How Building Registrations Are Cancelled and Suspended in Victoria

What it is

The Building and Plumbing Commission (BPC) can suspend, cancel or impose conditions on a Victorian builder registration under Part 11 of the Building Act 1993 (Vic). BPC took over the disciplinary function from the Victorian Building Authority (VBA) on 1 July 2025 and continues the show cause notice framework the VBA used.

Grounds range from serious workmanship failure through to financial issues, dishonest conduct and non-compliance with directions or orders. VCAT provides external review through its Occupational and Business Regulation List.

Grounds for disciplinary action

The Building Act 1993 (Vic) lists grounds for disciplinary action against a registered builder or practitioner:

• serious or repeated defective work
• failure to comply with a rectification order, direction or condition
• financial failure (insolvency, external administration)
• dishonest, misleading or unconscionable conduct
• criminal convictions relating to the licensed activity
• failure to maintain the required practitioner director class
• breaches of the DBCA (including section 29 registration, section 8 warranties, section 31 contract formalities)

The Building Act framework interacts with the DBCA offence framework. Non-compliance with DBCA section 29 or section 31 triggers both the DBCA offence and the Building Act disciplinary framework.

Show cause notice

BPC issues a show cause notice setting out the grounds and the proposed action. The licensee has the prescribed period (typically 28 days) to respond with evidence, submissions and any undertakings.

BPC considers the response and issues a decision. Where the licensee does not respond, BPC can proceed to the decision on the material available.

Possible outcomes

BPC can:

• take no action
• issue a warning
• impose registration conditions (including supervision, training, financial reporting)
• suspend the registration for a specified period
• cancel the registration
• disqualify the individual from being a director, nominee or practitioner
• impose penalties

Conditions can operate for a fixed period or until the licensee meets specified undertakings.

VCAT external review

A licensee can seek review through VCAT under the Victorian Civil and Administrative Tribunal Act 1998 (Vic). VCAT's Occupational and Business Regulation List handles building practitioner review matters.

VCAT considers the matter de novo and can affirm, vary or set aside the BPC decision. Legal representation is permitted; hearings can involve expert evidence on workmanship or financial matters.

Interaction with Home Warranty insurance

Where the registration is cancelled or suspended, the Home Warranty insurance regime (from 1 July 2026) or legacy DBI (pre-1 July 2026) is affected. New contracts cannot be entered under the cancelled registration. Existing contracts may be at risk.

Cover triggers under the 1 July 2026 first-resort Home Warranty scheme respond where the builder is unable or unwilling to fix defective work. A cancelled registration typically qualifies as unable, opening the insurance claim pathway for affected owners.

Property Developers Act 2024 interaction

For class 2 residential apartment projects, the Property Developers Act 2024 (ACT-style framework has no direct VIC equivalent, but the Building Legislation Amendment (Buyer Protections) Act 2025 (Vic) provides equivalent developer accountability. Developer accountability operates alongside builder registration disciplinary action.

How Victoria compares

Victoria's BPC / VCAT framework aligns with NSW Building Commission NSW / NCAT and QLD QBCC / QCAT frameworks. The distinctive Victorian feature is the 1 July 2025 BPC transition from VBA, which introduced enhanced compliance and disciplinary approaches under the new commission structure.

TradeForm VIC templates flag the disciplinary risk to owners and to builders considering their exposure to BPC action.