Builders cannot demand or receive money for major domestic building work if they have not ensured the work is covered by domestic building insurance. This carries a fine of up to 240 penalty units (2026: $50,184) for individuals or 1,200 penalty units (2026: $250,920) for companies.

Builders who demand or receive money for major domestic building work while knowing (or being reckless) that the work is not insured face a higher fine of up to 500 penalty units (2026: $104,550) for individuals or 2,500 penalty units (2026: $522,750) for companies.

The Victorian Building Authority can compel people to provide information or documents to determine if insurance laws are being followed.

Registered building practitioners face immediate suspension of their registration if they contravene these insurance requirements.

Unregistered builders may be barred by a court from applying for registration for up to three years if found guilty of these offences.

The building authority or people allowed by the Building Minister can start legal proceedings or apply for court injunctions against builders who break these insurance rules.

The Domestic Building Contracts Act now covers people who manage or arrange domestic building work.

Builders found guilty of these insurance offences can have their registration suspended immediately or become ineligible to be registered.