The Victorian building reforms of 2025 and 2026 changed who regulates building work, how planning applications for houses and townhouses are assessed, which building code applies, what you pay in levies and insurance, and what your building surveyor must send to council. If you’re a homeowner, owner-builder, builder or designer planning work in late 2026, the permit process will feel familiar, but several rules around it are new.
Below is each change in date order, what it means for your building permit and what hasn’t changed. To check how the changes affect your project, request a free building permit quote.
Victorian building reforms timeline: 2025 to 2026
| Date | Change | Who it affects |
|---|---|---|
| 31 March 2025 | Townhouse and Low-Rise Code: deemed to comply standards in Clause 55 | Townhouse and low-rise apartment projects |
| 1 July 2025 | Building and Plumbing Commission (BPC) replaces the VBA | Homeowners, builders, plumbers and surveyors |
| 8 September 2025 | Updated Clause 54, known as the Single Home Code | New houses and extensions that need a planning permit |
| 16 October 2025 | VicSmart for eligible two-dwelling applications | Dual occupancy projects |
| 26 November 2025 | New way of calculating the cost of work | Every building permit applicant |
| 1 May 2026 | Victoria adopts NCC 2025 | Designers, builders and owners starting new designs |
| 1 July 2026 | Building Reform Levy; Home Warranty and owner-builder thresholds rise to $20,000 | Large Class 2 to 8 projects, homeowners, builders and owner-builders |
| 1 September 2026 | Inspection records to council within 7 days; new Form 26 information statement | Building surveyors, councils and owners |
1 July 2025: the Building and Plumbing Commission replaced the VBA
The Building and Plumbing Commission (BPC) started on 1 July 2025. It took over from the Victorian Building Authority (VBA) and also took on the functions of Domestic Building Dispute Resolution Victoria (DBDRV) and the domestic building insurance arm of the Victorian Managed Insurance Authority (VMIA).
In practice, one body now regulates building and plumbing practitioners, collects the building permit levy, issues owner-builder certificates of consent, handles domestic building disputes and provides Home Warranty insurance. If older paperwork mentions the VBA, it’s now the BPC you deal with. See our guide to why the VBA is now the Building and Plumbing Commission.
Do the 2025 planning changes affect whether you need a planning permit?
Mostly they change how an application is assessed and how fast it’s decided, not whether you need one. Three changes matter for home projects.
Townhouse and Low-Rise Code (31 March 2025)
Amendment VC267 added a deemed to comply pathway to Clause 55 of all planning schemes for two or more dwellings on a lot and residential buildings up to three storeys. The standards began operating on 31 March 2025. A planning permit is still required for these developments in the residential zones, but a design that meets the standards gets a faster, more certain decision with no objector appeal. Amendment VC315 clarified the Townhouse and Low-Rise Code on 24 September 2026.
Updated Clause 54, the Single Home Code (8 September 2025)
Amendment VC282 brought the same deemed to comply approach to Clause 54, which covers one dwelling on a lot and small second dwellings. In most residential zones you still need a planning permit to build or extend a house on a lot under 300 m², and an overlay such as a Heritage Overlay can trigger a permit on any lot. Eligible applications that meet the specified standards can use VicSmart, a 10 business day process without advertising. Where no planning permit is needed, your building surveyor checks siting against Part 5 of the Building Regulations instead. See our guide to home extension permits.
VicSmart for two dwellings on a lot (16 October 2025)
Amendment VC288 lets eligible planning applications for two homes on a lot use VicSmart in the Mixed Use, Township, Residential Growth, General Residential, Neighbourhood Residential and Housing Choice and Transport zones. If the design meets the listed Clause 55 standards, such as setbacks, building height, tree canopy and overshadowing, it can be approved within 10 business days without notifying neighbours. Sites affected by heritage, flooding or other special controls may not be eligible. See dual occupancy and townhouse permits.
26 November 2025: how is the cost of work calculated now?
Since 26 November 2025, you supply cost details in your building permit application (Form 1) and the relevant building surveyor calculates the cost of the building work from them. With a builder, that’s the contract price for labour and materials, less chattels (movable items that aren’t needed to meet the building code). Owner-builders estimate their own labour and materials and add any trade contract prices. GST is included.
The figure matters because it sets the building permit levy, which applies when the cost of work is more than $10,000, and the permit number won’t be issued until the levy is paid. A building surveyor can refuse an application if the cost information is materially incorrect, so give accurate figures from the start.
