06 November 2026
14 min read
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Residential building work in NSW requires a policy of insurance under the Home Building Compensation Fund, if the reasonable market value of the work carried out exceeds $20,000 (Part 6 Home Building Act 1989 (HBA)). An exemption exists (under clause 56 of the Home Building Regulation 2014) for new multi-unit developments with more than three storeys.
From 1 December 2026, this exemption will be expanded to include projects containing more than two residential units, in other words, doing away with the rise in storeys requirement.
As to what fills the gap, the strata bonds inspection scheme or decennial liability insurance (DLI) under the Strata Schemes Management Act 2015 (SSMA) will apply to the newly exempt projects.
This change was introduced by the Home Building Amendment (Insurance Cover) Regulation 2026 and will apply to projects which commence construction after 1 December 2026.
The Building Commission has approved Resilience Insurance’s latent defects policy as a DLI policy for the purpose of Part 11, Division 3AA of the SSMA.
As mentioned in a previous edition, the Fair Trading and Building Legislation Amendment Bill 2026 will broaden the coverage of DLI, under the SSMA, to respond to a relevant defect, as opposed to a serious defect, taking DLI away from following the nomenclature of the Residential Apartment Buildings (Compliance and Enforcement Powers) Act and closer to the HBA major defect definition.
This places DLI closer towards the type of cover which was available under home warranty insurance and its predecessors, in terms of standing behind statutory warranties, albeit only for high rise, multi-unit developments.
It remains to be seen if the DLI landscape in its final form tempts others in the market to support this policy initiative with a product offering.
Professional indemnity insurance is not new to the construction industry. Many consultants delivering professional services find themselves contractually required to hold this type of insurance, or have a statutory obligation to do so. Even without such a requirement, many consider it prudent risk management.
Builders, however, have not traditionally had this product available in relation to the work and services they provide (as opposed to their service providers).
The market may now be maturing to meet the (deferred) insurance requirements for builders under the Design and Building Practitioners Act 2020 (DBPA).
Section 24 of DBPA introduced the requirement for registered building practitioners to be adequately insured where they are:
The supporting regulations prescribe the requirements relating to adequate insurance, but no product was available to meet the requirement. Accordingly, its commencement was deferred every 12 months, by exemption, to allow the market to catch up.
The most recent deferral, announced by the NSW Building Commission on 26 June 2026, continued the exemption for a further 12 months until 1 July 2027. Since then, the Fair Trading and Building Legislation Amendment Act 2026 was introduced, which will amend the DBPA to allow the exemption for building practitioners to continue indefinitely, rather than being remade every 12 months.
The market has been growing to meet this in the background, with a number of providers now offering products said to address the incoming DBPA requirements. When the time comes, builders should confirm with their brokers that the product offered includes 'doing' as well as 'declaring' and have particular regard to the requirement that they make an assessment as to the adequate level of cover.
Major Bathla lender La Trobe sells $31.2m loan as private credit firms seek to recover funds
The fallout from the collapse of property developer Bathla Group continues to reverberate through Australia's private credit market, with lenders taking matters into their own hands to recover money tied up in the failed construction giant. Read more here.
Rates Pressure Builds as Confidence Falls
The RBA is signalling that rates may need to stay higher for longer, just as confidence across NSW's property and construction sector weakens. The risk of another rate rise on Melbourne Cup Day is real. Speaking at Citi's Australia and New Zealand Investment Conference in Sydney this week, RBA Deputy Governor Andrew Hauser said the inflation outlook was “materially worse”, partly because of high oil prices. He said it was “pretty clear” inflation would come in above the Bank's forecasts. Read more here.
Trades shortages persist as work on the ground remains solid
The HIA Trades Report released today provides a quarterly assessment of skilled labour availability in residential construction, as well as demand pressures identified through a survey of home builders. HIA Senior Economist, Tom Devitt, says that, “Skilled trade shortages remain widespread across Australia, with demand for workers supported by the recovery in home building activity over the past year.” Read more here.
Developers warn federal aluminium tariff will send housing to the wall
Apartment developers have warned that the federal government’s proposed tariffs on Chinese aluminium windows and doors will make housing projects unfeasible, with one estimating that it will add almost $10,000 to the cost of each unit it builds. The Australian Trade Remedies Commission is already requiring importers to pay securities on the aluminium products if they entered the country on or after October 15. Read more here.
Family behind failed Bathla empire lose lucrative site to Stockland
Stockland is the new owner of a prime industrial site near the Western Sydney International Airport after companies run by the family behind failed property development giant Bathla defaulted on their borrowings. The ASX-listed property giant, which develops residential real estate and logistics facilities, has already submitted a development application for the site for earthworks, vegetation removal and civil works with an estimated cost of $6.5 million. Read more here.
