Owner-Builders in the ACT

What it is

The Australian Capital Territory runs an owner-builder approval framework through Access Canberra under the Construction Occupations (Licensing) Act 2004 (ACT). An owner who wants to build or renovate their own home must apply for owner-builder approval before commencing licensable construction occupations work.

The Building Act 2004 (ACT) statutory warranty framework under section 88 attaches at $12,000 or more requiring building approval. Owner-builders can be liable for section 88 warranties on subsequent sale under general principles even though the licence exemption applies at the construction stage.

When approval is required

Owner-builder approval is required to carry out licensable construction occupations work on the owner's own property. The ACT licenses by class of work rather than by dollar threshold, so an owner-builder approval attaches to the class of work rather than a specific project value.

Application process

Applications are made to Access Canberra. Requirements include:

• ownership of the land or long-term lease
• individual applicant (not a company)
• suitable knowledge, experience or approved course completion
• payment of the application fee

The approval is issued for a single property and specifies the work covered.

Section 88 warranty liability on sale

The five section 88 Building Act 2004 (ACT) warranties (Building Act and approved plans compliance, proper and skilful work, good and proper materials, reasonable promptness, fitness for made-known purpose) run for 6 years for structural elements and 2 years for non-structural work from completion.

Where owner-built work is subsequently sold within the applicable warranty period, the warranties can apply against the owner-builder as if the owner-builder had been a builder. That extends personal liability for the balance of the 6 year and 2 year periods.

Owner-builder can obtain fidelity fund cover

Owner-builders in the ACT can obtain a fidelity certificate from the Master Builders Fidelity Fund under section 91 of the Building Act 2004 (ACT). That is unusual across Australia; most other jurisdictions exclude owner-builder work from home warranty insurance schemes.

The fidelity cover for owner-builders operates on the same terms as licensed builder cover: $200,000 minimum cover (from 1 January 2025, raised from $85,000), 180 day claim window from trigger event, 5 year cover period.

That optional cover reduces the risk to subsequent purchasers of owner-built work and gives ACT owner-builders a resale-friendly position compared with owner-builders in most other states.

Trade work by licensed practitioners

An owner-builder must engage licensed tradespeople for specialist trades (electrical, plumbing, drainage, gasfitting) under separate ACT legislation. The owner-builder approval covers licensable construction occupations classes only.

Property Developers Act 2024

The Property Developers Act 2024 (ACT) does not apply to owner-builder work in the ordinary sense. The Act targets developer-controlled residential apartment projects (class 2 buildings) rather than owner-builder single-dwelling projects.

How the ACT compares

The ACT's option for owner-builders to obtain fidelity fund cover is distinctive. NSW, VIC, QLD, WA, SA, TAS and NT all exclude owner-builder work from their home warranty schemes (with some exceptions in NT for the Fidelity Fund NT framework).

The section 88 two-tier warranty structure (6 years structural, 2 years non-structural) creates a defined liability profile for ACT owner-builders on subsequent sale, longer on structural than QLD or NT (both 1 year non-structural) and comparable to NSW.

TradeForm ACT owner-builder templates walk owners through the Access Canberra approval process, the section 88 warranty liability position and the optional fidelity fund cover pathway.