Building Legislation Amendment (Buyer Protections) Act 2025 (Vic)

Building Legislation Amendment (Buyer Protections) Act 2025

No. 17 of 2025

TABLE OF PROVISIONS

Section  Page

Part 1—Preliminary

1Purposes

2Commencement

Part 2—Transfers to the Victorian Building Authority

Division 1—Amendment of Building Act 1993

3Definitions and interpretation

4Immunity for Commissioners and staff

5Insurance for domestic building work to be provided by designated insurers

6Functions of the Authority

7Establishment and structure

8New sections 205DBA and 205DBB inserted

9New section 205FA inserted

10New Part 15 inserted

Division 2—Amendment of Domestic Building Contracts Act 1995

11Who may be appointed as an assessor?

12Directions to assessor

13Protection against liability for assessors

14Recovery of costs

15Payment out of Domestic Building Dispute Resolution Victoria Trust Fund

16Heading to Division 7 of Part 4 substituted

17Section 50 amended

18Proceedings and costs

19Establishment of Domestic Building Dispute Resolution Victoria Trust Fund

20Parties may agree to pay amounts into and out of Domestic Building Dispute Resolution Victoria Trust Fund

21Section 51B amended

22Functions of Domestic Building Dispute Resolution Victoria

23Appointment of chief dispute resolution officer

24Appointment of conciliation officers

25Protection against liability for conciliation officers

26Confidentiality

27Application for review of decision to pay money out of Domestic Building Dispute Resolution Victoria Trust Fund

28Section 122 substituted

29New sections 137 and 138 inserted

30New Schedule 1A inserted

Part 3—Domestic building insurance to be obtained solely from the Victorian Building Authority and introduction of minimum financial requirements

Division 1—Domestic building insurance to be obtained solely from the Victorian Building Authority

31Insurance for domestic building work to be provided by designated insurers

32New section 137AAB inserted

Division 2—Introduction of minimum financial requirements

33Proof of insurance for persons intending to rely on automatic deemed registration

34Financial probity requirements

35Annual fee, proof of insurance and training plan report

36Grounds for disciplinary action

37Grounds for immediate suspension

38Immediate suspension of registration

39Period of suspension

40Definitions

41Section 205FA substituted

42New Division 5 of Part 15 inserted

Part 4—Statutory insurance scheme

Division 1—Amendment of Building Act 1993

43Purposes

44Definitions and interpretation

45Objectives of Act

46Further limitations on the issue of building permits

47Notice to relevant building surveyor of subsequent engagement of builder

48Restrictions on owner‑builder

49Decision on application for certificate of consent

50Order requiring insurance

51Offence to work as building practitioner or engineer without required insurance

52Offence to claim to be insured when uninsured

53Section 137B amended

54Insurance requirements for the purposes of homes under section 137B

55Insurance requirements for home sold before completion

56New Part 9A inserted

57Grounds for immediate suspension

58Functions of the Authority

59New Subdivision 2C of Division 2 of Part 12 inserted

60Sections 205DBA and 205DBB substituted

61Authority may invest funds

62Power to obtain information or documents

63Section 227I substituted

64Proceedings for offences

65Ineligibility for registration

66Offences by partners

67Offences by bodies corporate

68New sections 317 and 318 inserted

Division 2—Amendment of Domestic Building Contracts Act 1995

69Definitions

70Objects of Act

71General contents etc. of a contract

72Part 3A repealed

73Referral of domestic building work dispute to chief dispute resolution officer

74New section 45GA inserted

75What is a domestic building dispute?

76Disputes concerning insurance claims

77Subdivision 4 of Division 2 of Part 5 repealed

78Regulations

Division 3—Amendment of Sale of Land Act 1962

79Insurance details in respect of the land to be disclosed in section 32 statement

Division 4—Amendment of Victorian Civil and Administrative Tribunal Act 1998

80Operation of certain decisions not to be stayed

Part 5—Orders for the rectification of building work

Division 1—Amendment of Building Act 1993

81Definitions and interpretation

82Section 37HA repealed

83Refusal of occupancy permit

84New Part 5A inserted

85Grounds for disciplinary action

86Grounds for immediate suspension

87Functions of the Authority

88New section 227GA inserted

89New section 319 inserted

Division 2—Amendment of Subdivision Act 1988

90New section 37A inserted

Division 3—Amendment of Victorian Civil and Administrative Tribunal Act 1998

91Part 2B of Schedule 1 amended

Part 6—Developer bonds

Division 1—Amendment of Building Act 1993

92Definitions and interpretation

93Objectives of Act

94New section 40A inserted

95Applications for occupancy permits

96New Part 9B inserted

97New section 156A inserted

98General regulation‑making powers

Division 2—Amendment of Sale of Land Act 1962

99Definitions

100New section 9ADA inserted

101Rescission of an off‑the‑plan contract

102New section 9AEA inserted

Part 7—Funding

Division 1—Amendment of Building Act 1993

103Payments into Building account

104Subdivision 4C of Division 2 of Part 12 repealed

Division 2—Amendment of Domestic Building Contracts Act 1995

105Domestic Builders Fund

Part 8—Repeal of this Act

106Repeal of this Act

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Endnotes

1     General information

Building Legislation Amendment (Buyer Protections) Act 2025

No. 17 of 2025

[Assented to 3 June 2025]

The Parliament of Victoria enacts:

PART 1—PRELIMINARY

1Purposes

The main purposes of this Act are—

(a)to amend the Building Act 1993—

(i)to provide for a statutory insurance scheme in relation to domestic building work carried out for the construction of homes or buildings with 2 or more homes with a rise in storeys of 3 or less and to confer the function of administering that scheme on the Victorian Building Authority; and

(ii)to provide that insurance required by or under that Act in relation to domestic building work must be obtained solely from the Victorian Building Authority; and

(iii)to provide for a developer bond scheme in relation to residential apartment buildings with a rise in storeys of more than 3; and

(iv)to prohibit a developer from applying for an occupancy permit for a residential apartment building with a rise in storeys of more than 3 if the developer has not complied with the developer bond scheme or other requirements of that Act; and

(v)to enhance the Victorian Building Authority's enforcement powers including by empowering the Authority to issue orders for the rectification of incomplete, non‑compliant and defective building work; and

(vi)to confer the function of administering Part 4 of the Domestic Building Contracts Act 1995 on the Victorian Building Authority instead of the Director of Consumer Affairs Victoria; and

(vii)to establish the Insurance account within the Victorian Building Authority Fund and to confer the function of administering that account on the Victorian Building Authority; and

(viii)to confer the function of carrying on the business of undertaking liability, by way of insurance, for the purposes of an order under section 135 relating to domestic building work on the Victorian Building Authority; and

(ix)to provide for the transfer of certain property, rights and liabilities from the Victorian Managed Insurance Authority to the Victorian Building Authority; and

(b)to amend the Domestic Building Contracts Act 1995—

(i)to confer the function of administering Part 4 of that Act on the Victorian Building Authority instead of the Director of Consumer Affairs Victoria; and

(ii)to provide that a person employed by the Victorian Building Authority instead of under Part 3 of the Public Administration Act 2004 must be appointed as the chief dispute resolution officer under that Act; and

(iii)to provide that persons employed by the Victorian Building Authority instead of under Part 3 of the Public Administration Act 2004 may be appointed as assessors or conciliation officers under that Act; and

(iv)to revise certain provisions relating to domestic building disputes and insurance consequential on the enactment of the statutory insurance scheme under the Building Act 1993; and

(v)to repeal Part 3A of that Act; and

(c)to amend the Sale of Land Act 1962—

(i)to prohibit the vendor under an off‑the‑plan contract for the sale of a lot in a residential apartment building with a rise in storeys of more than 3 from requiring or permitting the purchaser to take possession of the lot if an occupancy permit has not been issued; and

(ii)to provide that the purchaser under an off‑the‑plan contract for the sale of a lot in a residential apartment building with a rise in storeys of more than 3 may rescind the contract if the vendor has not complied with the requirements of the developer bond scheme under the Building Act 1993; and

(d)to amend the Subdivision Act 1988 to prohibit an owner of land from applying for registration of a plan of subdivision in relation to the land if the land is used or developed for the construction of a residential apartment building with a rise in storeys of more than 3 and the owner has not complied with the requirements of the developer bond scheme under the Building Act 1993 or other requirements of that Act; and

(e)to amend the Victorian Civil and Administrative Tribunal Act 1998 to provide that the Tribunal may not make an order staying the operation of certain decisions under the Building Act 1993 that are the subject of an application for review.

2Commencement

(1)Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2)If a provision of this Act does not come into operation before 1 July 2026, it comes into operation on that day.

PART 2—TRANSFERS TO THE VICTORIAN BUILDING AUTHORITY

Division 1—Amendment of Building Act 1993

3Definitions and interpretation

(1)In section 3(1) of the Building Act 1993 insert the following definitions—

"assessor has the same meaning as in the Domestic Building Contracts Act 1995;

conciliation officer has the same meaning as in the Domestic Building Contracts Act 1995;

VMIA means the Victorian Managed Insurance Authority established by section 5 of the Victorian Managed Insurance Authority Act 1996.".

(2)In section 3(1) of the Building Act 1993, in the definition of insurer, for "the Victorian Managed Insurance Authority" substitute "the Authority".

(3)In section 3(1) of the Building Act 1993, in the definition of Victorian Registration and Qualifications Authority, for "2006." substitute "2006;".

4Immunity for Commissioners and staff

In section 127(1)(a) and (b) of the Building Act 1993, for "or the Professional Engineers Registration Act 2019 or regulations made under that Act" substitute ", the Domestic Building Contracts Act 1995 or the Professional Engineers Registration Act 2019 or regulations made under either of those Acts".

