According to the NT Government’s fidelity fund certificate guidance, the minimum prescribed value triggering the need for a fidelity certificate increased from $12,000 to $25,000 when reforms commenced on 30 March 2026 (figures checked 1 October 2026). The NT Government’s Department of Lands, Planning and Environment confirmed in its 26 March 2026 announcement that claims may be made within 90 days of becoming aware of a defect or a trigger event occurring. Crucially, the amendments are not retrospective: they apply only to fidelity fund certificates issued after 30 March 2026.
Does the $25,000 threshold mean every lower-value project is exempt?
No. The amount is the minimum prescribed value for the relevant work, not a blanket exemption for every residential project costing $25,000 or less. The type of work still matters.
The NT Government gives the following positions:
| Type of work | Fidelity fund certificate position |
|---|---|
| Building a new home | Required because building a new home is prescribed residential building work |
| Duplex or townhouse | Required |
| Units in complexes up to three storeys, excluding undercroft or underground parking levels | Listed as prescribed residential building work |
| Additions or extensions to a house, duplex, townhouse or flats less than three storeys | Required when works are over $25,000 and increase the floor area |
| Prefabricated house | Not required |
| Garden sheds or 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; check with the building certifier |
| Retaining wall separate from and not supporting a residential building | Not required |
| Retaining wall for a residential building structure | Required |
The NT Government page uses both “units in complexes up to three storeys” and “flats less than three storeys” in different parts of its guidance. For a complex project near that classification boundary, have the building certifier confirm the requirements rather than relying on the dollar threshold alone.
What changed on 30 March 2026?
The reforms changed both the prescribed-value threshold and several certificate-related timeframes:
| Change | NT Government position |
|---|---|
| Minimum prescribed value | Increased from $12,000 to $25,000 |
| Non-completion cover timeframe | Recognises any approved extension to a building permit |
| Claim timeframe | A claim may be made within 90 days of becoming aware of a defect or a trigger event occurring |
| Fidelity fund governance | Strengthened through clearer trustee approval, scheme oversight and complaint procedures |
The commencement date was 30 March 2026, but the application date is more specific: the higher threshold and amended timeframes apply only to fidelity fund certificates issued after 30 March 2026. An amendment should not be assumed to change the terms of an earlier certificate.
Who must obtain a certificate?
The obligations differ slightly between registered builders and owner-builders.
A registered builder must:
- Apply to Fidelity Fund NT for an annual level of cover.
- Show the financial capability and experience required for the level of cover sought.
- Obtain a fidelity fund certificate for every job containing prescribed residential building work.
- Have the certificate before obtaining a building permit for prescribed work and before demanding payment from the owner.
Owner-builders must 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 if the owner-builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
The NT Government currently identifies Fidelity Fund NT as the only provider in the Northern Territory and the manager of the fidelity fund.
| Contact | Details |
|---|---|
| Website | www.fidelityfundnt.com.au |
| Phone | (08) 8922 9680 |
| info@fidelityfundnt.com.au | |
| Postal address | 11/396 Stuart Highway, Winnellie NT 0820 |
What costs can a fidelity fund certificate cover?
The certificate gives owners protection against listed costs if the builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
| Listed cost | Applicable period or condition stated by the NT Government |
|---|---|
| Transitioning to a new builder to complete the work | Available following the relevant builder event |
| Rectifying non-structural defects | First year after completion |
| Rectifying structural defects | Six years after completion |
Residential building cover is for residential building work only. It does not cover commercial buildings, transportable buildings or government contracts.
A defect does not by itself create a fidelity fund claim. The NT Government states that a claim cannot be made if the builder has not died, disappeared, become insolvent or been deregistered.
How does the 90-day claim window work?
For a certificate issued after 30 March 2026, the claim timeframe allows a claim within 90 days of either:
- Becoming aware of a defect; or
- A trigger event occurring.
When pursuing a claim:
- Check that the builder has died, disappeared, become insolvent or been deregistered.
- Record when the relevant defect became known and when any trigger event occurred.
- Contact Fidelity Fund NT within the applicable 90-day period.
- If the issue concerns rectifying or completing work, contact the Commissioner for Residential Building Disputes, who can mediate or make decisions.
What should builders and owners check?
Before relying on the amended threshold or timeframes:
- Check the issue date of the fidelity fund certificate.
- Confirm whether the project is prescribed residential building work.
- Check the work value and whether an extension increases the property’s residential floor area.
- Confirm that the certificate was issued after 30 March 2026.
- Check the current regulator page and the relevant policy’s PDS for the current requirements.
This is general information, not financial or legal advice. Coverage and claim obligations depend on the certificate, project and circumstances, so verify the current position with the regulator and the relevant policy’s PDS.
Sources
- NT Government — Fidelity fund certificate
- Department of Lands, Planning and Environment — Lower compliance costs and stronger building protections
FAQ
Do the $25,000 threshold and 90-day claim window apply to older certificates?
No. The NT Government states that the amendments apply only to fidelity fund certificates issued after 30 March 2026. Check the issue date rather than assuming an older certificate has changed.
Does every project costing $25,000 or less need a certificate?
No. The prescribed-work category still applies. For example, building a new home is prescribed work, while an addition or extension must be worth over $25,000 and increase the residential floor area to fall within the stated additions-and-extensions rule.
Does a bathroom renovation always require a fidelity fund certificate?
No. A bathroom renovation does not require one unless it is completed together with other work to a building that requires a certificate.
Can a fidelity fund claim be made while the builder is still operating?
No. The builder must have died, disappeared, become insolvent or been deregistered before a fidelity fund claim can be made.
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