It’s hoped that new domestic building contract laws in Victoria will lead to more homes being built.
New laws to update and simplify the rules for building and renovating homes are contained in the Domestic Building Contracts Amendment Act 2025 which passed the Victorian Parliament on Thursday, September 11.
The changes are expected to take effect by December 1, 2026 and are designed to: provide stronger protections for homeowners when signing domestic building contracts; set clear rules on when builders get paid; allow the use of cost escalation clauses for contracts worth $1 million or more; separate preliminary agreements; ensure clearer contract requirements for all; provide a single, simple process for contract variations for major domestic building contracts and set stronger rights for homeowners to end a major domestic building contract.
The legislation also transfers powers from Consumer Affairs Victoria to the Building and Plumbing Commission (BPC).
The changes are the result of a review into building contract laws undertaken after the collapse of home builder Porter Davis Homes in 2023.
More information: https://www.consumer.vic.gov.au/
