According to the NT Government’s fidelity fund certificate guidance, the reforms commenced on 30 March 2026, and the minimum prescribed value increased from $12,000 to $25,000 (figures checked 1 October 2026). The amendments are not retrospective: they apply only to fidelity fund certificates issued after 30 March 2026. For additions and extensions, over $25,000 is only part of the trigger—the work must also be prescribed residential building work that increases the property’s residential floor area.
What changed on 30 March 2026?
The Department of Lands, Planning and Environment’s announcement dated 26 March 2026 confirms when the regulatory reforms commenced and when the new prescribed value applies.
| Period | Threshold or change described by the NT | Application |
|---|---|---|
| Before 30 March 2026 | Former minimum prescribed value: $12,000 | Previous framework |
| 30 March 2026 | Reforms commenced; amended minimum prescribed value: $25,000 | Commencement date for the reform package |
| Certificates issued after 30 March 2026 | $25,000 threshold | The amendments expressly apply only to certificates issued after 30 March 2026 |
The official wording distinguishes reforms commencing on 30 March 2026 from amendments applying to certificates issued after 30 March 2026. The material does not separately explain how a certificate issued precisely on 30 March would be treated, so that edge case should be confirmed with the regulator or Fidelity Fund NT rather than assumed.
Is the $25,000 threshold a blanket rule for every residential project?
No. The amount-and-floor-area test applies to additions and extensions. Other listed residential building work can require a certificate without relying on that particular monetary trigger.
| Building work | Certificate position under NT guidance |
|---|---|
| Building a new home | Required |
| Duplex or townhouse | Required |
| Flats less than three storeys, excluding undercroft or underground parking levels | Required |
| Additions or extensions to a house, duplex, townhouse or those flats | Required when works are over $25,000 and increase the floor area |
| Bathroom renovation | Not required by itself, unless completed with other work on a building that requires a certificate |
| Garden sheds and fences | Not required |
| Prefabricated house | Not required |
Residential building cover is limited to residential work. The NT Government excludes commercial buildings, transportable buildings and government contracts.
Why were the amendments not applied retrospectively?
The NT Government explains that retrospective application would change the liability attaching to certificates already issued when future claims arose. It could also affect the financial position of Fidelity Fund NT.
The new rules therefore do not rewrite an existing certificate’s liability. For certificates already issued, check the certificate terms and the current regulator guidance. For a new certificate issued after 30 March 2026, the amended threshold applies.
What must a builder do?
Builders should not assess the requirement by project value alone. The NT guidance requires a certificate for every job that includes prescribed residential building work.
A builder should:
- Confirm whether the job is prescribed residential building work.
- For an addition or extension, confirm both that the work is over $25,000 and that it increases the residential floor area.
- Obtain a certificate for every client job involving prescribed work.
- Have the certificate before obtaining the building permit and before demanding payment from the owner.
- If registered in the NT, apply to Fidelity Fund NT for an annual level of cover and demonstrate the financial capability and experience required for that level.
Owner-builders must also obtain a certificate to cover future owners for building defects. That owner-builder cover becomes available only after the property is sold or transferred and the relevant builder-failure event occurs.
The NT Government lists Fidelity Fund NT as the NT’s only provider and says it should be contacted to obtain a certificate.
What else changed for cover and claims?
For certificates subject to the amended rules:
- The non-completion cover timeframe recognises any approved extension to a building permit.
- A claim may be made within 90 days of either becoming aware of a defect or a trigger event occurring.
- Covered costs may include the cost of moving to a new builder to complete the work.
- Cover for rectifying non-structural defects applies during the first year after completion.
- Cover for rectifying structural defects applies for six years after completion.
A fidelity fund claim is not available merely because defects exist. The builder must have died, disappeared, become insolvent or been deregistered. The listed completion and defect costs are also conditional on the certificate’s terms.
What should you check before acting?
This is general information, not financial or legal advice. Check the current NT Government regulator page and your policy’s PDS before relying on this information for a particular project.
Sources
- Fidelity fund certificate | NT.GOV.AU
- Lower compliance costs and stronger building protections | Department of Lands, Planning and Environment
FAQ
Must the work be exactly $25,000?
No. The NT guidance describes additions and extensions as requiring a certificate when the works are over $25,000 and increase the floor area.
Does every bathroom renovation require a certificate?
No. A bathroom renovation does not require one by itself, unless it is completed with other work on a building that requires a certificate.
Does the amendment change certificates issued before 30 March 2026?
No. The amendments apply only to fidelity fund certificates issued after 30 March 2026 and are not retrospective. The published material does not separately address a certificate issued precisely on 30 March 2026.
When must a claim be made?
Under the amended rules, a claim may be made within 90 days of becoming aware of a defect or a trigger event occurring. A qualifying builder-failure event must also have happened.
Can an owner be required to pay before the certificate exists?
No. A fidelity fund certificate is required before payment can be demanded from the owner for prescribed residential building work.
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