New laws have been introduced that will give the Victorian Building Authority (VBA) more powers to act if builders are found to have done the wrong thing and prevent them from accepting deposits under a Major Domestic Building Contract before they have taken out the required insurance.

“The VBA’s Regulatory Policy Statement is an important change in our priorities and direction so we can achieve our goal of earning the trust of the Victorian people. Importantly, it puts consumers at the heart of what we do as a regulator,” VBA chief executive officer Anna Cronin says.

“Our aim is to be both a targeted enforcer and a trusted regulator by focusing our efforts on what best protects the Victorian community.”

The Building Legislation Amendment (Domestic Building Insurance New Offences) Bill (2023) will protect home buyers by making sure they are covered by insurance prior to paying any money to a builder, under a contract for domestic building work costing more than $16,000.

This follows the collapse of Porter Davis Homes earlier this year where consumers lost their deposits after Porter Davis Homes took deposits but did not take out the required insurance.

The VBA reminds all builders if a contract to do domestic building work in Victoria is worth $16,000 or more, you require DBI and it is your responsibility to purchase it on behalf of your client.

The VBA is continuing to audit builders’ compliance with DBI requirements.

The VBA has also set out its refreshed regulatory approach in a policy statement released today. The new Regulatory Policy Statement sets out the VBA’s objective to improve consumer outcomes, how it will use its powers and how it intends to regulate and ensure compliance with building regulations.

The VBA’s Regulatory Policy Statement aims to improve consumer outcomes to ensure the VBA is a trusted regulator.