The Victorian Government has introduced the Building and Plumbing Administration and Enforcement Bill 2026, bringing major changes to how the building and plumbing industry is regulated.
At the centre of the reforms is the Building and Plumbing Commission (BPC), which be given much stronger enforcement powers to step in earlier, issue bigger penalties, and hold builders and company directors more accountable.
The aim is to improve consumer protection and reduce the amount of Victorians left to deal with defective building work on their own.
Why These Changes Matter
For most people, building or buying a home is the biggest financial commitment they will ever make. When something goes wrong, it can mean huge rectification costs, long disputes, safety issues, and years of frustration. A 2024 review into the Victorian Building Authority found serious problems in the way complaints were being handled, with many consumers feeling left without proper support. These reforms are the Government’s response to that. Instead of waiting until the damage is already done, the new system is designed to let the regulator step in earlier and prevent problems from getting worse.
The New Building and Plumbing Commission
The BPC will now have stronger proactive enforcement powers. This means it can intervene while building work is still happening, rather than only stepping in once defects are finished and owners are left with the problem. It will be able to investigate earlier, issue notices sooner, and require defective work to be fixed before it turns into a much bigger issue. The focus is shifting from reacting to disputes to preventing them in the first place.
Bigger Penalties for Doing the Wrong Thing
The Bill gives the BPC stronger powers to issue fines and penalties for serious breaches. Builders, plumbers and companies that ignore safety obligations or cut corners may face much larger penalties than under the current system. Courts will also have stronger powers, including ordering compensation for affected consumers, disqualifying people from holding licences, and in serious cases, banning them from working in the industry altogether. The idea is to make sure penalties are serious enough that they cannot just be treated as another business expense.
Directors Can Be Personally Responsible
One of the biggest changes is around director liability. If a company ignores emergency orders, rectification orders, or directions to fix defective work, the BPC may be able to make directors personally responsible. This means directors may no longer be able to rely on the company structure to avoid responsibility when serious compliance failures happen. The Bill also makes it easier to take action against directors who fail to prevent major breaches involving unsafe or unlawful work.
Cracking Down on Phoenixing
The reforms also target ‘phoenixing,’ where a company shuts down, avoids its debts or liabilities, and then starts again under a new name. This has been a major issue in construction, especially where owners are left with defects but no real way to recover costs. The new laws are aimed at making that much harder, so directors cannot simply walk away and leave consumers carrying the loss.
A Stronger Focus on Consumer Safety
For the first time, the Bill introduces a formal building system objective. Put simply, it makes clear that protecting the health and safety of building occupants and the public must come first. This creates a stronger duty for builders and plumbers to put safety at the centre of every project, and it gives the BPC a clearer standard when deciding whether action needs to be taken.
Cladding Safety Victoria Is Also Ending
At the same time, the Government has introduced the Cladding Safety Victoria Repeal Bill 2026. This will formally close Cladding Safety Victoria and bring Victoria’s major cladding rectification program to an end. Any remaining responsibilities will move across to the BPC, bringing more of the building system under one regulator.
Final Thoughts
These reforms are a major shift for Victoria’s building industry. At Warlows Legal, we assist builders, plumbers, developers and consumers in understanding and responding to Victoria’s evolving enforcement landscape. As specialists in Construction Law, we can help you navigate the strengthened powers of the Building and Plumbing Commission, manage compliance risks, and respond effectively to investigations, notices, or disputes under the new regime. Our focus is on ensuring you are prepared for change and protected at every stage of the building process.
