South Australia’s discussion paper on off the plan land sales landed on 7 October. Read against what the government announced in September, the detail has moved, and two questions that matter to builders are not answered at all.
South Australia is moving to regulate off the plan residential land sales. The window to shape how it does that closes on Friday 30 October.
The discussion paper released by Consumer and Business Services on 7 October sets out three proposals. Vendors would need consent or approval before using a sunset clause to end a contract. They would have to disclose project risks before signing and keep buyers updated. Buyers would gain a right to walk away if the development materially changes.
For builders, the headline matters less than the detail. Some of that detail has shifted since the government announced this package of reforms on 1 September. Some of it is missing.
Why is South Australia regulating off the plan land sales now?
South Australia has no dedicated legislative framework for off the plan residential land sales. Sunset clauses are not regulated at all.
The paper says the existing protections were designed for land that already exists. The vendor’s statement describes the land as it is today, not the risks facing a development that has not been finished. The cooling off period ends within days of signing, long before most off the plan risks show up.
The government points to recent rescissions of off the plan contracts across South Australian developments. We covered the Gawler East case in July, when a developer walked away from signed land contracts at Gawler East.
The paper says South Australia is out of step with other jurisdictions that have legislated. Its own comparison shows the ACT, New South Wales, Queensland and Victoria all require buyer consent or a Supreme Court order before a vendor can rescind under a sunset clause. The Northern Territory, Tasmania and Western Australia have no dedicated regime.
What does the discussion paper actually propose?
The first proposal is a lock on sunset clauses. A vendor would need the purchaser’s consent, or approval from a court or tribunal, before rescinding. The court or tribunal would weigh the vendor’s conduct, the reasons for the delay and any rise in market value. The Commissioner for Consumer Affairs would be notified of applications and could step in.
The second is a disclosure regime. Vendors would set out planning, environmental and infrastructure approvals, financing dependencies, staging, utility servicing, third party approvals and other material risks. Options include an ongoing duty to update buyers, backed by enforcement powers and penalties.
The third is a statutory right to rescind when a vendor makes a material change. That covers changes to lot boundaries, design or specifications, common property, by laws, and new easements, covenants or restrictions that adversely affect the property.
Under the model, the vendor notifies within a prescribed period such as 21 days. The purchaser then has another 21 days to withdraw and receive a full refund of deposits, plus interest and other payments.
What is a sunset clause in an off the plan land contract?
A sunset clause sets a date by which a specified event, usually deposit of the plan and issue of a separate title, must occur. If it has not happened by that date, the clause allows one or both parties to rescind. The South Australian Government says these clauses can protect buyers from being bound to a stalled project, but can also let a vendor end contracts when a project is delayed, redesigned or becomes less profitable, including where land values have risen.
What changed between September and October?
On 1 September, CBS announced the reforms in a media release. Read side by side with the October paper, several details have moved.
| 1 September release | 7 October discussion paper | |
|---|---|---|
| Vendor’s notice of a material change | 14 days | A prescribed period such as 21 days |
| Buyer’s window to accept or rescind | 14 days | A further 21 days |
| Who approves a sunset rescission without consent | Supreme Court, if just and equitable | A court or tribunal |
| Buyer’s legal costs | Vendor generally pays, unless consent was unreasonably withheld | Same model, put as a question for submissions |
| Existing contracts | Reforms to apply to contracts still current when they commence | Not addressed |
The paper presents its sunset clause model as options for consultation. These shifts may reflect options being opened up rather than settled reversals.
The last row is the one with the most practical weight. In September, the government said the rules would reach contracts already signed and still running. The October paper does not say either way.
Are builders who buy lots covered?
The paper does not define who counts as a purchaser. It does not mention builders as buyers at all. The paper asks 14 questions. None of them asks about builders.
Where a builder contracts a lot off the plan, the builder is the purchaser under that contract. Whether the new protections extend to that builder depends on scope the paper has not settled.
In New South Wales, the sunset clause provisions apply to off the plan contracts for residential lots, with no exclusion based on who the buyer is. Queensland’s Land Sales Act takes a different line on bulk buyers. It does not apply at all to a sale of six or more proposed lots from the same seller to the same buyer, under one contract or contracts signed within 24 hours.
There is a twist in South Australia’s own history here. When CBS opened consultation on its broader Building and Construction Industry Review in October 2024, it said there were concerns about builders deliberately delaying completion so they could cancel under a sunset clause and resell at a higher price. It also said it was aware of builders indicating they would use a sunset clause to end contracts unless buyers paid more. In that framing, builders sat on the vendor side of the problem.
The 2026 paper talks about vendors and purchasers. A builder in an estate can be either.
The paper asks 14 questions. None of them asks about builders.
What happens to house and land packages?
The paper mentions house and land estates only to explain how lots are released in stages. It does not say how linked house and land contracts would be treated.
Queensland’s position is explicit. Its 2023 sunset clause reforms, which commenced on 22 November 2023, do not apply to sunset clauses in linked or single house and land contracts, or to lots in community titles schemes. Queensland consulted on those reforms between 1 September and 10 October 2025, and the department has not published an outcome.
The South Australian paper does not say whether it will follow Queensland on this point or go the other way.
For builders selling packages, the land contract and the build contract are tied together. When the land contract fails, the build contract has nothing to sit on. The material change right matters here too. A change to lot boundaries, an easement or a covenant can affect a home that has already been designed and priced for that lot.
What happens after 30 October?
CBS will compile the feedback into a report. The government says that report will inform legislative amendments for its consideration.
Submissions can go through YourSAy or by email to [email protected]. The paper says submissions may be made public and may be subject to Freedom of Information laws. Anyone wanting confidentiality is asked to say so and give reasons.
The paper builds its case around households. People who pay a deposit, arrange finance and make decisions about housing, work and schooling well before their lot exists.
The open questions sit around the edges. Who is a purchaser. Whether a package counts. Whether contracts signed today are caught when the law lands. For builders in South Australian estates, those edges are where the exposure sits, and they are still being drawn.
We will report on the bill when it is tabled. In the meantime, our guide to construction contracts in Australia covers how building contracts work and the law that sits around them, and the wider pressures on housing supply sit in our construction industry trends guide.
Frequently asked questions
Submissions close on 30 October 2026. They can be made through the YourSAy consultation page or by email to [email protected]. The paper says submissions may be made public and may be subject to Freedom of Information laws. Anyone wanting confidentiality is asked to say so in the submission and give reasons.
The government’s 1 September 2026 release said the reforms would apply to existing off the plan contracts still current when the amendments commence. The 7 October discussion paper does not address application to existing contracts.
No. The Queensland Department of Justice says the 2023 reforms, which commenced on 22 November 2023, do not apply to sunset clauses in linked or single house and land contracts, or to lots in community titles schemes.
The discussion paper lists alterations to lot boundaries, design or specifications, changes affecting common property or shared facilities, amendments to by laws, and new easements, covenants or restrictions that adversely affect the property. It asks for feedback on what else should be included.
Related articles
- A Developer Walked Away From 101 SA Land Contracts. The Postcode Is Why It Could
- Construction Contracts in Australia
- Building Disputes in Australia
Last updated 19 October 2026. Consultation details current as published by Consumer and Business Services.
General Information Only. This article provides general information about proposed changes to South Australian law and is not legal, financial or professional advice. Proposals described here may change before any legislation is introduced. Readers should seek independent advice about their own circumstances.
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