What South Australian Building Penalties Apply From 15 January 2026?

From 15 January 2026, Consumer and Business Services (CBS) says specified breaches attract a $5,000 expiation fee, while building work without required building indemnity insurance (BII) attracts a $20,000 expiation fee. For repeat offences, CBS says penalties can reach $150,000 for individuals and $550,000 for companies; the Magistrates Court can also impose penalties of up to $550,000 for offences under relevant industry laws (figures checked 1 October 2026).

Which conduct attracts a $5,000 expiation fee?

CBS’s published examples can be grouped by the type of breach:

CBS also identifies false or misleading information supplied to regulators or consumers, contract breaches and advertising violations as areas attracting higher penalties. The stated $5,000 examples should therefore be read by the particular conduct involved, not as a blanket building-industry fee.

When does missing BII attract a $20,000 expiation?

Building indemnity insurance is abbreviated BII. The published $20,000 expiation fee applies to carrying out building work without BII when BII is required.

The condition matters: CBS does not present this amount as applying automatically to every building job. Contractors should check the current regulator guidance for the work before relying on either the $20,000 example or an assumption that BII is unnecessary.

Which new licensing offences should contractors check?

CBS lists new offences covering:

• Unlicensed work.
• Hiring unlicensed subcontractors to undertake licensed work.
• Using another contractor’s licence number.
• Falsely claiming to be licensed or registered.

The $5,000 examples expressly cover working unlicensed or outside licence conditions and advertising for unlicensed work. CBS describes $5,000 as an example for key breaches rather than a single amount attached to every new offence.

Anyone hiring a subcontractor should make sure the subcontractor is licensed through CBS’s Licensing Public Register.

How much higher can penalties be?

The expiation examples are not the full enforcement exposure described by CBS:

CBS states the Magistrates Court figure more broadly for offences under laws governing the building and construction industry, including builders, plumbers, gas fitters and electricians. The separate repeat-offence figures show how penalties can rise substantially above the listed expiation fees.

What enforcement activity can trades expect?

In June 2026, CBS announced a dedicated Building Industry Response Team targeting:

• Unlicensed building work.
• Misleading or improper advertising.
• Failure to obtain BII.
• Improper demands for payment.

The CBS guidance says increased compliance activity and enforcement can be expected, including expiation notices where breaches are identified. Some offences may be handled through an infringement notice for faster enforcement.

CBS also states that authorities have up to 2 years to prosecute all offences and up to 5 years to prosecute an offence with Ministerial approval in certain cases.

Which laws do the changes affect?

The reforms were introduced by the Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025, following a review of the building and construction industry. CBS says the changes affect:

• Building Work Contractors Act 1995
• Fair Trading Act 1987
• Magistrates Court Act 1991
• Plumbers, Gas Fitters and Electricians Act 1995

These changes strengthen consumer protections, introduce offences, expand enforcement options and increase penalties.

What should contractors check before taking work?

Before starting or advertising for work, review:

• Whether the licence covers the work and remains within its conditions.
• Whether the work requires BII and whether the required insurance is in place.
• Whether subcontractors are licensed through CBS’s Licensing Public Register.
• Whether the contract complies with the Building Work Contractors Act 1995 (SA).
• Whether any payment demanded or required is legally entitled.
• Whether advertising offers only work the person is licensed to perform.
• Whether any statement claims a licence or registration that does not exist.

Where should readers confirm the current rules?

Check the CBS regulator page before relying on an expiation amount or assessing whether BII is required. For insurance requirements, read the policy’s Product Disclosure Statement (PDS). CBS says questions can be directed to 131 882.

This is general information, not legal or financial advice.

Sources

• South Australia’s building and construction industry changes | Consumer and Business Services

FAQ

Is every South Australian building penalty $5,000?

No. CBS gives $5,000 expiation examples for specified licensing, advertising, payment-demand and contract breaches. Carrying out building work without BII when required has a $20,000 expiation example, while repeat-offence and court penalties can be substantially higher.

Does the $20,000 BII expiation apply to every building job?

No. CBS states the amount for carrying out building work without BII when BII is required. Check the current regulator guidance for the particular job.

Can penalties exceed the expiation fee?

Yes. CBS says repeat offences can attract penalties of up to $150,000 for individuals and $550,000 for companies. The Magistrates Court can also impose penalties of up to $550,000 for offences under the relevant industry laws.

What should a contractor check before hiring a subcontractor?

Make sure the subcontractor is licensed through CBS’s Licensing Public Register. CBS lists hiring an unlicensed subcontractor to undertake licensed work as a new offence.

Where can readers verify the current requirements?

Use the CBS building and construction industry changes page, contact CBS on 131 882, and check the relevant policy PDS for insurance terms.