Canberrans deserve access to quality homes that are safe and fit for purpose.
The ACT Government has today introduced amendments to the Property Developers Act 2024 to further strengthen consumer protections for homeowners.
People buying homes in the ACT will have more confidence that the people responsible for delivering residential developments have the capability, capacity, and expertise to deliver quality projects with Australia’s first property developer licensing scheme becoming mandatory for developers from 1 October 2026.
The Property Developers Act 2024 requires property developers to be licensed for residential development projects involving three or more dwellings and holds developers accountable for the buildings they deliver.
The bill introduces provisions to strengthen the licensing scheme through the take up of Latent Defect Insurance, or LDI. This type of insurance is a relatively new product in Australia, but is common in other jurisdictions, and is known as decennial liability insurance.
To incentivise uptake of Latent Defect Insurance, the Government is amending the licensing scheme so that individual director’s liability for serious defects will not apply if a compliant Latent Defect Insurance policy has been taken out by the developer, on behalf of future building owners.
Further amendments in the Bill streamline licensing arrangements by providing for a single licence to be attached to a project, assisting in missing middle housing developments.
The scheme is supported by a public register of licensed developers, a code of practice, and regulatory powers to ensure developers meet their obligations.
