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Misrepresentation and defects: Watchdog powers extended to protect consumers
New legislation has been introduced to the NSW Parliament with the aim of increasing the standards of construction while protecting consumers in the property industry
The government said the Fair Trading and Building Legislation Amendment Bill 2026 proposes to clarify provisions regarding Decennial Liability Insurance (DCI).
DCI provides long-term liability insurance for homeowners against costs arising from serious defects, such as those at Opal and Mascot Towers.
The NSW government said the bill will clarify the scope of coverage for apartment owners without compromising consumer protections.
Additionally, the bill will give NSW Fair Trading and the Building Commission NSW clearer powers to refuse applications and cancel licences obtained through misrepresentation or invalid qualifications.
Minister for Better Regulation and Fair Trading and Minister for Building Anoulack Chanthivong, said the changes would enhance consumer confidence by providing more protections
"These reforms tighten the rules for property and building professionals, by ensuring they can be held accountable for their actions before they enter the industry and after they leave,” Chanthivong said.
"By providing our regulators with stronger powers, we are also ensuring those with a track record of misconduct cannot simply rebrand and re-enter the industry.
"The changes to legislation for Decennial Liability Insurance will also bring NSW one step closer to operationalising a scheme set to provide home owners with nation-leading defect insurance.”
It will also strengthen Fair Trading’s ability to block unsuitable applicants, while closing loopholes that previously prevented the regulator from blocking professionals with a history of misconduct from entering the industry.
The Building Commission will also benefit from the new legislation, giving the regulator stronger powers to hold certifiers to account for misconduct, even if they leave the industry, preventing them from avoiding sanctions by surrendering their licence or letting it lapse.
NSW Building commissioner James Sherrard said the legislation changes would ensure a higher standard across the construction industry.
“These new laws will give Building Commission NSW the power to impose fines and disqualifications, even if a certifier accused of misconduct has left the industry.”
“Under the current framework, Building Commission NSW only has the power to cancel the entirety of a home-building related licence if the licence holder is found to have an invalid qualification.”
“These reforms will also allow us to address invalid qualifications in a more targeted way by giving us the power to cancel single authorities on a licence, rather than the whole licence,” Sherrard concluded.