The New South Wales government has introduced nation-leading building reforms aimed at streamlining building approvals and introducing stronger penalties for certifiers.
The Building (Approvals and Practitioners) Bill 2026 represents a major overhaul of the state’s planning landscape. At its core, the legislation seeks to modernise the industry by formally embracing Modern Methods of Construction (MMC), such as modular and prefabricated housing.
Under the proposed laws, NSW will become the first Australian jurisdiction to recognise MMC in law by defining “prefabricated buildings” and integrate them directly into the approvals system.
The state will also become the first to guarantee important consumer protections under the proposed bill.
According to the Commonwealth Productivity Commission, MMC can reduce building costs by up to 20 per cent and cut construction times by half compared to traditional builds.
Minister for Housing Rose Jackson said the reforms would remove outdated barriers to innovative housing.
“The reforms we’re introducing will remove barriers to prefabricated and modular housing without compromising building quality, allowing more people to take advantage of the benefits of modern methods of construction,” Jackson said.
Beyond innovation, the bill aims to take a sledgehammer to industry red tape. By consolidating fragmented regulations into a single piece of legislation, the government expects to save developers approximately AU$330,000 per apartment block by removing duplicative design requirements.
A new staged approval system will also be established, allowing residents to move into completed sections of a building as early as possible.
However, the reforms also come with a increased penalties for certifiers doing the wrong thing. The government is moving to restore public confidence in the certification sector by introducing a clearer conflict-of-interest test.
Certifiers found breaching these rules could face increased court-imposed penalties, which will jump from AU$33,000 to AU$1.1 million.
Minister for Building Anoulack Chanthivong said the changes were about removing unnecessary red tape to boost completions without compromising on quality.
“As we confront this once-in-a-generation housing supply challenge, prefabricated homes are becoming an increasingly popular time and cost-effective alternative to traditional housing,” the minister said.
The reforms have been welcomed by Master Builders NSW, with Executive Director Matt Pollock praising the collaborative approach and the increased options for builders to construct homes faster in controlled environments.
“This Bill is about getting the balance right between reforms which help to improve consumer protections and lift quality in the building industry, while also speeding up and streamlining approvals processes so we can get on with the job of building more homes.”
