RAB Act (NSW) | Chalkline

The RAB Act is the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW), giving the Building Commission NSW significant enforcement powers over Class 2, 3, and 9c apartment buildings. The Act was passed in response to high-profile residential apartment defects (Opal Tower, Mascot Towers) to give the regulator direct enforcement tools rather than relying on the EP&A Act framework. The RAB Act empowers the Building Commission to issue stop work orders, building work rectification orders, serious defect notices, and prohibition orders preventing OC issue until specified work is done. The penalty regime is steep: corporations face up to $330,000 plus $33,000 per day for non-compliance. Verified per RAB Act 2020 (NSW) (2026-05-23).

Scope: which buildings the RAB Act covers:

Class	Description
Class 2	Multi-unit residential apartments (typical strata apartment building)
Class 3	Boarding house, hostel, residential institution
Class 9c	Aged care building
NOT Class 1 (residential houses)	RAB Act does not apply to standard single dwellings or dual occupancies
NOT Class 4 (mixed-use single dwelling within commercial)	Not covered

So if you’re a residential builder doing Class 1 work only, the RAB Act doesn’t apply to your projects. It’s a Class 2+ regime.

Building Commission powers under the RAB Act:

Power	Section	Trigger
Stop work order	s.29	Work could cause significant harm or loss to public or occupiers
Building work rectification order	s.33	Serious defects identified in completed or near-completed work
Prohibition order	s.36	Prohibit issue of OC until specified work is done
Serious defect notice	s.37	Notice issued to developer/builder requiring rectification
Information notice	s.45	Require records, plans, documents
Investigative powers	s.46	Entry to premises, inspection, photography, sampling

Stop work orders under RAB Act s.29:

The Building Commission can issue a stop work order if it has reasonable grounds to believe that:

The construction work is being or has been carried out contrary to a written direction.
The work could cause significant harm or loss to the public or to occupiers of the building.

The order can apply to:

The whole building site or part of it.
Specific elements of the work.
All work or specified work.

The order remains in force for 12 months unless revoked by the Secretary of the Department.

Building Work Rectification Order under s.33:

When the Commission identifies a serious defect in a Class 2/3/9c building, it can issue a Building Work Rectification Order requiring the developer to remediate the defect. The order specifies:

The nature of the defect.
The rectification work required.
Who is responsible (developer, head contractor, or specified party).
The compliance deadline.

The order is binding; failure to comply triggers the penalty regime.

Prohibition on OC issue (s.36):

The Commission can prohibit the certifier from issuing an Occupation Certificate until the specified work is completed. This is the most commercially material RAB Act power: the developer cannot hand over the building to purchasers, can’t draw the final loan payment, and can’t start the warranty clock until the OC issues.

Penalty regime:

Non-compliance with a RAB Act order:

Party	Penalty
Corporation	Up to 3,000 penalty units ($330,000 at $110/PU) plus 300 PU per day ($33,000) of continuing non-compliance
Individual	Up to 1,000 PU ($110,000) plus 100 PU per day ($11,000) of continuing non-compliance
Repeat offender	Higher penalty bands

The “per day” component means a builder ignoring an order for a month faces ~$1 million in penalties.

The “serious defect” definition (s.3):

A “serious defect” under the RAB Act is a defect in:

A major element of the building (structural, fire safety, weatherproofing).
A defect in a building product or method that causes or is likely to cause:
- Risk to safety of the public or occupiers.
- Damage to property.
- Inability to use the building or part of it.

The definition is broad; the Commission interprets it widely.

RAB Act vs DBP Act vs Home Building Act:

Act	Application	Powers
RAB Act 2020 (this)	Class 2, 3, 9c apartment buildings	Building Commission enforcement
DBP Act 2020	Design and building practitioners (regulated buildings)	Practitioner registration + compliance declarations
Home Building Act 1989	Class 1 residential dwellings	Statutory warranty + HBCF

The three Acts together form NSW’s residential building regulation framework. The RAB Act is the apartment-specific enforcement layer; the DBP Act is the practitioner accountability layer; HBA is the single-dwelling layer.

Recent enforcement examples (NSW Government public register):

Example	Date
Hayat Constructions Pty Ltd	Stop work order, 21 May 2025
Structural Master Construction Pty Ltd	Stop work order, 12 March 2025
JRK Construction Group Pty Ltd	Stop work order, 20 December 2024
PSR Crownview Investment Pty Ltd (Wollongong)	Stop work order under s.29, 17 February 2026

(Public register maintained at the NSW Government website.)

Builder takeaway:

For Class 1 residential builders, the RAB Act doesn’t directly apply, but it’s a useful reference for understanding the apartment-defect environment.
For Class 2+ developers and head contractors, the RAB Act is the dominant enforcement statute.
Engage a NSW construction lawyer if any RAB Act order lands; the appeal window is tight (30 days to Land and Environment Court).
Don’t rely on the consent authority’s framework alone; the Building Commission can intervene at any point under the RAB Act.

Also known as: Residential Apartment Buildings Act; NSW RAB Act 2020; Class 2 enforcement Act; Apartment Defect Act (informal).

Category: Regulators.

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