5Insurance for domestic building work to be provided by designated insurers

In section 137AA(2)(ba) of the Building Act 1993, for "Victorian Managed Insurance Authority" substitute "Authority".

6Functions of the Authority

After section 197(b) of the Building Act 1993 insert—

"(baa)to administer Part 4 of the Domestic Building Contracts Act 1995;

(ba)to provide resources and other support as necessary to enable Domestic Building Dispute Resolution Victoria, the chief dispute resolution officer, conciliation officers and assessors under the Domestic Building Contracts Act 1995 to perform the functions and exercise the powers conferred on them by or under this Act or any other Act;

(bb)to carry on the business of undertaking liability, by way of insurance, for the purposes of an order under section 135 relating to domestic building work;".

7Establishment and structure

(1)In section 205(2)(c) of the Building Act 1993, for "account." substitute "account; and".

(2)After section 205(2)(c) of the Building Act 1993 insert—

"(d)the Insurance account.".

8New sections 205DBA and 205DBB inserted

After section 205DB of the Building Act 1993 insert—

"205DBA   Payments into the Insurance account

(1)There must be paid into the Insurance account—

(a)all money received or recovered by or on behalf of or paid to the Authority under or in connection with a contract of insurance entered into for the purposes of an order under section 135 relating to domestic building work; and

Note

See section 197(bb).

(b)income from the investment of the Insurance account.

(2)All property vested in the Authority under Part 15 forms part of the Insurance account.

205DBBPayments out of the Insurance account

There must be paid out of the Insurance account—

(a)the costs and expenses incurred by the Authority in paying claims under contracts of insurance; and

(b)any amounts required to be refunded under contracts of insurance; and

(c)the costs and expenses incurred by the Authority in carrying on the business of undertaking liability by way of insurance; and

(d)the costs and expenses incurred by the Authority in connection with liabilities that under Part 15 become the liabilities of the Authority.".

9New section 205FA inserted

After section 205F of the Building Act 1993 insert—

"205FA   Regulations

The regulations may prescribe minimum prudential standards for the management of the Insurance account.".

10New Part 15 inserted

After Part 14 of the Building Act 1993 insert—

"PART 15—TRANSITIONAL AND SAVINGS PROVISIONS RELATING TO THE BUILDING LEGISLATION AMENDMENT (BUYER PROTECTIONS) ACT 2025

Division 1—Preliminary

290Definitions

(1)In this Part—

allocation statement—see section 301;

instrument includes a document and an oral agreement;

liabilities means all liabilities, duties and obligations, whether actual, contingent or prospective;

property means any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property of any description;

rights means all rights, powers, privileges and immunities, whether actual, contingent or prospective;

transfer date means the date fixed by the VMIA Minister under subsection (2);

transferred officer or employee means a person who, by operation of Division 4, is to be regarded as having been engaged by the Authority from the commencement date;

VMIA‑issued domestic building insurance policy means a contract of insurance entered into by the VMIA before the transfer date for the purposes of an order under section 135 relating to domestic building work;

VMIA Minister means the Minister administering the Victorian Managed Insurance Authority Act 1996.

(2)The VMIA Minister, by order published in the Government Gazette, may fix a date that is not later than 1 July 2026 as the transfer date for the purposes of this Part.

291General transitional provisions

(1)This Part does not affect or take away from the Interpretation of Legislation Act 1984.

(2)This Part applies despite anything to the contrary in this Act.

Division 2—Transfer of domestic building insurance policies and related property

292Transfer of policies and related property

On the transfer date—

(a)all VMIA‑issued domestic building insurance policies—

(i)are taken to have been entered into by the Authority; and

(ii)have effect as if the Authority had always been a party to the policies; and

(b)the VMIA ceases to a be party to all VMIA‑issued domestic building insurance policies; and

(c)all rights of the VMIA under VMIA‑issued domestic building insurance policies vest in the Authority; and

(d)all liabilities of the VMIA under VMIA‑issued domestic building insurance policies become liabilities of the Authority; and

(e)all property of the VMIA directly relating to VMIA‑issued domestic building insurance policies vests in the Authority; and

(f)all rights of the VMIA relating to property referred to in paragraph (e) vest in the Authority; and

(g)all liabilities of the VMIA relating to property referred to in paragraph (e) become liabilities of the Authority.

293Transfer subject to encumbrances

On the transfer date—

(a)the property and rights that vest in the Authority under this Division are subject to any encumbrances to which they were subject immediately before so vesting; and

(b)the rights to which the VMIA was entitled in respect of liabilities that become liabilities of the Authority under this Division immediately before they ceased to be liabilities of the VMIA vest in the Authority.

294Actions of continuing nature relating to VMIA-issued domestic building insurance policies

(1)Any act, matter or thing of a continuing nature commenced before the transfer date by the VMIA in respect of—

(a)a VMIA‑issued domestic building insurance policy; or

(b)a claim on a VMIA‑issued domestic building insurance policy—

may be continued and completed on and after the transfer date by the Authority.

(2)For the purposes of subsection (1), any act or decision of the VMIA before the transfer date in relation to—

(a)a VMIA‑issued domestic building insurance policy; or

(b)a claim on a VMIA‑issued domestic building insurance policy—

is taken after the transfer date to be an act or decision of the Authority.

295Proceedings

(1)This section applies if, immediately before the transfer date, a proceeding relating to a VMIA‑issued domestic building insurance policy to which the VMIA was a party was pending or existing in any court or tribunal.

(2)On and after the transfer date, the Authority—

(a)is substituted for the VMIA as a party to the proceeding; and

(b)has the same rights in the proceeding as the VMIA had.

296Evidence

Documentary or other evidence that would have been admissible for or against the interests of the VMIA in relation to a VMIA‑issued domestic building insurance policy is admissible for or against the interests of the Authority.

297Taxes

(1)No duty under the Duties Act 2000 or other tax is chargeable under any Act in respect of anything done under this Division or in respect of any act or transaction connected with or necessary to be done because of this Division.

(2)An act or transaction connected with or necessary to be done because of this Division includes—

(a)a transaction entered into; or

(b)an instrument made, executed, lodged or given—

for the purpose of, or in connection with, the transfer of VMIA‑issued domestic building insurance policies, property directly related to VMIA‑issued domestic building insurance policies or rights or liabilities under those policies or relating to that property under this Division.

298Validity of things done under this Division

(1)Nothing effected or to be effected by this Division or done or suffered under this Division—

(a)is to be regarded as placing any person in breach of contract or confidence or as otherwise making any person guilty of a civil wrong; or

(b)is to be regarded as placing any person in breach of, or as constituting a default under, any Act or other law or obligation or any provision of any agreement, arrangement or understanding including a provision or obligation prohibiting, restricting or regulating the assignment, transfer, sale or disposal of any property or the disclosure of any information; or

(c)is to be regarded as fulfilling any condition that allows a person to exercise a power, right or remedy in respect of or to terminate any agreement or obligation; or

(d)is to be regarded as giving rise to any remedy for a party to a contract or an instrument or as causing or permitting the termination of any contract or instrument because of a change in the beneficial or legal ownership of any property, right or liability; or

(e)is to be regarded as causing any contract or instrument to be void or otherwise unenforceable; or

(f)is to be regarded as frustrating any contract; or

(g)releases any surety or other obligor wholly or in part from any obligation.

(2)This section has effect despite anything in any Act (other than the Charter of Human Rights and Responsibilities Act 2006) or rule of law to the contrary.

Division 3—Transfer of property, rights and liabilities

299Meaning of commencement date

(1)In this Division—

commencement date, in relation to an allocation statement, or property, rights or liabilities allocated under an allocation statement, means—

(a)if the direction under section 300(1) is given before the transfer date—the transfer date; or

(b)if the direction under section 300(1) is given after the transfer date—the date fixed by the VMIA Minister under subsection (2) for the purposes of the direction.

(2)The VMIA Minister, by order published in the Government Gazette, may fix a date that is after the transfer date for the purposes of subsection (1)(b).

300VMIA Minister may direct transfer of property, rights and liabilities

(1)The VMIA Minister may direct the VMIA to transfer to the Authority in accordance with the direction—

(a)specified property, rights and liabilities; or

(b)a specified class of property, rights or liabilities—

acquired, accrued or incurred by the VMIA before a specified date other than excluded property, rights and liabilities.

(2)A direction under subsection (1) must—

(a)be in writing; and

(b)specify the period within which the VMIA must comply with the direction.

(3)For the purposes of subsection (1), the VMIA Minister may direct the VMIA to do any of the following—

(a)prepare a statement relating to the property, rights and liabilities of the VMIA to which the direction relates, as at a date specified by the VMIA Minister;

(b)include in the statement specified information about the property, rights and liabilities;

(c)allocate the property, rights and liabilities of the VMIA described in the statement in accordance with the direction;

(d)do any specified thing required to give effect to the statement.

(4)The VMIA must comply with a direction under this section within the period specified in the direction.

(5)A statement must be signed by the chief executive officer of the VMIA.

(6)The VMIA Minister must not give a direction under subsection (1) after 30 September 2026.

(7)In this section—

excluded property, rights and liabilities means property and rights that vest in the Authority, or liabilities that become liabilities of the Authority, under Division 2.

301Approval of statement

(1)If, after consultation with the Minister, the VMIA Minister approves a statement prepared under section 300—

(a)the VMIA Minister must sign the statement; and

(b)the statement is an allocation statement for the purposes of this Part.

(2)After the commencement date, the VMIA Minister, after consultation with the Minister, may direct the VMIA to amend a statement as specified in the direction.

