The Building (Approvals and Practitioners) Act 2026 (NSW) (Act) marks the next stage in New South Wales’ ongoing building industry reforms.
While the Act consolidates a number of existing approval, certification and practitioner regimes, it also expands regulatory oversight and accountability across a broader range of industry participants.
When it commences, the Act will repeal and replace a number of existing statutes and regulations, including the Building and Development Certifiers Act 2018 and the Design and Building Practitioners Act 2020. Instead, the Act establishes a single framework governing building approvals, practitioner registration, compliance, enforcement and statutory duties.
A broader and more integrated framework
The Act brings together approval and certification functions that have historically been spread across different legislative regimes. Building and completion approvals, complying development certificates, subdivision certificates, strata certifications and certain swimming pool certification functions will all sit within a single regulatory framework.
The reforms therefore continue the shift towards a more integrated system for regulating the design, approval and delivery of building work.
More than a change in terminology
One of the most visible changes is the replacement of the construction certificate with a “building approval” and the occupation certificate with a “completion approval”. However, the reforms go beyond terminology.
The new building approval framework is intended to bring together a range of matters that previously sat outside the construction certificate itself, including inspection schedules, fire safety schedules and, for staged projects, staging schedules. The Act also introduces a formal mechanism for retrospectively authorising work that commenced before approval was obtained, subject to conditions and cost recovery.
For developers, builders and principals, this means that contractual references to construction certificates and occupation certificates may require more than a simple terminology update. The rights, obligations and processes associated with approvals may look materially different under the new regime.
New regulation for prefabricated construction
The Act also extends regulation into the growing area of prefabricated and modular construction.
Manufacturers of prefabricated buildings will be required to provide declarations confirming compliance with the Building Code of Australia, together with documentation relating to transport and installation. These requirements bring off-site manufacturing activities within a dedicated compliance framework for the first time.
Practitioner accountability remains a priority
The Act continues the recent policy focus on practitioner accountability.
Building practitioners carrying out building element work must take reasonable steps to ensure regulated designs and design compliance declarations have been obtained and that the work complies with the Building Code of Australia.
The Act also treats conflicts of interest as a distinct compliance issue. Individuals carrying out approval functions must not do so where a conflict exists, with offences attracting both penalties and automatic suspension of registration.
The duty of care remains, but its reach grows
The statutory duty of care introduced under the Design and Building Practitioners Act 2020 remains a central feature of the reforms.
Those carrying out construction work continue to owe a duty to exercise reasonable care to avoid economic loss caused by defects. However, the Act expands the definition of “construction work” to expressly include activities such as manufacturing or supplying building products, and supervising, coordinating or project managing works.
As a result, the potential reach of the duty extends beyond builders and designers to a broader group of participants involved in the delivery of building projects.
The regulations will shape the practical outcome
While the Act establishes the framework, many of the practical details remain to be addressed in regulations. Key aspects of the regime, including staged building work, mandatory inspections, prefabricated buildings and fire safety requirements, will depend on supporting regulations that are yet to be released.
Looking ahead
The Act is both a consolidation and an expansion of NSW’s building regulatory framework. It brings together approval, certification and practitioner regimes that were previously spread across multiple statutes, while extending regulation into new areas and broadening the range of participants subject to statutory obligations.
The practical effect of these reforms will ultimately depend on the regulations that follow, but the policy direction is already clear: a more integrated framework coupled with broader regulatory oversight across the building industry.
Need support?
If you have questions about how these reforms may affect your contracts, projects or compliance obligations, the Source Legal team is here to help. Please get in touch and a member of our team will be happy to assist.
Author: Kathryn Budd, Managing Legal Counsel – Commercial Legal
This article provides general legal information only and does not constitute legal advice. The application of these principles to your specific circumstances requires advice from a qualified Australian lawyer.
