According to the Department of Lands, Planning and Environment’s announcement dated 26 March 2026, amendments commencing on 30 March 2026 increased the minimum prescribed value that triggers a fidelity certificate from $12,000 to $25,000 and allow claims within 90 days of becoming aware of a defect or a trigger event occurring. The NT Government’s fidelity fund certificate guidance confirms that the amendments are not retrospective and apply only to certificates issued after 30 March 2026; figures checked 1 October 2026.
Do the changes apply to certificates issued before 30 March 2026?
No. There is an important distinction between the commencement date and the date a certificate was issued:
- The regulatory amendments commenced on 30 March 2026.
- They apply only to fidelity certificates issued after 30 March 2026.
- They are not applied retrospectively to certificates already issued.
The NT Government says retrospective application would change the liability under existing certificates for future claims and could affect the financial position of Fidelity Fund NT. For an existing certificate, check its issue date and the certificate’s terms rather than assuming the amended rules apply because a claim is made after the reforms commenced.
Which residential work needs a fidelity certificate?
A fidelity fund certificate must be obtained for prescribed residential building work. The NT Government’s prescribed-work summary includes:
- Building a new home.
- Units in complexes up to three storeys, excluding undercroft or underground parking levels.
- Renovations and extensions to those buildings.
- Building work worth over $25,000 that increases a property’s residential floor area.
Residential building cover is issued in the form of a fidelity fund certificate. Its scope is narrower than a blanket policy for every construction project: residential cover does not apply to commercial buildings, transportable buildings or government contracts.
The NT Government’s project-by-project position is:
| Project | Fidelity certificate position in the NT Government guidance |
|---|---|
| House | Required |
| Duplexes and townhouses | Required |
| Prefabricated house | Not required |
| Flats less than three storeys, excluding undercroft or underground parking levels | Required |
| Flats greater than three storeys, excluding undercroft or underground parking levels | Not required |
| Additions or extensions to a house, duplex, townhouse or qualifying flats | Required for works over $25,000 that increase the floor area |
| Garden sheds and fences | Not required |
| Bathroom renovation | Not required unless completed with other work to a building that requires a certificate |
| Bed and breakfast work | Required unless the building is classified as Class 1b; contact the building certifier about requirements |
| Retaining wall separate from and not supporting a residential building | Not required |
| Retaining wall for a residential building structure | Required |
The $25,000 prescribed-value trigger should therefore be read alongside the type of work. It does not mean every category below that value is exempt: new homes, duplexes, townhouses and listed unit work have their own prescribed-work requirements. For additions and extensions, the specific guidance refers to works over $25,000 that increase the residential floor area.
What does the certificate cover and for how long?
The NT Government says a fidelity fund certificate protects owners against listed costs if a builder becomes bankrupt, dies, disappears, or has their registration cancelled by the Building Practitioners Board.
The listed protection includes:
| Covered cost or loss | Applicable period stated in the guidance |
|---|---|
| Transitioning to a new builder to complete the work | Listed as a covered cost following the relevant builder event |
| Rectifying non-structural defects | First year after completion |
| Rectifying structural defects | Six years after completion |
| Non-completion of work | The cover timeframe recognises any approved extension to a building permit |
The amendment concerning non-completion does not give an automatic extension. It recognises an extension that has been approved for the building permit. The cited reform announcement does not state the base length of that period, so check the certificate and its PDS for the applicable timeframe.
The one-year and six-year periods are defect-cover periods. They should not be confused with the separate 90-day period for making a claim.
When can a claim be made?
For a certificate within the amended rules, the NT Government allows a claim within 90 days of either:
- Becoming aware of a defect; or
- A trigger event occurring.
That is a claim-lodgement timeframe, not the period for which defect cover continues. Identify the relevant awareness or trigger-event date, then check the certificate and PDS rather than waiting until the end of the period.
A fidelity fund claim cannot be made if the builder has not died, disappeared, become insolvent or been deregistered. If the dispute concerns rectifying or completing work, contact the Commissioner for Residential Building Disputes, who can mediate or make decisions about that work.
A practical claim sequence is:
- Check the certificate’s issue date, scope and trigger provisions.
- Identify the relevant defect-awareness or trigger-event date.
- Check the PDS for how and when to lodge the claim.
- Contact Fidelity Fund NT promptly rather than relying on general guidance alone.
- Contact the Commissioner for Residential Building Disputes if the issue concerns mediation, rectification or completion.
What must builders and owner-builders do?
For registered builders, the NT Government states that:
- They must apply to Fidelity Fund NT for an annual level of cover.
- They must show the financial capability and experience required for the level of cover sought.
- They must obtain a fidelity fund certificate for every job that includes prescribed residential building work on behalf of a client.
- The certificate must be in place before obtaining a building permit for prescribed work and before demanding payment from the owner.
Owner-builders must also have a fidelity fund certificate to cover future owners for building defects. Owner-builder cover is available only after the property is sold or transferred, and only if the owner-builder becomes bankrupt, dies, disappears, or has their registration cancelled by the Building Practitioners Board.
The NT Government lists Fidelity Fund NT as the only provider in the Northern Territory and says it manages the fidelity fund. Contact Fidelity Fund NT to obtain a certificate.
How can a reader verify the exact requirements?
Project type, building classification, work value, floor-area change, permit extensions and the certificate’s issue date can all affect the answer. Before entering a contract or relying on cover:
- Check the current NT Government fidelity fund certificate page.
- Read the certificate and the policy PDS.
- Confirm whether the work is prescribed residential building work.
- Ask the building certifier about classification issues, including bed and breakfast work involving a Class 1b building.
- Confirm any approved building-permit extension and its effect on non-completion cover.
- Contact Fidelity Fund NT before demanding payment or allowing prescribed work to proceed.
This is general information, not financial or legal advice. The regulator page and the relevant PDS should be checked for the current rules and the exact certificate terms.
Sources
- Fidelity fund certificate | NT.GOV.AU
- Lower compliance costs and stronger building protections | Department of Lands, Planning and Environment
FAQ
Do the reforms affect a certificate issued before 30 March 2026?
No. The NT Government says the amendments are not retrospective and apply only to certificates issued after 30 March 2026. Check the issue date and PDS for an existing certificate.
Does a project valued at exactly $25,000 automatically need a certificate?
Project type still matters. The NT Government says the minimum prescribed value increased from $12,000 to $25,000, while its specific additions-and-extensions guidance refers to works over $25,000 that increase the floor area. The cited wording does not resolve a project valued at exactly $25,000, so confirm borderline work with the NT Government or a building certifier.
How long do I have to make a claim?
For a certificate within the amended rules, the claim period is 90 days from becoming aware of a defect or from a trigger event occurring. Check which date applies and lodge the claim within the period specified by the certificate and PDS.
Can I make a claim while the builder remains operating?
The NT Government says a fidelity fund claim cannot be made if the builder has not died, disappeared, become insolvent or been deregistered. For a dispute about rectifying or completing work, contact the Commissioner for Residential Building Disputes.
Does a bathroom renovation require a fidelity fund certificate?
Not by itself under the listed guidance. A certificate is not required for a bathroom renovation unless it is completed with other work to a building that requires one.
Partner links. Using them costs you nothing extra and may earn us a commission.