Victoria's building and plumbing reforms: What the new Bills mean for industry

On 17 March 2026, two significant pieces of legislation were introduced to the Victorian Legislative Assembly:

• the Building and Plumbing Administration and Enforcement Bill 2026; and

• the Cladding Safety Victoria Repeal Bill 2026.

Together, these Bills represent a significant update of the regulatory framework governing building and plumbing work in Victoria, with direct implications for the building and construction industry. Industry participants should take careful note of the scope and practical consequences of these reforms, including the priority placed on achieving ongoing cost relief for new building projects and the mechanisms introduced / enhanced to combat poor industry practices.

Strengthened regulatory powers under the Building and Plumbing Administration and Enforcement Bill 2026

The Building and Plumbing Administration and Enforcement Bill 2026 amends the laws relating to the

• regulation of the building and plumbing industries

• enforcement of building and plumbing work standards; and

• discipline of building practitioners, plumbers, and endorsed building engineers.

The Bill also imposes a levy in relation to building work requiring a building permit and makes consequential amendments to other Acts.

At the centre of the reforms is the newly established Building and Plumbing Commission (BPC), which will receive new enforcement powers. The legislation equips the BPC with the authority to take proactive action against entities and persons carrying out non-compliant building and plumbing activities, rather than operating primarily on a reactive basis. The BPC will be empowered to intervene while work on a property is still underway, enabling earlier identification and rectification of defective building and plumbing work, before consumers are left bearing the consequences of industry non compliances and failures.

Several features of the Bill warrant attention from an industry compliance perspective. Firstly, the BPC will be authorised to impose higher civil penalties and issue a broader range of infringement notices. Secondly, company directors may become personally liable for compliance failures, meaning that directors of building and plumbing businesses can be held individually responsible for wrongdoing carried out by or on behalf of their companies. Thirdly, "phoenixing" practices will be targeted – where companies use insolvency to dissolve and re-establish under a new entity, leaving consumers without recourse – by making it materially harder for directors to escape accountability. Each of these measures is designed to ensure that the regulator is empowered to have the tools to effect outcomes which generate meaningful improvements in the building and construction industry, including for consumers.

A new statutory public interest objective will also require building practitioners and plumbers to place health and safety at the centre of every build. This introduces a positive duty that is likely to guide the BPC’s enforcement approach and the standards used to assess compliance.

Repeal of the Cladding Safety Victoria regime and removal of the Cladding Levy

Concurrently, the Cladding Safety Victoria Repeal Bill 2026 was introduced alongside the enforcement reforms and marks the conclusion of Victoria's cladding rectification program. The Bill repeals the Cladding Safety Victoria Act 2020 and abolishes Cladding Safety Victoria as a statutory entity.

The most immediate financial impact will be the removal of the Cladding Rectification Levy, which was part of the Victorian Government's $600 million cladding rectification program. The levy currently adds approximately $4,000 to the cost of every new two-bedroom apartment. It is estimated that its removal will reduce building permit levy costs by between 47-66% for building projects. For developers and project proponents in the residential and mixed-use sectors, this represents a meaningful reduction in upfront regulatory costs.

The decision to repeal the levy also signals the Government's view that the cladding rectification program has been substantially completed and that ongoing cost relief for new building projects is a priority.