Does Council-Approved Domestic Work Over $20,000 in South Australia Need BII?

Yes: for domestic building work that must be approved by council and is valued at $20,000 or more, the South Australian Government’s Building indemnity insurance guidance, updated 19 February 2026, says a builder must arrange and pay for BII. The same guidance says work cannot start until the builder has taken out BII and both the homeowner and council have received a copy of the certificate; figures checked 1 October 2026. The South Australian Government Financing Authority’s What’s New page records that the threshold increased from $12,000 to $20,000 on 10 November 2025, so exactly $20,000 is included—not only amounts above it.

Is the $20,000 threshold enough to decide whether a landscaping job needs BII?

Not by itself. The value is only one part of the test. Under the Building Work Contractors Act 1995 (SA) and Regulations, the work must be building work requiring development approval and must meet the relevant value threshold. The South Australian Government describes the approval requirement as work that must be approved by council.

The threshold has changed as follows:

For a landscaping proposal, do not rely on the word “landscaping” alone. Ask the council and contractor to confirm whether the proposed work is domestic building work requiring approval and whether the $20,000 threshold is met. SAFA describes the policy requirement as applying to every contract entered into.

What must the contractor do before starting work?

For work that meets the test, the contractor must complete the following steps:

1. Confirm that the work is domestic building work requiring council or development approval and that its value reaches the applicable threshold.
2. Take out a BII policy on behalf of the homeowner for the relevant contract and pay for it.
3. Check that the policy is issued in the homeowner’s name.
4. Provide a copy of the certificate of insurance to both the homeowner and the council.
5. Do not start the work until the insurance has been taken out and both parties have received the certificate.

Eligibility alone is not the same as having the required policy and certificate in place.

How can a builder arrange BII?

The South Australian Government Financing Authority’s Building Indemnity Insurance page says a builder seeking eligibility can arrange it through an insurance broker or directly with certain providers.

The listed contacts are:

AB Phillips’ Builders Warranty Insurance is tailored to the pool, spa and landscaping sectors only. That product listing does not remove the need to check whether the particular job meets the statutory work, approval and value test.

What does BII cover, and how much can it pay?

A BII policy is issued in the homeowner’s name. SAFA says it protects against financial losses, up to the maximum policy limit, if the builder dies, disappears or becomes insolvent before the building work is completed or before defective work can be rectified.

The South Australian Government says this protection can apply to the homeowner and future owners where:

• work has not been completed; or
• defective works require rectification.

For new policies issued from 10 November 2025 onward, SAFA records that the Building Work Contractors Regulations prescribe a $250,000 limit for all new policies issued in South Australia, regardless of insurer.

Policies issued before the relevant date may have a different limit based on their issue date, so check the certificate and the policy’s PDS rather than assuming the current limit applies.

How can a homeowner check that a valid certificate is in place?

SAFA encourages homeowners building a new home or undertaking renovations that meet the BII criteria to check that a valid certificate is in place.

• Confirm directly with the insurer that a current policy is in place.
• Check that the certificate includes the builder’s name and licence number, insurer, issue date, description of the insured work, and any policy limitations or conditions.
• Use the certificate registers listed by SAFA for QBE Insurance (Australia) Limited and Assetinsure.
• For an AB Phillips certificate, contact AB Phillips on 1300 242 136 to validate it.
• Keep a copy of the certificate for your records.
• Read the contract and certificate carefully, and ask the contractor to clarify any terms or conditions you do not understand.

When selling the property, disclose whether indemnity insurance is in place.

What should a homeowner do if a claim may be available?

Contact the insurer first. Claims for defective building work can usually be made up to five years from the date the building work was completed. SAFA also describes defective-work claims as available within five years after the building work is finished.

Check the policy’s PDS for its covered events, exclusions, conditions and limit. A certificate should be read together with the contract and the policy documents.

What should readers check before relying on this information?

This is general information, not financial or legal advice. Check the current regulator page and the relevant policy’s PDS, certificate and contract. For a project-specific question, confirm the approval requirement with council, the policy details with the insurer or broker, and the scope of the work with the contractor.

Sources

• SA.GOV.AU — Building indemnity insurance
• South Australian Government Financing Authority — Building Indemnity Insurance
• South Australian Government Financing Authority — What’s New

FAQ

Does every council-approved landscaping job over $20,000 need BII?

BII is required where the work is domestic building work requiring council or development approval and is valued at $20,000 or more. The amount alone does not replace the work and approval checks.

Who must arrange and pay for BII?

The builder or building work contractor must arrange and pay for BII on behalf of the homeowner. The policy is issued in the homeowner’s name.

Can the builder start work after the contract is signed?

No. Work cannot start until the builder has taken out BII and both the homeowner and the council have received the certificate of insurance.

What does BII cover, and how long can a defective-work claim take?

It can protect against specified financial losses, up to the policy limit, if the builder dies, disappears or becomes insolvent before completion or before defective work can be rectified. Defective-work claims can usually be made up to five years from completion, subject to the policy terms.

Can a homeowner take out BII for their own landscaping work?

No. The South Australian Government says BII cannot be taken out by a person carrying out the building work themselves.