The Victorian government has introduced a further bill to parliament as part of its building regulation and consumer protection overhaul.

The bill supports establishment of the Building and Plumbing Commission by transferring powers from Consumer Affairs Victoria to the Victorian Building Authority.

All aspects of building quality control including regulation, insurance and dispute resolution will be brought under the commission.

The Domestic Building Contracts Amendment Bill 2025 also updates some rules, including allowing cost escalation clauses for domestic work with $1 million or more contract prices, with a 5% ceiling on increases and consumer protections.

“As we build and approve more homes across the state to meet demand, we’re also delivering reforms that focus on certainty, quality and accountability,” Housing and Building Minister Harriet Shing said.

Legislation passed earlier this year paved the way for the new commission and the introduction of other reforms such as a developer bond scheme for buildings four storeys and above, in line with NSW arrangements.

Victoria is also making it easier to claim through statutory cover for incomplete, defective and non-compliant work, moving away from a “last resort” arrangement.

The Building and Plumbing Commission will incorporate the Victorian Building Authority, Domestic Building Dispute Resolution Victoria and the domestic building insurance operations of the Victorian Managed Insurance Authority.

The commission is expected to begin operations next month, with its new powers to be implemented this year and next.