Following months of advocacy from the Victorian Liberals and Nationals, the Allan Labor Government has today abandoned its plan to introduce unreasonable minimum financial requirements for the building industry.
Labor's ill-conceived scheme would have threatened the viability of many small and medium builders at a time the construction of new homes is at a decade low.
Whilst this backflip is a positive outcome for Victoria's construction sector, the Allan Labor Government's Building and Plumbing Administration and Enforcement Bill 2026 - currently before the Legislative Council - remains a significant risk to this industry.
The Victorian Liberals and Nationals reiterate our call to pause this Bill and genuinely consult with the sector before any further reforms are made.
Shadow Minister for Housing and Building, David Southwick, said: "This backflip is confirmation Labor has got its building reforms wrong and they should be paused.
"The Allan Labor Government has finally admitted what the Liberals and Nationals and industry have been saying for months, minimum financial requirements were a disaster waiting to happen.
"This is a significant backdown from a government that spent months defending a scheme it knew would hurt Victorian builders and make the housing crisis worse."
