The Building Legislation Amendment (Buyer Protections) Bill 2025: Key Legislative and Regulatory Changes
Recently, the Allan Labor Government announced the introduction of the Building Legislation Amendment (Buyer Protections) Bill 2025 (‘the Bill’). The Bill makes significant and sizeable changes to the legislative landscape, focusing on introducing more robust consumer protections, creating a more effective regulatory framework and enhancing accountability in the building industry. At large, it is hoped that the Bill emphasises the Government’s commitment to building more homes with greater consumer confidence.
A New Integrated Building Watchdog
A key feature of the Bill is the establishment of a new integrated building watchdog that will supersede the Victorian Building Authority (VBA). This new body is the Building and Plumbing Commission (‘the Commission’). The Commission will consolidate the regulation, insurance and dispute resolution aspects of the industry into a single, unified authority. Consumers will be able to seek out the Commission as a one-stop-shop for issues with the quality of their new homes; a far simpler and more effective avenue for resolving consumer-builder disputes and ensuring that homes meet the required building standards.
Tougher Enforcement Powers for the Regulator
One of the most notable changes brought by the Bill is the expansion of enforcement powers granted to the new regulator, the Commission, compared to the previous powers granted to the VBA. Currently, the VBA can direct builders to fix substandard work, but only before the buyer moves in. With the new Bill, the regulator will be empowered to enforce rectifications for up to 10 years after an occupancy permit has been issued. This means that even if defects do not emerge until after the certificate of occupancy has been granted, or years into the building’s completion, homebuyers will still have an avenue to demand repairs or rectification. As a last resort, the regulator will also have the power to prevent the issuing of occupancy permits or stop off-the-plan sales, ensuring that only homes that meet quality standards are allowed to enter the market.
Introducing Developer Bonds for Financial Protection
The Bill also introduces the concept of developer bonds as a form of financial security for consumers. This is in the form of a 3% charge on all residential building projects over 3 stories in height to be held as security for the rectification of defects. The bond will be held for two years after construction is completed and is payable by the developer before the Occupancy Permit can be obtained. This framework provides a crucial layer of financial protection for buyers, especially those purchasing off-the-plan apartments, where defects may not become apparent until after the sale.
Additional Proposals and Consultation
Alongside the Bill, the Department of Transport and Planning has released a Regulatory Impact Statement to start consultation on further reforms aimed at improving building quality and consumer protection. These proposals include the introduction of building manuals for apartment buildings and more frequent mandatory inspections during construction to detect non-compliance earlier in the building process. This consultation process is emerging and ongoing.
Conclusion
The Bill represents a sizeable step forward in strengthening the rights of homebuyers and ensuing the construction of high-quality, durable homes that will stand the test of time. By consolidating building regulations under a single, powerful regulator, expanding enforcement powers, introducing developer bonds, and enhancing domestic building insurance, the Bill aims to provide a safer and more secure environment for consumers. The proposed reforms will not only provide consumers with greater protection but will also encourage more confidence in the housing market, ensuring that buyers can invest in new homes with peace of mind.
To learn more about any of the matters discussed here, or if you require legal assistance, please contact Chris Moshidis, Director and Principal Lawyer on +61 3 9521 7956 or chris@urbanlawyers.com.au.