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ARTICLE · 28 JUNE 2024

NSW building bond increase delayed until 2 November 2024

Holding Redlich
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This delay of the building bond increase will provide relief to NSW developers and builders.

AustraliaReal Estate and Construction
Elly Ashley
Elly Ashley
Olivia Eum
Olivia Eum
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On 21 June 2024, the Building, Development and Strata Legislation Amendment Regulation 2024 (BDSA Reg) was passed. This regulation delays the increase in the building bond amount from two to three per cent from 1 July 2024 (the scheduled effective date) to 2 November 2024, providing relief to developers and builders.

Background

The Building Legislation Amendment Act 2023 (BLA Act), passed by Parliament in November last year, introduced amendments to several pieces of legislation regulating the construction industry including the Strata Schemes Management Act 2015 (NSW) (SSMA).

One significant change to the SSMA is the increase of the building bond amount from two per cent of the contract price for the building work to three per cent. Initially slated for 1 February 2024, this change was postponed to 1 July 2024 by the Strata Schemes Management Amendment Regulation 2024, and now further delayed to 2 November 2024 by the BDSA Reg.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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