The Victorian Government says it is delivering the biggest overhaul of consumer protections in the building sector in decades, with sweeping reforms aimed at strengthening safeguards for homeowners and cracking down on dodgy builders.
Minister for Housing and Building Nick Staikos announced that regulations for the new First Resort Home Warranty Scheme have now been finalised and will come into effect from 1 July.
Staikos says reforms are designed to make it easier for homeowners and buyers to resolve building defects and disputes, amid concerns that many consumers face costly and confusing processes when construction work goes wrong.
Under the changes, the Building and Plumbing Commission will receive expanded enforcement powers through the newly passed Building and Plumbing Administration and Enforcement Bill 2026.
The legislation allows the commission to impose tougher civil penalties on builders and hold company directors personally liable for misconduct.
The reforms also introduce a new public interest objective, placing health and safety at the centre of all residential construction work.
Shadow Minister for Housing and Building, David Southwick, said, The Victorian Liberals and Nationals reiterate our call to pause this Bill and genuinely consult with the sector before any further reforms are made.
He told The Australia Today, “Under Labor, Victoria has the highest property tax burden in the nation, and the number of new homes being built is at a decade low.
Labor’s ill-conceived scheme would have threatened the viability of many small and medium builders at a time the construction of new homes is at a decade low.
“Only the Liberals and Nationals have a comprehensive plan to deliver more homes, more choice and greater housing affordability.”
Staikos said the changes were aimed at restoring confidence in Victoria’s building industry and protecting families making major financial investments.
“Labor is making sure consumers get the safe, affordable and high-quality homes they pay for,” he said.
The government said the reforms build on several initiatives introduced over the past year to improve consumer protection in the housing and construction sector.
Labor also used the announcement to criticise the Opposition, claiming the Liberals opposed both the creation of the Building and Plumbing Commission and the latest legislation expanding its powers.
Staikos accused the Coalition of planning major public sector cuts that could affect the regulator.
He said,
“The Liberals opposed the BPC’s tough new powers, and we now know the BPC is on the chopping block under Jess Wilson’s plan for $40 billion in cuts – will they oppose these changes and leave Victorians on their own again?”
Southwick added, Whilst backflip is a positive outcome for Victoria’s construction sector, the Allan Labor Government’s Building and Plumbing Administration and Enforcement 2026 remains a significant risk to this industry.
The First Resort Home Warranty Scheme is expected to begin operating from July 1, alongside the strengthened enforcement regime for the building industry.
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