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{{propApi.successMessage}} {{region}} Change locationHIA calls for draconian law to be withdrawn
HIA calls for draconian law to be withdrawn
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HIA Executive Director Victoria, Keith Ryan, said the Consumer Legislation Amendment Bill 2026 introduced into Parliament today makes an unannounced and a grossly unfair change to the laws regulating domestic building contracts and variations.
“This proposed legislation will make it an offence for a builder to enter into an agreement with a client to vary building work on their home if the cost of the project will increase by $5,000 or more unless the builder puts details of the variation in writing.
“The existing law already has a significant punishment for home builders who fail to document variations. They run the risk of not being paid for this work and having to convince VCAT there are exceptional circumstances that justify them being paid if they want to pursue the matter.“
With an undocumented variation the usual outcome is that a client who does not want to pay will not be forced to pay. That is already a significant penalty for a home builder who does not keep up to date with their paperwork.
“Also, the Buyer Protection laws commencing on 1 July 2026 includes an offence, with a maximum fine over $100,000, if the builder fails to pay on behalf of the client an additional premium for First Resort Home Warranty when the cost of the home building contract increases by $5,000 or more.
“The effect of this proposed law introduced today is to effectively punish home builders if they fail to create evidence that can later be used to charge a higher First Resort Home Warranty Scheme premium.
“It is already not uncommon for home builders and clients to decide to vary home building work but often both are less interested in preparing and signing the paperwork. Usually getting the building work done takes priority for both. If the client wants to avoid paying a higher First Resort Home Warranty premium they have an incentive for the variation not to be documented.
“The only sensible way for a home builder to manage this proposed new obligation is to make sure their client receives and signs a variation document – with a clear allowance for the increased cost of the First Resort Home Warranty scheme – before they even start doing any work on the variation.
“This legislation is ultimately about stopping consumers from varying their home building contract unless they pay a higher premium
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