How Victoria’s new building legislation will impact businesses

How Victoria’s new building legislation will impact businesses

The new Building Legislation Amendment (Buyer Protections) Bill 2025 proposed by the Allan Government could have a BIG impact on construction businesses in Victoria.

Under the changes, the incumbent Victorian Building Authority (VBA) would be superseded by a new Building and Plumbing Commission with greater regulatory powers once the Bill is passed.

Master Builders Victoria and the Housing Industry Association have issued a joint rejection notice about the new laws, claiming that they are “unfair and unworkable”.

There is a bit to unpack, so here is our breakdown of the changes, what they mean for the new home sector and how we can support if the changes get through parliament.

The VBA’s updated powers

While the new legislation remains under deliberation, the VBA has been given increased controls with the potential to create serious consequences for builders, including:

• Administering a new statutory insurance scheme, making it the sole provider of domestic building insurance and able to appoint alternative builders if needed
• Issuing rectification orders targeting builders and developers for incomplete, non-compliant or defective buildings up to 10 years after completion
• Taking over administration of domestic building disputes from Consumer Affairs Victoria, including the conciliation services currently managed by Domestic Building Dispute Resolution Victoria

In broad strokes, these changes are a conduit between the VBA and an entirely new authority which would be introduced through the proposed legislation.

Breaking down the Bill

The new laws are pitched as a consumer protection campaign centred around creating ‘buyer peace of mind’, but also have the power to create negative knock-on effects for builders and developers.

There are three core aspects to the Bill that would bring with them significant regulatory and financial changes to the industry, including:

Stricter oversight and accountability – Under the proposed legislation, a new Building and Plumbing Commission would be formed with increased powers across regulation, insurance and dispute resolution. The Commission will be able to:

• Withhold occupancy permits or block property sales until defects are resolved
• Direct builders to fix faults up to 10 years after occupancy

Increased financial obligations – Another major change is the introduction of a two per cent building bond. This would be held by the Commission for two-years following construction to protect property buyers from unexpected defect costs.

Changes to builder insurances – Also being tabled is a shift to a ‘first resort’ insurance model that means rectification claims can now be made directly against the builder that are not just in cases of insolvency. This has the potential to drive up the volume and cost of claims.

Regulation is tightening, your systems should too

Whether or not these reforms are passed in full, the message from the Victorian Government is clear – compliance and delivery expectations are headed in one direction.

But, increased regulation does not have to equal increased administration.

With our AI-powered site operations platform, builders can take control of their compliance obligations, reduce risk exposure and protect their operations from costly delays and penalties.

Below are some of the powerful digital solutions we offer builders now that will hold them in good stead as new changes are introduced:

AI Voice Defects – Save up to five minutes for every defect logged by simply snapping a photo, marking it up and adding a voice note with the details. AI will handle the rest including suggesting a contractor to come rectify the issue.

Permits & Insurances – Digitising your permits process allows you to track new, in progress, or past permits - giving you better visibility of your workers qualifications, while our Insurances module minimises risk by ensuring all certifications are valid and comply with your site's regulations.

Sign-Ons & Inductions – Track the number of workers and visitors on-site in real-time with the daily sign on tool, centralise important worker documentation and induct staff swiftly and in one place.

Scheduling – Get better visibility and manage changing timelines across different phases of your projects, as well as ensure your team is up-to-date with their compliance requirements before building commences.

Drawings – Eliminate hours of manual document management and automatically distribute updated construction drawings to workers to prevent costly reworks on-site.

If you are ready to explore how we can help your business adapt to Victoria’s (and the country’s) ever-evolving regulatory landscape, book a demo today.

Together, we can build safer, smarter and with less risk to your company.