THE Victorian Government will introduce a new building watchdog toward the end of 2025 aimed at strengthening consumer protections and improving building quality across the state.
The Building and Plumbing Commission, established under the Building Legislation Amendment (Buyer Protections) Bill 2025, will have the power to oversee building regulations, insurance, and dispute resolution.
Local businesses in Bass Coast and South Gippsland are assessing the impact that these changes may have. The reforms will include stricter enforcement measures, new developer bonds, and a shift to first-resort domestic building insurance, ensuring homebuyers have better safeguards against defects.
One new protection will come in the form of a developer bond scheme for defective building work in buildings that are four storeys and above.
Fiona McMahon-Hughes, Principal at Ray White Inverloch, believes the impact of this on the local property market will be minimal.
“Towns like Inverloch specifically have height restrictions, so we’re unlikely to see four-storey buildings here. You would need to apply for a permit,” she said.
Also, with new builds being less common in the region, McMahon-Hughes does not anticipate significant changes in buyer-seller interactions.
Ross Lovett, Director and Building Designer at DB Design, sees potential for quality improvements but does not expect major disruptions to design processes.
“You’d like to think so, probably yes,” he said when asked if the reforms would improve building quality and safety.
Regarding compliance and inspections, he noted, “Not really. Once our plans are approved, then its handed over to builders and building surveyors. If further inspections are required, surveyors will need to allow for more.”
Local builder Brad McCormack, from Brad McCormack Homes, also weighed in on the reforms, highlighting the potential benefits for the industry.
When asked if the new watchdog’s increased enforcement powers would make it easier or harder to operate his business, McCormack was very optimistic.
“It should make things easier because it will ensure that some of the dodgy builders will have their licenses removed. It should make more work for good builders, and it’ll be a good thing to weed out builders who are doing the wrong thing.”
He also shared his thoughts on the potential impact of increased mandatory inspections during construction, which are currently under consideration.
“So many houses are poorly waterproofed, so I can see why this is being implemented. If it’s just a matter of calling up the building surveyor, there won’t be much impact at all. If you’re doing the right thing, it’s not going to delay you.”
On whether the changes would improve overall construction quality in the area, McCormack believes they could have a positive effect.
“It should help with education – builders who might be unsure will learn the new ways they should be doing things, and builders that are blatantly not trying to follow procedures will be punished for it.”
One of the biggest changes is the regulator’s authority to rectify defective work up to ten years after an occupancy permit is issued. Builders failing to comply may face disciplinary action, including suspension of registration.
The developer bond scheme will require developers to pay a two per cent bond, held by the regulator for approximately two years to fund any necessary rectifications.
The introduction of a first-resort insurance scheme aims to provide homeowners with more immediate financial protection. Currently, consumers can only access Domestic Building Insurance under limited circumstances, such as when a builder goes bankrupt, disappears, or dies.
From 2026, the Victorian Managed Insurance Authority will deliver the First Resort Domestic Building Warranty for projects over $20,000 in buildings three storeys and below.
Premier Jacinta Allan emphasised the importance of consumer confidence in the housing market.
“Building or buying a new home will be the biggest investment most of us ever make, and Victorians rightly expect to get what they pay for,” she said.
Minister for Housing and Building Harriet Shing reiterated the need to balance consumer protections with industry cooperation, ensuring high-quality homes.
“It’s essential that consumers are protected and supported when buying or building their home, and we’ll continue to work with industry to get the balance right and deliver quality homes of a consistently high standard.”
While the reforms are expected to have a more significant impact on metropolitan developments, local builders, architects, and real estate agents will continue to monitor any potential ripple effects in regional Victoria.