(3)The VMIA Minister must not give a direction under subsection (2) after 30 September 2026.

302Effect of allocation statement

On the commencement date—

(a)all property and rights of the VMIA, wherever located, that are allocated under an allocation statement vest in the Authority in accordance with the statement; and

(b)all liabilities of the VMIA, wherever located, that are allocated under an allocation statement become liabilities of the Authority in accordance with the statement.

303Information and records relating to property, rights and liabilities

The VMIA, as soon as is reasonably practicable after the commencement date, must provide to the Authority—

(a)all information, records and other documents in the possession, custody or control of the VMIA relating to any property, rights or liabilities that vest in or become liabilities of the Authority under this Division; and

(b)all information, records and other documents in the possession, custody or control of the VMIA relating to—

(i)the Housing Guarantee Claims Fund established under Part 2A of the House Contracts Guarantee Act 1987; and

(ii)the operation of Part 6 of the House Contracts Guarantee Act 1987.

Note

Part 6 of the House Contracts Guarantee Act 1987 provided for the Domestic Building (HIH) Indemnity Scheme.

304Transfer subject to encumbrances

On the commencement date—

(a)the property and rights that vest in the Authority under this Division are subject to any encumbrances to which they were subject immediately before so vesting; and

(b)the rights to which the VMIA was entitled in respect of liabilities that become liabilities of the Authority under this Division immediately before they ceased to be liabilities of the VMIA vest in the Authority.

305Agreements

If the rights and liabilities of the VMIA under an agreement vest in, or become liabilities of, the Authority—

(a)the Authority becomes, on the commencement date, a party to the agreement in place of the VMIA; and

(b)on and after that date, the agreement has effect as if the Authority had always been a party to the agreement.

306Construction of instruments

(1)Each VMIA instrument that relates to the property, rights or liabilities of the VMIA has effect and continues to have effect according to its tenor on and after the commencement date as if a reference in the instrument to the VMIA were a reference to the Authority.

(2)In this section—

VMIA instrument means an instrument existing immediately before the commencement date directly relating to VMIA's domestic building insurance business—

(a)to which the VMIA was a party; or

(b)that was given to or in favour of the VMIA; or

(c)that refers to the VMIA; or

(d)under which—

(i)money is, or may become, payable to or by the VMIA; or

(ii)other property is to be, or may become liable to be, transferred to or by the VMIA.

307Proceedings

(1)This section applies if, immediately before the commencement date, a proceeding relating to property, rights or liabilities allocated under an allocation statement to which the VMIA was a party was pending or existing in any court or tribunal.

(2)On and after the commencement date, the Authority—

(a)is substituted for the VMIA as a party to the proceeding; and

(b)has the same rights in the proceeding as the VMIA had.

308Certificate of chief executive officer

(1)A certificate signed by the chief executive officer of the VMIA certifying that property, rights or liabilities of the VMIA specified in the certificate have vested in or have become liabilities of the Authority under this Division is, unless revoked under subsection (2), conclusive evidence—

(a)that the property or rights have so vested or the liabilities have become liabilities of the Authority; and

(b)that the property or rights have so vested or the liabilities have become liabilities of the Authority on the commencement date.

(2)If the VMIA Minister by written notice directs the chief executive officer of the VMIA to revoke a certificate issued under subsection (1), the chief executive officer must revoke the certificate by issuing another certificate in place of it.

(3)The chief executive officer of the VMIA—

(a)must keep a register of certificates issued under this section; and

(b)must make the register reasonably available for inspection by the Authority.

309Evidence

Documentary or other evidence that would have been admissible for or against the interests of the VMIA in relation to property, rights or liabilities of the VMIA that have vested in or have become liabilities of the Authority under this Division is admissible for or against the interests of the Authority.

310Taxes

(1)No duty under the Duties Act 2000 or other tax is chargeable under any Act in respect of anything done under this Division or in respect of any act or transaction connected with or necessary to be done because of this Division.

(2)An act or transaction connected with or necessary to be done because of this Division includes—

(a)a transaction entered into; or

(b)an instrument made, executed, lodged or given—

for the purpose of, or in connection with, the transfer of property, rights or liabilities under this Division.

311Validity of things done under this Division

(1)Nothing effected or to be effected by this Division or done or suffered under t his Division—

(a)is to be regarded as placing any person in breach of contract or confidence or as otherwise making any person guilty of a civil wrong; or

(b)is to be regarded as placing any person in breach of, or as constituting a default under, any Act or other law or obligation or any provision of any agreement, arrangement or understanding including a provision or obligation prohibiting, restricting or regulating the assignment, transfer, sale or disposal of any property or the disclosure of any information; or

(c)is to be regarded as fulfilling any condition that allows a person to exercise a power, right or remedy in respect of or to terminate any agreement or obligation; or

(d)is to be regarded as giving rise to any remedy for a party to a contract or an instrument or as causing or permitting the termination of any contract or instrument because of a change in the beneficial or legal ownership of any property, right or liability; or

(e)is to be regarded as causing any contract or instrument to be void or otherwise unenforceable; or

(f)is to be regarded as frustrating any contract; or

(g)releases any surety or other obligor wholly or in part from any obligation.

(2)This section has effect despite anything in any Act (other than the Charter of Human Rights and Responsibilities Act 2006) or rule of law to the contrary.

Division 4—Transfer of staff

312Meaning of commencement date

(1)In this Division—

commencement date, in relation to a direction under section 313 or officers and employees listed in a document prepared under section 313, means—

(a)if the direction under section 313(1) is given before the transfer date—the transfer date; or

(b)if the direction under section 313(1) is given after the transfer date—the date fixed by the VMIA Minister under subsection (2) for the purposes of the direction.

(2)The VMIA Minister, by order published in the Government Gazette, may fix a date that is after the transfer date for the purposes of subsection (1)(b).

313List of staff

(1)The VMIA Minister, before 30 September 2026, may direct the VMIA to prepare and submit to the VMIA Minister a document signed by the chief executive officer of the VMIA listing officers and employees of the VMIA—

(a)who are appointed or engaged in connection with the VMIA's domestic building insurance business; and

(b)who are to be engaged by the Authority.

(2)The document may be amended by the chief executive officer by written notice to the VMIA Minister.

(3)An amendment is to be regarded as having effect or having had effect from the commencement date.

(4)Nothing in this section prevents a person listed in the document from resigning or being dismissed at any time before the commencement date in accordance with the terms and conditions of the person's appointment or engagement.

314Transfer of staff

(1)On and after the commencement date, a person listed in a document prepared under section 313 is to be regarded as—

(a)having been engaged by the Authority with effect from the commencement date; and

(b)having been so engaged on terms and conditions no less favourable overall than those that applied to the person immediately before the commencement date; and

(c)having accrued an entitlement to benefits, in connection with that engagement by the Authority, that is equivalent to the entitlement that the person had accrued as an officer or employee of the VMIA before the commencement date.

(2)The service of the transferred officer or employee with the Authority is to be regarded for all purposes as having been continuous with the service of the officer or employee immediately before the commencement date with the VMIA.

(3)A person listed in a document prepared under section 313 who immediately before the commencement date was a member of a superannuation fund continues, on and after that date, to be a member of that fund and the person's superannuation entitlements are taken not to be affected by the transfer.

(4)A person is not entitled to receive any payment or other benefit by reason only of having ceased to be an officer or employee of the VMIA by operation of this Division.

(5)A certificate signed by the chief executive officer of the VMIA certifying that a person named in the certificate was, with effect from the commencement date, engaged by the Authority is admissible in evidence in any proceeding and is conclusive proof of the matters stated in it.

315Future terms and conditions

Nothing in this Division prevents—

(a)any of the terms and conditions of engagement of a transferred officer or employee from being altered by or under any law, award or agreement with effect from any time after the commencement date; or

(b)a transferred officer or employee from resigning or being dismissed at any time after the commencement date in accordance with the terms and conditions of their engagement by the Authority.

Division 6—Transitional regulations

320Transitional regulations

(1)The Governor in Council may make regulations containing provisions of a transitional nature, including matters of an application or savings nature, arising as a result of the enactment of the Building Legislation Amendment (Buyer Protections) Act 2025 (including the repeals and amendments made by that Act).

(2)Regulations made under this section may—

(a)have a retrospective effect to a day on or after the day on which the Building Legislation Amendment (Buyer Protections) Act 2025 receives the Royal Assent; and

(b)be of limited or general application; and

(c)leave any matter or thing to be decided by a specified person or class of person; and

(d)provide for the exemption of persons or things or classes of persons or things from any of the regulations made under this section.

(3)Regulations made under this section have effect despite anything to the contrary in any Act (other than this Act or the Charter of Human Rights and Responsibilities Act 2006) or in any subordinate instrument.

(4)This section is repealed on the second anniversary of the day on which it comes into operation.".

Division 2—Amendment of Domestic Building Contracts Act 1995

11Who may be appointed as an assessor?

For section 48(2)(a) of the Domestic Building Contracts Act 1995 substitute—

"(a)a person employed by the Authority under section 204 of the Building Act 1993; or".

12Directions to assessor

After section 48B(2) of the Domestic Building Contracts Act 1995 insert—

"(3)If, as a result of the assessor's inquiry under subsection (2)(a), the assessor believes that the domestic building work is defective or incomplete, the assessor must estimate the number of business days required to rectify or complete the work.".

13Protection against liability for assessors

Section 48BA of the Domestic Building Contracts Act 1995 is repealed.

14Recovery of costs

In section 48N(1) and (2) of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

15Payment out of Domestic Building Dispute Resolution Victoria Trust Fund

In section 49G of the Domestic Building Contracts Act 1995, for "Director" (wherever occurring) substitute "Authority".

