Since 15 January 2026, carrying out building work without required building indemnity insurance (BII) has attracted a $20,000 expiation fee, according to South Australia’s Consumer and Business Services (CBS). CBS also lists separate $5,000 expiations for specified breaches and says repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies (figures checked 1 October 2026).
This is general information, not financial or legal advice. Check the current CBS regulator page and any relevant policy’s PDS for the requirements applying to your work.
When does the $20,000 BII expiation fee apply?
The fee applies to carrying out building work without BII when BII is required.
The qualification matters: the CBS material does not say every building project requires BII. It also does not make $20,000 a blanket charge for every breach. The amount is linked to the specific breach of undertaking building work without required BII.
Which breaches have a separate $5,000 expiation fee?
CBS lists several examples:
| Breach | Expiation fee |
|---|---|
| Working unlicensed or outside licence conditions | $5,000 |
| Advertising for work you are not licensed to perform | $5,000 |
| Demanding or requiring payments you are not entitled to | $5,000 |
| Using a contract that does not comply with the Building Work Contractors Act 1995 (SA) | $5,000 |
These are separate examples in the CBS campaign. The material does not state that the $5,000 expiations stack with one another or with the BII expiation, so the amounts should not be treated as an automatic combined total.
Does every breach attract $20,000 or the maximum penalty?
No. The $20,000 expiation is associated with carrying out building work without required BII, while CBS identifies other breaches with different expiations.
CBS also states that:
- repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies;
- the Magistrates Court can impose penalties of up to $550,000 for offences under laws governing the building and construction industry, including builders, plumbers, gas fitters and electricians.
These are different enforcement figures and stated upper limits. They do not mean that every breach attracts the highest amount.
What changed on 15 January 2026?
CBS says reforms introduced by the Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025 commenced on 15 January 2026. The changes strengthen consumer protections, introduce new offences, expand enforcement options and increase penalties.
The reforms affect the:
- Building Work Contractors Act 1995 (SA);
- Fair Trading Act 1987;
- Magistrates Court Act 1991; and
- Plumbers, Gas Fitters and Electricians Act 1995.
New offences cover unlicensed work, hiring unlicensed subcontractors to undertake licensed work, using another contractor’s licence number, and falsely claiming to be licensed or registered. CBS also says many offences now have new or increased expiations.
What enforcement is CBS increasing?
In June 2026, CBS announced a dedicated Building Industry Response Team targeting:
- unlicensed building work;
- misleading or improper advertising;
- failure to obtain BII; and
- improper demands for payment.
CBS expects increased compliance activity and enforcement, including expiation notices where breaches are identified. Some offences may be handled through an infringement notice for faster enforcement.
Authorities have up to 2 years to prosecute offences and, in certain cases with ministerial approval, up to 5 years. These prosecution periods are separate from the expiation fees and should not be confused with them.
What should builders, trades and hirers check now?
- Check whether BII is required. If it is, confirm that the required building indemnity insurance is in place before carrying out the work.
- Review licence conditions. Make sure the work falls within the applicable licence and is not advertised as work you are not licensed to perform.
- Check subcontractors. CBS says anyone hiring a subcontractor should confirm that they are licensed through the CBS Licensing Public Register.
- Review contracts and payment terms. A contract that does not comply with the Building Work Contractors Act 1995 (SA) is listed with a $5,000 expiation, as is demanding or requiring payments you are not entitled to.
- Check the current regulator material and policy PDS. Requirements and insurance arrangements can depend on the project and policy. Questions can also be directed to CBS on 131 882.
Sources
FAQ
Does every builder need building indemnity insurance?
No. The $20,000 expiation applies when building work is carried out without BII when BII is required. Check the current CBS material to determine whether the relevant work requires it.
Does the $20,000 expiation apply to every building and construction breach?
No. It is listed for carrying out building work without required BII. Other specified breaches have separate expiations, while repeat or court-related penalties are separate matters.
Can a $20,000 expiation and a $5,000 expiation apply to the same matter?
CBS lists the amounts as separate expiations for different breaches and does not say they automatically stack. Whether more than one obligation was breached needs to be assessed against the regulator’s requirements and the circumstances of the work.
What are the stated limits for repeat offences?
CBS says increases for repeat offences can be up to $150,000 for individuals and $550,000 for companies. These are stated upper limits, not the amount automatically imposed on every repeat offence.
Where can a contractor check the requirements or ask questions?
Review the current CBS regulator page and any relevant policy’s PDS. CBS can also be contacted on 131 882.
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