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Review of home building legislation 

The review of home building legislation is now complete with the making of the Home Building Regulation 2014 on 12 December 2014. The Home Building Amendment Act 2014 and the Home Building Regulation 2014  contain over 50 reforms, most of which start on 15 January 2015 with the remainder commencing on 1 March 2015. For more information please visit the Major changes to home building laws page.

What is this about? 

The home building legislation has undergone a comprehensive review. This will include a remake of the Home Building Regulation 2004.

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What's happening? 

The Home Building Amendment Act 2014

The Home Building Amendment Act 2014, containing more than 50 amendments to the Home Building Act 1989, was passed by the NSW Parliament in May 2014. This followed an extensive consultation from July 2012, including a broad range of stakeholders.

The amendments include:

  • clarifying the definition for major defects
  • requiring progress payment schedules in contracts for work over $20,000
  • increasing the maximum deposit for work over $20,000 to 10 per cent
  • consolidating licensing provisions (including standard licensing conditions that will inform decisions such as when someone faces licensing restrictions)  
  • streamlining and rationalising home building contract requirements
  • establishing a public register of home warranty insurance certificates
  • renaming the home warranty insurance scheme to better reflect its purpose and how it operates

Access a copy of the Home Building Amendment Act 2014

Consultation on the draft Home Building Regulation 2014 

The Home Building Regulation 2004 is being remade to incorporate the amendments made by the Home Building Amendment Act 2014. It is also proposed to implement other reforms to:

  • implement some outcomes of the Review of the Home Building Act 1989 that were not included in the Amendment Act
  • fast-track some key recommendations made by the Independent Pricing Regulatory Tribunal in its draft report, Reforming Licensing in NSW
  • implement some other insurance, licensing, fee changes and general updates to the law.

A consultation draft of the Regulation was released in July 2014, with a Regulatory Impact Statement (RIS) explaining the Regulation's key proposed changes:

Consultation has now closed. The closing date for comments and submissions was 15 August 2014.

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Next steps 

NSW Fair Trading is considering the feedback received during consultation before the Home Building Regulation 2014 is finalised. Once completed, the Regulation will be submitted to the Governor for approval, after which the Regulation will be published on the NSW legislation website. It is proposed that the Amendment Act and the new Regulation will commence together in mid-January 2015. Changes that require a greater lead time for implementation, such as those related to contracts, will commence at a later date.

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Important documents 

Regulatory Impact Statement – Home Building Regulation 2014 (PDF size: 455kb)
Public consultation draft – Home Building Regulation 2014 (PDF size: 487kb)
Review of the Home Building Act 1989 Position Paper (PDF size: 563kb)
Reform of the Home Building Act 1989 issues paper (PDF size: 839kb)

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Subscribe to keep up-to-date  

Subscribe to Foundations, Fair Trading's home building enewsletter, for up-to-date information about the review of home building laws and other home building matters.

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