Building Act 1993 amendments update

On Wednesday 7 December 2016 the Victorian Government introduced the Building Amendment (Enforcement and Other Measures) Bill 2016 (the Bill) into Parliament – Master Builders notified members and provided the Explanatory Memorandum and the Bill.

The provisions of the Bill relate to a range of issues such as regulation of building surveyors, building permit and levy system, entry and information gathering powers, registration of corporations and reforms to the practitioner registration system (summarised in the Explanatory Memorandum).

The provisions of the Bill will be debated when Parliament resumes in 2017.

We have to-date, been generally pleased with the level of consultation with industry in respect of the proposed measures in this Bill.

However, we note that there were some significant measures included in the Bill without consultation with Master Builders Association of Victoria and the wider building and construction industry. A new indictable offence in relation to the carrying out of building work without a building permit at section 16B was inserted into the Bill, which could result in a maximum of five years jail or a $93,276 fine for an individual and $466,380 for a company, for anyone who orders or carries out building work without a permit.

These measures are of such importance that consultation prior to their insertion in the Bill was warranted. Master Builders has concerns that there doesn’t appear to be any adequate policy objective to justify this offence provision or such a significant penalty.

We will be communicating with the Government on our concerns relating to the new offence provision in the Bill and hope that those concerns will be dealt with through appropriate amendments prior to the enactment of the legislation.

Master Builders also has concerns with the entry and evidence gathering powers given to regulators such as the VBA – in particular the power of entry section 228D which does not require notice or written consent (unless the entry relates to a building used for residential purposes).

Master Builders has consistently requested a notice provision be incorporated into the entry power provisions, but it will no longer be a requirement for regulators to give 24 hours’ notice of intended entry. Master Builders notes that in the Minister Wynne’s Second Reading Speech in Parliament on 7 December 2016 he stated:

“However the government expects that all regulators (including the VBA, Energy Safe Victoria and municipal building surveyors) would adopt a policy of giving notice they consider this appropriate.”

Master Builders will provide the VBA with its views on the policies and processes for the implementation of their entry powers and will monitor the VBA’s actions in respect of those powers. Members should contact Master Builders if they experience any difficulties in respect of the VBA’s new entry powers.

Heritage Act 1995 amendments

On 9 November 2016, and in response to the Corkman Pub demolition, the Premier announced the Government’s intention to amend the Heritage Act 1995 to increase maximum penalties for moving, demolishing, damaging or altering anything listed on the state register to $746,208, five years prison or both for an individual and $1.49 million for a body corporate once the Heritage Act 2016 is passed.

Changes to the Act include giving Heritage Victoria more powers to issue infringement notices, stop work orders and greater capacity to issue rectification orders. Heritage nominations and reviews will also be changed and streamlined so that opportunistic requests and weak cases for registration are more easily dealt with. Local government will have a stronger voice in permit applications and will be able to participate in permit reviews before the Heritage Council.

Master Builders will liaise with Government on feedback from members associated with these proposed changes to the Act. The proposed changes can be accessed here.

Better Apartments for Victorians Design Standards

On 18 December the Victorian Government released Better Apartments for Victorians Design Standards. They are the culmination of a lengthy consultation process with the community and industry to improve design standards of apartments for Victorians and to ensure minimum livability requirements like daylight and ventilation.

We were encouraged by the Government’s willingness to seek extensive feedback on the draft guidelines and to make pragmatic changes to improve their flexibility and workability. However, we don’t wish to see the new rules impede continued investment in, and development of, apartments.

Master Builders continues to hold reservations about the impact of the guidelines on housing affordability, particularly considering the cumulative impact of the broad range of provisions that include private open space, accessibility requirements, room sizes and storage requirements.

Master Builders has called on the Government to monitor the impact of these guidelines on housing affordability and on innovation, and be prepared to make necessary alterations over time, to ensure they operate for the benefit of the Victorian community and the building and construction industry as a whole.

Master Builders understands these standards will take effect on 31 March 2017. Access the new standards here.