The NSW Government is progressing the Fair Trading and Building Legislation Amendment Bill 2026 (Bill), a major update to more than 20 Acts affecting builders, subcontractors, certifiers, strata professionals and property owners. Although the Bill is described as “miscellaneous”, the changes are significant. They will give Fair Trading and the Building Commission stronger enforcement powers, tighten licensing rules, and change key definitions in the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA).
The Bill has passed the Legislative Assembly and is now before the Legislative Council. Once it is assented to, the reforms will begin to roll out in stages.
So, what are the pivotal proposed changes?
The Bill replaces every reference to “business day” with “working day” in SOPA.
From the Bill:
“Omit ‘business days’ wherever occurring. Insert instead ‘working days’.”
A working day excludes 27–31 December, meaning the Christmas shutdown period will no longer count toward SOPA deadlines.
This means, among other things, that payment claims and payment schedules will operate on a new timeline.
In the Second Reading Speech (SRS), Minister Anoulack Chanthivong says:
“…renaming the term ‘business day’ to ‘working day’, without altering its meaning or application… to rectify inconsistency with the Interpretation Act 1987.”
Fair Trading will gain broader powers to suspend, vary or cancel licences
Across multiple Acts, including the Home Building Act 1989 (NSW) (HBA), Fair Trading Act 1987 (NSW) (FTA), Property & Stock Agents Act 2002 (NSW), and Conveyancers Licensing Act 2003 (NSW), the Bill introduces new pathways for Fair Trading to:
- vary a licence;
- suspend a licence;
- cancel a licence; and
- restore a licence.
For example, under the HBA, the Secretary (as defined in the FTA) will be able to:
“vary, suspend or cancel an authority if the holder… is not qualified to hold the authority.”
Fair Trading will be able to act if, for example, your qualifications don’t match your licence or you fail to meet updated competency requirements.
A new Building Administration Fund will support increased enforcement
The Bill creates a new Building Administration Fund, replacing the old Home Building Administration Fund.
The Fund will receive:
- licence fees;
- penalties;
- fines; and
- money recovered under building legislation.
This signals a clear policy direction: more resources for audits, investigations and compliance action.
Builders should expect more proactive enforcement if the Bill commences.
Decennial Insurance: New definitions that will affect future claims
The Bill updates key definitions in the Strata Schemes Management Act 2015 (NSW) (SSMA) for the purposes of decennial liability insurance (DLI), including:
- building product;
- relevant defect; and
- vertical transportation product.
These definitions sit within Part 11, Division 3AA of the SSMA, which governs the new 10‑year insurance scheme for major defects in eligible buildings.
Why this matters:
- It clarifies what types of defects will be covered by DLI;
- It signals that the Government is preparing for a broader rollout of decennial insurance;
- Builders and developers will need to ensure their documentation and construction practices align with these definitions; and
- Strata owners will have clearer pathways for making DLI claims once the scheme is fully operational.
Design and Building Practitioners Act 2020 (DBPA) amendment: a subtle change with major policy implications
The Bill removes the 12‑month limit on the Government’s ability to exempt certain practitioners or work types from DBPA insurance requirements.
From the SRS:
“…remove the existing 12‑month limitation on the regulation‑making power to exempt persons or types of work from insurance requirements…”
This is a policy signal, not a housekeeping change.
It suggests:
- the PI insurance market is still unstable;
- the Government expects to adjust DBPA coverage over time;
- further DBPA reforms are likely; and
- more work types may be brought into the DBPA regime.
This is exactly the kind of insight builders and developers value.
Overall, the Bill is a strong indication of where NSW building regulation is heading, and having an understanding of what is to come will give builders a genuine commercial advantage if the changes take effect.