ACT developer licensing starts for residential projects of three or more homes

Property developers working on ACT residential projects containing three or more homes must now be licensed at key points in the planning and construction process.

Major provisions of the Property Developers Act 2024 commenced on 1 October 2026 after a one-year application period. The ACT Government describes the framework as Australia’s first property developer licensing scheme.

The change is intended to extend accountability beyond builders to the people and companies arranging, financing and directing residential developments. For buyers, particularly purchasers considering new apartments or townhouses, it creates an additional regulatory check on who is delivering the project.

When a licence is required

From 1 October, a developer generally needs an appropriate licence to lodge a development application for a regulated residential project, arrange a building approval, conduct or arrange building work covered by the scheme, and reach the certificate-of-occupancy stage.

A licence must remain attached to relevant building work between building approval and the issue of a certificate of occupancy. Building certifiers have a role in checking that the necessary licensing condition has been met.

The ACT Government’s current guidance says the separate requirement associated with selling dwellings off the plan is scheduled to commence on 1 April 2027. That phased date is important for buyers and developers because not every part of the framework began on 1 October.

Projects involving single detached homes or dual occupancies are excluded. Hotels, student accommodation, boarding houses and residential aged-care buildings are also outside the general requirement.

The rules can still capture relatively small suburban developments. A proposal to replace one house with three townhouses, for example, may require a licensed developer even though it is not a large apartment project.

Applicants face capability and suitability checks

Licence applicants must provide information about their corporate structure, associated entities, key personnel and regulatory history. They also need a rating report from an approved rating provider.

ACT planning guidance says Equifax Australasia is currently the approved provider, using its construction-focused iCIRT assessment. The standard assessment considers whether the applicant has the capacity and capability to deliver residential projects, alongside fit-and-proper-person considerations.

Licensed developers must comply with the Act, any conditions attached to their licence and the Property Developers Code of Practice, which also commenced on 1 October. They are expected to demonstrate competence and avoid improper or unethical conduct.

The scheme includes a public register and gives the regulator powers including rectification orders, stop-work orders and enforceable undertakings. Some of those enforcement provisions apply to building work associated with development approvals issued on or after 11 July 2024, meaning parts of the accountability framework can reach projects approved before mandatory licensing began.

Transitional rules depend on project timing

The licensing position for an existing project depends on which approvals were obtained before 1 October and what activity occurs afterwards.

A project that already had development approval may be able to seek a minor amendment without a developer licence. A building approval issued before commencement can also affect whether licensing is required for subsequent construction work.

However, a project moving into a new regulated stage after 1 October may still need a licence. The ACT Government recommends that developers assess each project against the detailed transitional scenarios rather than assuming an earlier approval exempts the entire development.

For buyers, the transition means two projects marketed at the same time may sit under different requirements. Asking for the development and building approval dates can help clarify which protections apply.

What it means for you

• Buyers of new ACT homes can check whether the developer holds the licence required for the project’s current stage.
• Off-the-plan purchasers should note that the specific sales-related licensing provisions are due to start on 1 April 2027.
• Small townhouse projects can be covered once they contain three or more dwellings.
• Existing projects may have transitional treatment, so confirm approval dates and licensing status before signing a contract.