The first step toward a wider trades registration regime in Victoria was made with the introduction of the Building Amendment (Registration of Building Trades and Other Matters) Bill 2018.

This legislation introduced some other changes that members should be aware of, as the government seized the opportunity to make amendments to the Building Act and regulations. These include a new regulatory framework for swimming pools, powers allowing the Minister to ban high-risk cladding products and new steps on breaches-of-dispute resolution orders.

The following is a (non-exhaustive) summary of some of those changes[1]:

  • Minister can ban high-risk cladding products

The Minister for Planning now has the power to declare a ban on the use of a combustible external wall cladding product. This includes preventing use of composite panels (ACP) with a polyethylene core and expanded polystyrene (EPS) cladding, for class 2, 3, or 9 buildings of two or more floors, and class 5, 6, 7 or 8 of three or more storeys.

The legislation defines high-risk external cladding. An example is ‘a combustible building product that provides a risk of death or serious injury arising from its use, whether it is to occupants of the building or neighbouring buildings, the public or any property.’

The Minister for Planning would need to declare a ban by publishing it in the Government Gazette at least 48 hours in advance of the ban unless the risk is too serious to delay. The Minister can also seek submissions from the public on whether to ban a particular cladding product.

  • Cladding Rectification Agreements (CRA)

The Bill amends the Local Government Act 1989 to provide for cladding rectification agreements. This would allow building owners and owners corporations to access low-cost finance to fund cladding works and allow for any long-term costs to be borne over time.

The amendments will allow councils, owners/owners corporations and lenders to enter into voluntary cladding rectification agreements (CRA). Loans for cladding rectification can be repaid through the council rates system.

The amendments will provide owners corporations with the ability to enter into CRAs on behalf of the owners but a CRA will need approval from at least 75 per cent of those owners.

The proposal would also allow CRA liability to be transfer from owner to owner as the units are sold.

  • Clarification that surveyors can issue building notices after the issue of an occupancy permit

A private building surveyor can continue to issue buildings notices and orders after the issue of an occupancy permit. While this practice has been generally accepted by the building industry, the legislation now expressly states it.

  • New regulatory framework for swimming pools and spas

The legislation requires councils to keep and maintain a swimming pool register and allows for the creation of regulations that can require pool owners to do self-assessment or engage independent assessment of pool-barrier compliance.

  • Breach of Dispute Resolution Orders (DRO)

The DBDRV has the power to issue a dispute resolution order (DRO) to require a builder to rectify defective building work. The Bill includes a new disciplinary ground where a builder fails to seek review of a DRO notice in VCAT within 28 days. Failure to seek review will result in suspension, or partial suspension, of the building practitioner's registration.

  • Immediatesuspension of registered building practitioners on public interest grounds

The Bill gives the VBA power to immediately suspend a registered building practitioner on public interest grounds. An example of this might be repeated and reckless disregard for public health and safety considerations.

  • Destructive testing powers

The legislation gives the VBA the power to ask a surveyor to take samples of building products and test them to determine if their use is non-compliant with the Building Act or regulations. The Bill provides that 'authorised persons' can destructively test any building product or material if it is suspected on reasonable grounds that the product or material is connected with a contravention of the Building Act or the regulations.

  • Builder named in building permit may be changed

The Bill amends the Building Act to clarify that the builder named in the building permit may be changed to another appropriate person. The building permit will be unsuspended after a new builder is named on the building permit.

  • Owner-builders and certificate of consent

A certificate of consent issued to an owner-builder will expire if the land which is the subject of the certificate of consent is no longer held by the owner-builder. An owner-builder cannot continue to be responsible for carrying out building work if the owner-builder no longer owns the land.

[1] Adapted from Second Reading Speech by Planning Minister Hon Richard Wynne MP