As part of the 1 July changeover from Domestic Building Insurance (DBI) to first resort Home Warranty insurance, the Victorian government has released details of how projects where a contract was signed before 1 July 2026 but had not yet obtained a DBI policy or a building permit will be managed.
To determine what insurance you require for a building permit issued after 1 July, you need to answer one key question: When was the contract entered into? The contract is what determines the pathway a building permit is eligible to follow.
Contracts signed after 1 July are fully captured by the new scheme.
They need to have a Notice of Cover under the new Home Warranty insurance scheme. Under the new requirements, Home Warranty insurance needs to be purchased within 10 days of signing the Domestic Building Contract. Read more
Domestic building work contracts signed before 1 July 2026 are subject to the insurance requirements under the DBI scheme that applied at the time the contract was entered into.
A Ministerial Direction has been issued to provide clarity for the relevant building surveyors (RBS) when issuing building permits.
Section 24A of the Building Act continues to apply as it existed immediately before 1 July 2026, in relation to the issue of a building permit for major domestic building contracts subject to the Direction.
This means an RBS can rely on a DBI certificate issued under the former scheme as evidence that insurance is in place for a building permit lodged after 1 July 2026.
To support projects where a DBI policy had not been purchased for a pre-July contract, arrangements are now in place through the Building & Plumbing Commission (BPC) that allow builders to obtain DBI insurance under the old scheme.
When builders enter a contract date for an application in the BuildVic portal that is 30 June 2026 or earlier, the following documentation is required as part of the application to assist the BPC team to process the insurance:
For contracts entered on or after 1 June to 30 June 2026, builders will need to provide an extract of the major domestic building contract that was signed by both parties during June 2026.
For contracts entered prior to 1 June 2026, builders will be required to provide a copy of the entire major domestic building contract and a signed statutory declaration. A statutory declaration template can be downloaded here.
The BPC will then review the application for insurance and support the issue of insurance under the DBI scheme if all the requirements are met.
Once this insurance is obtained, it will then meet the requirements for the RBS to issue a building permit after 1 July.
Relevant building surveyors, builders and owners should monitor BPC communications for updates regarding implementation of the Buyer Protections reforms.
If you are unsure whether the Ministerial Direction applies to your building permit, or if you have any questions, please contact the BPC or your insurance provider.
1300 067 088
Additionally, AB Phillips continues to provide SPASA members with support and advice in this area.
1300 242 136