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NSW is preparing to replace the DBP Act: What homeowners need to know

NSW has passed the law that will replace the DBP Act, but nothing changes overnight

Published 2 September 2026

NSW has now passed one of the biggest changes to building regulation in years.

The Building (Approvals and Practitioners) Act 2026 received assent on 14 August 2026. When its main provisions eventually commence, it is intended to replace the current Design and Building Practitioners framework, consolidate building approvals and practitioner regulation, introduce new approval terminology and formally recognise prefabricated and modular construction.

That sounds like a major reset, and it is.

But the most important point for homeowners, builders, designers and developers is this:

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The new system is not operating yet. Current DBP duties, regulated-design requirements, declarations, practitioner registrations, certification processes and NSW Planning Portal procedures remain in place for relevant projects until the replacement provisions formally commence.

So if you are designing, documenting or building now, this is a transition period, not deregulation, and not a shortcut around the current rules.

What has actually happened?

The legislation has been passed and is now law, but most of the substantive reforms will only commence on a future date or dates appointed by proclamation.

The associated regulations are still being developed, with Building Commission NSW advising that industry consultation will continue through 2026 and 2027.

Those regulations will be critical because they will determine much of the practical detail, including:

which projects fall within the new system
practitioner registration classes and eligibility
required documentation and declarations
staged approval procedures
exemptions
prefabricated-building requirements
insurance and supervision obligations
transitional arrangements for projects already underway

In other words, the architecture of the new system is now visible, but many of the operating details are still to come.

The biggest shift: one building approvals framework

At the moment, NSW building approvals sit across several pieces of legislation and use a mix of terminology that can be confusing for clients.

The new Act is intended to bring more of that framework together.

One of the clearest changes is terminology:

Construction Certificates are intended to become Building Approvals.
Occupation Certificates are intended to become Completion Approvals.

That may sound cosmetic, but the wider intent is more significant: to create a more consolidated system for approvals, variations, staged work, completion and practitioner accountability.

For homeowners, the hope is that this ultimately creates a process that is easier to understand and more consistent across the life of a project.

What happens to the DBP Act?

Once the replacement regime commences, the new Act is intended to repeal and replace the Design and Building Practitioners Act 2020 and its regulation, along with the current Building and Development Certifiers framework.

However, many of the core compliance concepts are expected to continue in some form.

Regulated designs, design compliance declarations, practitioner accountability and requirements to ensure prescribed work complies with the Building Code of Australia are not simply disappearing.

The detailed scope will be set through the future regulations.

That is why anyone working on projects currently caught by the DBP framework should keep using their existing processes now.

What does this mean for homeowners?

For most homeowners, renovators and small developers, the practical advice is straightforward:

Do not delay a project simply because this legislation has passed, and do not assume the current approval process has disappeared.

If your project currently requires a DA, CDC, Construction Certificate, regulated designs, engineering input, certification or compliance declarations, those obligations may still apply exactly as they do today.

If you are planning a new home, major renovation, dual occupancy, townhouse project, apartment development or mixed-use building, the most useful thing you can do is understand your approval pathway early.

That means confirming:

whether your project is DA or CDC
whether the site has planning constraints
whether neighbour notification is likely
whether regulated-design requirements apply
which consultants need to be involved
what documentation is required before construction
where certification, design coordination or compliance issues could cause delays

The legislation may change the framework in future, but good project planning is still what protects time, budget and buildability now.

Prefabricated and modular homes are a major part of the reform

One of the more interesting parts of the new Act is its recognition of prefabricated and modular construction.

NSW is trying to increase housing delivery, and prefabrication is increasingly being treated as part of the mainstream construction system rather than something that sits outside it.

The new framework is intended to establish clearer requirements for prefabricated building manufacture, approvals and accountability.

This matters because modular homes, prefabricated components and off-site manufacturing are likely to become increasingly common as the industry looks for faster and more efficient ways to deliver housing.

For homeowners, this could eventually mean more choice, but it will also mean ensuring the design, approvals, manufacturing and site construction processes are properly coordinated.

Certifier roles and accountability are also changing

The reform is broader than the DBP Act alone.

It is also intended to clarify certifier conflict-of-interest provisions, strengthen penalties for serious breaches and improve accountability around building approvals and completion.

For clients, this reinforces something we already see on projects: the design team, builder, engineers and certifier cannot operate as separate silos.

A smooth project depends on those parties working from coordinated information and understanding who is responsible for each approval and declaration.

The part everyone needs to remember: current rules still apply

This is the most important takeaway.

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If you are working under the DBP Act today, keep working under the DBP Act today. Do not change current checklists, declarations or Planning Portal procedures until the replacement provisions formally commence and the transitional arrangements are confirmed.

For Class 2 and other regulated projects, current design and compliance procedures should remain in place unless and until the law says otherwise.

The sensible approach for design practices, builders and developers is to keep current systems unchanged while separately tracking the 2026–27 legislative transition.

That avoids the biggest risk in any legislative change: acting too early on rules that have been passed but are not yet operational.

What should project teams start preparing for?

Even though the current system remains in place, project teams should expect future changes around:

building approval terminology
practitioner registration
approval responsibilities
staged construction approvals
prefabricated and modular construction
completion approvals
inspection and compliance procedures
transitional arrangements for projects already underway

The projects most likely to need careful attention are those that will span the transition, for example, projects being designed now but approved, constructed or completed after the new regime commences.

And there is another NSW planning change happening now

Separate to the building legislation reform, NSW has also introduced a statewide Community Participation Plan from 1 September 2026.

This replaces the many separate participation plans previously used by councils and NSW Government agencies and establishes more consistent minimum requirements for public exhibition and consultation.

For homeowners lodging development applications, this means notification and exhibition procedures are also evolving.

It does not mean neighbour concerns disappear. Privacy, overshadowing, visual bulk, streetscape character and amenity can still be important assessment issues.

But it does mean the rules around how planning authorities notify and exhibit applications are becoming more consistent across NSW.

What does this mean for Residential Studio clients?

For our clients, the practical approach is simple: we continue designing and documenting projects under the rules that apply today, while monitoring the new framework closely so future projects can transition smoothly when the commencement dates are announced.

The biggest value is still in resolving issues early, before they become redesigns, certification problems or unexpected consultant costs.

That includes understanding the approval pathway, coordinating consultants, identifying regulated-design requirements and making sure the architectural documentation aligns with the way the project will actually be approved and built.

NSW's building approval system is changing. The opportunity is for the future system to become clearer and more coordinated.

For now, though, the current rules remain the rules.

Planning a new home, major renovation or development project?

Residential Studio can help establish the right planning and approval pathway from the beginning, identify likely project risks and coordinate the design documentation required to move confidently toward approval and construction.

Visit residentialstudio.com.au →

This article provides general information only and is not legal, planning or certification advice. The practical effect of the Building (Approvals and Practitioners) Act 2026 will depend on commencement proclamations, final regulations and transitional provisions. Project-specific advice should be obtained where required.