NSW Government Building Productivity Reforms – Government Announcement

KEY REFORM AREAS

Support for the uptake of prefabricated homes and modular buildings:

• Position NSW as the first Australian jurisdiction to integrate prefabricated homes into the building approval system, aligning regulation with traditional building work and requiring Building Code of Australia compliance.
• Create a statewide single pathway for prefabricated building approvals to increase industry certainty and encourage uptake.
• Set clear rules for manufacture, supply, transport, delivery and installation of prefabricated buildings.
• Commonwealth Productivity Commission estimates MMC can reduce construction costs by up to 20 per cent and accelerate construction timelines by up to 50 per cent.
• Master Builders NSW notes build time reductions of 20 per cent and completion time improvements (apartment construction currently over 3 years).

Modernising the building approvals system

• Simplifying building approvals and removing duplication
• Remove duplication between building and planning legislation.
• Streamline building and occupation approvals.
• Allow minor variations during construction without re-approval by local councils.

Strengthening certifier conflict of interest laws and penalties

• Enhance certifier accountability and establish a clear chain of responsibility so certifiers are not incorrectly held accountable across the whole approvals process.
• Modernise the building regulatory system.
• Consider a single approval authority (removing the certifier/principal certifier split) to strengthen accountability.
• Conflict-of-interest enforcement
• Introduce stronger conflict-of-interest laws for certifiers
• Digital modernisation- increased use of digitised certificates to enable a fully digital approvals pathway.
• Education and capability; Education flagged as a core focus for industry uplift.

Alignment with earlier Public Accountability and Works Committee’s (PAWC) recommendations:

The reforms directly address several findings and recommendations from the Legislative Council’s Public Accountability and Works Committee Report No. 6 (November 2025) where the RAIA were represented:

• Single approval authority (Committee Rec. 1 context): The proposed removal of the certifier/principal certifier split aligns with the committee’s call for clearer, more streamlined approvals.
• Chain of responsibility (Committee Rec. 4, 5): Establishing clear certifier accountability mirrors the committee’s emphasis on accountability and consumer protection.
• MMC integration: Formalises the committee’s implicit support for modern methods of construction as part of housing productivity.
• Duplication reduction: Directly responds to stakeholder concerns (raised in the PAWC inquiry) about overlap between building and planning legislation.