Today the Victorian Department of Transport and Planning (DTP) has 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 result home warranty insurance and new dispute resolution processes.
What do the changes cover?
The consultation assesses different options for how the Building and Plumbing Commission (BPC) will implement 3 new regulatory tools:
A change from last resort to first-resort home warranty scheme to cover customers purchasing a new pool and where a building defect arises. This means that insurance will be triggered earlier than currently occurs when a builder has disappeared, died or become insolvent.
Changes to post-occupancy rectification orders - the BPC will have authority to order a builder to fix defects before a home or pool project has been handed over.
A developer bond scheme for apartments 4 storeys and above, to pay for defects identified post occupancy, which is not expected to impact the pool building sector.
These new powers were passed into legislation through the Building Legislation Amendment (Buyer Protections) Act 2025 earlier this year. The consultation is to work through the fine detail of how the changes will be implemented under the supporting Regulations.
What do pool and spa builders need to know?
While the reforms are primarily aimed at new home building work, swimming pools and spas are captured under the legislation as requiring domestic building insurance.
SPASA has been engaging with the Government in the lead up to these changes and some important amendments are included in the RIS that for swimming pool and spa projects.
The maximum claimable amount for defective work would be reduced from $300,000 to $100,000
The period of cover is not proposed to be changed from 2 years for non-structural and 6 years for structural defects.
The excluded items in a pool building project would be amended as follows:
A building owner is not entitled to assistance for loss arising from or in connection with domestic building work carried out in relation to—
features or accessories associated with, but not essential to, the functioning of a swimming pool; or
the surfacing of an area outside of a swimming pool; or
steps for a swimming pool that are not fixtures.
While these changes appear positive, SPASA still needs time to review the fine detail. We will provide members with more information in January.
We need your input
We appreciate that the timing, and short window, of the consultation period is hardly ideal. However, this is a key reform and it is important that members take time to review the changes.
Once SPASA has reviewed the RIS in full we will prepare a detailed submission on behalf of members responding to the 26 questions set out in the consultation survey.
Full details of the changes are available from the Engage Victoria website where you will find the RIS and the submission survey.
The consultation period is currently set to close on 30 January 2026.
While SPASA has been engaged with the Government in the reform process, the short notice given today that the RIS and supporting details are now open for comment is unfortunate with the Christmas break upon us.
Members are encouraged to review the details and share any feedback (questions and comments) with Ben Makepeace as early as possible in the new year, so that your views can inform our submission.