The home building industry has been through a tough time of late, due in large part to high costs, difficult clients, and ever-increasing red tape. Unfortunately, this red-tape burden is set to increase over the next few years as the impacts of the Buyer Protection Bill come into effect.

The new Statutory Insurance Scheme (SIS) should start to operate from 1 July 2026 and will change the way that builders are assessed for DBI. New financial eligibility requirements for DBI, called Minimum Financial Requirements or MFR are expected to come into force after a transitional period after the start of the SIS.

The BPC, which has now taken over the DBI functions of the VMIA and will eventually be the only provider of DBI, will look at a range of factors ranging from revenue, assets, debt ratings and ATO portal data to determine eligibility for DBI. Builders are also likely to have to provide annual financial statements signed off by an accountant, with larger firms potentially being required to have audited accounts. It is intended that the MFR will be tailored to the size of the builder.  With smaller builders having less onerous requirements and more stringent requirements for big builders.

There will be a transition period to allow builders to understand and prepare for these new financial requirements. The HIA will keep members informed of these requirements, which are currently the subject of consultation with industry. In the meantime, we recommend that you talk with your accountant, or if you don’t have one, employ a good one soon.