16Heading to Division 7 of Part 4 substituted

For the heading to Division 7 of Part 4 of the Domestic Building Contracts Act 1995 substitute—

"Division 7—Powers of Authority in relation to domestic building work dispute proceedings".

17Section 50 amended

(1)In the heading to section 50 of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

(2)In section 50 of the Domestic Building Contracts Act 1995, for "Director" (wherever occurring) substitute "Authority".

18Proceedings and costs

In section 50A of the Domestic Building Contracts Act 1995, for "Director" (wherever occurring) substitute "Authority".

19Establishment of Domestic Building Dispute Resolution Victoria Trust Fund

In section 51(1) and (2) of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

20Parties may agree to pay amounts into and out of Domestic Building Dispute Resolution Victoria Trust Fund

In section 51A(4) and (5) of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

21Section 51B amended

(1)In the heading to section 51B of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

(2)In section 51B of the Domestic Building Contracts Act 1995, for "Director" (wherever occurring) substitute "Authority".

22Functions of Domestic Building Dispute Resolution Victoria

At the end of section 52B of the Domestic Building Contracts Act 1995 insert—

"(2)In performing a function or exercising a power under this Act, the chief dispute resolution officer, conciliation officers and assessors are not subject to the direction or control of the Authority.".

23Appointment of chief dispute resolution officer

In section 52C of the Domestic Building Contracts Act 1995—

(a)for "Director" substitute "Authority";

(b)for "under Part 3 of the Public Administration Act 2004" substitute "by the Authority under section 204 of the Building Act 1993".

24Appointment of conciliation officers

For section 52E(a) of the Domestic Building Contracts Act 1995 substitute—

"(a)any person employed by the Authority under section 204 of the Building Act 1993; or".

25Protection against liability for conciliation officers

Section 52H of the Domestic Building Contracts Act 1995 is repealed.

26Confidentiality

Section 52I(2)(ca) and (d) of the Domestic Building Contracts Act 1995 are repealed.

27Application for review of decision to pay money out of Domestic Building Dispute Resolution Victoria Trust Fund

(1)In section 65(1) of the Domestic Building Contracts Act 1995, for "Director" substitute "Authority".

(2)In section 65(2) of the Domestic Building Contracts Act 1995, for "Director's" substitute "Authority's".

28Section 122 substituted

For section 122 of the Domestic Building Contracts Act 1995 substitute—

"122   Publication of directions

(1)The Director must publish in the Government Gazette—

(a)any details which the Director requires under this Act to be provided in a domestic building contract; and

(b)the approved form of any document or provision which is required under this Act to be in a form approved by the Director.

(2)The chief dispute resolution officer must publish on an Internet site maintained by the Authority, the approved form of any document or provision which is required under this Act to be in a form approved by the chief dispute resolution officer.".

29New sections 137 and 138 inserted

After section 136 of the Domestic Building Contracts Act 1995 insert—

"137   Transitional provisions—Building Legislation Amendment (Buyer Protections) Act 2025

Schedule 1A has effect.

138Transitional regulations

(1)The Governor in Council may make regulations containing provisions of a transitional nature, including matters of an application or savings nature, arising as a result of the enactment of the Building Legislation Amendment (Buyer Protections) Act 2025 (including the repeals and amendments made by that Act).

(2)Regulations made under this section may—

(a)have a retrospective effect to a day on or after the day on which the Building Legislation Amendment (Buyer Protections) Act 2025 receives the Royal Assent; and

(b)be of limited or general application; and

(c)leave any matter or thing to be decided by a specified person or class of person; and

(d)provide for the exemption of persons or things or classes of persons or things from any of the regulations made under this section.

(3)Regulations made under this section have effect despite anything to the contrary in any Act (other than this Act or the Charter of Human Rights and Responsibilities Act 2006) or in any subordinate instrument.

(4)This section is repealed on the second anniversary of the day on which it comes into operation.".

30New Schedule 1A inserted

After Schedule 1 to the Domestic Building Contracts Act 1995 insert—

"Schedule 1A—Building Legislation Amendment (Buyer Protections) Act 2025

1Definition

In this Schedule—

commencement day means the day on which Division 2 of Part 2 of the Building Legislation Amendment (Buyer Protections) Act 2025 comes into operation.

2Establishment of Domestic Building Dispute Resolution Victoria Trust Fund

(1)On and after the commencement day, the Domestic Building Dispute Resolution Victoria Trust Fund is the Domestic Building Dispute Resolution Victoria Trust Fund established under section 51 before that day.

(2)For the purposes of section 51, as amended by the Building Legislation Amendment (Buyer Protections) Act 2025, the Director must do all things necessary to enable the Authority to operate the account referred to in section 51(2).

(3)The Director must comply with subsection (2) as soon as practicable after the commencement day.

3Payments out of Domestic Building Dispute Resolution Victoria Trust Fund

(1)This section applies if before the commencement day—

(a)an agreement under section 51A(1) is entered into and the funds to which the agreement relates are not paid out of the Fund; or

(b)the Director—

(i)has given written notice under section 49G(3) proposing to pay money out of the Fund; and

(ii)does not pay the money out of the Fund; or

(c)the Director—

(i)is given written notice under section 51A(4) to pay money out of the Fund; and

(ii)does not pay the money out of the Fund; or

(d)the Director—

(i)is given a recommendation by the chief dispute resolution officer under section 51B(2) to pay money out of the Fund; and

(ii)does not pay the money out of the Fund.

(2)The Authority may pay the money out of the Fund after the commencement day.".

PART 3—DOMESTIC BUILDING INSURANCE TO BE OBTAINED SOLELY FROM THE VICTORIAN BUILDING AUTHORITY AND INTRODUCTION OF MINIMUM FINANCIAL REQUIREMENTS

Division 1—Domestic building insurance to be obtained solely from the Victorian Building Authority

31Insurance for domestic building work to be provided by designated insurers

In section 137AA(1) of the Building Act 1993, for "If an order" substitute "Subject to section 137AAB, if an order".

32New section 137AAB inserted

After section 137AA of the Building Act 1993 insert—

"137AAB   Domestic building insurance to be obtained solely from the Authority

(1)Insurance obtained on and after the commencement day for the purposes of an order under section 135 relating to domestic building work must be obtained solely from the Authority.

(2)In this section—

commencement day means the day on which Division 1 of Part 3 of the Building Legislation Amendment (Buyer Protections) Act 2025 comes into operation;

insurance has the same meaning as in section 135.".

Division 2—Introduction of minimum financial requirements

33Proof of insurance for persons intending to rely on automatic deemed registration

After section 170AB(2) of the Building Act 1993 insert—

"(2AA)In the case of a building practitioner in the category of builder, the person must ensure that the notification given to the Authority under section 42J(1) of the Mutual Recognition Act 1992 of the Commonwealth is accompanied by written proof that the person meets the relevant prescribed minimum financial requirements for registration under this Part.".

34Financial probity requirements

(1)For section 171E(1)(a) of the Building Act 1993 substitute—

"(a)if the application is for registration as a building practitioner in the category of builder, whether the applicant meets the relevant prescribed minimum financial requirements for registration under this Part;".

(2)In section 171E(2) of the Building Act 1993, the definition of prescribed amount is repealed.

35Annual fee, proof of insurance and training plan report

(1)For section 172(2) of the Building Act 1993 substitute—

"(2)If, under Part 9, a registered building practitioner, other than a person referred to in subsection (3), is required to be covered by insurance, the practitioner, on or before the day of each anniversary of the practitioner's registration or the day of the expiry of any lesser period approved by the Authority under subsection (2A), must give written proof to the Authority that until the next anniversary of that day or the expiry of any lesser period approved by the Authority under subsection (2A), the practitioner will be covered by the required insurance.".

(2)After section 172(2) of the Building Act 1993 insert—

"(2AA)If a registered building practitioner, other than a person referred to in subsection (3AA), is required to meet the prescribed minimum financial requirements, the practitioner must verify the prescribed financial information (if any) in the prescribed manner and give that verified information to the Authority.".

(3)After section 172(3) of the Building Act 1993 insert—

"(3AA)A person who is a builder who has automatic deemed registration to carry out an activity that may be carried out under a registration as a builder under this Part, must verify the prescribed financial information (if any) in the prescribed manner and give that verified information to the Authority.".

(4)In section 172(4) of the Building Act 1993, after "required insurance" insert "or to give prescribed financial information verified in the prescribed manner to the Authority".

(5)For section 172(6) of the Building Act 1993 substitute—

"(6)In this section, required insurance does not include insurance in relation to the carrying out of domestic building work for the construction of homes or buildings with 2 or more homes with a rise in storeys of 3 or less.".

36Grounds for disciplinary action

After section 179(1)(e) of the Building Act 1993 insert—

"(ea)in the case of a building practitioner in the category of builder, the Authority is not satisfied that the practitioner meets the relevant prescribed minimum financial requirements for registration under this Part;".

37Grounds for immediate suspension

After section 180(d) of the Building Act 1993 insert—

"(da)the Authority is not satisfied that the practitioner meets the relevant prescribed minimum financial requirements for registration under this Part; or".

38Immediate suspension of registration

After section 180A(2) of the Building Act 1993 insert—

"(2AA)The Authority must, by written notice given to a registered building practitioner in the category of builder, immediately suspend the registration of the registered building practitioner if the Authority reasonably believes that the practitioner has ceased to meet the prescribed minimum financial requirements for registration as a building practitioner in the category of builder.".

