From 15 January 2026, South Australia’s Consumer and Business Services (CBS) says a $5,000 expiation fee applies to working unlicensed or outside licence conditions, advertising for unlicensed work, demanding or requiring payments the person is not entitled to, and using a non-compliant contract. Carrying out building work without building indemnity insurance (BII) when required attracts a $20,000 expiation fee.
Figures checked 1 October 2026. Repeat-offence court penalties can be higher, so an expiation fee is not necessarily the maximum penalty for an offence.
This is general information, not financial or legal advice. Check the CBS regulator page and your policy’s PDS for current requirements.
Which examples carry a $5,000 expiation fee?
CBS identifies the following examples under the changes that commenced on 15 January 2026:
| Breach identified by CBS | Expiation fee |
|---|---|
| Working while unlicensed or 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 |
CBS also identifies new offences involving unlicensed work, hiring unlicensed subcontractors to undertake licensed work, using another contractor’s licence number, and falsely claiming to be licensed or registered. The campaign summary does not state that each of these offences carries the same $5,000 expiation, so the amount should not be assumed from the examples above.
When does the $20,000 BII expiation apply?
| Situation identified by CBS | Expiation fee |
|---|---|
| Carrying out building work without building indemnity insurance when BII is required | $20,000 |
The stated condition is that BII is required. The figure should therefore not be read as applying automatically to every building job. Builders and hirers should check the regulator information and the relevant BII policy’s PDS for the requirements applying to their work.
What legal changes sit behind the expiations?
CBS identifies the Statutes Amendment (Building and Construction Industry Review—Penalties) Act 2025 as introducing reforms following a review of the building and construction industry. It says the changes strengthen consumer protections, introduce offences, expand enforcement options and increase penalties.
The reforms affect:
- the Building Work Contractors Act 1995;
- the Fair Trading Act 1987;
- the Magistrates Court Act 1991; and
- the Plumbers, Gas Fitters and Electricians Act 1995.
Can court penalties be higher than the expiation fees?
Yes. CBS says repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies. It also says the Magistrates Court can impose penalties of up to $550,000 for offences under laws governing the building and construction industry.
Those are potential court penalties, not the expiation automatically charged for every listed breach. Some offences may instead be handled through an infringement notice for faster enforcement. Authorities have up to 2 years to prosecute all offences and up to 5 years to prosecute an offence with Ministerial approval in certain cases.
What should builders check amid increased enforcement?
In June 2026, CBS announced the establishment of a dedicated Building Industry Response Team targeting:
- unlicensed building work;
- misleading or improper advertising;
- failure to obtain BII; and
- improper demands for payment.
CBS says increased compliance activity and enforcement can be expected, including expiation notices where breaches are identified. Builders and industry participants should review their legal obligations rather than assume that an expiation notice is the only possible enforcement outcome.
For builders and anyone hiring subcontractors, the practical checks are:
- Review the work against applicable licence conditions.
- Check that a subcontractor is licensed through CBS’ Licensing Public Register.
- Confirm whether BII is required and review the relevant policy PDS.
- Check advertising against the work the person is licensed to perform.
- Confirm that payment demands are legally entitled.
- Check that the contract complies with the Building Work Contractors Act 1995 (SA).
CBS encourages all industry participants to review their obligations and ensure they comply with the law. Questions can be directed to CBS on 131 882.
Sources
FAQ
When did the listed expiation fees commence?
CBS says the new laws commenced on 15 January 2026 and introduced significantly higher expiation fees for breaching legal obligations. It presents the listed $5,000 and $20,000 expiations as part of those changes.
Does the $5,000 expiation cover every licensing or contract breach?
No. The listed $5,000 examples cover working unlicensed or outside licence conditions, advertising for unlicensed work, demanding or requiring unauthorised payments, and using a contract that does not comply with the Building Work Contractors Act 1995 (SA). Other offences may have different expiations or penalties.
Is the $20,000 BII expiation always payable?
No. The stated example is carrying out building work without BII when BII is required. Check the CBS page and the relevant policy PDS rather than assuming the fee applies to every job.
Can a court penalty exceed the expiation fee?
Yes. CBS says repeat offences can attract increases of up to $150,000 for individuals and $550,000 for companies. The applicable court penalty depends on the offence and circumstances.
How can someone check a subcontractor’s licence?
CBS directs people hiring subcontractors to check their licensing through the CBS Licensing Public Register. Questions for CBS can be directed to 131 882.