From 1 October 2026, anyone who applies for development approval, arranges the building work, or sells off the plan on an ACT residential project of three or more dwellings needs a property developer licence under the Property Developers Act 2024. Single houses and dual occupancies sit outside the scheme, so most Canberra homeowners will never need one, but a triplex or a row of three townhouses on an RZ1 block now crosses the line.
I'm Jeff Rentoule. I have been in the building industry for 19 years and running Rentoule Projects for the last five. Since the Missing Middle reforms commenced on 1 July, a growing share of my enquiries are from owners asking whether their block can take two homes or three. Until this week the answer to that question was mostly about design, lease variation charges and money. From 1 October it also decides whether you need a licence before you can lodge a development application. This article sets out what the scheme covers, who is exempt, and where it meets the RZ1 and RZ2 projects that MPA04 now allows.
A note before you read on. I'm a builder, not a lawyer. Everything below comes from the ACT Government's published guidance and the legislation, with links so you can check it. If your project is close to the three-dwelling line or involves a company or trust structure, get legal advice on your specific situation.
What triggers the licence requirement
The ACT Government's guidance is clear on the threshold. From 1 October 2026, a licence is required if you are the person or entity doing any of the following on a residential building project of three or more dwellings (ACT Planning, Property Developer Licensing Scheme):
- Applying for development approval. The proponent, or a related entity of the proponent, must hold the licence when the DA is lodged.
- Arranging the building work. When the landowner applies for building approval, a building commencement notice or a certificate of occupancy, they must show that each person arranging the building work holds a licence.
- Selling or advertising off the plan. The landowner must be licensed, and off-the-plan advertising must show the licence number (Master Builders ACT).
The scheme applies to what the Act calls a regulated residential building: a Class 1 or Class 2 building, or a building with a Class 2 part, built as part of a project to construct three or more dwellings. Master Builders ACT notes this can include detached houses on separately titled blocks if they are part of the same development project. Three separate houses on three new titles can still count as one regulated project.
Once building approval is issued, a licence has to stay attached to the project until the certificate of occupancy. The ACT Government says a certificate of occupancy must not be issued unless the licensing condition in new section 28AA of the Building Act 2004 is met. Different people can hold the licence at different stages. The Government's own example is a landowner who obtains a DA and sells the land with the approval, after which the buyer handles the off-the-plan sales, building approval and completion.
Who does not need one
The exemptions matter more to most of my clients than the rules themselves.
- Single dwellings and dual occupancies. The ACT Government states the Act "does not apply to single dwellings and dual occupancies" (ACT Planning). A knockdown rebuild, an extension, a renovation, a duplex or a house with a secondary residence stays outside the scheme.
- Consultants, certifiers and financiers. The Property Developers Regulation 2025 excludes people who are involved only as a professional adviser, building certifier or assessor, or finance provider (Property Developers Regulation 2025, section 8).
- Subcontractors and employees. An electrician working for the principal builder, or an employee of a developer, does not need a licence for that role.
- Off-the-plan buyers. Including a buyer who later sells their interest under the contract.
- Licensed owner-builders. The same regulation excludes a person licensed as an owner-builder under the Construction Occupations (Licensing) Act 2004. Owner-builder licences come with their own limits, so confirm that route is open for a multi-dwelling project before you rely on it.
Builders sit in a middle position. Master Builders ACT says a principal builder does not automatically need a licence because it is building for a separate licensed developer. A builder may need one if it is also the DA proponent, the off-the-plan seller, or the person arranging and controlling the development.
Where this meets the Missing Middle reforms
MPA04 now allows multi-unit housing on RZ1 blocks up to two storeys plus attic, and up to three storeys plus attic on RZ2. In our guide to RZ1 design options I walked through six layouts, from a simple duplex to a row of three or four townhouses. The licensing scheme draws a hard line through the middle of that list.
Take an owner in Curtin with a large corner block who is choosing between two designs.
- Two dwellings (duplex or main house plus secondary residence). No developer licence needed. The owner can lodge the DA personally, engage a builder on a standard contract and keep or sell one dwelling later.
- Three townhouses. The owner, or a related entity, needs a property developer licence before lodging the DA. That means meeting the suitability test, showing operational and financial capacity, and supplying a rating report. A licence also has to stay attached from building approval through to certificate of occupancy.