39Period of suspension

After section 180B(3) of the Building Act 1993 insert—

"(3A)The Authority must revoke a suspension under section 180A(2AA) if the practitioner gives the Authority written proof that the practitioner meets the relevant prescribed minimum financial requirements for registration as a building practitioner in the category of builder.".

40Definitions

In section 184 of the Building Act 1993, in the definition of reviewable decision, after paragraph (f) insert—

"(fa)a decision that a person does not meet the relevant prescribed minimum financial requirements for registration as a building practitioner in the category of builder;".

41Section 205FA substituted

For section 205FA of the Building Act 1993 substitute—

"205FA   Regulations

The regulations may prescribe—

(a)minimum prudential standards for the management of the Insurance account; and

(b)minimum financial requirements for registration under Part 11 as a building practitioner in the category of builder.".

42New Division 5 of Part 15 inserted

After Division 4 of Part 15 of the Building Act 1993 insert—

"Division 5—Miscellaneous

316Proof of insurance

On and after the day on which Division 1 of Part 2 of the Building Legislation Amendment (Buyer Protections) Act 2025 comes into operation, proof of eligibility for the purposes of section 172(2)(b) given by a designated insurer and relating to a builder's current period of registration is, until the first of the following to happen, taken to be proof of eligibility given by the Authority—

(a)Division 2 of Part 3 of the Building Legislation Amendment (Buyer Protections) Act 2025 comes into operation;

(b)the builder's eligibility to be covered by the required insurance is reassessed.".

PART 4—STATUTORY INSURANCE SCHEME

Division 1—Amendment of Building Act 1993

43Purposes

(1)After section 1(a) of the Building Act 1993 insert—

"(ab)to provide for a statutory insurance scheme in relation to domestic building work carried out for the construction of homes or buildings with 2 or more homes with a rise in storeys of 3 or less; and".

(2)Section 1(da) of the Building Act 1993 is repealed.

44Definitions and interpretation

(1)In section 3(1) of Building Act 1993 insert the following definitions—

"insurable domestic building contract means a domestic building contract—

(a)for the construction of—

(i)one home; or

(ii)2 or more homes in a building with a rise in storeys of 3 or less; and

(b)under which the builder will receive more than $20 000 (or any higher prescribed amount) for the carrying out of the domestic building work;

notice of cover means a notice issued by the Authority under section 137T;

rise in storeys has the same meaning as in the Building Code of Australia;

statutory insurance scheme means—

(a)the provisions of Part 9A; and

(b)the regulations made for the purposes of Part 9A;".

45Objectives of Act

After section 4(1)(a) of the Building Act 1993 insert—

"(ab)to protect consumers by providing for a statutory insurance scheme in relation to domestic building work carried out for the construction of homes or buildings with 2 or more homes and a rise in storeys of 3 or less;

(ac)to regulate the building and plumbing industry—

(i)to ensure the maintenance of building and plumbing standards in accordance with this Act, the regulations and the National Construction Code; and

(ii)to achieve a reasonable balance between the interests of builders, plumbers and developers, and consumers;".

46Further limitations on the issue of building permits

(1)For section 24A(1)(c) of the Building Act 1993 substitute—

"(c)in the case of building work carried out under an insurable domestic building contract, a notice of cover has been issued for the building work; and".

(2)Section 24A(2), (3) and (4) of the Building Act 1993 are repealed.

47Notice to relevant building surveyor of subsequent engagement of builder

Section 25AB(3)(b) and (4) of the Building Act 1993 are repealed.

48Restrictions on owner‑builder

In section 25B(2) of the Building Act 1993, in paragraph (b) of the definition of prescribed amount, for "$16 000" substitute "$20 000".

49Decision on application for certificate of consent

In section 25E(2) of the Building Act 1993, after "required insurance" insert "or complying with the requirements of the statutory insurance scheme".

50Order requiring insurance

Section 135(1)(b) of the Building Act 1993 is repealed.

51Offence to work as building practitioner or engineer without required insurance

Section 136(2) and (3) of the Building Act 1993 are repealed.

52Offence to claim to be insured when uninsured

In section 137 of the Building Act 1993, after "building industry" insert "other than in the carrying out of domestic building work to which the statutory insurance scheme applies".

53Section 137B amended

(1)In the heading to section 137B of the Building Act 1993, for "insurance" substitute "complying with the requirements of the statutory insurance scheme".

(2)In section 137B(2)(b), for "is covered by the required insurance" substitute "has complied with the requirements of the statutory insurance scheme".

(3)Section 137B(4) and (5) of the Building Act 1993 are repealed.

54Insurance requirements for the purposes of homes under section 137B

Section 137D of the Building Act 1993 is repealed.

55Insurance requirements for home sold before completion

In section 137E(a) of the Building Act 1993, for "a major domestic building contract" (wherever occurring) substitute "an insurable domestic building contract".

56New Part 9A inserted

After Part 9 of the Building Act 1993 insert—

"PART 9A—STATUTORY INSURANCE SCHEME FOR DOMESTIC BUILDING WORK

Division 1—Preliminary

137HDefinitions

In this Part—

applicable insurance premium, in relation to cover under the statutory insurance scheme, means the premium specified in or calculated in accordance with an order under section 137Q for that cover;

assistance—see section 137M;

associate, of a builder, means—

(a)if the builder is an individual—

(i)the individual's spouse or child; or

(ii)a person who is a trustee of a trust of which the individual is a trustee or beneficiary; or

(iii)a person who is a trustee of a trust of which an associate of the individual is a trustee or beneficiary; or

(iv)a body corporate of which the individual is an officer; or

(v)a body corporate in which the individual or the individual's spouse or child holds a controlling interest or is able to substantially influence the body corporate's affairs; or

(vi)a prescribed person in relation to a builder (whether or not the builder is a natural person) or a person who belongs to a prescribed class of person in relation to a builder (whether or not the builder is a natural person); or

(b)if the builder is a body corporate—

(i)an officer of the body corporate; or

(ii)a person who holds a controlling interest in the body corporate or who is able to substantially influence the body corporate's affairs; or

(iii)the spouse or child of a person referred to in paragraph (i) or (ii); or

(iv)a person who is a trustee of a trust of which the body corporate is a trustee or beneficiary; or

(v)a person who is a trustee of a trust of which an associate of the body corporate is a trustee or beneficiary; or

(vi)a related body corporate of the body corporate; or

(vii)a prescribed body corporate in relation to a builder (whether or not the builder is a body corporate) or a body corporate that belongs to a prescribed class of body corporate in relation to a builder (whether or not the builder is a body corporate);

builder means a registered building practitioner whose registration authorises the practitioner to carry out domestic building work;

building owner means—

(a)the person for whom domestic building work is being, or is about to be, carried out—

(i)on a home; or

(ii)for the construction of a home; and

(b)a subsequent owner of that home;

defective, in relation to domestic building work, includes—

(a)a breach of any warranty listed in section 8 of the Domestic Building Contracts Act 1995; or

(b)a failure to maintain a standard or quality of building work specified in the domestic building contract under which the work is carried out;

domestic building contract has the same meaning as it has in the Domestic Building Contracts Act 1995;

incomplete, in relation to domestic building work, means domestic building work that has not been completed by the date or within the period specified in the domestic building contract for the carrying out of the work, except for any omissions or defects that do not prevent the domestic building work from being reasonably capable of being used for its intended purpose but does not include domestic building work that—

(a)does not comply with the contract under which it is carried out—

(i)because of a cosmetic difference; or

(ii)because the contract has been terminated by agreement; or

(b)is non‑compliant; or

(c)is defective;

non‑compliant means building work that contravenes the requirements of—

(a)this Act; or

(b)the regulations; or

(c)the building permit issued in relation to the building work; or

(d)any binding determination that applies in relation to the work;

off‑the‑plan contract has the same meaning as in the Sale of Land Act 1962;

optional additional cover means cover under the statutory insurance scheme for—

(a)additional assistance to be paid under the statutory insurance scheme; or

(b)additional compensation to be paid under the statutory insurance scheme;

related body corporate has the same meaning as in section 50 of the Corporations Act;

speculative domestic building work means domestic building work carried out by a builder—

(a)not under a domestic building contract; and

(b)on land owned by the builder; and

(c)for the construction of—

(i)one home; or

(ii)2 or more homes in a building with a rise in storeys of 3 or less; and

(d)the home or each home is intended for sale or is the subject of an executed contract of sale.

137IBuilding work to which statutory insurance scheme applies

Subject to this Part and the regulations, the statutory insurance scheme applies to—

(a)domestic building work carried out by a builder under an insurable domestic building contract; and

(b)speculative domestic building work; and

(c)domestic building work carried out under a certificate of consent.

Note

See also sections 137R and 137S.

137JBuilding work to which statutory insurance scheme does not apply

Subject to this Part and the regulations, the statutory insurance scheme does not apply to the following—

(a)building work that is not domestic building work;

(b)domestic building work carried out by a builder whose registration does not authorise the builder to carry out that work;

(c)domestic building work for the construction of a residential apartment building;

(d)domestic building work the cost of which is less than—

(i)$20 000; or

(ii)any prescribed amount;

(e)domestic building work that is prescribed domestic building work or that belongs to a prescribed class of domestic building work;

(f)domestic building work carried out or to be carried out outside Victoria.

137KBuilding owner entitled to assistance under statutory insurance scheme

(1)Subject to this Part and the regulations, a building owner is entitled to assistance under the statutory insurance scheme if the building owner has suffered loss arising from or in connection with domestic building work that is—

(a)incomplete; or

(b)defective; or

(c)non‑compliant.

(2)For the purposes of subsection (1), loss arising from or in connection with domestic building work includes loss arising from or in connection with an act or omission of any person engaged by the builder carrying out the domestic building work in connection with carrying out the work.

