This article is from the Australian Property Journal archive
THE Victorian government is expanding protections for victims of collapsed builders by extending the Liquidated Builders Customer Support Payment Scheme.
The Liquidated Builders Customer Support Payment Scheme was conceived to assist Victorians whose builder became insolvent without taking out insurance on their behalf, which is required by law.
Around 100 further Victorians may now be eligible for payments from the scheme.
The scheme now covers customers of builders that entered into liquidation this financial year, including Montego Homes’ customers, who went into administration in January.
“This scheme has been a lifeline for many Victorians – this extension will provide customers affected by the collapse of Montego Homes and other builders some much needed support as they try to move forward,” said Gabrielle Williams, minister for consumer affairs.
Newly eligible individuals will join former customers of Porter Davis Homes who were left without Domestic Building Insurance (DBI), after the group collapsed in March last year.
“We are supporting families who have been left stranded through no fault of their own – and putting builders on notice: new penalties apply to individuals and companies who fail to take out Domestic Building Insurance,” said Danny Pearson, assistant treasurer.
“We urge all customers to check that their builder has taken out insurance – as all builders are obliged to – through the VMIA policy checker.”
The Building Legislation Amendment (Domestic Building Insurance New Offences) Bill 2023 ensures consumers are covered by insurance before providing any money to a builder under a contract for domestic building work costing more than $16,000.
Under new offences introduced last month into the Domestic Building Contracts Act 1995, if a builder receives money under a Major Domestic Building Contract without holding the required domestic building insurance, a penalty of up to $96,000 is in place for an individual or $480,000 for a company.
“Victorians rightly expect their homes to be built to approved building standards and built to last. We’re delivering a suite of building reforms that provide clarity for industry and stronger protections for Victorians,” Sonya Kilkenny, minister for planning.