The third dwelling may still be worth it. On the right block the extra home can carry a large share of the land cost. But it changes the project from an owner's build into a regulated development, and that decision belongs at the start of design, not after you have paid a designer for a three-unit scheme.
It also affects timing. To keep the 50 per cent lease variation charge reduction, the section 342 deferral must be approved and a certificate of occupancy issued by 31 December 2030. Our MPA04 article covers that clock in detail. A licence application is one more step before the DA, and I have not seen published processing times, so allow for it.
What getting a licence involves
Applications go to the Construction Occupations Registrar. Under section 12 of the Act, the Registrar must be satisfied the applicant is a suitable person with the operational and financial capacity to undertake residential development (Master Builders ACT). The Registrar can consider:
- the applicant's character and compliance history
- competency requirements
- operational and financial capacity
- associated entities and key people
Applicants also need a rating report from an approved rating entity. Licensed developers go on a public register, must follow a code of practice, and can be issued rectification orders. The Registrar has held powers to issue rectification orders and stop work orders since 11 July 2024 for developments approved on or after that date.
I have not listed application fees here because they are set by determination and can change. Check the current figure with Access Canberra before you budget for it.
The changes introduced on 24 September
The week before licensing became mandatory, the ACT Government introduced a Bill to amend the Property Developers Act 2024 (ACT Government via Mirage News, 24 September 2026). Two parts are relevant here.
- Latent defect insurance. Individual directors would not face personal liability for serious defects if the developer takes out a compliant latent defect insurance policy on behalf of future owners.
- A single licence per project. The Government says this will simplify arrangements and assist Missing Middle developments, where several parties are often involved.
As at the time of writing, this is a Bill before the Legislative Assembly, not law. I will update this article when it passes or changes.
What I would do now if you own an RZ1 or RZ2 block
- Decide on the dwelling count first. Two or three is now a licensing question as well as a design and cost question.
- If it is three or more, settle who holds the licence before design starts. That could be you, an entity you control, or a development partner who is already licensed.
- Get your accountant and lawyer involved early. The entity that holds the licence affects tax, finance and liability, and changing it mid-project is messy.
- Check any developer you partner with. The public register lets you confirm a licence before you sign anything. Our guide to choosing a builder covers the wider checks I would run on anyone you hand a project to.
- Plan for the time. Licence application, rating report, DA, building approval and construction all have to fit inside the 2030 LVC deadline if you want the reduction.
Frequently asked questions
Do I need a property developer licence to build a dual occupancy in Canberra?
No. The ACT Government states the Property Developers Act 2024 does not apply to single dwellings and dual occupancies. A duplex, or a main house with a secondary residence, sits outside the licensing scheme. You still need the usual approvals, including a DA where required, building approval and a licensed builder.
Does my builder need the developer licence?
Not automatically. Master Builders ACT says a principal builder carrying out work for a separate licensed developer does not need its own developer licence for that reason alone. A builder needs one if it is also the DA proponent, the off-the-plan seller, or the party arranging and controlling the development.
Do three houses on separate titles count?
They can. A regulated residential building includes Class 1 houses built as part of a project to construct three or more dwellings, and Master Builders ACT notes this can include detached dwellings on separately titled blocks in the same project. If you are subdividing into three lots and building on all of them, assume the scheme applies and get advice.
Can I sell townhouses off the plan without a licence?
Not on a project of three or more dwellings. From 1 October 2026 the landowner selling or advertising regulated dwellings off the plan must be licensed, and the advertising must display the licence number. The requirement applies until the certificate of occupancy for Class 1 buildings, or until the units plan is registered for other buildings.
When do the 24 September amendments apply?
Not yet. The amendments covering latent defect insurance and a single licence per project were introduced to the Legislative Assembly on 24 September 2026. As at the time of writing they are a Bill, not law. Mandatory licensing under the existing Act started on 1 October 2026 regardless.
Talk it through before you design
The licensing scheme is another reason to work out the dwelling count, the ownership structure and the budget before anyone draws a plan. When an RZ1 or RZ2 enquiry comes in, one of my first questions is how many homes you want on the block. If the answer is three or more, licensing becomes part of that first conversation alongside the LVC, the design options and the build cost. Our dual occupancy page covers how a two-dwelling project runs with us from start to finish.
If you own a block in Canberra and want a straight read on whether two or three homes makes sense, get in touch. Coffee's on me.