- New laws to strengthen regulators' powers to better
protect consumers against financially troubled builders
- Further building contract legislation reform
opens to public comment
- Cook Labor Government strengthening consumer confidence
and investment in WA's building sector through sensible and effective law
reform
The
Cook Labor Government will give Western Australia's Building Commissioner more
power to stop building companies trading while they're in financial trouble, as
part of legislation introduced to Parliament today.
The Building Services Legislation Amendment
(Financial Oversight) Bill 2026, will improve protections for consumers
by providing the Building Commissioner and the Building Services Board with the
authority to intervene earlier when builders are clearly in financial trouble.
The new
powers will allow the Commissioner to better scrutinise the financial capacity
of builders and prevent instances of businesses continuing to trade while
insolvent.
If registered building
contractors cannot prove they meet financial requirements, the regulator will be able to act either by
imposing conditions on a builder's registration, or if necessary, cancelling their
registration.
In that situation, the homeowner
would be able to access home indemnity insurance and secure a new builder.
The Cook Labor Government
is also seeking public comment on broader industry reform and a comprehensive roadmap
for the State's home building contract laws, as part of a review led by
Parliamentary Secretary to the Commerce Minister Hon Dan Caddy MLC.
Following consultation
last year, a discussion paper and survey are now open for consumers and
industry to have their say on proposed reforms and improvements to the laws governing
home building contracts.
Proposed reforms include:
- improving consumer knowledge of home building
contract laws and access to support services;
- applying protections to higher value contracts;
- allowing deposits of 10 per cent for building
projects, but no more than $40,000;
- clarifying when price rises are allowed;
- improving dispute resolution processes;
- modernising outdated penalties and lifting the
financial thresholds for remedy orders;
- prohibiting caveats in home building contracts;
and
- introducing an industry-based accreditation
scheme for building inspectors.
The public and industry
have until 24 June to provide feedback. The discussion paper and online survey
are available at consultation.dmirs.wa.gov.au/building-and-energy/home-building-contract-laws-discussion-paper/
Comments attributed to
Commerce Minister Dr Tony Buti:
"The Cook Labor Government
is committed to helping Western Australians move into their own homes, which
includes providing consumers with confidence when they choose a builder and
sign a building contract.
"While the vast majority
of builders do the right thing, this Bill will help ensure we don't have rogue
operators taking money from customers when they're unable to do the work and
will allow customers to get their homes built.
"Building regulators will
be able to assess and act on financial concerns much sooner, providing
reassurance for homeowners, suppliers and subcontractors who will be
potentially impacted."
Comments attributed to
Parliamentary Secretary Hon Dan Caddy MLC:
"The Cook Labor Government's
review of home building contract laws has already received valuable feedback to
help shape proposed reforms and improvements, which are now open for public
comment.
"I encourage building
industry participants and clients to take the opportunity to respond to the
ideas presented in the discussion paper to ensure the laws provide appropriate
protections and clarity in a changing building landscape."
