New South Wales: stronger powers, more penalties

July 24, 2025

In NSW, enforcement has shifted up a gear. In FY23–24, Building Commission NSW issued 22 monetary penalties under the Home Building Act, alongside licence cancellations, suspensions, and other disciplinary measures. These numbers are just the tip of the iceberg — many more cases are resolved through court action, and the Commission is increasingly using stop-work and rectification powers to halt problems in their tracks.

Since gaining new powers in December 2023, the regulator has inspected 75 Class 1 residential sites, issuing 37 rectification orders and six stop-work orders. These aren’t empty threats — when a stop-work order hits, the job stops cold and costs start climbing.

The courts are adding their weight to the crackdown. In recent prosecutions, contractors have been hit with fines of $16,000, $30,000, and even $35,500, plus compensation orders like the $51,700 bill in one 2024 case. Combine that with prosecution costs, and the financial hit can easily push past $50,000 — a figure that can sink a small operator overnight.

If you’re quoting or contracting in NSW, don’t assume your licence or insurance is “probably fine.” One audit, one customer complaint, or one competitor tip-off could put you on the regulator’s radar. Before you take that next job, take the time to confirm your licensing position and get expert advice — because once the inspector’s on site, it’s already too late to fix it.

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