A new fairer fee structure for a growing industry
The new structure will allow the VBA to continue playing its critical role as the chief regulator of Victoria’s building industry and respond to the continued growth in the building industry.
Over the last eight years, Victoria has experienced an 86.3 per cent increase in the value of building works, a 31 per cent increase in the number of building permits and a 22 per cent increase in the number of individuals registered as building practitioners.
The VBA’s Chief Executive Officer, Sue Eddy said the increased growth in activity over recent years and the projected continual growth meant a new fairer fee system needed to be created.
“The size of industry has grown significantly since the current structure was introduced in 2005. As a self-funded regulator, we need a structure that more accurately reflects the costs of regulating Victoria’s building industry.”
“It will allow us to continue to protect consumers and promote the integrity of the building industry through the benefits of registration and greater regulatory oversight.”
“Improvements to processes will see practitioners spending more time working and less time dealing with the regulator on administrative tasks when applying for or renewing their registration.”
The new structure means different increases depending on the type and number of registrations or if a company structure is used.
“To make it easier for domestic builders to start on the tools, whether it be those who’ve just completed their practical training or those wanting a career change, initial registration costs will be lower than current fees,” Ms Eddy said.
Fees will differentiate a practitioner based on their business model, with corporate fees set higher than individual fees, because of the benefits that practitioners gain from a company registration for their business.
Practitioners with additional registrations in the same category of registration will be charged a reduced fee for each additional registration they hold.
The new structure will allow the VBA to help more practitioners continuously improve their skills through its free Practitioner Education Series and by providing technical guidance.
In 2020/21 the VBA responded to close to 23,000 technical queries from building and plumbing practitioners and supported 11,000 through online educational webinars.
“Practitioners have told us they want more of this support to better understand technical requirements and how to comply,” Ms Eddy said. This support will ensure those who do the right thing flourish and those who ignore the rules face the consequences.
Due to COVID-19 and related pressures, some practitioners are experiencing financial hardship or face special circumstances. The VBA will offer a fee relief scheme to assist these practitioners.
To give practitioners time to adjust, the new fee structure will come into effect from 2 May 2022 onwards. A comprehensive list of changes can be found at vba.vic.gov.au/building/fees.