From 30 March 2026, the minimum prescribed value that triggers the need for a fidelity fund certificate increased from $12,000 to $25,000 (NT.GOV.AU, checked 1 October 2026). The amendments are not retrospective: they apply only to fidelity fund certificates issued after 30 March 2026 (NT.GOV.AU, checked 1 October 2026). Prescribed residential building work includes building a new home, while the listed value-based category covers building work worth over $25,000 that increases a property’s residential floor area (NT.GOV.AU, checked 1 October 2026).
What changed under the reform?
NT.GOV.AU says retrospective application would change the liability of issued certificates for future claims and could affect the financial position of Fidelity Fund NT (NT.GOV.AU, checked 1 October 2026). That is why the amended rules do not apply to certificates already issued.
| Point | Earlier position | Amended position |
|---|---|---|
| Minimum prescribed value | $12,000 (NT.GOV.AU, checked 1 October 2026) | $25,000 (NT.GOV.AU, checked 1 October 2026) |
| Certificates affected | The amendments do not change previously issued certificates retrospectively (NT.GOV.AU, checked 1 October 2026) | The amendments apply only to fidelity fund certificates issued after 30 March 2026 (NT.GOV.AU, checked 1 October 2026) |
The threshold wording needs care. The regulator describes the minimum prescribed value as $25,000, while the floor-area-increasing work category refers to building work worth over $25,000 (NT.GOV.AU, checked 1 October 2026). For a project priced exactly at the stated amount, check the current regulator guidance or ask the building certifier how the rule applies before seeking a permit or demanding payment.
Does the new threshold apply to every renovation?
No. The value change does not remove new homes, duplexes, townhouses or qualifying complex units from prescribed residential building work. Fidelity fund certificates remain required for those categories (NT.GOV.AU, checked 1 October 2026).
The NT residential building insurance guidance also says owners of new homes must have residential building cover against defective or incomplete work (NT.GOV.AU, checked 1 October 2026). That protection is residential only: it excludes commercial buildings, transportable buildings and government contracts (NT.GOV.AU, checked 1 October 2026).
Which jobs are prescribed residential building work?
The current classifications cover more than conventional new-home construction:
| Work | Fidelity fund certificate position |
|---|---|
| New home or house | A certificate is needed (NT.GOV.AU, checked 1 October 2026). |
| Duplex or townhouse | A certificate is needed (NT.GOV.AU, checked 1 October 2026). |
| Units in complexes | A certificate is needed for units in complexes up to three storeys in height, excluding undercroft or underground parking levels (NT.GOV.AU, checked 1 October 2026). |
| Higher flats | A certificate is not needed for flats greater than three storeys, excluding undercroft or underground parking levels (NT.GOV.AU, checked 1 October 2026). |
| Additions and extensions | A certificate is needed for work to a house, duplex, townhouse or flats less than three storeys when the works are over $25,000 and increase the floor area (NT.GOV.AU, checked 1 October 2026). |
| Prefabricated house | A certificate is not needed (NT.GOV.AU, checked 1 October 2026). |
| Bathroom renovation | A certificate is not needed unless the bathroom work is completed with other work to a building that requires one (NT.GOV.AU, checked 1 October 2026). |
| Garden sheds and fences | A certificate is not needed (NT.GOV.AU, checked 1 October 2026). |
| Bed and breakfast work | A certificate is needed unless the building is classified as Class 1b; contact the building certifier about the requirements in that case (NT.GOV.AU, checked 1 October 2026). |
| Separate retaining wall | A certificate is not needed when the wall is separate from and does not support a residential building (NT.GOV.AU, checked 1 October 2026). |
| Structural retaining wall | A certificate is needed for a retaining wall for a residential building structure (NT.GOV.AU, checked 1 October 2026). |
What must builders do before a permit or payment?
Registered builders have both an annual cover obligation and a job-specific certificate obligation:
- Apply to Fidelity Fund NT for an annual level of cover (NT.GOV.AU, checked 1 October 2026).
- Show the financial capability and experience required for the level of cover sought (NT.GOV.AU, checked 1 October 2026).
- Obtain a fidelity fund certificate for every client job that includes prescribed residential building work (NT.GOV.AU, checked 1 October 2026).
- Have the certificate before obtaining a building permit for prescribed work and before demanding payment from the owner (NT.GOV.AU, checked 1 October 2026).
