MBV, HIA slam new housing legislation

The building and construction peak bodies are not happy with the new legislation being forced upon the industry by the state government, condemning it as unworkable and not likely to deliver on key promises.

Both Master Builders Victoria (MBV) and Housing Industry Association (HIA) have issued a united rejection of the Victorian government’s new home building dispute resolution legislation, arguing it remains ineffectual and despite the government’s promises, is highly unlikely to be adequately funded and will be unable to deliver.

Both MBV and HIA are concerned there are many unanswered questions about exactly how the new legislation in the Building Legislation Amendment (Buyer Protections 2025) Bill will work once it passes state Parliament.

MBV chief executive officer Michaela Lihou said the industry was unclear on how the widespread changes would be funded, given it was not specifically detailed in the recent State Budget.

“This legislation introduces sweeping changes to our current system, which we estimate realistically will need at a minimum, dozens of new inspectors and dispute resolution officers to undertake the potential workload.

 

“Without those extra assets, this new legislation will fail before it begins and then nobody wins.”

HIA executive director Keith Ryan said it was also inexplicable that multiple reviews of Victoria’s existing Domestic Building Insurance (DBI) scheme appear to have been cut short, with no findings publicly revealed before the introduction of this new legislation.

“In the past year, both the Victorian Auditor-General’s Office (VAGO) and the Victorian Government Ombudsman had been reviewing the operation of the Domestic Building Insurance (DBI) scheme.

“The VAGO audit was brought to a halt in October 2024, and there is no indication when the Ombudsman’s report will be published.

“So, how can the government be confident that the solution in this rushed Bill will work?”

Both Ms Lihou and Mr Ryan also again questioned the logic of a builder potentially being at risk of being subjected to a rectification order, a decade or more after they’ve finished the job.

Mr Ryan called for the government to clarify how it was going to adequately fund the new regulator to deliver on its promises.