New offences for demanding or receiving money without DBI
Changes to the Domestic Building Contracts Act 1995 (DBC Act) and the Building Act 1993 will give the Victorian Building Authority (VBA) additional powers to penalise building practitioners if they demand or receive money under a major domestic building contract with a value above $16,000, without ensuring the domestic building work is covered by domestic building insurance (DBI).
The two new offences introduced into the DBC Act as of 28 February 2024 are outlined below.
- The first offence will apply where the conduct has been committed knowingly or recklessly. The maximum penalty level for this offence will be set at 500 penalty units (approximately $96,000) for a natural person and 2,500 penalty units (approximately $480,000) for a body corporate.
- The second offence will apply where the conduct has been committed under a standard of strict liability. The maximum penalty level for this offence will be set at 240 penalty units (approximately $46,000) for a natural person and 1,200 penalty units (approximately $230,000) for a body corporate.
These new offences have been introduced so consumers can have greater confidence in the building industry following some incidents of builders not taking out DBI when required.
The changes also provide the VBA with additional enforcement powers to act against building practitioners doing the wrong thing, including immediate suspension.
The VBA has published resources and FAQ about DBI on our webpage.