Victoria’s Building and Plumbing Commission (BPC) will soon have the power to order builders to fix serious defects after homeowners occupy their properties, a move aimed at improving consumer outcomes and boosting confidence in the state’s housing industry.

Currently, the BPC can only act before a new build is signed off. Chief executive and commissioner Anna Cronin called the reform a “game changer” for consumers and a strong incentive for builders to “get it right the first time.”

The BPC, launched on 1 July 2025, consolidates regulation, insurance and dispute resolution under one roof. Additional reforms include a developer bond scheme for apartments four storeys and above, and expanded Domestic Building Insurance (DBI), allowing claims for defects even if a builder refuses to fix them. Previously, DBI claims were only available if a builder became insolvent, deceased or disappeared.

Queensland Building and Construction Commission chief regulator Skye Bowie says similar schemes in Queensland improve both consumer protection and productivity, noting that addressing defects is costlier for builders in the long run.

“Getting their building fixed is what matters most to consumers and our new powers will allow us to make that happen,” Anna says.

“These reforms are not designed to be punitive, the vast majority of builders do the right thing. The BPC will recognise the difference between a genuine mistake and flagrant disregard for the rules and we will exercise our judgment accordingly.”

The Department of Transport and Planning is consulting with industry and consumer stakeholders to finalise the regulations underpinning the reforms, which are set to take effect in 2026.