Have your say – Australian Building Codes Board seeking practical insights from NCC users
The Australian Building Codes Board (ABCB) is seeking practical insights from NCC users about NCC provisions and Performance Solutions. The ABCB has engaged with stakeholders across the building and plumbing sectors to better understand the challenges of using the NCC and identify opportunities to improve how it is structured, presented and applied. The ABCB is now seeking specific examples and practical suggestions from NCC users. Have your say here.
Have your say – Proposed Wyong Hospital key health worker accommodation
The NSW Government is seeking feedback on new accommodation at Wyong Hospital to help attract and retain health workers to support local health services. The project proposes 12 units, including ten one-bedroom units (being one accessible) and two two-bedroom units within the Wyong Hospital campus. Associated works include parking, access, landscaping, communal facilities and supporting infrastructure. This survey seeks feedback relevant to the proposed work and their potential environmental impacts. The consultation period is open until 22 November 2026. Access the submission form here.
Have your say – Draft Solar Panels Regulation
The NSW Environment Protection Authority is seeking feedback from industry, local councils, other NSW Government agencies and the community on the proposed draft Product Lifecycle Responsibility Amendment (Photovoltaic Panels) Regulation 2026, including the Issues Paper and the RIS. The scheme is expected to reduce environmental and human health risks of waste and support NSW’s move to a circular economy. The survey is open until 16 November 2026. Access the online survey here.
ABS – Building Approvals, Australia
The Australian Bureau of Statistics (ABS) provides an overview of the number of dwellings and value of buildings approved. The August 2026 seasonally adjusted estimate revealed that total dwellings approved fell 6.1% to 16,953. Private sector houses rose 3.7% to 10,885, while private sector dwellings excluding houses fell 21.2% to 5,674. The value of residential building fell 0.6% to $11.30b. The value of non-residential building fell 44.8% to $5.53b. Read more here.
ABS – Building Activity, Australia
The ABS provides an overview of the estimates of value of building work and number of dwellings commenced, completed, under construction and in the pipeline. The June 2026 seasonally adjusted terms reveal that total dwelling commencements rose 7.0% to 52,201 dwellings. New private sector house commencements rose 11.6% to 31,707 dwellings. New private sector other residential commencements fell 0.1% to 19,126 dwellings. The value of total building work done rose 1.1% to $45.8b. Read more here.
HIA – Potential Commonwealth Standards for the Construction Industry
The HIA has published submissions to the Department of Employment and Workplace Relations regarding potential Commonwealth standards for the construction industry. The HIA supports the objectives underlying the Discussion Paper but has reservations about the mechanism proposed in the Discussion Paper. Read more here.
Jobs and Skills Australia – Construction profile industry insights
On 16 October 2026, Jobs and Skills Australia published its Construction profile industry insights paper, which provides a snapshot of Australia’s construction industry, highlighting the workforce trends, skills needs and economic factors shaping its future. Download the paper here.
The Owners – Strata Plan No 97938 v Golden Rain Development Pty Ltd [2026] NSWSC 1362
REAL PROPERTY — plaintiff brings proceedings against defendant for damages — defendant grants security by way of charge in favour of existing unsecured creditors — plaintiff applies to set security aside as a fraud on creditors — whether an “alienation” of security property — whether made with intent to defraud creditors — whether plaintiff had standing as “person thereby prejudiced” — intent to defraud not to be inferred merely from preference of one creditor over another — no intent to defraud established — application fails — Conveyancing Act 1919 s 37A.
