NSW Parliament has passed the Building (Approvals and Practitioners) Bill 2026, a genuine overhaul of how residential building approvals work across the state. It’s not in force yet, commencement is still waiting on a proclamation date once the regulations are released, but it’s worth understanding now if you’re planning a knockdown rebuild, custom home, or any project that’ll need approval over the coming year. Here’s what actually changes, in plain terms.
The Headline Change: New Names for Familiar Documents
If you’ve been through a building project before, or researched one, you already know the terms construction certificate and occupation certificate. Under the new Building Act, these are being renamed and restructured:
Construction certificates become building approvals. The certifier who issues them becomes an “approval authority” rather than a private certifier in the terminology sense, though the role itself remains similar.
Occupation certificates become completion approvals. This is the document that remains the sole authority to occupy a finished building, and it still requires the completed work to match what was actually consented to.
This matters beyond terminology. If your building contract ties payment milestones, practical completion, handover, or access rights to the old certificate names, those clauses may need updating once the Act commences, since the documents they reference are being replaced, not just renamed in passing.
Who Can Actually Apply for Approval
Under the new framework, only the property owner can apply for a building approval. A builder can apply only if they’re also the owner, otherwise, anyone acting on an owner’s behalf needs the owner’s consent to apply. This is a meaningful shift in responsibility: it puts the owner more directly in the approval process rather than leaving it entirely to the builder or certifier to manage on their behalf.
If you’re planning a project, this is worth discussing with your builder early: who’s actually submitting the application, and how that responsibility is allocated in your building contract, becomes a more explicit conversation under the new Act than it was before.
Staged Approvals: A Genuine Practical Change
One of the more useful changes for homeowners is that staged approvals are now allowed. Early works can proceed while later stages of a project are still being finalised in design, rather than requiring every element of a build to be fully resolved before any approval is granted. For a complex project, that can mean earlier progress on-site instead of waiting for every design detail to be locked down first.
A Longer Window for Defect Claims
A civil claim for defective building work can now be brought up to 10 years after completion, measured from the completion approval, the required final inspection, or first occupation, whichever applies to your situation. This is a substantive protection worth knowing about if you’re building a new home: it sets the real-world window during which a genuine construction defect can still be pursued.
A New Dispute Resolution Scheme Is Coming
The Act requires Building Commission NSW to establish a residential building dispute-resolution scheme by 31 December 2026. The regulations that will set out exactly how it works haven’t been released yet, but the intent, backed publicly by Master Builders NSW, is a scheme disputes must go through before they can proceed to a court or tribunal. For homeowners, a functioning, mandatory first step for resolving disputes before expensive legal action is a genuinely positive direction, assuming the regulations deliver on that intent.
What’s Still Unknown
The regulations that will govern the practical detail of this Act, including exactly how the dispute resolution scheme operates and how prefabricated and modular homes will be brought under the Home Building Act’s consumer protections, haven’t been released yet. The Act itself has passed, but it commences on a day set by proclamation, expected once those regulations are ready. Until then, the current system (construction certificates, occupation certificates, and the existing certifier framework) continues to apply.
What This Means If You’re Planning a Project
Nothing changes immediately, the current approval process still applies until the Act commences. But if your project timeline stretches into when this does commence, it’s worth having a builder who’s actually tracking this reform, not finding out about new terminology or process changes partway through your build. We’re watching the regulations as they’re released and will update our own process accordingly.
Frequently Asked Questions
Has the Building Approvals and Practitioners Bill 2026 come into effect yet?
No. It has passed NSW Parliament but commences on a day set by proclamation, expected once the supporting regulations are released. The current construction certificate and occupation certificate system still applies until then.
What’s replacing construction certificates and occupation certificates?
Construction certificates become “building approvals” and occupation certificates become “completion approvals” under the new Building Act. The completion approval remains the sole authority to occupy a finished building.
Who can apply for a building approval under the new Act?
Only the property owner, unless the builder is also the owner. Anyone else acting on the owner’s behalf needs the owner’s consent to apply, a more explicit requirement than under the current system.
How long do I have to make a defect claim under the new rules?
Up to 10 years after completion, measured from the completion approval, the required final inspection, or first occupation, whichever applies.
Is there a new way to resolve building disputes?
Building Commission NSW must establish a residential building dispute-resolution scheme by 31 December 2026, intended as a required first step before disputes can go to court or tribunal. The detail depends on regulations not yet released.
If you’re planning a knockdown rebuild or new custom home and want a builder who’s across these changes as they land, our guide to the knockdown rebuild timeline covers the current approval process in detail.