The Department of Lands, Planning and Environment announced on 26 March 2026 that reforms would commence on 30 March 2026. For fidelity certificates issued after 30 March 2026, the NT Government’s guidance says the minimum prescribed value increased from $12,000 to $25,000, the non-completion cover timeframe recognises any approved extension to a building permit, and claims may be made within 90 days of becoming aware of a defect or a trigger event occurring (figures checked 1 October 2026). The amendments are not retrospective, so they do not alter certificates issued on or before 30 March 2026.
What changed for certificates issued after 30 March 2026?
The amended rules can be compared as follows:
| Issue | Position for certificates issued after 30 March 2026 |
|---|---|
| Minimum prescribed value | Increased from $12,000 to $25,000 |
| Building-permit extension | The timeframe for non-completion cover recognises any approved extension to a building permit |
| Claim-filing period | A claim may be made within 90 days of becoming aware of a defect or a trigger event occurring |
| Earlier certificates | The amendments do not apply retrospectively |
The NT Government explains that retrospective application would change the liability of issued certificates for future claims and could affect the financial position of Fidelity Fund NT. That is why the date of issue matters when checking which rules apply.
Does the $25,000 threshold mean every job needs a certificate?
No. The threshold operates within the rules for prescribed residential building work; it is not a blanket certificate requirement for every residential or landscaping job.
For certificates issued after 30 March 2026, the main distinctions include:
| Work | Fidelity fund certificate position |
|---|---|
| New home | Required |
| Duplex or townhouse | Required |
| Flats less than three storeys, excluding undercroft or underground parking levels | Required |
| Prefabricated house | Not required |
| Garden sheds and fences | Not required |
| Bathroom renovation | Not required unless completed with other work to a building that requires a certificate |
| Retaining wall separate from, and not supporting, a residential building | Not required |
| Retaining wall for a residential building structure | Required |
| Additions or extensions to a house, duplex, townhouse, or relevant flats | Required when works are over $25,000 and increase the residential floor area |
Residential building cover is issued in the form of a fidelity fund certificate. It is for residential building work only and excludes commercial buildings, transportable buildings and government contracts.
How do the permit extension and 90-day claim window differ?
The permit extension and claim period are separate parts of the reforms.
- Non-completion cover: The amended timeframe recognises any approved extension to a building permit. This relates to cover for completing work that has not been completed. The cited reform summary does not specify a separate numerical limit for that cover period.
- Claim filing: The amended rule allows a claim within 90 days of either becoming aware of a defect or a trigger event occurring. The reform summary does not state that an approved permit extension adds time to this 90-day claim period.
A defect by itself does not open a fidelity fund claim. The NT Government says a claim cannot be made if the builder has not died, disappeared, become insolvent or been deregistered.
The Commissioner for Residential Building Disputes can also be contacted to mediate or make decisions about rectifying or completing work on a property.
Who must arrange a certificate, and when?
Registered builders and owner-builders have different responsibilities.
| Role | Requirement |
|---|---|
| Registered builder | Apply to Fidelity Fund NT for an annual level of cover and show the financial capability and experience required for the level sought |
| Builder undertaking prescribed work | Obtain a fidelity fund certificate for every job containing prescribed residential building work |
| Timing | Have the certificate before obtaining a building permit and before demanding payment from the owner |
| Owner-builder | Have a certificate to cover future owners for building defects |
| Owner-builder cover availability | Available only after the property is sold or transferred and the owner-builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board |
The NT Government currently identifies Fidelity Fund NT as the only provider in the Northern Territory.
What costs can a fidelity fund certificate help cover?
The NT Government lists protection for certain costs where a builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
| Listed area | Position |
|---|---|
| Moving to another builder | Costs associated with transitioning to a new builder to complete the work |
| Non-structural defects | Costs of rectifying non-structural defects in the first year after completion |
| Structural defects | Costs of rectifying structural defects for six years after completion |
These listed cover periods and the 90-day claim-filing rule serve different purposes. Check the certificate terms before assuming that a particular loss or cost is covered.
What should a tradie check before starting work?
- Confirm whether the job is prescribed residential building work.
- For additions or extensions, check whether the works are over $25,000 and increase the property’s residential floor area.
- Confirm that the required certificate has been obtained before applying for the building permit or demanding payment.
- If relying on the amended rules, confirm that the certificate was issued after 30 March 2026.
- Check whether any building-permit extension has been approved and keep the claim dates clear if a defect or trigger event occurs.
This is general information, not financial or legal advice. Check the current NT Government regulator page and any relevant policy’s PDS before relying on these requirements.
Sources
- Fidelity fund certificate | NT.GOV.AU
- Lower compliance costs and stronger building protections | Department of Lands, Planning and Environment
FAQ
Do the reforms apply to a certificate issued on 30 March 2026?
No. The amendments apply only to fidelity certificates issued after 30 March 2026. Certificates issued on or before that date are not changed retrospectively.
Does every project worth $25,000 need a fidelity fund certificate?
No. The value threshold applies within the prescribed residential building work rules. For example, an addition or extension requires a certificate when works are over $25,000 and increase the residential floor area.
Does an approved building-permit extension also extend the claim-filing period?
The reform summary treats them as separate changes. The permit extension relates to the timeframe for non-completion cover; it does not state that the 90-day claim-filing period is extended.
When must a builder obtain a fidelity fund certificate?
A builder must obtain it for every job involving prescribed residential building work. The certificate must be in place before the builder obtains the building permit and before demanding payment from the owner.
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