The Minns Government has introduced the Fair Trading and Building Legislation Amendment Bill 2026 (NSW), a significant reform that proposes amendments to 22 Acts affecting developers, building practitioners and property owners.
In response to ongoing concerns surrounding defective construction, the Bill seeks to strengthen consumer protections, expand regulatory oversight and increase compliance and accountability requirements across the building industry.
The Bill forms part of the Minns Government’s broader plan for NSW residents to have greater access to housing and increased confidence when purchasing property.
If enacted, the reforms will have significant implications in relation to insurance, licensing, certification and enforcement across the NSW development and construction sector.
Proposed reforms include:
- Enhanced regulatory powers for NSW Fair Trading and Building Commission: If passed, these regulators will have broader powers to refuse applications, cancel licences and pursue disciplinary action against industry participants, including former private certifiers.
- Decennial Liability Insurance (DLI) reforms: The Bill clarifies the operation of DLI, providing greater certainty around the availability of long-term cover for serious building defects. The changes are intended to strengthen protections for homeowners where significant defects emerge after completion.
- Changes to Security of Payment timeframes: The Bill replaces references to “business days” with “working days” for the purposes of the Building and Construction Industry Security of Payment Act 1999 (NSW). As a result, the end-of-year shutdown period will no longer count towards statutory payment claim and adjudication timeframes.
- Ongoing flexibility for insurance exemptions: If passed, the bill eliminates the 12‑month limit on the Government’s power to grant exemptions from the Design and Building Practitioners Act 2020 (NSW) professional indemnity (PI) insurance requirements. This gives regulators the authority to exempt specific practitioners, preventing industry delays while PI insurance remains unstable.
- Establish a dedicated Building Administration Fund: The Fund will replace existing Home Administration Fund. Managed by the Secretary, the proposed Fund will consolidate revenue streams from licencing and builder registration fees into one single account to help finance Building Commission NSW’s enforcement and site inspections.
What this means for developers:
The Fair Trading and Building Legislation Amendment Bill 2026 reflects a continued shift toward stricter accountability, proactive enforcement and tighter operational oversight across the NSW property sector. The Bill has been passed in the Legislative Assembly and is currently before the Legislative Council.
Developers should monitor the progress of the Bill and consider whether any changes to internal compliance processes, project governance and risk management frameworks may be appropriate if the reforms are enacted.
Further information regarding the Bill may be accessed here.
We will continue to monitor the progress of the Bill. Should you require any further information regarding the proposed reforms, please contact a member of Addisons’ Construction & Infrastructure team.