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Newly passed legislation will see boosted accountability and transparency around the Northern Territory’s scheme that protects home owners from building non-completion.
The Northern Territory government will reform its Fidelity Fund to strengthen transparency and reduce red tape for home owners, after passing a bill through parliament on Tuesday, 25 November.
The Fidelity Fund was set up in 2013 to protect home owners, ensuring their properties could be finished in the case of builders failing to complete the projects.
Fidelity Fund NT monitors the portfolios of residential builders, ensuring they operate within their capacity and don’t overextend themselves financially, a common cause of non-completion.
Builders must obtain a certificate of cover for every property up to three storeys, or extensions over $12,000.
The Building Legislation Amendment (Fidelity Fund) Bill 2025 will provide stronger oversight of the fund, including clearer processes for trustee appointments, improved regulation of how it is managed, and greater accountability across the board.
The changes followed feedback from industry stakeholders who called for amendments to the operation of the fund, such as greater clarity and efficiency.
Earlier this year, the Housing Industry Association (HIA) said that delays, refusal to issue certificates, a lack of transparency in decision-making, and non-compliance with the legislative requirements had become pressing issues in the state.
Minister for Lands, Planning and Environment, Joshua Burgoyne, said the reforms were designed to further protect homeowners and restore confidence in the territory’s building industry.
“When Territorians set out to build their dream home, they’re investing their savings, their families’ future, and their trust in the system,” he said.
“They deserve the peace of mind that even if a builder fails, their home will still be completed and defect-free.”
He said that the changes were practical and sensible reforms that would ensure proper oversight, allowing the fund to continue operating fairly and efficiently.
“We’re ensuring the Fidelity Fund NT is a trusted mechanism for protecting Territorians when they make that huge decision to build a home.”
“We want to continue building on that momentum by giving families and homeowners the certainty to plan their futures in the Territory with confidence,” he concluded.
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