In December 2025 the Victorian Department of Transport and Planning (DTP) released a Regulatory Impact Statement (RIS) for consultation in relation to the changes proposed in Victoria for domestic building insurance (DBI) which will see the introduction of first resort home warranty insurance and new dispute resolution processes. These changes are planned to start on 1 July 2026 and would apply to all new pool and spa building contracts.
For an overview of the proposed changes check out our December member alert.
SPASA’s submission to the consultation
SPASA has prepared a submission (click here to read) on behalf of members setting out our views on the proposed changes to insurance and dispute resolution.
SPASA appreciates the support of members who provided input to this submission.
What are the key matters raised by SPASA?
SPASA’s submission covered the relevant questions of the consultation survey, and raised several key points including:
Requesting explicit consideration for ‘sleeper pools’ and the creation of a ‘dormant’ status.
Opposing the publication of Rectification Orders (RO) on a public register, and providing a strong position of how any register would need to function if it is to be established.
Requesting the inclusion of a bespoke framework for the pool industry as part of the First-resort Home Warranty Scheme (FHWS).
Seeking clarification on the phrase ‘certain non-structural pool defects’.
Seeking further clarification on the details and application of the $100,000 sub-limit for pools outlined in Option 2 of the FHWS.
Raising concerns about the appropriateness of the proposed claim process, predicted timelines, and the ability of the BPC to meet its own obligations under the proposed framework and timelines.
Proposing a carve-out for pool equipment, as part of the proposed FHWS exclusions list.
Querying how landscaping and pool safety barriers will be treated under the scheme.
Raising concerns of how payment defaults, disputed contracts, and ‘claim gatekeeping’ may be addressed to ensure builders are not unfairly penalised when claims are raised.
SPASA also raised several important questions relating to ROs seeking further clarification from the Department.
What happens next?
SPASA is working closely with the DTP, the Building & Plumbing Commission and the insurance division, previously knowns as the Victorian Managed Insurance Authority (VMIA) to determine their position on the concerns raised.
The proposed changes in insurance requirements are planned to commence on 1 July 2026.
SPASA is also working closely with our insurance partners, AB Phillips on the process to transition existing insurance into the new system. More details on this will be available shortly.
Full details of the changes are available from the Engage Victoria website where you will find the RIS and other consultation documentation. Please note that the consultation has now closed.
If members have further questions, please contact Ben Makepeace via email: [email protected]