137LPersons not entitled to assistance under the statutory insurance scheme

Subject to this Part and the regulations, the following persons are not entitled to assistance under the statutory insurance scheme—

(a)a builder, in relation to any speculative domestic building work carried out by the builder from or in connection with which the builder suffers loss;

(b)an associate of a person referred to in paragraph (a);

(c)a person who is required to obtain a certificate of consent, in relation to the domestic building work for which the certificate is required;

(d)a building owner who—

(i)is a party to a domestic building contract for the construction of 3 or more homes on one building site, in relation to the domestic building work carried out under that contract; or

(ii)is a party to a domestic building contract for the construction of 3 or more homes on more than one building site, in relation to the domestic building work carried out under that contract;

(e)a building owner who is a vendor in a residential off‑the‑plan contract within the meaning of the Sale of Land Act 1962, in relation to the domestic building work carried out for the purposes of that contract;

(f)a builder who pays an applicable insurance premium;

(g)a prescribed person, a person belonging to a prescribed class of person or a person in prescribed circumstances.

137MAssistance that may be provided under statutory insurance scheme

(1)Subject to this Part and the regulations, the following assistance may be provided under the statutory insurance scheme—

(a)the rectification of defective or non‑compliant domestic building work by or on behalf of the Authority;

(b)the completion of incomplete domestic building work by or on behalf of the Authority;

(c)the payment of compensation.

(2)Assistance under the statutory insurance scheme is subject to the prescribed terms of cover.

137NOptional additional cover

(1)A builder (including a builder carrying out speculative domestic building work) may obtain optional additional cover if the builder pays the applicable insurance premium.

(2)A building owner may obtain optional additional cover if the builder carrying out the work pays the applicable insurance premium.

(3)The applicable insurance premium for additional cover must be paid before the first of the following to happen—

(a)10 business days elapse after the day on which the contract is entered into;

(b)the domestic building work starts.

(4)Optional additional cover is subject to the prescribed terms of optional additional cover.

Division 2—Insurance premiums

137OBuilder must pay insurance premium

(1)A builder who enters into an insurable domestic building contract must pay the applicable insurance premium to the Authority before the first of the following to happen—

(a)10 business days elapse after the day on which the contract is entered into;

(b)the domestic building work starts.

Penalty:500 penalty units, in the case of an individual;

2500 penalty units, in the case of a body corporate.

(2)If—

(a)a builder enters into a domestic building contract to carry out domestic building work that the builder's registration authorises the builder to carry out; and

(b)the domestic work to be carried out under the contract is varied; and

(c)the contract becomes an insurable domestic building contract because of the variation—

the builder must pay the applicable insurance premium to the Authority within 10 business days after the variation.

Penalty:500 penalty units, in the case of an individual;

2500 penalty units, in the case of a body corporate.

(3)A builder who is to carry out speculative domestic building work that the builder's registration authorises the builder to carry out must pay the applicable insurance premium for the work to the Authority before the work starts.

Penalty:500 penalty units, in the case of an individual;

2500 penalty units, in the case of a body corporate.

137PBuilder pays insurance premium on behalf of building owner

A builder who pays an applicable insurance premium does so on behalf of a building owner.

137QPremiums order

(1)The Authority by order published in the Government Gazette must—

(a)specify the premiums and any other amounts payable in relation to cover under the statutory insurance scheme; or

(b)specify the method by which premiums and any other amounts payable in relation to cover under the statutory insurance scheme are to be calculated.

(2)An order under subsection (1) may—

(a)provide for the adjustment or refund of premiums or other amounts in certain circumstances; and

(b)apply generally or be limited in its application by reference to specified exceptions or factors; and

(c)apply differently according to different factors of a specified kind; and

(d)specify different methods of calculation whether by reference to formulae, scales, tables or other means; and

(e)apply, adopt or incorporate (with or without modification) the provisions of any document, code, standard, rule, specification or method as formulated, issued, prescribed or published at or before the date on which the order is published; and

(f)authorise a specified person to determine or apply a specified matter or thing; and

(g)provide for any other thing that is authorised for the purposes of the order by this Act or the Domestic Building Contracts Act 1995.

(3)A premiums order takes effect on—

(a)the date on which it is published; or

(b)any later date specified in the order.

(4)Before specifying the premiums or the method by which the premiums are to be calculated, the Authority must—

(a)having regard to actuarially sustainable principles, ensure that insurance premiums are sufficient to meet—

(i)the costs and expenses incurred in administering and providing assistance under the statutory insurance scheme; and

(ii)any amounts payable as compensation under the statutory insurance scheme; and

(b)have regard to any prescribed standard; and

(c)obtain the Minister's approval for—

(i)the premiums; or

(ii)the method by which the premiums are to be calculated.

(5)The Authority must review the premiums or the method by which the premiums are to be calculated at least once every 12 months.

Division 3—When cover applies, cover start date and notice of cover

137RWhen cover applies

(1)This section—

(a)applies whether or not an applicable insurance premium has been paid, or a notice of cover has been issued, for domestic building work or speculative domestic building work; and

(b)does not apply to optional additional cover.

(2)Cover under the statutory insurance scheme applies if—

(a)a building owner and builder enter into an insurable domestic building contract that bears the builder's registration number and the builder's registration authorises the builder to carry out the domestic building work to be carried out under the contract; or

(b)a building owner and builder enter into an insurable domestic building contract and, at or before the time the contract is entered into, the builder makes a representation that would cause a reasonable person to believe that the builder's registration authorises the builder to carry out the building work that is the subject of the contract; or

(c)a building owner enters into an arrangement in prescribed circumstances for the carrying out of domestic building work; or

(d)in the case of speculative domestic building work, the builder starts carrying out domestic building work that the builder's registration authorises the builder to carry out.

137SCover start date

(1)Cover under the statutory insurance scheme starts on—

(a)in the case of domestic building work carried out by a builder under an insurable domestic building contract, on the earliest of the following dates—

(i)the date on which the builder pays the applicable insurance premium to the Authority;

(ii)the date on which the builder starts carrying out the domestic building work;

(iii)the date on which the building owner and builder agree that the domestic building work is to be carried out under an insurable domestic building contract; or

(b)in the case of speculative domestic building work, on the earliest of the following dates—

(i)the date on which the builder pays the applicable insurance premium to the Authority;

(ii)the date on which the builder starts carrying out the speculative domestic building work.

(2)Optional additional cover commences on the date on which the applicable insurance premium is paid to the Authority.

137TNotice of cover

(1)If the Authority accepts an insurance premium for domestic building work, the Authority must issue a notice of cover for the work.

(2)The notice of cover must include the prescribed information.

(3)The notice of cover may be revoked or varied by the Authority if the Authority becomes aware that the building work or part of the building work for which the notice was issued is not domestic building work.

(4)The Authority must provide the building owner with a copy of the notice of cover as soon as practicable after issuing it.

(5)Subject to subsection (2), the Authority may determine the form of the notice of cover.

137UOffence to represent that notice of cover has been issued

A person must not represent to another person that a notice of cover has been issued for domestic building work if the Authority has not issued a notice of cover for the work.

Penalty:500 penalty units, in the case of an individual;

2500 penalty units, in the case of a body corporate.

137VRefund of premium if notice of cover revoked or varied

If the Authority revokes or varies a notice of cover because the domestic building work to be carried out is reduced, the Authority must refund any insurance premium paid for the domestic building work that is the subject of the revocation or variation.

Division 4—Cancellation of cover

137WCancellation of cover and return of premium

(1)Cover under the statutory insurance scheme (other than optional additional cover for speculative domestic building work) may be cancelled by the builder if—

(a)the builder requests in writing that the Authority cancel the cover; and

(b)the insurable domestic building contract has ended; and

(c)a deposit paid under the insurable domestic building contract has been refunded less any amount that may lawfully be deducted; and

(d)the domestic building work to be carried out under the insurable domestic building contract has not started; and

(e)not more than one year has elapsed from the day on which the insurable domestic building contract was entered into.

(2)Optional additional cover for speculative domestic building work may be cancelled by the builder if—

(a)the builder requests in writing that the Authority cancel the cover; and

(b)the domestic building work to be carried out under the domestic building contract has not started; and

(c)not more than one year has elapsed from the day on which the applicable insurance premium was paid.

(3)On the cancellation of cover under this section, the Authority must refund the insurance premium paid for the cover to—

(a)if the cover was cancelled under subsection (1), the builder or a person nominated in writing by the builder; or

(b)if the cover was cancelled under subsection (2), the builder.

(4)The Authority may deduct any prescribed cancellation fee from an amount refunded under this section.

Division 5—Variations

137XDomestic building work carried out under a domestic building contract

(1)A builder carrying out domestic building work under an insurable domestic building contract must pay to the Authority an additional applicable insurance premium if—

(a)the domestic work to be carried out under the contract is varied; and

(b)the value of the domestic building work will increase by $5000 or any higher prescribed amount because of the variation.

Penalty:500 penalty units, in the case of a natural person;

2500 penalty units, in the case of a body corporate.

(2)If the Authority is satisfied that the value of the domestic building work to be carried out under a domestic building contract will decrease because the domestic building work to be carried out is varied, the Authority may refund part of the insurance premium paid for the work to the building owner.

137YSpeculative domestic building work

(1)A builder carrying out speculative domestic building work must pay to the Authority an additional applicable insurance premium if—

(a)the speculative domestic work to be carried out is varied; and

(b)the value of the speculative domestic building work will increase by $5000 or any higher prescribed amount because of the variation.

Penalty:500 penalty units, in the case of an individual;

2500 penalty units, in the case of a body corporate.

