Victoria expands compensation for victims of liquidated builders
Victorians whose builder has become insolvent without taking out insurance will be eligible for a special payment scheme.
The Allan government is extending the Liquidated Builders Customer Support Payment Scheme, which previously only applied to former customers of Porter Davis Homes who were left without domestic building insurance (DBI).
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.”
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