Developers could be banned from working in the ACT if they breach tough new regulations under a scheme being considered by the ACT government.
A negative licensing scheme for property developers is one of the options being considered in the territory, which would blacklist developers only when they are found to have breached new rules.
The ACT government has been committed to introducing a property developer licensing for more than three years, but it is still tossing up how the scheme would work.
The regulation scheme will be designed to ensure property developers behave ethically, can deliver projects as promised and are responsible for any building quality issues.
A discussion paper showed the government wants to ensure developers can be held responsible for fixing building quality issues, but would consider different registration schemes.
The government is considering both positive licensing - requiring any property developer to hold a licence - and a scheme where people are banned only after they break the rules.
"Under negative licensing schemes, the government retains the authority to withdraw the right to practice if that person subsequently fails to meet minimum capability and professional standards of work and conduct," the discussion paper said.
The paper also revealed the government would consider whether regulating development activity was more effective than regulating the people or businesses undertaking the developments.
The government has put forward seven regulatory schemes for consideration, including a licensing scheme.
A disclosure scheme for property developers and a requirement for projects to operate with trust accounts could also be introduced with new and amended laws.
"A well-designed licensing scheme may provide some assurance of minimum service equality to consumers and the broader community," the discussion paper said.
The government had also put forward proposals to require developers to demonstrate they have the financial capability to deliver projects and have the operational ability to complete the work.
However, the discussion paper notes the government will need to define what is a property developer and what is development activity in legislation.
"Any regulatory scheme developed will require a robust definition to be effective," the discussion paper said.
A move to introduce a negative licensing scheme would likely anger the powerful Construction, Forestry, Mining and Energy Union, which has released its own preferred licensing framework.
The union has said a licence should be a requirement for anyone to submit a planning application in the ACT or carry out works under an approved application.
The government also said in its discussion paper it would consider interrelated licensing schemes operated in other states.
Consultation on the government's scheme will open on January 30.
The government is expected to introduce legislation to enact a scheme by the end of 2023.
Sustainable Building and Construction Minister Rebecca Vassarotti told the Legislative Assembly in July 2021 she hoped to introduce the laws in the second half of 2022.
The governing agreement struck between Labor and the Greens after the 2020 election includes a commitment to introduce an "Australia-first licensing scheme for property developers", including a fit-and-proper person test and rigorously enforced penalties.
The licensing scheme has been on the agenda for more than three years, when then-building minister Gordon Ramsay confirmed the government remained committed to a scheme.
The ACT Labor party conference supported a resolution in support of tough developer regulations in July 2019.
The ACT branch of the Construction, Forestry, Mining and Energy Union has been calling on the government to adopt a developer licensing scheme since 2019.
A union-commissioned poll of 985 people in the ACT found 77 per cent of Canberrans wanted the government to introduce a licence that required developers to demonstrate financial capacity to complete any proposed developments and a commitment to ethical behaviour.
The automated poll was conducted by RedBridge and had a margin of error of 4.4 per cent, the union said.
Labor backbencher Michael Pettersson in November had threatened to introduce his own bill for a property developer licensing scheme if Ms Vassarotti did not act fast enough.
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