The NSW Parliament has now passed the Building (Approvals and Practitioners) Bill 2026, paving the way for one of the most significant reforms of the State’s building approvals framework in more than a decade. The reforms will establish a new consolidated framework for the approval and oversight of building work, practitioner registration and compliance in NSW. They are intended to simplify building approvals, improve productivity, strengthen accountability and provide a clearer regulatory framework for emerging construction methods, including modular and prefabricated buildings.
The Bill passed Parliament on 4 August 2026 and is now awaiting Royal Assent. While the commencement dates for most of the new framework are yet to be proclaimed, the direction of the reforms is now clear and organisations planning projects over the next 12 to 24 months should begin considering how the changes may affect project delivery.
Why is the Government changing the system?
NSW’s current building regulatory framework has developed across several pieces of legislation, including the Environmental Planning and Assessment Act 1979, the Building and Development Certifiers Act 2018 and the Design and Building Practitioners Act 2020. The new legislation seeks to bring much of the building approval, certification and practitioner regulation framework together under one Act.
Importantly, this does not mean the end of the NSW planning system. Development Applications, Complying Development Certificates and the broader planning approval framework will continue to operate under the Environmental Planning and Assessment Act. The major change occurs in the regulation of building work and the approvals that follow the planning process. For developers, contractors, project managers and consultants, the reforms represent a significant evolution of the current system rather than a completely new approach to development.
A simpler approvals framework
One of the most visible changes will be the replacement of the familiar Construction Certificate (CC) with a Building Approval. Similarly, the Occupation Certificate (OC) framework will be replaced by a Completion Approval.
These changes are more than simply new terminology. They form part of a broader restructuring intended to create a clearer building approval pathway and provide more consistent regulatory oversight throughout construction. The legislation also introduces the concept of an Approval Authority, which will have responsibility for key approval and oversight functions during the building process.
What could this mean for your projects?
For projects already under construction or operating within the current approvals framework, there is no immediate action required. Transitional provisions are expected to ensure that existing approvals continue under the legislative arrangements that applied when they were issued.
However, organisations commencing new projects over the coming year should anticipate changes to approval terminology, project documentation and administrative processes as the reforms are progressively implemented.
The proposed framework is expected to support:
- clearer approval pathways
- greater flexibility for staged building approvals
- improved coordination throughout construction
- increased use of digital approvals and compliance records
- stronger regulatory oversight of practitioners and building work.
Collectively, these measures are intended to reduce unnecessary delays while maintaining confidence in building quality and compliance outcomes.
Opportunities for complex projects
One of the more practical benefits proposed by the reforms is a clearer framework for staged approvals.
Large and technically complex developments, such as hospitals, schools, universities, data centres, industrial facilities and major commercial projects, often require early works to commence while detailed design continues to develop. A more structured staged approval process has the potential to improve program certainty by allowing construction to progress in carefully managed phases without compromising regulatory oversight.
For many project teams, this could improve procurement flexibility, support Early Contractor Involvement (ECI) and reduce program risk on fast-tracked developments.
Modern Methods of Construction (MMC)
One of the most forward-looking aspects of the reforms is the introduction of a clearer regulatory framework for MMC, particularly modular and prefabricated buildings. The NSW Government sees MMC as an important part of improving construction productivity and increasing housing supply. The new legislation expressly brings work involving prefabricated buildings within the building approval and oversight framework. This is significant because traditional building regulation has generally been designed around construction occurring predominantly on the development site.
Increasingly, however, substantial components, or potentially entire sections of buildings, can be manufactured in factories before being transported and installed on site. The new framework is intended to provide greater regulatory certainty around this process while maintaining appropriate requirements for compliance, quality assurance and accountability. While modular construction will not be appropriate for every development, its use is likely to increase across sectors such as housing, education, health, defence, industrial and infrastructure projects.
For clients considering MMC, early consideration of the approval pathway will be important to ensure that off-site manufacturing, design compliance and on-site installation are addressed as part of a coordinated compliance strategy. Read more about our view on assessing compliance for MMC
Compliance remains central
A simpler approval system does not mean a reduction in compliance obligations. The reforms continue the NSW Government’s focus on practitioner accountability, documentation and regulatory oversight.
The legislation consolidates practitioner regulation and maintains the statutory duty of care applying to persons carrying out construction work. It also provides Building Commission NSW with significant investigation, enforcement and disciplinary powers.
For owners, developers and contractors, the practical message remains unchanged: compliance needs to be considered throughout design and construction rather than immediately before an approval is required.
Early engagement with building surveyors, certifiers and specialist compliance consultants remains one of the most effective ways of identifying issues before they become program or construction problems.
What changed as the Bill passed Parliament?
Although a number of amendments were proposed during the parliamentary process, the core building approval reforms have passed substantially intact. The amendments ultimately agreed between the Houses relate principally to the proposed dispute-resolution scheme for building work. The final Bill requires regulations to establish that scheme by 31 December 2026.
The principal reforms discussed above, including Building Approvals, Completion Approvals, the Approval Authority framework, practitioner regulation and the new approach to prefabricated buildings remain. This provides considerably greater certainty for industry about the direction of the new regulatory system.
When will the changes happen?
This is now the key question. The Bill passed both Houses of the NSW Parliament on 4 August 2026 and is currently awaiting Royal Assent. Royal Assent does not, however, mean that the entire new building approval system will commence immediately.
The principal provisions are to commence on a date or dates appointed by proclamation, allowing the NSW Government time to develop the supporting Regulations, update administrative and digital systems, provide industry guidance and establish transitional arrangements. The Regulations will be particularly important because they will contain much of the operational detail needed by practitioners and project teams.
At this stage, there is therefore no confirmed date on which Construction Certificates will cease and Building Approvals will commence. What is clear is that the transition is approaching.
For projects currently under construction there is no reason for concern, the existing regulatory framework continues to apply. For projects that are still in feasibility, planning or early design, however, the potential transition to the new framework should now form part of project planning discussions.
How MBC Group is preparing
We are actively monitoring the implementation of the new legislation and assessing its impact across Building Certification and our consultancy services. Our preparation includes reviewing internal procedures, project documentation and client guidance so that we are ready to support our clients as the new framework comes into effect.
We will also be closely reviewing the supporting Regulations when they are released, as these will provide much of the detail needed to understand how Building Approvals, Completion Approvals and the Approval Authority framework will operate in practice.
As commencement dates and transitional arrangements become clearer, we will continue to provide practical updates to help our clients understand what the reforms mean for existing and future projects. The Bill passing Parliament provides certainty about where NSW building regulation is heading. The next stage will be understanding exactly when the new framework commences and how it will operate in practice.
For clients, the message is simple: there is no need to change current projects today, but now is the time to start preparing for what comes next.