Thursday, 30 October 2025

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (21:01): This bill second reading started on Tuesday, and I thank the previous speakers. I am stepping in for Minister Shing and summing up on this bill. Of course Victoria’s hardworking tradies keep our state’s building industry growing, and the government is fighting to ensure that they get paid fairly and promptly for their hard work or for the goods and services they provide to a construction project. The bill makes amendments to the Building and Construction Industry Security of Payment Act 2002 to implement 15 reforms recommended by the inquiry into employers and contractors who refuse to pay their subcontractors for completed works, which will improve subbies’ ability to recover payments for completed construction work and goods and services supplied to a construction project. Not only do these changes ensure subbies are paid on time and to the full amount owed, but they also make the Security of Payment Act processes clearer for builders and head contractors, the overwhelming majority of whom want to see their tradespeople paid as efficiently as possible.

The bill also amends the Building Act 1993 to authorise development of a plumbing code of conduct to be enforced by Victoria’s new one-stop shop building regulator, the Building and Plumbing Commission, also known as BPC, which was established after the government passed the Building Legislation Amendment (Buyer Protections) Act 2025 in May. The bill also reforms the building surveyor and inspection registration schemes to boost workforce supply and maintain Victoria’s high standards for building surveyor work. Several other laws are also modernised and improved, including clarifying amendments to the Building and Environment Act 1987, the Environment Effects Act 1978 and the Heritage Act 2017. We have heard claims over the course of the debate that the Victorian School Building Authority is withholding money from subcontractors. This is not true. As the Roberts Co matter is an active litigation, it is of course inappropriate for me to express any comments in relation to that matter beyond how unfortunate the situation is, especially of course for the Roberts Co subcontractors. In any event, the subcontractors in this case will likely remain unsecured creditors of Roberts Co, not the VSBA. In fact I am also advised that the VSBA claims Roberts Co owes the money as well as their subcontractors, so I will leave that matter there.

I have also heard claims along the way that these changes will (1) force builders and head contractors to overpay subbies who might later be found not to be entitled to certain amounts, (2) overload builders with unworkable payroll administrative requirements, (3) risk overlapping claims due to the removal of reference dates in the bill and (4) force parties to a contract to renegotiate the terms of contract because of the amendments’ retrospective application. Again, these claims are false. A core principle of the security of payment act in Victoria – and every other jurisdiction in fact – is that barriers to subbies receiving money they are owed are removed. However, there is always the opportunity to seek judicial review of an adjudicator’s determination. There is no requirement to pay the claimant the adjudicated amount before seeking such review. There is no doubt respondents will have to be more scrupulous in quickly identifying reasons for non-payment, because they are no longer allowed to inject new reasons for non-payment in response to an adjudication application. However, this is nothing more than what is required in every other jurisdiction in the country.

Moreover, the bill will not risk overlapping claims due to the removal of reference dates. Section 14D of the amended act makes it very clear that only one claim may be made for construction work completed, or related goods or services supplied. The amendments largely impact only the way claims and disputed claims are processed or adjudicated. This is a matter of administration; it does not require any revision of existing contracts. It should be noted also that in 2006 there were amendments to the security of payment act that were likely retrospectively applied. Finally, by providing for the amendments’ commencement on a date to be proclaimed, the government will provide a sufficient transitional period to allow construction firms and developers to make such administrative adjustments as are needed to comply with the act.

I would like to close by highlighting the contribution of the following people to this bill: Patrick Pearlman, Richard Brice, Ada Young, Megan Peacock, Sahra Mohammadi, Nick Oats, Natasha Hammersley, Paul Salter, Belinda Harrison, Jenny Gabriele, Rowena Sheffer, Sinead Medew-Ewen, Gerson Hernandez and Aaron Hemsley.

In closing, the bill of course builds on the Allan Labor government’s strong track record of nation-leading building reforms to increase confidence in the building industry for consumers and subcontractor tradies. Thank you to those that contributed to the bill in previous days. I commend it to the house.

Motion agreed to.

Read second time.

 Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (21:06): I move:

That the bill be now read a third time.

The PRESIDENT: I am of the opinion that the third reading of this bill is required to be passed by an absolute majority. I ask the Clerk to ring the bells.

Bells rung.

Members having assembled in chamber:

The PRESIDENT: In order that I can determine an absolute majority can be obtained, can I ask those members who are in favour of the motion to now stand.

Required number of members having risen:

Motion agreed to by absolute majority.

Read third time.

The PRESIDENT: Pursuant to standing order 14.28, the bill will be returned to the Assembly with a message informing them that the Council have agreed to the bill without amendment.