Victoria’s building reforms, 2025 to 2027: what changes for builders
Victoria has rebuilt its domestic building system in two years. One regulator, the Building and Plumbing Commission, now takes the complaint, inspects, orders the fix and pays the claim. Owners can claim on home warranty while the builder is still trading, and rectification orders reach back ten years and go on a public register. The contracts law changes on 1 December 2026, and apartment developers lodge bonds from July 2027. This page sets out each change in date order, with its source, and what each one asks of the builder’s own record.
The reforms, from the Commission to developer bonds
Three Acts and their regulations carry most of this. The Building Legislation Amendment (Buyer Protections) Act 2025 created the Commission and enabled home warranty, rectification orders and developer bonds. The Domestic Building Contracts Amendment Act 2025 rewrites the contract rules. The regulations under both were consulted on over the summer and made in June 2026. Each row links to the source it was checked against.
| From | What changes | Applies to | What it asks of the record | Source |
|---|---|---|---|---|
| 1 July 2025In force | The Building and Plumbing Commission starts. The Victorian Building Authority, Domestic Building Dispute Resolution Victoria and the VMIA’s domestic building insurance business sit under one regulator. | Everyone in domestic building | One body now takes the complaint, inspects, resolves the dispute, pays the claim and disciplines the practitioner. The same file follows the matter through all of it. | |
| 1 May 2026In force | NCC 2025 adopted in Victoria, with no transition period. | Designers, builders, surveyors | Inspection checklists written to the 2022 code need revising for work designed under the new one. | |
| 1 July 2026In force | First Resort Home Warranty replaces last-resort domestic building insurance for work over $20,000 on homes of three storeys or less. Owners can claim while the builder is still trading. Cover is up to $400,000; major defects are covered for 6 years and other defects for 2 years from completion, claimed within 12 months of the owner becoming aware. | Domestic builders and their clients | A claim starts with a complaint notice from the owner. The builder has 28 days to respond, with 22 December to 10 January not counted. If the Commission finds the work defective it usually issues a rectification order before any payout. | |
| 1 July 2026In force | Rectification orders. The Commission can order a builder, or for apartments a developer, to fix defective, non-compliant or incomplete work, up to 10 years after occupancy. The power reaches work finished before 1 July 2026. | Builders and developers | Orders are published on the public Register of Building Practitioners, which is mandatory, for orders issued in the last 5 years, and taken down once the order is complied with or set aside. | |
| 1 July 2026In force | Minimum financial requirements for registered domestic builders: a maximum construction capacity, net-asset thresholds, and quarterly management accounts above a capacity of $2 million. | Registered domestic builders | Financial records rather than defect records, but the same regulator reads both. | |
| 1 December 2026Passed, not yet in force | Domestic Building Contracts Amendment Act 2025. Deposit limits and progress-payment stages move into regulations, payments must be proportionate to the work done, cost escalation clauses only on contracts of $1 million or more and capped at 5%, separate preliminary agreements, one variation process for major contracts whoever asks for the change, and stronger rights for owners to end a contract. | Domestic builders | Every variation needs the same written trail whichever side raised it, and a progress claim needs evidence that the stage is actually done. | |
| 1 February 2027Made, not yet in force | Building manuals for new Class 1b, 2 and 3 buildings: permits, council documents, the common-property asset list, warranties, performance solutions, fire safety certificates and compliance reports, checked by the surveyor before the occupancy permit. | Apartment and accommodation builders, owners corporations | The handover pack becomes a regulated document that the owners corporation keeps up to date every year. | |
| 1 July 2027Made, not yet in force | Developer bonds for residential apartment buildings of four storeys or more with a building permit issued from this date: a 2% bond lodged before the occupancy permit. | Developers, owners corporations | A building assessor inspects 15 to 18 months after occupancy and again at 21 to 24 months. The developer must fix what the first report finds. The owners corporation has 6 months from the final report to claim, and a clean final report releases the bond. |
Scroll sideways on a phone. “Made, not yet in force” means the regulations exist and have a start date. Dates after 2026 can still move. Contracts over $16,000 signed before 1 July 2026 stay under the old insurance rules.
What is still being decided
The deposit and progress-payment figures. The contracts Act moves them into regulations. Draft regulations were consulted on in August and September 2026, and the final figures had not been made when this page was checked. Until 1 December 2026 the current limits apply.
Extra mandatory inspections. Pre-lining and waterproofing inspection stages were proposed in 2025 and then removed from the building manuals regulations “to enable the development of an alternative approach”. The mandatory stages for a house are unchanged for now. Expect a second attempt.
Five things the reforms ask of a builder’s record
None of the new rules tells a builder how to keep records. All of them assume the builder has one. The common thread is evidence: a dated notice, a photo, a name against the check, and a decade of reach.
A register that is still there in year ten
IssuesId is the defect and inspection register that runs from the first frame inspection to the end of the defects period, and keeps going after it. Every defect carries its photo with the upload time, the person who took it and the device’s own capture time where the phone records it. It is filed against the lot or the common area, and its lifecycle steps are role-gated and timestamped against a named user. A trade cannot close its own work: they mark it complete with an after photo, and someone on your side closes it.
When an owner’s complaint arrives, the defect goes on the register as a Warranty item and is issued to the trade by email with a no-login link. The Defect Notification report gives each contractor a PDF worded for the cost, with your coordinator’s name and signature on it. Every email the defect sends sits on its history with whether it was delivered. When the Commission or an assessor asks what happened, the Internal Detailed report prints the full record of notes, photos and drawings, and each defect’s history shows who did what, when, with what evidence.
Questions about the Victorian reforms
General information drawn from the Victorian Government’s published releases, notices of decision and the regulatory impact statement, checked on . It is not legal advice. Commencement dates after 2026 can move and the deposit figures are not yet set. Your contract, the legislation and the Commission’s own guidance apply to your job. If a row is out of date, tell us and we will correct it. The statutory warranty periods in every state are on defects liability periods in Australia. The short answers are what is a rectification order? and what should a builder do with a complaint notice?