External administration and bankruptcy

Information for home building, trade and specialist licence holders 

Bankruptcy recorded with Australian Financial Security Authority (AFSA)

If you are currently bankrupt you may be eligible for:

• A qualified supervisor certificate in any category of work
• A contractor licence in any category of work except for the categories of building or swimming pool building. Any contractor licence issued will be subject to a condition of 'contracts not to exceed $20,000 (including GST) in value'. More about conditions imposed on a licence.

If you have been discharged from bankruptcy in the last 3 years you may be eligible for:

• A qualified supervisor certificate in any category of work
• A contractor licence in any category of work. Any contractor licence issued may be subject to a condition of:
  •  'contracts not to exceed $20,000 (including GST) in value' or 'contracts not to exceed $20,000 in value, except for subcontract to licensed contractor'. More about conditions imposed on a licence.

If any of the above circumstances apply you would be required to complete and provide additional details form 4 - bankruptcy. 

Building Commission NSW will assess the information against the relevant legislation requirements, which may include a determination if:

• there is no evident risk to the public that you will be unable to complete contracts entered into in the future to do residential building work or specialist work, and
• you took all reasonable steps to avoid the bankruptcy, and
• you have put in place sufficient risk mitigation measures to avoid a future bankruptcy.

For more information about bankruptcy, go to the Australian Financial Security Authority website.

External administration of a company registered with Australian Securities and Investments Commission (ASIC)

If you:

•  are currently a director of a company under external administration, or
• have been a director of a company that entered external administration within 10 years before the application date, or
• stopped being a director of a company, and that company went into external administration within 12 months and within 10 years of the application date, 

you may be eligible for a contractor licence or qualified supervisor certificate. 

Any contractor licence issued may be subject to the condition of:

• 'contracts not to exceed $20,000 in value' (where you are a director of a company currently subject to a winding up order), or
• 'contracts not to exceed $20,000 in value, except for subcontract to licensed contractor'.

If any of the above circumstances apply you would be required to provide additional details form 5 – External Administration of a Company. 

Building Commission NSW will assess the information against the relevant legislation requirements, which may include a determination if:

• there is no evident risk to the public that you will be unable to complete contracts entered into in the future to do residential building work or specialist work, and
•  you took all reasonable steps to avoid liquidation or appointment of a controller or administrator, and
• you have put in place sufficient risk mitigation measures to avoid a future liquidation or the appointment of a controller or administrator.

Submitting your application

Please complete any required additional details forms and supply all supporting documents. Not providing detailed information can impact the outcome of your application, as we won't be able to assess the information against the relevant legislation.

Submit all forms and supporting documents relevant to the work category or registration class you are applying for via Service NSW.

Please note that submitting an application does not guarantee its approval.

Information for building or design practitioners or professional engineers

A person applying for registration as a practitioner or engineer under the Design and Building Practitioner scheme must be refused or your registration may be cancelled (including if the person is a body corporate or a director of a body corporate) for the following reasons:

• the person is an undischarged bankrupt
• the Secretary may form an opinion that a body corporate is not a suitable person, if the body corporate becomes the subject of a winding up order or having a controller or administrator appointed.

For more information about bankruptcy go to the Australian Financial Security Authority

Registered practitioners must notify the Secretary in writing within 7 days after becoming aware of the following events:

• the practitioner (including if the practitioner is a registered body corporate or a director of a body corporate) becoming bankrupt or making a composition, arrangement or assignment for the benefit of creditors,
• if a practitioner is a registered body corporate:
  • becoming the subject of a winding up order or having a controller or administrator appointed,
  • the appointment of a person as a director or
  • a person concerned in the management of the body corporate, or 
  • a person ceasing to be a director, or 
  • a person concerned in the management of the body corporate.