount withheld under the contract in a retention trust account (the deposit obligation ) as follows— if the retention trust is required under section 32 (1) —when the retention amount is withheld; if the retention trust is required under section 32 (2) and there is an existing retention trust account into which the retention amount may be deposited—within 5 business days after the contract becomes a withholding contract; if the retention trust is required under section 32 (2) and there is no existing retention trust account into which the retention amount may be deposited—when the retention trust account is opened. Maximum penalty—200 penalty units or 2 years imprisonment. (sec.35-ssec.3) A term of a contract is of no effect to the extent it is inconsistent with the deposit obligation. (sec.35-ssec.4) The retention amount to which the deposit obligation relates is inclusive of any GST related to the amount. - (a) if the retention trust is required under section 32 (1) —when the retention amount is withheld; - (b) if the retention trust is required under section 32 (2) and there is an existing retention trust account into which the retention amount may be deposited—within 5 business days after the contract becomes a withholding contract; - (c) if the retention trust is required under section 32 (2) and there is no existing retention trust account into which the retention amount may be deposited—when the retention trust account is opened.