New legislation in NSW will allow the Commissioner of Fair Trading to stop unsafe building products such as flammable cladding being used.

Better Regulation Minister Matt Kean says breaches could result in fines of more than $1 million for companies.

“London’s Grenfell Tower tragedy was a horrific and stark reminder of the importance of doing all we can to make people in high-rise unit blocks as safe as possible,” he said.

“We intend to be vigorous in using these new laws to make sure building products used in this state are fit for purpose.

“Any shonky operator who thinks they will be able to continue using the wrong product in the wrong place should think twice.”

Under the new laws, builders, building product suppliers, manufacturers and importers will be compelled to produce records so that dangerous products can be tracked and pinpointed.

Failure to provide this information will be a criminal offence, with penalties of up to $11,000.

Once Fair Trading identifies properties where building products have been used inappropriately, local councils will be notified.

Councils will have increased powers to force rectification where there is a safety issue.

Companies that continue to use a banned product will be liable for fines of up to $1.1 million, with fines of up to $220,000 for individuals.