(2)If the Authority is satisfied that the value of speculative domestic building work will decrease because the speculative domestic building work to be carried out is varied, the Authority may refund part of the insurance premium paid for the work to the person who paid it.

137ZPartial refunds of insurance premiums

The Authority must calculate refunds under this Division in accordance with the prescribed method.

Division 6—Claims

137ZAMaking a claim

(1)A building owner claiming assistance under the statutory insurance scheme must give notice of the claim to the Authority in accordance with the regulations.

(2)A building owner may make a claim under the statutory insurance scheme whether or not the building owner has made a claim in relation to the same loss against any other person.

137ZBTime for making a claim

(1)The Authority must refuse to accept a claim under the statutory insurance scheme if the claim is not made within the prescribed time.

(2)Despite subsection (1), the Authority may accept a claim if the Authority is satisfied that the claim was not made within the prescribed time because—

(a)the building owner has experienced circumstances that are unexpected, unavoidable or otherwise outside the building owner's control; and

(b)the circumstances have prevented or adversely affected the building owner's capacity to make the claim within the prescribed time.

137ZCVCAT may make decision if Authority fails to make in time

VCAT may decide any claim made by a building owner under the statutory insurance scheme if the Authority fails or refuses to decide the claim within 28 days after the prescribed period.

Division 7—Recovery from builder

137ZDRecovery from builder or other person

(1)The Authority may recover any payment made, or undertaken to be made, by the Authority in providing assistance under the statutory insurance scheme as a debt due to the Authority from either or both—

(a)the builder who carried out or was to carry out the domestic building work in relation to which the assistance is provided;

(b)any other person through whose fault the claim for assistance arose.

(2)The Authority is subrogated to the extent of any payment the Authority has made, or has undertaken to make, to the rights of a person to whom, or for whose benefit, the payment has been or is to be made.

137ZERecovery of insurance premiums

If cover under the statutory insurance scheme applies, and the applicable insurance premium for that work has not been paid, the Authority may recover the amount of the premium as a debt due to the Authority, from—

(a)in the case of domestic building work other than speculative domestic building work—

(i)the builder; or

(ii)if the builder is insolvent, has been liquidated or cannot be located, the building owner; or

(b)in the case of speculative domestic building work, the builder.

Division 8—Miscellaneous

137ZFName of statutory insurance scheme

The statutory insurance scheme may operate under, and be referred to as, the prescribed name.

137ZGProtection of expressions associated with the statutory insurance scheme

(1)A person must not use a prescribed expression in connection with selling the right to participate in any warranty or insurance scheme relating to domestic building work unless—

(a)the scheme is the statutory insurance scheme; and

(b)the person does so on behalf of the Authority.

Penalty:120 penalty units.

(2)A person must not—

(a)use any variation of a prescribed expression; or

(b)use any word (either alone or together with any other word) similar in sight or sound to a prescribed expression—

in connection with selling the right to participate in any warranty or insurance scheme relating to domestic building work unless—

(c)the scheme is the statutory insurance scheme; and

(d)the person does so on behalf of the Authority.

Penalty:120 penalty units.

137ZHStatutory insurance scheme not to affect registration or licensing decisions

(c)may do any of the following—

(i)take photos (including video recordings) of building work;

(ii)make sketches of building work;

(iii)use any other means of recording information for the purposes of this Part.

137ZZLReasonable assistance—building assessor

(1)An authorised person may require any of the following persons to give reasonable assistance to the authorised person in carrying out functions under this Part in relation to a residential apartment building—

(a)the owners corporation for the residential apartment building;

(b)the manager of the owners corporation;

(c)the building manager for the residential apartment building;

(d)an owner of a lot in the residential apartment building;

(e)the occupier of a lot in the residential apartment building.

(2)A person must give reasonable assistance to an authorised person if the person is required by the authorised person under subsection (1) to give that assistance.

Penalty:10 penalty units.

(3)A person must not, without reasonable excuse, refuse access to an authorised person to the common property or to a lot in a residential apartment building if the access is for the purpose of carrying out a function under this Part.

Penalty:10 penalty units.

137ZZMApplication to VCAT

A person may apply to VCAT for an order requiring the owner or occupier of a lot in a residential apartment building or any other person to give access to the lot or any other part of the residential apartment building to an authorised person for the purposes of carrying out functions under this Part.

Division 6—Bond claims and payments

137ZZNBond claims

(1)A claim may be made to the Authority for the payment or release of an amount secured by a developer bond for a residential apartment building by—

(a)subject to subsection (2), the owners corporation for the residential apartment building—

(i)for payment of the costs of rectifying defective building work identified in the final report; or

(ii)for payment of the costs of rectifying defective building work identified in a report prepared for the Authority; or

(iii)for any purpose in accordance with an agreement between the owners corporation and the developer of the residential apartment building; or

(b)a building assessor who carried out functions under this Part in relation to the residential apartment building; or

(c)any other person who carried out functions under this Part in relation to the residential apartment building.

(2)A claim must not be made by the owners corporation unless—

(a)one or more of the lots in the residential apartment building that are affected by the owners corporation are owned by owners other than the developer; and

(b)the lot entitlements attached to the lots referred to in paragraph (a) amount to a majority of the lot entitlements in the owners corporation.

(3)A claim made under subsection (1) must be made in a form approved by the Authority.

137ZZODetermination of bond claim

(1)Subject to this section, if a bond claim is made to the Authority, the Authority may—

(a)approve the claim; or

(b)approve a lesser amount; or

(c)refuse the claim.

(2)The Authority must approve a claim made by an owners corporation if the bond amount claimed reflects an agreement made between the owners corporation and the developer in relation to the developer bond.

(3)The Authority may approve a lesser amount or refuse a claim made by an owners corporation if the Authority determines that the builder appointed to rectify reportable defective building work was refused access to the residential apartment building and that refusal was unreasonable.

(4)If the owners corporation and the developer dispute the amount of a bond claim, the Authority may do any of the following before making a determination under subsection (1)—

(a)commission the preparation of an independent report;

(b)require the developer and the owners corporation to provide any information that the Authority requires to assist the Authority in determining the claim.

(5)The Authority must not approve a claim made by a building assessor or any other person who exercised functions under this Part unless—

(a)the building assessor or other person has not been reimbursed for the exercise of those functions; and

(b)the developer cannot reimburse the building assessor or other person because the developer is insolvent, has been liquidated or cannot be located.

137ZZPPayment of bond amount

(1)A developer of a residential apartment building must take the necessary steps to ensure the payment or release of a bond amount in accordance with a determination made by the Authority.

Penalty:10 penalty units.

(2)The amount must be paid or released within the prescribed period (if any).

137ZZQBond amount to be applied for approved purpose

(1)An owners corporation that is paid a bond amount on the approval of a bond claim must ensure that the bond amount is used for the purpose for which the bond claim was approved.

Penalty:10 penalty units.

(2)If an amount is paid or released to the owners corporation for the purpose of the rectification of defective building work, the owners corporation must arrange for the rectification of the defective building work to occur as soon as practicable after payment of the bond amount.

Penalty:10 penalty units.

(3)Subject to subsection (4), any bond amount paid to an owners corporation that is not used for the purpose for which it was approved must be paid to the developer.

Penalty:10 penalty units.

(4)The owners corporation may use a bond amount for any purpose with the consent of the developer.

(5)An owners corporation that receives a bond amount for a bond claim relating to the rectification of defective building work must give the developer written notice of the completion of the building work.

Penalty:10 penalty units.

137ZZRRelease of developer bond

(1)The Authority may provide a developer any release necessary for the developer bond for a residential apartment building to be cancelled.

(2)A release given by the Authority under subsection (1) must be given—

(a)as soon as practicable after receipt of a preliminary report if the preliminary report does not specify any reportable defective building work; or

(b)on the application of the developer of the residential apartment building, with the consent of the owners corporation for the residential apartment building; or

(c)in the prescribed circumstances (if any).

(3)The Authority must not provide a release on the application of the developer with the consent of the owners corporation for the residential apartment building unless—

(a)one or more of the lots in the residential apartment building that are affected by the owners corporation are owned by owners other than the developer; and

(b)the lot entitlements attached to the lots referred to in paragraph (a) amount to a majority of the lot entitlements in the owners corporation.

137ZZSCommission of independent report

If the Authority commissions the preparation of an independent report to determine a bond claim in relation to a residential apartment building, the developer of the residential apartment building and the owners corporation for the residential apartment building are liable for the costs of the preparation of the report in equal shares, unless otherwise prescribed.

137ZZTStatutory warranties

In determining whether to approve a bond claim, the Authority must not have regard to whether a statutory warranty applies to the defective building work.

Division 7—Internal review of decisions

Subdivision 1—Preliminary

137ZZUDefinitions

In this Division—

affected person means any of the following persons who is directly affected by a reviewable decision—

(a)a developer;

(b)an owners corporation;

(c)an owner of a lot;

(d)any other person prescribed by the regulations as a person who may apply for internal review under this Division;

review decision has the meaning set out in section 137ZZY;

reviewable decision means any of the following decisions under this Act—

(a)a decision by the Authority to appoint a building assessor;

(b)a decision by the Authority to exempt a residential apartment building from the requirement for a final inspection;

(c)a determination of a bond claim;

(d)any decision prescribed by the regulations as being a decision for which a person may apply for internal review under this Division;

reviewer means a person deciding an internal review under this Division.

Subdivision 2—Internal review

137ZZVApplying for internal review

(1)This section applies if a reviewable decision is made by a delegate of the Authority other than a Commissioner or the chief executive officer of the Authority.

(2)A person who is directly affected by a reviewable decision may apply to the Authority for an internal review of the decision.

