Building reforms to strengthen consumer protections

VICTORIANS building or renovating their homes will have stronger protections under new laws passed by state parliament.

The reforms follow the collapse of major builder Porter Davis in 2023 and are designed to give families greater certainty when signing domestic building contracts.

Consumer Affairs Minister Nick Staikos said the changes would “protect Victorians while delivering safer, more compliant and more durable buildings”.

“For many families, their home is the single largest investment they will make in their lifetime — which is why it’s critical that domestic building contracts are clear and fair,” Mr Staikos said.

The updated laws set limits on deposits and progress payments, introduce safeguards on cost escalation clauses, and simplify the process for ending contracts.

The reforms also transfer oversight from Consumer Affairs Victoria to the Victorian Building Authority, paving the way for a new Building and Plumbing Commission.

Housing and Building Minister Harriet Shing said the changes would give consumers more protection while providing builders with flexibility to meet demand.

The new rules will be rolled out in stages, with full implementation due by December 2026.