NT Fidelity Fund Cover: 1 Year for Non-Structural Defects and 6 Years for Structural

Under the NT Government’s Fidelity fund certificate guidance, figures checked 1 October 2026, a fidelity fund certificate can cover listed rectification costs for non-structural defects in the first year after completion and structural defects for six years after completion. The six-year period is the longer structural-defect window, but both forms of cover depend on eligible residential work and a listed builder event.

What is the difference between the two rectification periods?

The NT Government describes the periods this way:

Defect type	Rectification period	What the certificate may cover
Non-structural defects	First year after completion	Listed costs of rectifying the defect
Structural defects	Six years after completion	Listed costs of rectifying the defect

Both periods run from completion. They are defect rectification periods, not a substitute for the separate claim-lodgement deadline.

What has to happen to the builder before cover responds?

A fidelity fund certificate is event-based. The NT Government says cover may respond to listed costs if the builder:

• becomes bankrupt;
• dies;
• disappears; or
• has their registration cancelled by the Building Practitioners Board.

If the builder has not experienced one of the listed trigger events, the NT Government says a fidelity fund claim cannot be made. A defect by itself does not remove the need to check the builder event.

Owner-builder cover has an additional restriction: it is available only after the property is sold or transferred and one of these builder events occurs.

Can the fund cover the cost of moving to another builder?

Yes, costs associated with transitioning to a new builder to complete the work form part of the listed cover. This can include the process of changing builders and completing the outstanding residential work.

The cited guidance does not state a dollar amount for this transition-cost category. It should therefore not be read as a promise to reimburse every quotation or the full cost of completing the project.

Which residential work requires a certificate?

The NT Government lists the following positions:

Building work	Fidelity fund certificate position
New home	Required
Duplex or townhouse	Required
Units in complexes up to three storeys in height, excluding undercroft or underground parking levels	Required
Renovations and extensions to those buildings	Required
Work increasing a property’s residential floor area	Required when the work is worth over $25,000
Bathroom renovation alone	Not required unless completed with other work to a building that requires a certificate
Garden sheds and fences	Not required
Retaining wall for a residential building structure	Required
Separate retaining wall that does not support a residential building	Not required
Bed and breakfast work	Required unless the building is classified as Class 1b; contact the building certifier about the requirements
Prefabricated house	Not required

The value threshold is not a blanket test for every type of work. New homes, duplexes, townhouses and qualifying complex units are separately identified as work requiring a certificate.

Which projects are outside the residential cover?

Fidelity fund certificates are issued for residential building work only. The NT Government expressly excludes:

• commercial buildings;
• transportable buildings; and
• government contracts.

A project falling into one of these categories is outside this residential cover even if defective work is later identified.

What must builders and owner-builders do?

Registered builders must apply to Fidelity Fund NT for an annual level of cover and show the financial capability and experience needed for the level they seek.

For each client job involving prescribed residential building work, the builder must obtain a fidelity fund certificate. For prescribed work, the certificate must be in place:

• before obtaining the building permit; and
• before demanding payment from the owner.

Owner-builders must also have a fidelity fund certificate to cover future owners for building defects. That protection becomes available only after the property is sold or transferred and the relevant builder event occurs.

How does an owner make a claim without missing the deadline?

The NT Government says a claim may be made within 90 days of either becoming aware of a defect or a trigger event occurring. If the applicable starting point is unclear, contact Fidelity Fund NT rather than assuming the deadline has more time.

A practical claim check should cover:

1. The certificate: Confirm its issue date and whether the job was prescribed residential building work.
2. The project: Check the completion date and whether the building falls within the residential cover.
3. The builder event: Check whether bankruptcy, death, disappearance or cancellation of registration occurred.
4. The cost category: Distinguish defect rectification costs from the cost of transitioning to another builder.
5. The claim date: Contact the fund within the stated 90-day window.

The Commissioner for Residential Building Disputes can also be contacted to mediate or make decisions about rectifying or completing work on a property.

Fidelity Fund NT manages the fidelity fund and is currently the only provider in the Northern Territory. Its contact details listed by the NT Government are:

• Phone: (08) 8922 9680
• Email: info@fidelityfundnt.com.au

Which 2026 changes affect a certificate?

The legislative reforms commenced on 30 March 2026. Among the changes, the minimum prescribed value that triggers the need for a certificate increased from $12,000 to $25,000.

The NT Government says the amendments apply only to fidelity fund certificates issued after 30 March 2026. They are not retrospective, so an earlier certificate should be checked against the terms that applied when it was issued.

The timeframe for cover of non-completion also recognises any approved extension to a building permit.

This is general information, not financial or legal advice. Before acting, check the current NT Government regulator page and the relevant policy’s PDS for the full terms and claim requirements.

Sources

• NT Government — Fidelity fund certificate

FAQ

Does the six-year period apply to every defect?

No. The NT Government separates the periods: non-structural defects fall within the first year after completion, while structural defects fall within six years after completion. A listed builder event and the other eligibility requirements must also apply.

Can I make a claim if my builder has not experienced a listed trigger event?

No. The NT Government says a fidelity fund claim cannot be made unless the builder has died, disappeared, become insolvent or been deregistered. A defect alone does not satisfy that requirement.

Does the certificate cover the cost of changing builders?

Costs associated with transitioning to a new builder to complete the work are a listed cover category. The cited guidance does not state a dollar amount for that category, so the certificate terms and the circumstances of the job must be checked.

Are commercial, transportable and government works included?

No. The certificate is for residential building work only and expressly excludes commercial buildings, transportable buildings and government contracts.

How long do I have to make a claim?

The NT Government allows claims within 90 days of either becoming aware of a defect or a trigger event occurring. Contact Fidelity Fund NT promptly if it is unclear which date starts the claim period.