Contents
Introduction
Since the 2023 reforms, further changes have been introduced in 2024 and 2025 to ease compliance pressures on builders, designers, and certifiers. These amendments affect boarding houses, hostels, aged care facilities (Class 3 and 9c buildings), as well as mixed-use developments.
Current Rules (2025)
- DBP Act Coverage:
- Applies to Class 2 buildings (multi-unit apartments).
- Extended to Class 3 and 9c buildings (boarding houses, aged care, hostels).
- Grace Periods:
- Remedial work obligations for Class 3 and 9c buildings deferred until 1 July 2026.
- Insurance requirements for registered practitioners also extended until 30 June 2026.
- RAB Act:
- Compliance provisions already apply to Class 3 and 9c buildings since July 2023.
- No grace period for enforcement powers.
Key 2025 Amendments
- Remedial Work Deferral: Expansion of DBP Act to regulate repair/alteration of existing Class 3 and 9c buildings delayed until July 2026.
- Insurance Exemption Extended: Practitioners remain exempt from mandatory professional indemnity insurance until mid-2026.
- Strata Building Bond: Increase from 2% to 3% deferred until July 2026.
- Certifier Insurance: Cladding-related exclusions in certifier insurance policies remain valid indefinitely.
Timeline of Reforms
| Year | Reform |
|---|---|
| 2023 | DBP Act extended to Class 3 and 9c buildings; RAB Act compliance begins |
| 2024 | Transitional arrangements introduced |
| 2025 | Deferral of remedial work and insurance obligations to July 2026 |
| 2026 | Full compliance required for remedial work, insurance, and strata bond increase |
Implications for Builders & Consultants
- Short-term relief: Builders and designers have more time to secure adequate insurance and adapt to remedial work obligations.
- Long-term compliance: By July 2026, all practitioners must meet stricter insurance and remedial work standards.
- Risk management: Developers should plan for higher strata bond costs and ensure compliance with RAB Act enforcement powers already in place.
FAQs
When do insurance requirements start?
Mandatory professional indemnity insurance begins on 1 July 2026.
Do remedial works on Class 3/9c buildings need compliance now?
No, remedial work obligations are deferred until July 2026, but RAB Act enforcement applies.
What about strata building bonds?
The increase from 2% to 3% is deferred until July 2026.
Conclusion
The 2025 amendments provide temporary relief but signal stricter obligations ahead. Builders, designers, and consultants must prepare for full DBP Act compliance by July 2026, while continuing to meet RAB Act enforcement standards today.
Need More Information? Contact Us
It’s always a good idea to seek professional advice when dealing with legal matters. Feel free to contact PDC Law for any queries related to NSW building and construction regulations.
PDC Law can provide you with advice and answers to your Building and Construction queries to make the process simple and hassle-free. Please contact us on 4288 0150 or admin@pdclaw.au for any enquiries.
Useful Resources
Here are some useful resources to help you understand and comply with the requirements of the Design and Building Practitioners Act and the Residential Apartment Buildings Act:
- Office of the Building Commissioner – New South Wales Government’s hub for residential building and construction news and regulations.
- Design and Building Practitioners Act 2020 (NSW) – Full text of the DBP Act on the NSW legislation website.
- Residential Apartments Buildings (Compliance and Enforcement Powers) Act 2020 (NSW) – Full text of the RAB Act on the NSW legislation website.
- The Design and Building Practitioners Regulation 2021 (PDF) – Detailed regulations on what is required from design and building practitioners.
- NSW Fair Trading – Home Building and Renovating – Useful tips and guidance from NSW Fair Trading.
Lorri is a director of PDC Law. Lorri combines excellent technical expertise with a common-sense approach to best represent her clients. She is one of few Accredited Specialists in Commercial Litigation in the Illawarra and Shoalhaven. This accreditation is testament to Lorri’s expert knowledge and skill in dealing with commercial disputes. In 2019 Lorri was awarded Regional Lawyer of the Year by Women Lawyers Achievement Awards.
