Construction – NSW
NSW BUILDING BILL TARGETS PREFAB HOMES, APPROVALS AND CERTIFIERS
Author: Leon Della Bosca
The Urban Developer
NSW has introduced building legislation that would make the state the first Australian jurisdiction to formally recognise modern methods of construction (MMC) in law.
professionals would access the new framework through a single digital platform. NSW building minister Anoulack Chanthivong said the reforms targeted unnecessary red tape around MMC and prefab housing construction. “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,” Chanthivong said. “This Bill, if passed, will see NSW become the leading jurisdiction in Australia when it comes to modern methods of construction.” Certifiers face stiffer penalties Conflict-of-interest rules for certifiers would also be tightened under the Bill. Maximum court-imposed penalties for breaching such rules would rise from $33,000 to $1.1 million, with automatic suspension applying upon conviction. NSW building commissioner James Sherrard said the reforms would give his agency the tools needed to oversee certifiers and prefabricated construction types.
The Building (Approvals and Practitioners) Bill 2026, tabled in parliament this week would define prefabricated buildings, integrate MMC into the approvals system and introduce consumer protections for prefabricated home buyers. The Commonwealth Productivity Commission estimates MMC, including modular and prefabricated construction, could reduce overall costs by up to 20 per cent and cut build times by 50 per cent compared to traditional methods. Cutting through red tape Streamlining a fragmented approvals process is another aim of the Bill. Duplicative design requirements for identical building elements would be removed, with the government estimating savings of around $330,000 per apartment block. Staged approvals would allow construction to begin and occupants to move in earlier. Minor variations to development consent within defined parameters would be permitted without full reassessment. Industry
18 – May /June 2026
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