NSW passes building reform bill to fast-track housing approvals

New legislation consolidates approvals and recognises modular construction for the first time

NSW passes building reform bill to fast-track housing approvals

News

By Mina Martin

NSW Parliament has passed the Building (Approvals and Practitioners) Bill 2026, a reform the Property Council of Australia says will streamline the state's building approvals system and support faster housing delivery.

The legislation consolidates building approvals, practitioner registration, and enforcement requirements that had previously sat across a fragmented regulatory framework.

Consolidated approvals aim to cut delays

Property Council NSW executive director Katie Stevenson (pictured) said the changes would create clearer pathways from design through to completion, addressing long-standing inefficiencies in the approvals process.

"By consolidating building approvals, practitioner registration and enforcement requirements, these reforms will reduce duplication, improve certainty and help turn planning approvals into safe, high-quality homes more quickly," Stevenson said.

She added that the reform balances speed with oversight: "This is practical reform that supports housing delivery while maintaining strong standards for building quality, safety, and consumer protection."

Beyond consolidating existing approval processes, the bill makes NSW the first Australian jurisdiction to formally recognise modern methods of construction, including prefabricated and modular buildings, within its regulatory framework.

NSW is currently tracking at around 69% of its Housing Accord target, or a 31% shortfall, according to the National Housing Supply and Affordability Council's most recent assessment — a shortfall Stevenson linked to the state's broader housing agenda, noting the bill underpins the NSW Government's 2026–27 budget commitments to modernise building approvals, establish a national certification framework for modern construction methods, fund housing innovation and expand local manufacturing capacity.

Digital systems seen as key to reducing red tape

Stevenson said digital approval pathways would play a central role in cutting administrative burden and improving consistency across building and planning systems, benefiting both industry and consumers. She said clearer certification pathways and stronger local manufacturing capability could help shift modern construction methods from a niche approach into the mainstream, while also creating skilled jobs and lifting productivity across the sector.

The Property Council also welcomed the bill's clearer framework for practitioner registration, certifier accountability, enforcement, and dispute resolution, viewing it as a step toward greater accountability across the building industry.

However, Stevenson cautioned that the reform's success will hinge on implementation rather than the legislation alone. "Success will ultimately depend on practical regulations, well-designed transitional arrangements, digital systems, and guidance that avoid unnecessary complexity," she said.

Stevenson said the Property Council would continue working with the NSW government as the reforms are rolled out, aiming to translate the legislation and associated budget investment into stronger local manufacturing capability and increased housing supply.

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