Unless otherwise stated, all information is drawn from NSW Government, ‘New Building Laws for a New Era of Approvals and Modern Methods of Construction in NSW’ (Media Release, 6 May 2026) <https://www.nsw.gov.au/ministerial-releases/reforms-introduced-supporting-modern-methods-of-construction>.

Overview:

NSW will become the first Australian jurisdiction to recognise modern methods of construction (MMC) in law, consolidate its building approvals into a single statute, and lift maximum penalties for conflicted certifiers to $1.1 million. 

The Minns Labor Government introduced the Building (Approvals and Practitioners) Bill 2026 to NSW Parliament on 6 May 2026, billing it as nation-leading reform. The provisions below are those announced on introduction, however it remains before Parliament, with recent amendments awaiting Legislative Assembly concurrence.

Three aims: support the uptake of MMC, streamline building approvals, and introduce stronger penalties for certifiers. The Government frames the Bill as critical to delivering safe, high-quality homes at the scale and pace the state’s housing needs demand – and to making building disputes quicker and easier to resolve without costly court proceedings in the first instance.

1.  MMC in law – a national first

The Bill will make NSW the first Australian jurisdiction to:

• Recognise MMC in law by defining “prefabricated buildings”
• Integrate MMC into the approvals system
• Guarantee consumer protections for prefabricated home buyers

The Commonwealth Productivity Commission estimates MMC can cut costs by up to 20% and deliver homes up to 50% faster than traditional methods. The intent is confidence: lift both industry and consumer trust in MMC so homeowners and builders treat it as a first choice rather than a fallback.

2.  One statute for building approvals

The Bill will amalgamate the currently fragmented legislative framework into a single piece of legislation. The consolidation will:

• Remove duplicative designs for the same building elements – an estimated $330,000 saving per apartment block
• Establish staged approvals, so construction can begin and people can move in as early as possible
• Allow minor variations to a development consent – a resized door, an outdoor tap – to be approved where they fit the approval framework
• Operate in an easy-to-use digital environment for industry professionals
• Create a single authoritative source of truth for consumers, regulators and industry
  

3.  A clearer conflict-of-interest test and larger penalties 

The Bill will deliver on a Government commitment to restore transparency in the certification sector through clearer conflict-of-interest laws. Certifiers play a crucial role in building approvals and most do the right thing, the Government says; the Bill will set a clearer test for when a certifier cannot be involved in a development.

• Maximum court-imposed penalties for conflict-of-interest breaches will rise from $33,000 to $1.1 million
• Conviction for a breach will trigger automatic suspension
  

4.  Stakeholder statements 

Planning Minister Paul Scully cast the Bill as the sequel to last year’s planning reforms, replacing a “fragmented, inconsistent and often repetitive” system with a consistent approach.

Housing Minister Rose Jackson said NSW had been let down by slow, outdated approvals systems. The reforms will remove barriers to prefabricated and modular housing without compromising quality; such homes, she said, are “no longer fringe options”.

Building Minister Anoulack Chanthivong described the reforms as removing unnecessary red tape to lift completions and support faster, cheaper construction without sacrificing quality. The Bill, if passed, would make NSW “the leading jurisdiction in Australia” on MMC.

Building Commissioner James Sherrard said the reforms will give Building Commission NSW “the tools it needs” to oversee certifiers and newer forms of housing.

Master Builders NSW Executive Director Matt Pollock welcomed the Bill as “getting the balance right” between consumer protections and quality on one hand and faster approvals on the other, crediting the Government’s collaborative approach.

5. Who is affected

Builders and industry professionals:

Staged approvals will allow construction to begin earlier; minor variations approvable within the framework; no duplicative designs for the same building elements; approvals will run in an easy-to-use digital environment; MMC will offer more options to build faster in a controlled environment.

Homeowners and consumers: 

Consumer protections guaranteed for MMC; a single authoritative source of truth for approvals; building disputes quicker and easier to resolve without costly court proceedings.

Certifiers:

A clearer test for when a certifier cannot be involved in a development; maximum penalties for conflict-of-interest breaches rising to $1.1 million; automatic suspension on conviction.

Regulators:

Building Commission NSW will gain oversight tools covering certifiers and newer types of homes; regulators will share the single authoritative source of truth.