The Building Legislation Amendment (Domestic Building Insurance New Offences) Bill 2023 aims to grant the Victorian Building Authority (VBA) enhanced enforcement powers while introducing new measures to safeguard consumers and their investments in domestic building projects.
Western Metropolitan MP Lizzie Blandthorn emphasized the significance of this bill, highlighting its role in reforming the regulatory framework to ensure consumer protection and builder accountability regarding insurance obligations. The proposed legislation seeks to address gaps in the system, particularly evident in cases such as the collapse of Porter Davis Homes Group, Snowden, and Hallbury Homes, where builders failed to secure insurance, jeopardizing customers’ deposits.
Introduced to the Legislative Assembly in November 2023, the bill progressed through the lower house during the initial sitting week of February 2024. Brighton MP James Newbury acknowledged the emotional weight of the issue, expressing sympathy for those affected by the consequences of builders’ misconduct. However, he also stressed the need for more substantial reforms beyond the scope of the proposed changes.
While Laverton MP Sarah Connolly recognized the severity of the proposed penalties for non-compliance, she emphasized their necessity in deterring reckless or deliberate violations. The bill outlines significant financial penalties for individuals and corporate entities found guilty of breaching insurance obligations, with maximum fines ranging from $46,000 to $480,000, depending on the nature of the offense.
Gippsland South MP Danny O’Brien underscored the existing requirements for builders to provide warranty insurance, expressing concern over past non-compliance with regulations. He emphasized the importance of effective enforcement to address systemic issues, particularly in light of the housing crisis facing the state.
The proposed legislation reflects ongoing efforts to enhance consumer protection and uphold standards within the building industry, recognizing the critical role of robust regulatory measures in fostering trust and accountability.
