Were you aware that property developers aren’t yet required to have a licence to build in the ACT? 

Off the back of a litany of issues with developments in 2019, the ACT Government committed to introducing a property developer licensing scheme that is set to be announced this year.

When the scheme was proposed in 2019, then Minister for Building Quality Improvement, Gordon Ramsay, said: “We have seen too many instances of property developers forcing builders to cut corners and save on costs, only to eventually wind up projects and leave owners with the bill.

“The government will now commence an extended consultation period with the community and industry to determine the best way forward on creating an effective licensing scheme.”

In response to grumblings from ACT property developers, the Construction, Forestry, Mining, and Energy Union (CFMEU) ACT commissioned a RedBridge poll surveying 985 Canberrans about the proposed scheme.

The survey found:

• 77 per cent of Canberrans want the government to introduce a new licence which would require property developers to demonstrate financial capacity to complete any proposed developments and a commitment to ethical behaviour (versus 10 per cent disagree).
• 77 per cent of Canberrans agree (56 per cent strongly agree) that property developers have too much unrestricted power in Canberra (versus 10 per cent disagree).
• 76 per cent of Canberrans agree (56 per cent strong agree) that developers in Canberra are too reckless about adhering to community standards and need stricter controls (versus 9 per cent disagree).

The CFMEU ACT questions how it is possible the government requires Canberrans to license their cars and pets, but you can develop property without a licence.

Last year, Minister of Sustainable Building and Construction Rebecca Vassarotti said the scheme will be announced in the latter half of 2022, but CFMEU ACT said ACT property developers are “vehemently opposed to a licensing scheme”.

CFMEU ACT branch secretary, Zach Smith, said, “I have no doubt Ms Vassarotti has been the target of intense pressure from the powerful developers lobby in Canberra. They want her to back off on licensing, but she should tell them to take a running jump.

“A property licensing regime would send a powerful message to property developers that the free-for-all is over and they now have to respect the standards of the Canberra community.

“Our union has been very supportive of a developer licensing scheme because shonky developers and poor developer behaviour leads to underpayment of workers, substandard conditions, and poor safety on site.

“If you want to drive a car, breed a kitten, or sell a beer in Canberra you’ll need a licence. But if you want to fundamentally alter the city, employ hundreds of contractors, and collect millions of dollars from ordinary people, you don’t have to worry. That’s a crazy situation and it should end this year.”

In response to the poll’s findings, Ms Vassarotti said she will “continue to meet with key stakeholders as we continue to develop this reform”.

“This morning’s poll by CFMEU ACT has reaffirmed how strongly Canberrans feel about an ACT property developer licensing regime, which is why the ACT Government committed to implementing greater accountability measures for property developers in the Parliamentary and Governing Agreement,” she said.

“It is critical that Canberrans have the confidence in developers and their developments, as well ensuring that property developers are held accountable for the work they do and the decisions they make.

“As one of the first Australian jurisdictions to commit to this reform, it is important for us to get this right. We are exploring several regulatory options to deliver greater accountability measures for property developers, including a licensing scheme,” Ms Vassarotti said.

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