Yes. For fidelity certificates issued after 30 March 2026, the NT Government’s guidance treats building work worth over $25,000 that increases a property’s residential floor area as prescribed residential building work requiring a fidelity fund certificate. The NT Government says the minimum prescribed value increased from $12,000 to $25,000 on 30 March 2026 (figures checked 1 October 2026).
What changed on 30 March 2026?
The Department of Lands, Planning and Environment’s announcement, published on 26 March 2026, confirms that the amendments commenced on 30 March 2026. They are not retrospective and apply only to fidelity fund certificates issued after that date.
| Check | Relevant rule |
|---|---|
| Previous minimum prescribed value | $12,000 |
| New minimum prescribed value | $25,000 |
| Effective date | 30 March 2026 |
| Application | Certificates issued after 30 March 2026 |
The reforms also recognise an approved extension to a building permit when assessing the cover period for non-completion of work.
Does a floor-area extension meet the certificate requirement?
For the floor-area addition or extension described in the question, the official test combines the work value with what the work does to the property:
| Work value | Effect on the property | Certificate position |
|---|---|---|
| Worth over $25,000 | Increases residential floor area | Required |
The NT Government’s table applies this test to additions and extensions to:
- A house
- A duplex or townhouse
- Flats less than three storeys, excluding undercroft or underground parking levels
The guidance also identifies renovations and extensions to these residential buildings as prescribed residential building work. Other types of work have separate rules, so the value alone should not be used to decide whether every project needs a certificate. For example, garden sheds and fences do not require one, while a bathroom renovation does not unless it is completed with other work requiring a certificate.
When must the certificate be obtained?
The certificate must be in place before either relevant payment or approval step:
| Stage | Requirement |
|---|---|
| Building permit | The certificate must exist before a building permit can be obtained for prescribed residential building work |
| Payment | The certificate must exist before the builder demands payment from the owner |
| Client job | A registered builder must obtain a certificate for every job that includes prescribed residential building work |
Registered builders must apply to Fidelity Fund NT for an annual level of cover. For an extension job, contact Fidelity Fund NT to obtain the certificate for that work before seeking the permit or demanding payment.
Owner-builders must also have a fidelity fund certificate to cover future owners for building defects. The NT Government says owner-builder cover is only available 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.
What does the certificate cover?
Residential building cover in the NT is issued in the form of a fidelity fund certificate. It covers owners against specified costs when a builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
Listed costs include:
- Transitioning to a new builder to complete the work
- Rectifying non-structural defects during the first year after completion
- Rectifying structural defects for six years after completion
A fidelity fund claim cannot be made if the builder has not died, disappeared, become insolvent or been deregistered. Claims may be made within 90 days of either becoming aware of a defect or a trigger event occurring.
What should you check before starting work?
This is general information, not financial or legal advice. Check the current NT Government regulator page before relying on this summary, and read the PDS for any insurance policy you are considering because the certificate requirement and an individual policy’s terms are separate matters.
Sources
- Fidelity fund certificate | NT.GOV.AU
- Lower compliance costs and stronger building protections | Department of Lands, Planning and Environment
FAQ
Does an NT extension over $25,000 that adds floor area need a fidelity fund certificate?
Yes. Building work worth over $25,000 that increases the property’s residential floor area falls within the prescribed residential building work described in the current NT Government guidance.
Does the change apply to a certificate issued before 30 March 2026?
No. The amendments are not retrospective and apply only to fidelity fund certificates issued after 30 March 2026.
Can the building permit or payment demand come first?
No. For prescribed residential building work, the fidelity fund certificate must be obtained before the building permit is obtained and before the builder demands payment from the owner.
Who must obtain the certificate for the extension?
A registered builder must obtain a certificate for every client job containing prescribed residential building work. Owner-builders must also have a certificate to cover future owners for building defects.
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