Since 15 January 2026, South Australian building and construction laws have introduced $5,000 expiation fees for specified licensing, advertising, payment and contract breaches, plus a $20,000 expiation fee for building work without required building indemnity insurance (BII) (Consumer and Business Services (CBS); figures checked 1 October 2026). The same CBS summary states that repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies.
What changed on 15 January 2026?
The reforms were introduced through the Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025 following a review of the building and construction industry. CBS says the changes strengthen consumer protections, create new offences, expand enforcement options and increase penalties.
The changes affect builders, plumbers, gas fitters and electricians, as well as laws including:
- Building Work Contractors Act 1995 (SA)
- Fair Trading Act 1987
- Magistrates Court Act 1991
- Plumbers, Gas Fitters and Electricians Act 1995
Which breaches attract $5,000 or $20,000?
CBS identifies the following key expiation fees:
| Breach | Expiation fee |
|---|---|
| Working without a licence | $5,000 |
| Working outside licence conditions | $5,000 |
| Advertising for work the person is not licensed to perform | $5,000 |
| Demanding or requiring payments the person is not entitled to | $5,000 |
| Using a contract that does not comply with the Building Work Contractors Act 1995 (SA) | $5,000 |
| Carrying out building work without BII when it is required | $20,000 |
These are expiation fees identified in CBS’s building and construction industry changes summary. They are separate from the higher penalties the Magistrates Court may impose for offences.
Does every new offence carry a $5,000 expiation?
No single $5,000 amount applies to every new offence. CBS specifically attaches that amount to working unlicensed, working outside licence conditions and advertising for unlicensed work.
The new offences also cover:
- Hiring unlicensed subcontractors to undertake licensed work
- Using another contractor’s licence number
- Falsely claiming to be licensed or registered
CBS provides a Table of Amended Penalties on its campaign page for the increased expiations and new offences. The published summary does not attach one expiation amount to every new offence, so the current regulator page remains the appropriate reference.
What should tradies and subcontractors check?
CBS says anyone hiring a subcontractor should confirm that the subcontractor is licensed through its Licensing Public Register. A practical review should cover:
- Whether the licence covers the work and relevant licence conditions
- Whether BII is required and is in place before covered building work begins
- Whether the contract complies with the Building Work Contractors Act 1995 (SA)
- Whether any payment being demanded or required is properly payable
- Whether advertising accurately reflects the work the person is licensed to perform
- Whether licence or registration claims are accurate and no other contractor’s licence number is being used
Questions about the changes can be directed to CBS on 131 882.
How is enforcement changing?
CBS says increased compliance activity and enforcement can be expected, including expiation notices where breaches are identified. In June 2026, CBS announced a dedicated Building Industry Response Team targeting:
- Unlicensed building work
- Misleading or improper advertising
- Failure to obtain BII
- Improper demands for payment
CBS also says authorities have up to 2 years to prosecute offences and up to 5 years to prosecute an offence with Ministerial approval in certain cases. Some offences may be handled through an infringement notice for faster enforcement.
How do repeat-offence penalties compare with expiations?
The Magistrates Court can impose penalties of up to $550,000 for offences under laws governing South Australia’s building and construction industry, including builders, plumbers, gas fitters and electricians.
For repeat offences, CBS states that increases can reach up to $150,000 for individuals and $550,000 for companies. These court-penalty figures are distinct from the listed $5,000 and $20,000 expiation fees.
This is general information, not financial or legal advice. Check the current CBS regulator page for the legal position and the PDS for your policy for any applicable insurance terms.
Sources
FAQ
When did the new South Australian building laws commence?
The new laws commenced on 15 January 2026. They introduced new offences, expanded enforcement options and increased expiation and court penalties.
What triggers the $20,000 BII expiation?
The $20,000 expiation applies to carrying out building work without building indemnity insurance when BII is required. It does not apply merely because a project does not involve building work.
Is every new building offence subject to a $5,000 expiation?
No. CBS expressly identifies $5,000 expiations for unlicensed work, work outside licence conditions, certain advertising, improper payment demands and non-compliant contracts. It does not provide one $5,000 amount for every new offence.
Can a repeat offence attract more than an expiation fee?
Yes. CBS states that repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies, while the Magistrates Court can impose penalties of up to $550,000 for relevant building and construction industry offences.
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