Stage 1 – Tougher penalties
Commenced 15 January 2026
New laws strengthen consumer protections, introduce new offences, expand enforcement options, and increase penalties in the building and construction industry.
The Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025 (external site) (external site) introduces reforms, following a review of the building and construction industry. These changes reflect feedback from consultation, as well as national recommendations and recent challenges across the sector.
The reforms aim to protect consumers while reflecting the realities of today’s building industry.
Changes affect the:
Key changes
New offences
- New offences for unlicensed work.
- Hiring unlicensed subcontractors to undertake licensed work.
- Using another contractor’s licence number.
- Falsely claiming to be licensed or registered.
Increased penalties
- Significant increases, up to $150,000 for individuals and $550,000 for companies for repeat offences.
- Expiations introduced or increased for many offences, for example $5,000 for key breaches.
- Higher penalties for false or misleading information to regulators or consumers, contract breaches, and advertising violations.
The Table of Amended Penalties (PDF, 279.5 KB) lists increased expiations and new offences.
Court & enforcement
- The Magistrates Court can impose penalties of up to $550,000 for offences under the laws governing the building and construction industry including builders, plumbers, gas fitters and electricians.
- Authorities have up to 2 years to prosecute all offences, and up to 5 years to prosecute an offence with Ministerial approval in certain cases.
- Some offences may be handled with an infringement notice for faster enforcement.
BII insurance reforms
For further information please refer to the Building Indemnity Insurance website.
What you need to do
If you’re hiring a subcontractor, make sure they’re licensed through CBS’ Licensing Public Register. (external site) (external site)
