Parliament has passed the Building Amendment Bill at first reading, with the Greens casting the only votes against.
The legislation replaces joint and several liability for building defects with a proportionate model, under which each party in the construction chain would be liable only for faults in their own work.
The bill also requires mandatory home warranties for most new residential builds and creates a 10-working-day consent pathway for homes incorporating sustainability features such as solar panels.
The government has said the changes will make building homes and buildings easier and faster, while improving fairness and consistency. The bill now moves to select committee for detailed consideration.