MBV and HIA both condemn proposed new building legislation as ‘unfair and unworkable’

Master Builders Victoria (MBV) and Housing Industry Association (HIA) have issued a united rejection of the Victoria Government’s proposed new building dispute resolution legislation, describing it as ‘unfair and unworkable’. 

The Building Legislation Amendment (Buyer Protections 2025) Bill, which was introduced into Parliament this week, is intended to better protect consumers, but MBV and HIA say while the intent is laudable, the impact of the proposed changes goes way beyond protecting consumers and will unfairly punish reputable builders with hasty and misconceived definitions and powers. 

MBV CEO Michaela Lihou said the lack of clarity in the proposed legislation will unfairly damage builders trying to do the right thing. 

“We all understand the need to protect consumers and have a fair, reasonable and respectful dispute resolution process, but this legislation takes a potential sledgehammer to the rights of builders,” she said. 

HIA Executive Director Keith Ryan called the legislation misguided and potentially damaging to an industry already grappling with a complicated regulatory system. 

“Where is the logic when under these new rules, a builder could potentially be at risk of being subjected to a rectification order a decade or more after they’ve finished the job?” he said. 

“And as this legislation reads, the new Building and Plumbing Commission will be able to make ‘rectification orders’ against home builders in response to any type of complaint from a consumer, with apparently no need for the consumer to show that there are serious problems with their build that justify such a powerful intervention by a regulator.” 

“And to add insult to injury, builders have no effective right to challenge the making of an order.” 

“This is legislative madness and totally unfair.” 

Compounding this, it is not possible to fully assess the impact of the rectification order provisions in the Bill, without knowing the outcome of the review of existing consumer protections and domestic contracts. 

Ms Lihou added the Bill lacks clarity around the definition of what constitutes a ‘defect’ as distinct from a ‘serious defect’ and the appropriate way to deal with each. 

“We’re concerned that this legislation is being rushed through, when there is already a raft of existing consumer protections, albeit they are not always appropriately enforced and in a timely manner,” she said. 

“Piling more legislation on decent builders is just another way of pushing them out of the industry.” 

Keith Ryan added “HIA cannot agree that the best way to protect consumers is to inflict unfair and excessive regulations on all builders and hope that the bad builders are captured this time.” 

“Our experience has shown that as governments impose more regulation, they only succeed in creating more opportunities for good builders to fail and more laws for the bad builders to ignore.” 

“Further, this legislation will do nothing to protect consumers from uninsured people delivering substandard building work,” he said. 

Both Ms Lihou and Mr Ryan recommend that “The Victorian government needs to withdraw this Bill and consult further with stakeholders.”  

ENDS

Available for interview:
MBV CEO Michaela Lihou
HIA Executive Director Keith Ryan