Victoria expands compensation for victims of liquidated builders

Builders are required by law to take out DBI on behalf of clients if they are under a contract for domestic building work that costs over $16,000.

New offences introduced in February stated that if a builder receives money under a major domestic building contract without holding the required DBI, they risk facing a penalty of $96,000 for an individual or $480,000 for a company.

“Victorians rightly expect their homes to be built to approved building standards and built to last,” said state Minister for Planning, Sonya Kilkenny.

“We’re delivering a suite of building reforms that provide clarity for industry and stronger protections for Victorians.”

Gabrielle Williams, the state’s Minister for Consumer Affairs, noted that the payment scheme “has been a lifeline for many Victorians”.

“This extension will provide customers affected by the collapse of Montego Homes and other builders some much-needed support as they try to move forward,” said Williams.

Nevertheless, Assistant Treasurer Danny Pearson also emphasised the importance of doing due diligence before contracting a builder.

“We urge all customers to check that their builder has taken out insurance – as all builders are obliged to – through the VMIA policy checker,” said Pearson.

“We are supporting families who have been left stranded through no fault of their own – and putting builders on notice: new penalties apply to individuals and companies who fail to take out domestic building insurance.”