1 May 2026: what does NCC 2025 mean for your project?
The National Construction Code (NCC) sets the requirements for designing and constructing buildings in Australia, including plumbing and drainage. Victoria adopted NCC 2025 on 1 May 2026, as both the BPC and the Housing Industry Association (HIA) confirm. The BPC’s summary of the main updates includes:
- new condensation and ventilation requirements for residential buildings
- stronger water management for commercial and Class 2 (apartment) buildings
- improved car park fire safety
- mandatory solar panels and stronger energy efficiency for commercial buildings
- optional all-gender toilets in public buildings.
Which edition applies to your application? According to the BPC’s guide to standards and regulations, the NCC 2025 updates apply to projects that hadn’t started design work before 1 May 2026, while projects already in design or construction can keep using the standards in place when work began. If your drawings were started before May 2026, confirm the edition with your building surveyor before you lodge.
1 July 2026: levy, insurance and owner-builder changes
Building Reform Levy
A Building Reform Levy of 0.37% of the cost of work now applies to Class 2 to 8 buildings outside regional Victoria where the cost of work is $1.5 million or more. It covers applications for a building permit number made from 1 July 2026 to 30 June 2029, replaces the Cladding Rectification Levy and is paid on top of the standard levies. Houses and outbuildings aren’t Class 2 to 8 buildings, so they aren’t affected. Details are on the BPC’s Building Reform Levy page.
Home Warranty replaces domestic building insurance
For eligible domestic building contracts signed on or after 1 July 2026, Home Warranty from the BPC replaces domestic building insurance. It’s required where the work is valued at more than $20,000, up from the previous $16,000 trigger. Your builder pays the premium and the BPC gives you a Notice of Cover. Home Warranty is designed as a first resort scheme, so owners can claim when a building issue is first identified. See our guide to domestic building insurance in Victoria in 2026.
Owner-builder certificate of consent
Owner-builders now need a certificate of consent from the BPC only if the domestic building work is valued at more than $20,000, up from $16,000. The work still needs a building permit unless it’s exempt. See owner-builder permits for the steps.
1 September 2026: what must building surveyors send to council?
From 1 September 2026, the relevant building surveyor must give council a record of each inspection within 7 days of completing it. This is on top of the existing duty to give council the dates of inspections carried out at the mandatory inspection stages, and the requirement under section 30 of the Building Act to send council the permit documents within 7 days of issuing a permit. Councils must pass these records to the BPC on request, creating a clearer history of each job.
The same package introduced Form 26, a building surveyor information statement. Your surveyor must give it to the owner no later than 10 days after applying for the building permit number. It explains the surveyor’s role and responsibilities, the roles of owners and builders, where to get help, and how a surveyor can be appointed, changed or dismissed.
What hasn’t changed under the Victorian building reforms?
- You still need a building permit for building work unless an exemption applies, and it must be issued before work starts.
- A registered building surveyor, private or municipal, must be appointed for the whole project. They issue the permit, inspect the work at the mandatory stages and issue the occupancy permit or certificate of final inspection at the end.
- Planning permits still come from council. Where your project needs one, it must be in place before the building permit can be issued.
Frequently asked questions
Does the Building Reform Levy apply to my house or extension?
No. It only applies to Class 2 to 8 buildings outside regional Victoria with a cost of work of $1.5 million or more. House projects pay the standard building permit levy, and only when the cost of work is more than $10,000.
My plans were drawn before 1 May 2026. Do they need to meet NCC 2025?
Not necessarily. The BPC says projects already in design or construction can keep using the standards in place when work began. Confirm with your building surveyor before you lodge.
Do the planning reforms mean townhouses no longer need a planning permit?
No. A planning permit is still required for two or more dwellings in the residential zones. The Townhouse and Low-Rise Code and VicSmart make assessment faster and more certain when a design meets the standards.
I’m an owner-builder doing $18,000 of work. Do I need a certificate of consent?
No. Since 1 July 2026, it’s only needed for domestic building work valued at more than $20,000. You still need a building permit if the work isn’t exempt, and a registered building surveyor must be appointed.
This article is general information current as of September 2026, not legal advice. Every project is different – ask us to confirm what applies to yours.
Planning a project under the new rules? Call JLN Building Consultants on 0422 234 951 or request a free quote. Our building surveyors will check which changes apply to your project and give you fast, practical advice.