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Building Statement: Strengthening Victoria’s Building System

We have released the Building Statement: Strengthening Victoria’s Building System to set out our vision for a safer, more trusted building system.

We need a strong building system that industry and consumers trust. That’s why we have an ambitious plan to reform the building system to ensure safer, higher quality buildings that meet the needs of Victorians.

The Building Statement outlines the progress we’ve made on our building reform program so far, and the work we’ll be doing over the next 18 months and beyond.

Building and Plumbing Commission

A new building regulator has been created to strengthen Victoria’s domestic building and plumbing industries.

The Building and Plumbing Commission (BPC) is a streamlined watchdog for consumers that oversees all aspects of building quality control - including regulation, insurance, and dispute resolution.

It brings together the functions of the Victorian Building Authority (VBA), Domestic Building Dispute Resolution Victoria (DBDRV) and the domestic building insurance arm of the Victorian Managed Insurance Authority (VMIA) into one location.

The BPC will soon have new powers protect consumers, including:

  • Rectification orders to direct builders and developers to fix poor work, including after occupancy
  • New first resort warranty scheme for projects up to three storeys, improving access to insurance if things go wrong
  • New bond for developers of apartments above three storeys. The developer bond is the first step towards introducing a 10-year insurance product for apartment buildings.

Building Legislation Amendment (Fairer Payments on Jobsites and Other Matters) Bill 2025

The Fairer Payments on Jobsites and Other Matters Bill was introduced to Parliament on 10 September 2025.

The Bill makes changes to Victoria's Building and Construction Industry Security of Payment Act 2002 and delivers on Government's commitment to implement 16 recommendations from a Parliamentary inquiry into employers and contractors who refuse to pay their subcontractors for completed works.

The changes to the Security of Payment Act will:

  • improve the construction industry’s ability to recover payments for completed construction work and for the supply of related goods and services
  • better align Victoria’s legislation with security of payment legislation in other Australian states and territories
  • modernise the Act to make it easier to make claims and have them adjudicated if there’s a payment dispute.

The Bill will also improve building practices in the industry by:

  • reforming the building surveyors and building inspectors registration scheme to lift practitioner performance and boost workforce supply
  • authorising development of a plumbing code of conduct, to be enforced by the BPC
  • making improvements to other legislation, including the Planning and Environment Act 1987 to widen the scope of VCAT orders to protect native vegetation, the Heritage Act 2017 to eliminate risks and uncertainties
  • lifting practitioner performance and boost workforce supply.

Building Legislation Amendment (Buyer Protections) Act 2025

The Buyer Protections Bill 2025 passed both Houses of Parliament on 29 May 2025 and received Royal Assent on 3 June 2025.

The Act established the Building and Plumbing Commission (BPC) as a new integrated regulator for the building system on 1 July 2025, bringing together the functions of the VBA, DBDRV and the domestic building insurance arm of the VMIA.

The BPC will soon have new powers to protect consumers, including new rectification orders, a new statutory warranty scheme for buildings up to three storeys, and a bond for developer of apartments above three storeys.

The Department of Transport and Planning will develop a Regulatory Impact Statement (RIS) assessing the benefits and impacts of introducing new regulations, it will also explore options for implementation. The RIS and draft regulations will be released for public consultation where stakeholders and the community can provide feedback ahead of the regulations being finalised.

Reforms to Victoria's building system

Building manual

A new requirement will be introduced for a building manual to be created and maintained for each new building. Regulations will be made to determine which buildings this should apply to and what information should be collected, taking stakeholder views into account.

The building manual will serve as a single repository of all relevant information relating to a building’s construction and subsequent building works, including maintenance.

This aims to improve safety for occupants by strengthening regulatory oversight. Centralised, readily accessible design and construction documentation can assist with decisions made during the building’s operational lifetime.

The ready availability of comprehensive documentation may also assist owners and owners corporations to identify building defects early in the building’s life and have them addressed. The owner or owners’ corporation will be required to keep the manual and update it.

Modern Methods of Construction

We're developing options to better enable modern methods of construction.

Modern methods of construction are innovative building processes that are different to traditional construction, they are often referred to as prefabricated, modular, or off-site construction.

It is estimated that only five to eight per cent of new homes in Australia are prefabricated. We know that the Building Act, which regulates all building and plumbing work in Victoria, does not adequately support this construction methodology. We're exploring ways to improve uptake, including through changes to approvals, registration and licencing, inspections and insurance requirements.

Public consultation was open between 16 June and 7 August 2025. You can read more about the project on the Engage Vic page: Enabling modern methods of construction.

Expanded building industry registration

The framework for building industry registration will be expanded to broaden the range of building industry practitioners that need to be registered.

This will improve regulatory oversight of practitioners, making them more accountable and providing consumers with better protection. The registration requirement will mean work is restricted to qualified, competent practitioners.

It will enable regulations to be made that set the qualifications and experience required for registration. Stakeholder consultation and impact assessments will be completed ahead of finalising these regulations.

New categories to be considered for the registration requirement are:

  • building consultants
  • site supervisors.

Two existing categories, draftsperson and project management work, will be renamed to align with national categories.

Information statements

Building surveyors will be required to provide an information statement to the owner of the building or land within 10 working days of issuing a building permit.

This will address concerns over the lack of consumer understanding about the role and functions of building surveyors in the building permit process.

Regulations will be made to prescribe the form of the information statement and the information it must contain.

Building Monitor

The Building Monitor is a dedicated advocate for Victorian domestic building consumers and ensure their voices are heard when decisions are made about the building industry.

The Building Monitor can access and analyse data held by government agencies to identify areas where consumers need better protection.

The role of the Building Monitor is to:

  • consult with Victorians through a consumer reference group and other forums
  • make recommendations to Government on ways to address problems faced by building consumers
  • not duplicate the work of regulators and dispute resolution agencies, which will continue to respond to individual consumer matters.

The Building Monitor provides a voice for consumers in systemic building matters.

State Building Surveyor

The State Building Surveyor is the main source of technical expertise for industry and practitioners. The State Building Surveyor as a statutory appointment provides strong leadership, specialist expertise and stakeholder engagement capabilities to manage a team of senior technical professionals.

The State Building Surveyor gives authoritative technical advice and has the authority to make binding determinations on the technical interpretation of building and plumbing regulations, codes and standards.

The State Building Surveyor improves technical capability across industry and supports practices resulting in safer, compliant and durable buildings.

Review of Victoria's building system

An expert panel is undertaking a comprehensive review of Victoria’s building system.

For Stage Three of its review, the Expert Panel has been asked to advise the Government on a framework for a new Building Act for Victoria.

The Government will consider the Expert Panel’s advice and opportunities for stakeholder engagement as part of any future review and rewrite of the Building Act.

Find out more about the review of the Victorian Building System.

Previous building reform initiatives

The building reform program has targeted:

  • Supporting education and training system reforms: a range of short–term changes to the education and training system that will increase the supply of building surveyors to meet current and future needs.
  • Strengthening the role of the State Building Surveyor: redefining the role to play a more direct role in oversight of the building surveying profession.
  • Establishing a building consumer information and support service: giving building consumers access to information they need to understand and navigate the building sector from start to finish of a building project.
  • Supporting improvements in industry compliance: providing increased guidance and improved transparency of building inspection activity.
  • Promoting consumer awareness about building consultants: provide consumers with accessible information about the role of building consultants, including their participation in disputes over building.

Page last updated: 12/09/25