Owner-Builder Permits in Queensland

What it is

Queensland runs an owner-builder permit scheme under section 42D of the Queensland Building and Construction Commission Act 1991 (Qld). An owner who wants to build or renovate their own home can apply for a permit rather than engaging a licensed contractor. The permit exempts the owner from the section 42 licensing requirement for that specific project.

QBCC issues owner-builder permits through a defined application process on its portal.

When a permit is required

An owner-builder permit is required for prescribed building work on the owner's own property where the value (excluding the owner's own labour) exceeds $11,000. Below that threshold no permit is required; the owner can do the work directly or engage tradespeople.

The $11,000 threshold excludes the owner's own labour but includes materials, tradesperson labour and other project costs. That is unusual across Australia. Most other states use a total contract value figure. QLD's exclusion of owner labour gives a different practical threshold from the same headline number.

Application process

Applications are made to QBCC. The applicant must:

• own the land or have a registered lease
• be an individual (not a company)
• have completed the QBCC-approved owner-builder education course (required for work over $22,000; recommended for lower values)
• pay the application fee
• provide proof of ownership and identity

The permit is issued for a single property and identifies the work covered.

The 6 year sale disclosure

Section 43 of the QBCC Act imposes a 6 year sale disclosure on owner-builder work. An owner-builder who sells the property within 6 years of the permit issue must disclose to the purchaser:

• the fact that the work was done under an owner-builder permit
• the permit number and date of issue
• a description of the work
• the fact that Queensland Home Warranty Scheme cover does not apply to owner-builder work

The disclosure attaches to the sale contract. A subsequent purchaser who is not given the disclosure may have avoidance rights against the vendor.

No QHWS cover

Owner-builder work is not covered by the Queensland Home Warranty Scheme (QHWS). The owner-builder cannot obtain QHWS cover as a substitute for licensed builder cover. That excludes:

• non-completion cover if the owner-builder abandons
• defects cover for a subsequent purchaser
• subsidence cover

The owner-builder carries the full financial risk of the project. That risk is amplified in QLD because the section 29 QBCC Act 1991 warranty periods (6 years structural, 1 year other) still apply to the owner-builder as against a subsequent purchaser under section 43 disclosure obligations.

Trade work by licensed practitioners

An owner-builder must engage licensed tradespeople for specialist trades under separate Queensland legislation (electrical under the Electrical Safety Act 2002, plumbing under the Plumbing and Drainage Act 2018). The owner-builder permit does not extend to specialist trade work.

Consequences of unpermitted work

Doing prescribed building work above the $11,000 threshold on your own property without either a QBCC licence or an owner-builder permit is an offence under section 42 of the QBCC Act. The offence carries penalty units and possible imprisonment for repeat breaches.

How Queensland compares

QLD's $11,000 threshold (excluding own labour) is different from other states in structure. NSW uses $10,000 total, VIC uses $16,000 or $20,000 aligned with insurance thresholds, WA uses the general permit-work framework. The QLD exclusion of owner labour is a distinctive Queensland feature.

The 6 year sale disclosure period is shorter than NSW (7 years 6 months) and VIC (6 years 6 months plus mandatory defects inspection). TradeForm QLD owner-builder templates walk owners through the section 42D application process and the section 43 sale disclosure.