The Minns Labor Government has introduced legislation to NSW Parliament to modernise property laws and ensure greater consistency across building sector licensing schemes.
The Fair Trading and Building Legislation Amendment Bill 2026 ('the Bill') will close loopholes and give the state's dedicated property and building regulators more powers to take disciplinary action and protect consumers.
Improving the standards across the building sector will mean young people, families and downsizers can have greater confidence when buying a home or investing in a property.
The Bill will clarify provisions around Decennial Liability Insurance (DLI). DLI provides long-term protections for homeowners against rectification costs arising from serious defects like those seen at Mascot and Opal Towers.
The Government has been working closely with industry representatives to bring DLI products to market.
As a result of this process, the Bill will clarify the required scope of coverage without compromising consumer protection giving apartment owners the peace of mind they need and raising insurance standards across the industry.
Other changes in the proposed legislation will:
- Strengthen NSW licensing by giving NSW Fair Trading and Building Commission NSW clearer powers to refuse applications or cancel licences obtained through misrepresentation, error or invalid qualifications.
- Tackle poor practice in the conveyancing sector by strengthening NSW Fair Trading's ability to block unsuitable or irresponsible applicants, while closing loopholes that prevented the regulator from stopping professionals with a history of misconduct from entering the industry.
- Give the Building Commission NSW stronger powers to hold private certifiers accountable for misconduct even if they leave the industry, preventing them from avoiding sanctions by surrendering or letting their registrations expire; and
- Provide the Building Commission NSW with new powers to cancel specific authorities on home building related licences, such as joinery, or painting, rather than having to cancel the entire licence.
The Bill puts into action the lessons learned by NSW Fair Trading and Building Commission NSW through their extensive regulatory and compliance activity.
NSW is leading the country with more than 75,000 homes under construction, these proposed changes will strengthen the state's building sector, offer better protections for homeowners and renters, and provide greater clarity for the construction sector.
This is all part of the Minns Government's plan to build a better NSW with more homes and services, so young people, families and key local workers have somewhere to live and in the communities they choose.
Minister for Better Regulation and Fair Trading and Minister for Building Anoulack Chanthivong said:
"Consumers deserve to have the utmost confidence in the professionals handling some the biggest financial decisions of their lives.
"These reforms tighten the rules for property and building professionals, by ensuring they can be held accountable for their actions before they enter the industry and after they leave.
"As we work towards our targets under the National Housing Accord, we want to make sure we are raising the standard across the construction and development sector.
"By providing our regulators with stronger powers, we are also ensuring those with a track record of misconduct cannot simply rebrand and re-enter the industry.
"The changes to legislation for Decennial Liability Insurance will also bring NSW one step closer to operationalising a scheme set to provide homeowners with nation-leading defect insurance."
NSW Fair Trading Commissioner Natasha Mann said:
"These much-needed reforms close loopholes and strengthen the integrity of the property and conveyancing sectors.
"By giving NSW Fair Trading stronger powers to act upfront, we are protecting consumers, lifting professional standards, and ensuring those with a track record of misconduct cannot simply rebrand and re-enter the industry."
NSW Building Commissioner James Sherrard said:
"Homeowners need to have confidence that certifiers working on their projects cannot provide sub-par services that result in defects and then leave the industry to escape regulatory action.
"These new laws will give Building Commission NSW the power to impose fines and disqualifications, even if a certifier accused of misconduct has left the industry.
"Under the current framework Building Commission NSW only has the power to cancel the entirety of a home-building related licence if the licence holder is found to have an invalid qualification.
"These reforms will also allow us to address invalid qualifications in a more targeted way by giving us the power to cancel single authorities on a licence, rather than the whole licence."