(3)Subject to subsection (4), the application must be made within 28 days after the day the affected person is given notice of the reviewable decision.

(4)The Authority may, at any time, extend the time for applying for an internal review.

(5)An application for an internal review must be in writing and state fully the grounds of the application.

(6)An application for an internal review stays the operation of the decision.

137ZZWWho may conduct an internal review?

(1)The Authority must, as far as practicable, appoint to conduct an internal review a person who is—

(a)an employee of the Authority; and

(b)suitably qualified to consider the issues raised by the reviewable decision.

(2)An internal review must not be conducted by—

(a)the person who made the reviewable decision; or

(b)a person who was substantially involved in the matters that gave rise to the reviewable decision.

137ZZXConduct of internal review

(1)The reviewer must conduct the internal review on—

(a)the material before the Authority that led to the reviewable decision; and

(b)the reasons for the reviewable decision; and

(c)any other material that was not available at the time of the reviewable decision that the reviewer is satisfied is relevant.

(2)A reviewer is taken to have the right to exercise the same functions that the person who made the reviewable decision had when the reviewable decision was made.

137ZZYReview decisions

(1)The reviewer must make a decision (the review decision) to—

(a)affirm the reviewable decision; or

(b)amend the reviewable decision; or

(c)substitute another decision for the reviewable decision.

(2)If the review decision affirms the reviewable decision, for the purposes of an application for review by VCAT, the reviewable decision is taken to be the review decision.

(3)If the review decision amends the reviewable decision, the reviewable decision as amended is taken to be the review decision.

(4)If the review decision substitutes another decision for the reviewable decision, the substituted decision is taken to be the review decision.

137ZZZNotice of review decision

(1)The Authority must, as soon as practicable after the review decision is made, give written notice of the decision to—

(a)the applicant; and

(b)any other affected person.

(2)Notice under subsection (1) must state the following—

(a)the findings on material questions of fact;

(b)the evidence on which those findings were based;

(c)the reviewer's understanding of the application of the law to the circumstances;

(d)the reasons for the decision;

(e)that the affected person may apply to VCAT for review of the decision under this Division.

Subdivision 3—Review by VCAT

137ZZZAApplication for review by VCAT of reviewable decision

(1)An affected person who has applied for an internal review of a reviewable decision under Subdivision 2 and is dissatisfied with the review decision may apply to VCAT for review of the review decision.

(2)An affected person who was not eligible to apply for an internal review of a reviewable decision may apply to VCAT for review of a decision made by the Commissioner or the chief executive officer.

(3)An application for review of a reviewable decision or review decision must be made within—

(a)in the case of an application under subsection (1), 28 days after the end of the review period for internal review; or

(b)in the case of an application under subsection (2), 28 days after the decision is made.

137ZZZBProceeding and decision

(1)After hearing a matter under this Subdivision, VCAT may—

(a)affirm the review decision or reviewable decision; or

(b)amend the review decision or reviewable decision; or

(c)substitute another decision for the review decision or reviewable decision.

(2)An application for review stays the operation of the decision.

Division 8—Miscellaneous

137ZZZCAuthority may recover bond amount

(1)The Authority may recover from a developer in a court of competent jurisdiction the amount required to be secured by a developer bond under this Part if—

(a)the developer did not arrange for the issue or execution of the developer bond; or

(b)the amount secured by the developer bond is less than the amount required to be secured.

(2)This Division applies to an amount recovered under subsection (1) as if that amount were secured in the form of a developer bond.

137ZZZDImmunity

A professional association, or a person appointed or engaged by a professional association, is not liable for anything done or omitted to be done in good faith in accrediting a person for the purposes of this Part.

137ZZZERight to compensation and other remedies unaffected

Nothing in this Part limits or otherwise affects the right of any person to compensation or any other remedy under a cause of action arising from or in relation to any act or omission to which this Part also applies.".

97New section 156A inserted

After section 156 of the Building Act 1993 insert—

"156A   Disputes about total build cost

(1)If a dispute arises between any of the following persons about the total build cost for a residential apartment building, a party to the dispute may refer the matter to the Building Appeals Board—

(a)the developer of the residential apartment building; and

(b)the owners corporation for the residential apartment building;

(c)the Authority.

(2)In this section—

developer has the same meaning as in Part 9B.".

98General regulation‑making powers

After section 261(1)(q) of the Building Act 1993 insert—

"(qa)matters relating to developer bonds under Part 9B, including—

(i)requirements for the provision and maintenance of developer bonds; and

(ii)information to be provided to the Authority; and

(iii)the method for determining the total cost of building work; and

(iv)the percentage of the total build cost to be secured by a developer bond; and

(v)notice requirements for developer bonds; and

(vi)the manner and form of bond claims made under that Part; and

(vii)procedures for determining disputes about bond claims under that Part; and

(qb)matters relating to the assessment of building work and rectification of defective building work under Part 9B, including—

(i)the accreditation of persons for the purposes of that Part; and

(ii)the disclosure of information to an owners corporation; and

(iii)information to be provided to a person appointed to carry out functions under that Part; and

(iv)the terms on which a person is appointed to carry out functions under that Part; and

(v)the manner and form of notices given and applications made under that Part; and

(qc)matters relating to building assessors under Part 9B, including—

(i)professional organisations that may accredit persons as building assessors; and

(ii)the functions of professional associations in accrediting persons; and

(iii)qualifications to be held by a person who is accredited as a building assessor; and

(iv)conditions of accreditation as a building assessor; and

(v)a register of persons accredited as building assessors; and

(vi)the public availability of a register of building assessors; and

(vii)the circumstances in which the Authority may appoint a building assessor to exercise functions under that Part; and

(qd)matters relating to the appointment of a building assessor by the owners corporation of residential apartment buildings, including—

(i)matters to be disclosed to the owners corporation by a developer who nominates a person to be appointed as a building assessor; and

(ii)the manner of approving the appointment of a building assessor; and".

Division 2—Amendment of Sale of Land Act 1962

99Definitions

In section 2 of the Sale of Land Act 1962 insert the following definitions—

"developer has the same meaning as in Part 9B of the Building Act 1993;

developerbond has the same meaning as in Part 9B of the Building Act 1993;

residential apartment building has the same meaning as in the Building Act 1993;".

100New section 9ADA inserted

After section 9AD of the Sale of Land Act 1962 insert—

"9ADA   Occupancy—residential apartment buildings

The vendor under an off‑the‑plan contract must not require or permit the purchaser under the contract to take possession of the lot to which the contract relates if—

(a)the contract is for a lot in a residential apartment building; and

(b)an occupancy permit has not been issued for the lot or for the part of the residential apartment building containing that lot (as the case requires).

Penalty:120 penalty units, in the case of a natural person;

600 penalty units, in the case of a body corporate.".

101Rescission of an off‑the‑plan contract

In section 9AE(1) of the Sale of Land Act 1962, for "(2) or 9AB" substitute "(2), 9AB or 9ADA".

102New section 9AEA inserted

After section 9AE of the Sale of Land Act 1962 insert—

"9AEA   Rescission of off‑the‑plan contract—residential apartment buildings

(1)A purchaser under an off‑the‑plan contract may rescind the off‑the‑plan contract if—

(a)the contract is for a lot in a residential apartment building; and

(b)an occupancy permit has been issued for the lot; and

(c)the developer of the residential apartment building—

(i)has not arranged for the issue or execution of a developer bond; or

(ii)has arranged for the issue or execution of a developer bond that secures an amount that is less than the amount required under section 137ZP of the Building Act 1993 to be secured.

(2)A purchaser who rescinds a contract under subsection (1) may recover the following amounts from a court of competent jurisdiction—

(a)any amount paid by the purchaser to the developer for the purchase of the lot, including any amount paid as a deposit;

(b)penalty interest on any amount referred to in paragraph (a), determined in accordance with the Penalty Interest Rates Act 1983.".

PART 7—FUNDING

Division 1—Amendment of Building Act 1993

103Payments into Building account

(1)After section 205A(1)(g) of the Building Act 1993 insert—

"(ga)money paid out of the Domestic Builders Fund under section 124(3)(cb) of the Domestic Building Contracts Act 1995; and".

(2)After section 205A(4) of the Building Act 1993 insert—

"(4A)Amounts paid into the Building account under subsection (1)(ga) must be credited to the domestic building dispute account.".

(3)In section 205B(5) of the Building Act 1993, for "the Minister administering the Domestic Building Contracts Act 1995" substitute "the Minister and the Minister administering the Australian Consumer Law and Fair Trading Act 2012".

104Subdivision 4C of Division 2 of Part 12 repealed

Subdivision 4C of Division 2 of Part 12 of the Building Act 1993 is repealed.

Division 2—Amendment of Domestic Building Contracts Act 1995

105Domestic Builders Fund

After section 124(3)(ca) of the Domestic Building Contracts Act 1995 insert—

"(cb)the costs and expenses incurred by the Authority—

(i)in its administration and enforcement of Part 4; and

(ii)in the performance of its functions under section 197(ba) of the Building Act 1993; and

(iii)in employing the chief dispute resolution officer, assessors or conciliation officers under the Building Act 1993; and".

PART 8—REPEAL OF THIS ACT

106Repeal of this Act

This Act is repealed on 1 July 2027.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up‑to‑date legislative information.

Minister's second reading speech—

Legislative Assembly: 5 March 2025

Legislative Council: 3 April 2025

The long title for the Bill for this Act was "A Bill for an Act to amend the Building Act 1993, the Domestic Building Contracts Act 1995, the Sale of Land Act 1962, the Subdivision Act 1988 and the Victorian Civil and Administrative Tribunal Act 1998 and for other purposes."