Victoria bundles a tight set of state-specific rules: VBA registration, the Domestic Building Contracts Act, the Security of Payment Act and VCAT, WorkSafe premiums, LeavePlus portable long service, and Domestic Building Insurance — which is mid-transition to a new scheme. Here is what operating in Victoria means. (Figures are indicative 2025-26 — confirm current.)
Licensing (VBA)
You must be registered with the Victorian Building Authority (VBA) to enter a major domestic building contract — residential building work valued at $10,000 or more with a consumer. Unregistered tradies can only contract directly with owners for non-domestic work or work under the threshold. See VBA Registration.
Contracts (DBC Act 1995)
The Domestic Building Contracts Act 1995 requires written major contracts at $10,000+, caps deposits (10% if the contract is under $20,000, 5% if it is $20,000 or more), and regulates variations, progress payments and cooling-off. A builder must not take a deposit under a major domestic building contract without the appropriate VBA registration and DBI in place. See Residential Contracts & the ACL.
Getting paid (SOP Act) and disputes (VCAT)
The Victorian Building and Construction Industry Security of Payment Act gives a progress-payment right independent of contract dispute clauses — no payment schedule or payment means you can go to adjudication. Most domestic building disputes run through VCAT, a specialist, relatively low-cost tribunal. See VIC Security of Payment and Building Dispute Tribunals.
Workers' comp (WorkSafe VIC)
WorkCover insurance is compulsory if you employ. For 2025-26 the average premium rate is 1.8% of rateable remuneration (a third year unchanged), with a minimum premium of $380 (+GST) and an employer first-slice medical excess of $876 (as at 1 July 2024, indexed). On a claim you must provide suitable employment for up to 52 weeks where the worker has some capacity, and appoint a return-to-work coordinator. See Workers' Compensation.
Portable long service (LeavePlus)
The scheme formerly known as CoINVEST is now LeavePlus, under the Construction Industry Long Service Leave Act 1997. The 2025-26 contribution is 2.7% of gross ordinary wages, paid quarterly; workers accrue service across employers (not one boss) and typically claim after 7+ years. See Portable Long Service Leave.
Domestic Building Insurance (current → 2026 shift)
Currently, DBI is a compulsory last-resort cover for domestic work valued $16,000 or more, required before you take a deposit or start — covering completion costs (often around 20% up to a $300,000 cap) and structural defects for 6 years (2 years non-structural) where the builder has died, disappeared or become insolvent. The New Offences Act 2024 makes taking a deposit without DBI a criminal offence. From 1 July 2026 a First Resort Home Warranty Scheme is set to replace last-resort DBI for contracts over $20,000 and three storeys or less, run by the new Building and Plumbing Commission, with automatic consumer cover (even if the builder has not paid the premium) and broader protection. (This is an announced forward reform — confirm the timing and detail before relying on it.) See Home Warranty Insurance.
WHS (WorkSafe VIC)
Construction is a priority industry in WorkSafe's regulatory plan, with key hazards being falls from height, hazardous manual handling, mobile plant, and bullying and harassment — under a target to cut workplace deaths 30% and injuries 20% by 2030. See Model WHS & PCBU Duties.
Common mistakes
- Taking a deposit on a $10k+ domestic job without VBA registration and DBI (now a criminal offence).
- Charging a deposit above the 10%/5% cap.
- Forgetting LeavePlus contributions for covered workers.
- Assuming the current last-resort DBI rules will be unchanged past mid-2026.
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