Commencement of part 3 of the property developers Act 2024 

From 10 March 2025, Part 3 of the Property Developers Act 2024 came into effect. This section introduces reforms regarding Rating Entities, which assess the operational and financial capacity of property developers undertaking residential projects. 

Key features of part 3: 

• Approval process:
  Rating entities must hold an Australian financial services licence and meet strict operational and financial criteria to gain approval from the director-general. Approvals are valid for up to five years and may include specific conditions. 

• Variation and revocation:
  Approvals can be varied or revoked upon request or at the director-general’s initiative. Grounds for revocation include non-compliance, provision of false information, or failure to meet licensing requirements. All actions are documented as notifiable instruments. 

This reform aims to enhance accountability and transparency within the ACT’s property development sector, aligning with broader licensing and regulatory measures under the Act. 

If you have any questions in relation to how this might apply to you, contact the Advisory Team on 6175 5900 or by email: legal@mba.org.au