Victoria’s Buyer Protection Bill 2025: What Homeowners Need to Know

Victoria’s Buyer Protection Bill 2025 introduces further reforms aimed at strengthening consumer protections in residential building and apartment developments. The changes sit alongside broader regulatory reforms overseen by the Building and Plumbing Commission, which have reshaped how building compliance and enforcement operate in Victoria.

This article explains what the Buyer Protection Bill 2025 does, who it affects, and what homeowners should understand when buying, building, or owning residential property in Victoria.

What Is the Buyer Protection Bill 2025?

The Buyer Protection Bill 2025 forms part of a broader package of legislative amendments designed to improve accountability, compliance, and consumer protections in the building industry.

The reforms focus on:

• stronger regulatory oversight
• improved rectification pathways
• increased financial accountability for industry participants
• better protection for buyers of apartments and complex residential buildings

The Bill primarily affects apartment developments and higher-risk residential projects, but it also has flow-on implications for homeowners more broadly.

What Has Changed Under the New Framework?

The Buyer Protection Bill 2025 builds on earlier reforms by expanding the powers of the Building and Plumbing Commission and strengthening mechanisms to address defects and non-compliance.

Key changes include:

• expanded rectification powers, including after occupancy
• enhanced financial oversight of builders and developers
• introduction of a developer bond scheme for certain developments
• clearer pathways for regulatory intervention where issues arise

These measures are intended to reduce unresolved defects and improve outcomes for buyers.

Rectification Powers and Ongoing Accountability

Under the updated framework, the regulator has broader powers to require rectification of defective or non-compliant building work, including in some circumstances after occupancy permits have been issued.

This represents a shift away from defects being addressed only through private legal action. Instead, formal rectification and enforcement pathways now play a stronger role in ensuring issues are identified and addressed where appropriate.

Developer Bond Scheme for Apartment Buildings

One of the key reforms introduced through the Buyer Protection Bill 2025 is the developer bond scheme, which applies to certain multi-storey residential apartment developments.

Under this scheme:

• developers are required to lodge a financial bond
• the bond can be used to fund rectification of defects if required
• funds are available without relying solely on lengthy dispute processes

The scheme is designed to provide greater confidence for apartment buyers, particularly in larger or more complex developments.

Financial Requirements and Insurance Considerations

The reforms also strengthen financial oversight of builders operating in higher-risk residential sectors.

Builders may be required to demonstrate financial capacity to meet ongoing obligations, including rectification responsibilities. These measures aim to reduce the risk of unresolved defects where a builder is unable to meet their obligations.

While these changes interact with insurance arrangements, they do not replace the need for appropriate permits, inspections, and compliance throughout construction.

What This Means for Homeowners and Buyers

For homeowners and apartment buyers, the Buyer Protection Bill 2025 provides:

• stronger regulatory involvement where defects arise
• clearer rectification options for complex buildings
• increased accountability across the project lifecycle

However, these protections work best when combined with proper approvals, inspections, and early identification of issues during construction.

The Importance of Permits and Compliance

Despite stronger post-construction protections, prevention remains critical.

Ensuring the correct approvals are in place and that mandatory inspections occur as required helps identify issues early, when they are typically easier to address.

How Surveyoria Supports Homeowners

Surveyoria helps homeowners understand and navigate building compliance, so they can make informed decisions at each stage of their project.

Our Role

We support homeowners by:

• explaining regulatory changes
• assisting with permit and inspection processes
• identifying compliance risks early
• guiding rectification and enforcement pathways where needed

If you are unsure how recent regulatory reforms may affect your project or property, you can contact Surveyoria for clear, practical guidance.

Further Information

For official, consumer-focused information about building rights and protections in Victoria, homeowners can refer to guidance published by Consumer Affairs Victoria.