Reosteel Pty Ltd v Reem Built Pty Ltd [2026] NSWSC 1348
BUILDING AND CONSTRUCTION — payment claims — payment claim served after termination of construction contract — whether claimant may unilaterally withdraw payment claim and serve replacement claim — construction of s 13(1C) — distinction between unilateral withdrawal and withdrawal by agreement — whether residential and commercial works governed by single overarching construction contract — effect of contractor’s licensing restriction on entitlement to progress payments — adjudication determination quashed — Building and Construction Industry Security of Payment Act 1999 (NSW)
Juergens v Alpha CB&C Pty Ltd t/as Luxcon & Co [2026] NSWCATAP 336
BUILDING and CONSTRUCTION — home building – evidence required for determining a breach of 18B(1)(a) of the Home Building Act 1989 (NSW) — use of electronic evidence (video) — procedural fairness — no possibility of different outcome
PRACTICE and PROCEDURE — self-represented applicant
Drummond v Karakatsis (No 2) [2026] NSWDC 392
COSTS — application for costs by defendant where the plaintiffs have been partially successful — whether it was reasonable for the plaintiffs not to accept a Calderbank offer
Hitchins v Secretary, Department of Customer Service [2026] NSWCATOD 137
ADMINISTRATIVE LAW – Home Building Act – Qualified Supervisor Certificate – refusal – liquidation – whether applicant took all reasonable steps to avoid liquidation
Raysons Constructions Pty Ltd v The Owners – Strata Plan No 87003 [2026] NSWCATAP 324
BUILDING AND CONSTRUCTION — Home Building Act 1989 (NSW) — strata building — breach of statutory warranties — limitation period for breach of statutory warranties — whether breach of warranty becomes apparent in last 6 months of warranty period — distinction between defect and breach of statutory warranty — onus of proof for extension — type of knowledge required — whether defect is a major defect — Home Building Act 1989 (NSW) ss 3B, 3C, 18B, 18E, 48K
APPEALS — Appeal on question of law — whether Tribunal failed to afford procedural fairness to party
BUILDING AND CONSTRUCTION — Home Building Act 1989 (NSW) s. 48O — work order — order to perform any specified work, service or obligation — whether appropriate to order a party to proceedings to do any specified work or perform any specified service or obligation
Najibi v Secretary, Department of Customer Service [2026] NSWCATOD 134
ADMINISTRATIVE LAW — decision to cancel contractor licence under Home Building Act 1989 (NSW) and to temporarily disqualify the Applicant — improper conduct — fit and proper person
Despot v Secretary, Department of Customer Service [2026] NSWCATAD 307
ADMINISTRATIVE LAW — administrative review of decision not to renew contractor licence — application for stay or interim order
The Owners - Strata Plan No 92125 v Barker [2026] NSWSC 1315
CIVIL PROCEDURE — freezing orders – where plaintiff seeks freezing order over moneys held by the second defendant in the sum of $12m — where second defendant sold its substantive asset for $20m — where second defendant intends to utilise sale proceeds by making intercompany loans to related entities — where danger that prospective judgment will be unsatisfied due to disposal of assets — where quantum of freezing order based on evidence of loss which lacks underlying reasoning and which is based on sums not yet claimed — freezing order in the sum of $12m ordered over proceeds of sale held in the second defendant’s bank account — liberty to apply to reduce sum if quantity surveyor’s evidence departs downwards from provisional estimated loss and applicant does not claim the asserted losses within a reasonable time
The Owners – Strata Plan No 6707 v Gaters; Gaters v The Owners – Strata Plan No 6707 [2026] NSWCATAP 331
APPEAL — question of law — procedural fairness — weight of evidence — just and equitable — proceedings on renewal
Zheng v The Owners – Strata Plan No 83678 [2026] NSWSC 1335
LAND LAW — strata title — strata managing agent — authority of strata managing agent to represent the Owners Corporation in tribunal or court proceedings subject to instructions
CIVIL PROCEDURE — representation — by unqualified persons — court powers — leave for strata managing agent to represent Owners Corporation
LAND LAW — strata title — owners corporation — meetings of owners corporation — where motion to accept an NCAT Appeal Panel decision passed by 7 to 6 majority — whether motion required an ordinary or special resolution
LAND LAW — strata title — owners corporation — meetings of owners corporation — whether fraud on a power for member of owners corporation to vote in personal interest
The Owners Corporation Strata Plan 92652 v Skyland Australia Developments Pty Ltd [2026] NSWDC 371
CIVIL PROCEDURE — plaintiff’s strike-out application and application for judgment — UCPR r 14.28 – where Defence consists of non-admissions, bare denials and formulaic traversals — defendant’s repeated non-compliance with orders — where defendant’s ongoing non-compliance has caused an impermissible burden on remaining lot owners in a strata scheme — whether pleading discloses a Defence, has a tendency to cause delay or is otherwise an abuse of process — whether there is a triable issue — Held: Leave granted to file Amended Defence
The Owners - Strata Plan No. 37812 v Herbert [2026] NSWCATAP 313
LAND LAW — strata title — common property — maintenance and repair of common property
In the matter of Binah Constructions Pty Ltd [2026] NSWSC 1214
CORPORATIONS — statutory demand — where statutory demand served on Plaintiff claiming judgment debt arising from adjudication determination — where Plaintiff raised a number of offsetting claims — whether offsetting claims amount to an impermissible challenge to the adjudication determination
Dabit v Secretary, Department of Customer Service [2026] NSWCATAP 309
APPEAL — administrative review — refusal of contractor licence — appellant disqualified from holding a licence — whether offence of dishonesty — exercise of discretion to ignore offence — no question of law — no ground to grant leave to appeal
Home Building Amendment (Insurance Cover) Regulation 2026 published LW 30 October 2026
The object of this regulation is to amend the Home Building Regulation 2014 to— (a) exempt builders and developers from insurance requirements under the Home Building Act 1989 (the Act) for residential building work relating to the construction of class 2 buildings with more than 2 sole-occupancy units, and (b) continue existing exemptions for builders and developers in relation to insurance requirements for residential building work relating to the construction of multi-storey buildings with a rise in storeys of more than 3, and (c) make further consequential amendments.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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