The Complete Guide to Becoming an Owner-Builder in Western Australia

Building a home is one of the most significant financial and personal investments a person can make. In Western Australia, individuals have the option to become an owner-builder, which means they take on the responsibility of managing the construction of their home or major renovations without hiring a registered builder.

While this can offer significant cost savings and greater control over the project, it also comes with strict legal requirements, financial implications, and project management challenges. Before deciding to take this route, it’s important to understand the eligibility criteria, approval process, obligations, risks, and benefits.

This guide provides a comprehensive overview of what it means to be an owner-builder in Western Australia, along with a step-by-step breakdown of the process, key responsibilities, and financial considerations.

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What is an Owner-Builder?

An owner-builder is an individual who manages and oversees a construction project on their own property without engaging a registered builder. This includes new home construction, major renovations, and extensions.

In Western Australia, if the total value of work exceeds $20,000, the owner must apply for an Owner-Builder Permit from the WA Building Commission.

Being an owner-builder does not mean you can do all the work yourself. Certain trades, such as plumbing and electrical work, must still be carried out by licensed professionals. As the owner-builder, you act as the project manager, ensuring compliance with the Building Code of Australia, relevant Australian Standards, and local council regulations.

It is important to note that owner-builders cannot construct multi-residential developments (apartments, townhouses) or commercial buildings larger than 500m². Additionally, this pathway is meant for personal residential use, not speculative building for profit.

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Who is Eligible to be an Owner-Builder in WA?

The Western Australian Government imposes strict eligibility criteria to ensure that only those capable of managing a construction project are granted an owner-builder permit.

Eligibility Criteria

1. Ownership of the Land
   You must either own the land outright or be in the process of purchasing it (e.g., under contract). The permit will not be issued to companies, trusts, or partnerships—only individuals are eligible.
2. Intended Use of the Building
   The property must be intended for your own residential use, meaning you must either live in it or use it yourself after completion. Owner-builders are not permitted to construct homes for immediate sale or development purposes.
3. Training and Experience
   To qualify for an Owner-Builder Permit, you must demonstrate sufficient knowledge of the building process. This is usually achieved by completing an approved Owner-Builder training course, which provides fundamental knowledge about building regulations, construction management, and safety.If you are already a registered builder, engineer, architect, or building surveyor, you may be exempt from this requirement.
4. Permit Frequency Restriction
   You can only obtain one Owner-Builder Permit every six years, preventing individuals from using this system as a loophole for unlicensed building work. Exceptions may be granted in special circumstances, such as hardship cases or if the additional work is on the same property.
5. Insurance and Legal Compliance
   Owner-builders must declare that they will adhere to all legal responsibilities, including obtaining the necessary approvals and permits. If the property is sold within seven years, the owner-builder must take out Home Indemnity Insurance to protect the new owners in case of defects.

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How to Apply for an Owner-Builder Permit in WA

The process of becoming an owner-builder in Western Australia involves obtaining two approvals:

1. Owner-Builder Approval from the WA Building Commission
2. A Building Permit from the local council

Step 1: Applying for Owner-Builder Approval

To apply, you must submit an application to the WA Building Commission. The application must include:

• Proof of identity and land ownership (title deed, contract of sale, or lease agreement)
• Completion certificate for an approved Owner-Builder training course (if applicable)
• A declaration confirming that the construction will comply with all relevant building laws and safety regulations

The application fee is $212 for residential projects and $467 for small commercial projects. Once submitted, the application typically takes four to six weeks to process.

Step 2: Applying for a Building Permit

Once the Owner-Builder Approval is granted, you must apply for a Building Permit from your local council before commencing any work.

This requires submitting detailed building plans, engineering reports, and energy efficiency compliance documents. Building permits usually cost 0.19% of the total construction value, plus a state government levy of 0.137%.

Building cannot legally commence until the permit is issued.

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Legal Responsibilities and Compliance Requirements

Owner-builders must comply with all building laws and regulations applicable in Western Australia.

Key Responsibilities

• Ensuring compliance with the Building Code of Australia (BCA)
• Supervising the construction process and coordinating licensed trades
• Obtaining all required inspections and approvals
• Following occupational health and safety laws to maintain a safe worksite

As the registered builder for the project, you are responsible for the quality and structural integrity of the construction, and you remain legally liable for any defects for up to six years.

Home Indemnity Insurance (HII) Requirements

If you sell the property within seven years of completing the work, you must purchase Home Indemnity Insurance (HII) before selling. This insurance protects future homeowners in case of structural defects that arise after the sale.

Failure to comply with this requirement can result in fines of up to $10,000.

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Financial Considerations for Owner-Builders

Owner-building can be cost-effective, but it is crucial to be aware of the upfront costs, ongoing expenses, and financial risks.

Expected Costs

1. Owner-Builder Course Fee: $150 – $300
2. Owner-Builder Application Fee: $212
3. Building Permit Fees: ~0.19% of project value
4. Construction Insurance: $1,500 – $5,000
5. Public Liability Insurance: Recommended ($1,000+)
6. Home Indemnity Insurance (if selling within 7 years): $1,000 – $2,000

Potential Savings

By eliminating the need for a registered builder, owner-builders can save between 15-30% of total construction costs. On a $400,000 home, this equates to potential savings of $60,000 – $120,000.

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Is Owner-Building Right for You?

Becoming an owner-builder can be highly rewarding, but it requires dedication, time, and strong project management skills. While the potential cost savings and creative control are significant, owner-builders must also navigate regulatory requirements, insurance obligations, and construction challenges.

For those willing to take on the responsibility, owner-building can be a cost-effective and fulfilling way to build a home. However, for those unfamiliar with construction management, hiring a registered builder may be the safer and more practical option.

If you are considering this path, take the time to research thoroughly, complete the required training, and consult with industry professionals to ensure a successful project.