The NSW government will today introduce nation-first building reforms aiming to help the state build homes cheaper and faster.
The proposal, The Building (Approvals and Practitioners) Bill 2026, will support the uptake of Modern Methods of Construction (MMC), streamline building approvals and introduce stronger penalties for certifiers who breach conflict-of-interest requirements.
MMC refers to off-site, industrialised building techniques, such as modular and prefabricated homes.
Modular homes are the way of the future under a Bill introduced by the NSW government. Picture: Kevin Farmer
Described as “key to boosting housing supply” in NSW, the state government claims the uptake of MMC can reduce overall building costs by up to 20 per cent and deliver homes up to 50 per cent faster.
The Bill would see NSW become the first Australian jurisdiction to recognise MMC in law by defining “prefabricated buildings”, integrating MMC into the approvals system and guaranteeing consumer protections.
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What new modular housing could look like in Bondi Junction
The Bill will also propose the streamlining of building approvals and removing duplication to save the industry time and money, amalgamating the current legislative framework process into a single piece of legislation.
The Labor government claims this consolidation of building approvals would save approximately $330,000 per apartment block by removing duplicative designs, while staged approvals and a proposed “digital environment” aim to make construction faster and simplify making minor changes.
Additionally, a “single, authoritative source of truth” will be created for consumers, regulators, and industry.
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Minister for planning and public spaces Paul Scully. Picture: NewsWire / Gaye Gerard
Minister for planning and public spaces Paul Scully said the Bill’s many reforms would make it “faster and easier to build the quality homes our state needs”.
“With this bill we’re taking another fragmented, inconsistent and often repetitive system and replacing it with a clear and consistent approach that will enable better outcomes for NSW,” he said.
The Bill will provide a “clearer conflict-of-interest test” for certifiers to determine when a certifier cannot be involved in a development, and increase the maximum penalty for conflict of interest breaches to $1m.
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Inside the Saltair factory where modular homes are constructed. Picture: Saltair Modular
Minister for building Anoulack Chanthivong said the reforms were about removing “unnecessary red tape” to boost housing completions and build homes faster and cheaper.
“As we confront this once-in-a-generation housing supply challenge, prefabricated homes are becoming an increasingly popular, time and cost-effective alternative to traditional housing,” he said.
“This Bill, if passed, will see NSW become the leading jurisdiction in Australia when it comes to modern methods of construction.”
Master Builders NSW executive director Matt Pollock said the reforms to MMC would give builders “more options” to construct homes faster and in a controlled environment.
“We welcome this announcement and thank the Minns government for its collaborative approach to these reforms,” he said.
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Modular homes were recently delivered to Cairns, QLD, after apartments were demolished due to irreparable water damage. Picture: Brendan Radke
Property Council NSW executive director Anita Hugo said the reforms outlined in the Bill recognised that NSW cannot meet its housing targets using traditional construction approaches alone.
“NSW needs more homes, delivered faster and with greater certainty, and modern methods of construction are a critical part of that solution,” she said.
“These laws help remove barriers to prefabrication and modular building, which can significantly cut construction time, improve quality and reduce waste. That’s good for housing supply, productivity and confidence in the system.”
“We’ve been working with government and industry over many years to demonstrate how MMC can be scaled safely and responsibly to support housing delivery,” Ms Hugo said.
Ms Hugo said the framework within the Bill were essential to making MMC builds more “mainstream”.
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