Victoria’s building reforms are arriving in stages, and each part has its own start date. If you are building, renovating or dealing with defects, the first step is working out which rules apply to your project. Here is a plain-English overview.
The key dates at a glance
- 1 July 2025: the Building and Plumbing Commission (BPC) was established, replacing the Victorian Building Authority.
- 1 July 2026: Home Warranty insurance and the BPC’s new rectification order powers commenced.
- From 1 July 2027: the developer bond scheme is targeted at apartment projects with building permits issued from this date.
Home Warranty insurance and older DBI policies
For eligible domestic building contracts signed from 1 July 2026, Home Warranty applies to work valued at more than $20,000. It gives owners broader protection where a builder fails or refuses to complete or fix covered work, subject to the scheme’s conditions and limits. The total cover limit is $400,000 per home, with separate limits for some costs.
Earlier projects may still be covered by Domestic Building Insurance (DBI), which applied to work over $16,000. Existing DBI does not automatically become Home Warranty, and the older DBI rules are not the same as the new scheme, so check your contract and insurance certificate together.
Contract requirements are a separate question
The threshold for a major domestic building contract is still work valued at more than $10,000. That is separate from the $20,000 Home Warranty threshold. Whether you need a major domestic building contract depends on the work, any exemptions and the current regulations, so get the contract checked before you sign. Our building contract review service can help.
Home Warranty time limits
BPC guidance says cover lasts up to six years after completion for major defects, such as structural, waterproofing and weatherproofing problems, and up to two years for other defective or non-compliant work. The deadlines for lodging a claim are separate and much shorter:
- Incomplete work: generally within 12 months of the relevant insurable event.
- Defective or non-compliant work: generally within 12 months of when you became aware, or should reasonably have become aware, of the problem.
- Accommodation, removal and storage costs: within 28 days after the costs are incurred.
A long coverage period does not mean you can put off a claim. Record when the work was completed, when you noticed the problem and what happened next, and raise it promptly.
Rectification orders and developer bonds
The BPC can now order defective or incomplete domestic building work to be fixed or completed. Read more in our guide to rectification orders in Victoria.
For apartment buildings of four or more storeys, a separate developer bond scheme is being introduced. Read our guide to Victoria’s developer bond scheme.
What to do next
Gather your contract, any variations, the insurance certificate, the building permit, inspection reports and your correspondence with the builder. Our building and construction lawyers can advise on the contract and the legal issues affecting your project. Call us on (03) 9629 2211 or send us an enquiry to request a quote, ideally before you sign a contract or take action in a dispute.
Frequently asked questions
When did the Building and Plumbing Commission start?
The Building and Plumbing Commission (BPC) was established on 1 July 2025, replacing the Victorian Building Authority. It brings practitioner registration, dispute resolution and domestic building insurance together in one regulator.
What is Home Warranty insurance?
Home Warranty is the insurance scheme for eligible domestic building contracts signed from 1 July 2026, for work valued at more than $20,000. It allows owners to claim where a builder fails or refuses to complete or fix covered work, not only where the builder has died, disappeared or become insolvent, subject to the scheme’s conditions and limits.
Does my existing DBI policy become Home Warranty?
No. If your contract was signed before 1 July 2026 and you have a Domestic Building Insurance certificate, your cover generally continues under DBI on its existing terms. Check your contract and certificate together.
How long do I have to make a Home Warranty claim?
Cover lasts up to six years after completion for major defects and up to two years for other defects, but the deadline to lodge a claim is separate and much shorter. Claims for incomplete work generally need to be made within 12 months of the relevant event, and claims for defective work within 12 months of when you became aware, or should reasonably have become aware, of the problem.
When does the developer bond scheme start?
The developer bond scheme for apartment buildings of four or more storeys is targeted at projects with building permits issued from 1 July 2027. It did not require developers to lodge bonds from July 2026.
This article provides general information about the law as described above. It is not advice on your circumstances. Laws, procedures and deadlines can change, so please get advice about your matter, particularly before signing documents or where a deadline may apply.
