Once-in-a-generation changes to the Victorian Building Industry in 2025

Exclusive insights from the VBA Industry Conference to keep you ahead

The Victorian building industry is on the cusp of a major regulatory shift, and understanding what’s coming is crucial for staying compliant and competitive. At Builder Registration, we recently attended the 2024 VBA Industry Conference to get a first-hand look at how the new building regulations for Victoria and establishing the Victorian Building & Plumbing Commission (VBPC) will reshape the industry.

In this blog, we share the most important takeaways from the conference, including updates on building compliance in Victoria, new powers for the VBPC, and consumer protection measures. By acting now, you can prepare for these changes and ensure your business is ready to thrive under the new system.

What is happening to the VBA in April 2025?

In April 2025, the Victorian Building Authority (VBA) will transition into the Victorian Building & Plumbing Commission (VBPC), a more powerful building regulator and new building watchdog. The VBPC will unify the functions of the VBA, Domestic Building Dispute Resolution Victoria (DBDRV), and the Domestic Building Insurance (DBI) function of the Victorian Managed Insurance Authority (VMIA).

This is one of the most significant reforms to Victoria's building and plumbing industries in decades. It aims to create a streamlined, centralised body for managing compliance, resolving disputes, and improving consumer protections.

Why is this change happening?

The Building and Plumbing Commission is being established to address longstanding challenges in the Victorian Building Authority’s system and to improve industry standards. By consolidating multiple regulatory functions, the VBPC will:

• Simplify processes for builders, developers, and homeowners.
• Provide better oversight of complaints and disputes.
• Strengthen protections for homeowners and promote higher quality outcomes across the building lifecycle.

The Minister of Planning has also changed zones around activity centres to create more housing, allowing for a low-medium height style of development.

What new powers will the VBPC have?

The VBPC will introduce critical powers to enhance consumer protection and enforce compliance, including:

• Rectification orders post-occupancy: Builders can now be held accountable for defects discovered after the occupancy permit has been issued.
• Strata bonds for apartments: Developers of mid- to high-rise apartments must provide financial security to cover defect rectification post-occupancy.
• Mandatory notifications for developers: Developers of apartment buildings over three storeys must notify the VBPC before occupancy for a final inspection. This ensures compliance with the new building regulations in Victoria.
• Expanded Domestic Building Insurance (DBI) coverage: Homeowners can now claim on DBI for unresolved issues, even if the builder is not insolvent, deceased, or missing.

These new powers are designed to protect homeowners while holding builders and developers to higher accountability standards.

What does this mean for consumers in Victoria?

The VBPC will deliver a more consumer-focused approach to regulation. For homeowners, this means:

• Faster, more efficient resolution of complaints and disputes.
• Greater accountability for builders and developers.
• Enhanced assurance that defects will be addressed, even after occupancy.
  

Homeowners will also gain better access to insurance protections for unresolved building defects, particularly in new homes, providing peace of mind that the system prioritises their needs.

Here’s what the VBA’s restructuring means for builders

What new responsibilities and requirements will builders face?

You’ll need to adapt to increased compliance measures under the VBPC to avoid the changes. Here’s what to expect and how you can prepare:

• Stricter enforcement: Over $950,000 in fines were issued last year, with unregistered builders in Victoria becoming a primary target for inspections and penalties. If you’re not already licensed, now is the time to take action to avoid being caught out.
• Enhanced inspection requirements: If you’re working on Class 2 buildings, including apartments over four storeys, mandatory building inspections in Victoria will occur six months before occupancy. Ensuring your projects meet compliance early will save you from costly delays.
• New levies and standards: Under the new building regulations for Victoria, builders will face a 3% levy for warranty claims, alongside mandates for liveable housing and accessibility standards. Familiarise yourself with these requirements to avoid unexpected costs.
• Improved project oversight: You must strictly adhere to approved plans and mandatory inspection requirements (Sections 16 and 33). Surveyors now have the authority to issue rectification notices, so it’s crucial to double-check your compliance at every stage.

These measures aim to raise the bar for professionalism across all aspects of building quality in the Victorian building industry.

How will these changes impact builders’ licences?

Regulatory changes like these often lead to processing delays for licensing and approvals, and with the VBPC introducing stricter compliance measures, your licence application is likely to face more scrutiny. 

We strongly recommend acting now to secure or upgrade your licence to avoid potential backlogs. This is especially important as the licence requirements for builders under the new regulations become more demanding. Trends in NSW and QLD show how quickly licensing standards can tighten, and Victoria is following suit. Acting early isn’t just about staying compliant—it’s about staying competitive in an industry evolving rapidly.

Our team at Builder Registration is here to help you navigate these changes easily, so you can focus on building your future without unnecessary delays.

Builder Registration has your back

Navigating the changes to the Victorian building industry can feel overwhelming, but you don’t have to do it alone. At Builder Registration, we ensure you’re fully prepared to meet the new standards and thrive in this evolving regulatory landscape.

Whether you need to secure your licence, upgrade to meet the VBPC’s stricter requirements, or prepare for mandatory inspections, our expert services are designed to help you confidently through every step.

Here’s how we can help:

• Domestic Builders Licence VIC: We’ll streamline the process to help you secure your domestic builder’s licence quickly and efficiently, ensuring you comply with the latest regulations.
• Commercial Builders Licence VIC: Our team provides expert guidance to help you obtain or upgrade your commercial builder’s licence, so you’re ready to tackle larger projects under the new compliance framework. 

Our National Licence Advisors are dedicated to ensuring your application is accurate, compliant, and processed without delays. With our support, you can focus on growing your business while we handle the complexities of licensing during these challenging times.

What training opportunities are available to help you prepare?

Builder Registration offers flexible training options designed to equip you for the VBPC’s new requirements:

• 10-Week Evening Course: One evening per week (3 hours). Limited seats are available for classes starting next week.
• Intensive 1-Week Course: Course dates will be made available in January 2025. This course is perfect for those available over the holiday period.
• February 10-Week Course: It is offered across four Melbourne locations. Spaces are filling quickly, so secure your spot now.
  

Enrolling in one of these courses ensures you’ll be ready to meet the new building regulations 2025 Victoria well before April 2025.

What’s your next step?

The VBPC’s restructuring marks a pivotal moment for the VIC building industry. By acting early, you can ensure you’re prepared for the challenges and opportunities this transition will bring. 

Builder Registration is here to help you every step of the way—whether securing your licence, navigating building compliance in Victoria, or understanding the new Victorian building regulations. Together, we can set you up for success in this evolving industry. 

Get in touch today.