Who is an Owner-Builder?
An owner-builder is someone who manages the construction or renovation of their own home, often without a licensed builder. Each state has different rules on eligibility, permits, and restrictions.
Key Legal Obligations by State:
| State | Permit Required? | Maximum Project Value (No License) | Mandatory Course? | Insurance Needed? |
|---|---|---|---|---|
| NSW | Yes (if over $20k) | $20,000 (restricted) | Yes (if over $20k) | Home Warranty Insurance (if over $20k) |
| VIC | Yes (if over $16k) | $16,000 (restricted) | Yes (if over $16k) | Domestic Building Insurance (if over $16k) |
| QLD | Yes (if over $11k) | $11,000 (restricted) | No (but recommended) | QBCC Home Warranty (if over $3,300) |
| WA | Yes (if over $20k) | $20,000 (restricted) | No | Home Indemnity Insurance (if over $20k) |
| SA | Yes (if over $12k) | $12,000 (restricted) | No | Owner-Builder Insurance (optional but advised) |
| TAS | Yes (if over $5k) | $5,000 (restricted) | No | No mandatory insurance |
| ACT | Yes (if over $12k) | $12,000 (restricted) | No | Required if selling within 6 years |
| NT | Yes (if over $12k) | $12,000 (restricted) | No | No mandatory insurance |
Additional Notes:
NSW & VIC require mandatory owner-builder courses before obtaining a permit.
QLD has strict QBCC regulations, even for low-value projects.
TAS & NT have lower thresholds but fewer insurance requirements.
An owner-builder is an individual who manages and oversees their own construction project, taking on the responsibilities of a general contractor, potentially doing some or all of the work themselves, or hiring and managing subcontractors. Essentially, they are acting as their own builder, but on their own property.
- DIY Approach:
An owner-builder may choose to do some or all of the physical construction work themselves, or they may hire and manage licensed tradespeople to complete specific tasks.
- Managerial Role:
They are responsible for all aspects of the project, including securing financing, obtaining permits, hiring subcontractors, managing the budget, and ensuring the project adheres to building codes and regulations.
- Risk and Reward:
Owner-builders shoulder the financial and legal risks associated with the project, but they also have the potential to save money and gain equity in their completed home.
- Responsibilities:
Owner-builders must comply with all relevant building codes, regulations, and safety standards, just like a licensed builder.
- Example:
A homeowner wanting to build a new house on their land, or a homeowner undertaking a major renovation on their existing property could be an owner-builder.
- Important Note:Owner-builder status typically has limitations on the number of projects an individual can undertake and the value of the projects.
