Victorian Parliament update
It has been a busy week in the Victorian Parliament, with three major updates to Bills that
significantly affect the future of the property sector.
Retirement Villages Amendment Bill 2024
This Bill passed with amendments from the government and Animal Justice Party on Wednesday, with most provisions set to commence no later than 1 May 2026.
It introduces comprehensive reforms to the Retirement Villages Act 1986 that the government claims will modernise regulation and enhance consumer protections.
Unfortunately, the Bill has proceeded without any of the Opposition's amendments, many of which supported the industry's concerns around capital maintenance and replacement.
Much of the Bill has prospective effect only, particularly provisions dealing with financial and contractual matters. Given that recent reforms in other states have included retrospective measures, we view this as a modest but important outcome, allowing operators to plan ahead for the financial and contractual changes to follow.
We remain concerned that some provisions in the legislation may potentially erode the relative affordability of units within retirement villages in the future.
Some of the Bill's key changes include:
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standardised contracts and enhanced transparency;
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contractual and financial changes;
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changes to capital maintenance and replacement responsibilities;
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a mandatory code of practice to ensure consistent standards across all villages;
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new dispute resolution mechanisms within the Department of Government Services;
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enhanced regulatory oversight for Consumer Affairs Victoria; and
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enhanced resident rights and protections, through changes to evictions frameworks and emergency management plans.
For more information, you can read the full explanatory memorandum of the Bill here.
The Property Council's Victorian Retirement Living Committee will continue to inform ongoing advocacy on the implementation of these reforms.
Building Legislation Amendment (Buyer Protections) Bill 2025
This Bill passed the Legislative Council (Upper House) last night. The legislation will apply from 1 July 2026.
This Bill introduce a series of changes, such as:
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the creation of the Building and Plumbing Commission (BPC) - to integrate all aspects of building quality control under one roof with enhanced enforcement and disciplinary powers.
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the introduction of a 'first resort' warranty insurance scheme - allows consumers to make a Domestic Building Insurance claim when a building issue is first identified, such as lost deposits or incomplete and defective building work.
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empowering the BPC to make rectification orders - applies when serious defects are not rectified and can involve the restriction of occupancy permits or off-the-plan sales.
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the introduction of a Developer Bond Scheme (DBS) - developers of buildings that are four storeys or higher will be required to lodge a 2 per cent bond with the BPC for two years.
The Property Council recognises the government's intention to protect consumers and promote high quality building design. However, this reform arrives during a period of economic strain, in part due to Victoria's prohibitive property tax regime. The introduction of greater regulation and an additional development cost, with little notice and lack of detail, is concerning.
That is why on March 5, we called for the Victorian Government to withdraw the Bill to allow for adequate industry consultation. We have continued to advocate for amendments to protect the industry, and were able to reduce the Developer Bond rate from three to two per cent after discussions with the government. Additionally, the government originally outlined its intention to apply the Bill from 1 January 2026, but this has been pushed back by six months.
The Property Council will continue to engage on the implementation of these reforms, including the drafting of regulations. Further building system reforms are expected soon, with next steps anticipated on the imminent introduction of reforms to the Domestic Building Contracts Act.
State Taxation Acts Amendment Bill 2025
This Bill currently sits in the Upper House, requiring a third reading, debate and vote before becoming officially legislated.
It proposes amending section 70F of the Land Tax Act 2005, imposing a new requirement from 1 January 2026 forcing Build-to-Rent operators to enter into leases of at least 12 months to retain eligibility for land tax concessions.
This is a disappointing change as BTR customers often seek shorter-term leases to support their range of personal circumstances. This flexibility is a significant evolution and improvement for tenants who have historically lacked choice and bargaining power in the private rental market. Removing lease flexibility would be a step back for renters.
The Property Council is engaging with the government, advocating for amendments before the Bill proceeds to debate in the Upper House. This includes removing the minimum fixed term requirement altogether, or alternatively, reducing the proposed minimum lease term from 12 months to 3 months and extending the maximum term from 3 years to 5 years.
We will continue to provide further legislative updates as we receive further information. The next Victorian Parliament sitting week is June 17-19.
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