Owner builders must also have a fidelity fund certificate to cover future owners for building defects (NT.GOV.AU, checked 1 October 2026). Owner-builder cover is available only after the property is sold or transferred and the owner builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board (NT.GOV.AU, checked 1 October 2026).
Fidelity Fund NT manages the fidelity fund and is currently the only provider in the Northern Territory (NT.GOV.AU, checked 1 October 2026). The regulator lists its phone as (08) 8922 9680 and its email as info@fidelityfundnt.com.au (NT.GOV.AU, checked 1 October 2026).
What does the certificate cover, and for how long?
Residential building cover in the Northern Territory is issued in the form of a fidelity fund certificate (NT.GOV.AU, checked 1 October 2026). The regulator lists the following protection:
| Situation or cost | Cover stated by NT.GOV.AU |
|---|---|
| Builder bankruptcy, death, disappearance or registration cancellation | If a builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board, the certificate covers owners against the listed costs (NT.GOV.AU, checked 1 October 2026). |
| Moving to another builder | Covered costs include those associated with transitioning to a new builder to complete the work (NT.GOV.AU, checked 1 October 2026). |
| Non-structural defects | Covered costs include rectifying non-structural defects in the first year after completion (NT.GOV.AU, checked 1 October 2026). |
| Structural defects | Covered costs include rectifying structural defects for six years after completion (NT.GOV.AU, checked 1 October 2026). |
| Non-completion timeframe | The timeframe recognises any approved extension to a building permit (NT.GOV.AU, checked 1 October 2026). |
These are the categories and periods stated in the regulator’s general guidance. Check the certificate itself for the terms applying to the particular building and builder.
How can an owner make a claim?
A defect does not by itself open a fidelity fund claim. NT.GOV.AU says an owner cannot make a fidelity fund claim if the builder has not died, disappeared, become insolvent or been deregistered (NT.GOV.AU, checked 1 October 2026).
Owners should:
- Check the trigger event. Confirm that the builder’s circumstances fall within the conditions listed by the regulator before treating the matter as a fidelity fund claim (NT.GOV.AU, checked 1 October 2026).
- Check the certificate issue date and claim window. For certificates issued after 30 March 2026, claims may be made within 90 days of either becoming aware of a defect or a trigger event occurring (Department of Lands, Planning and Environment, checked 1 October 2026).
- Confirm lodgement requirements. Use the current regulator page and contact Fidelity Fund NT on (08) 8922 9680 or at info@fidelityfundnt.com.au for the current process (NT.GOV.AU, checked 1 October 2026).
- Check the disputes pathway. The Commissioner for Residential Building Disputes can be contacted to mediate or make decisions about rectifying or completing work on the property (NT.GOV.AU, checked 1 October 2026).
This is general information, not financial or legal advice. Check the current NT.GOV.AU regulator page and, where an insurance policy is relevant, its Product Disclosure Statement (PDS), as well as the certificate terms.
Sources
- Fidelity fund certificate — NT.GOV.AU
- Residential building insurance — NT.GOV.AU
- Lower compliance costs and stronger building protections — Department of Lands, Planning and Environment
FAQ
Does the new value threshold apply to every home or renovation?
No. Building a new home remains prescribed residential building work. The listed floor-area category applies to building work worth over $25,000 that increases a property’s residential floor area (NT.GOV.AU, checked 1 October 2026).
Which certificates are subject to the amended rules?
Only fidelity fund certificates issued after 30 March 2026 (NT.GOV.AU, checked 1 October 2026). The amendments do not apply retrospectively to certificates already issued.
Can an owner claim while the builder is still operating?
Not on that basis alone. The regulator says a fidelity fund claim cannot be made unless the builder has died, disappeared, become insolvent or been deregistered (NT.GOV.AU, checked 1 October 2026).
How quickly must an eligible owner claim?
For certificates issued after 30 March 2026, a claim may be made within 90 days of either becoming aware of a defect or a trigger event occurring (Department of Lands, Planning and Environment, checked 1 October 2026). If the relevant dates are unclear, confirm the application with Fidelity Fund NT before the stated window expires.
What must a builder do before demanding payment?
The builder must have a fidelity fund certificate for the job before demanding payment from the owner (NT.GOV.AU, checked 1 October 2026). For prescribed residential building work, the certificate must also be in place before obtaining the building permit.
Partner links. Using them costs you nothing extra and may earn us a commission.