The Victorian government has announced plans to shift the cost of building and pest inspections from home buyers to sellers – but only if re-elected in November, with legislation not expected until early 2027.
Under the proposed scheme, vendors would pay for inspections and make reports available before sale, mirroring an existing ACT model.
“When you buy a car, the seller pays for the roadworthy. It should work the same way when you look for a home,” Premier Jacinta Allan told the ABC.
Consumer Affairs Minister Nick Staikos said the change would make buyers’ due diligence “as simple and affordable as possible”.
“We’ll do the work to make sure our scheme is watertight and protects buyers from conflicts of interest,” he said.
The government cited Consumer Policy Research Centre data showing combined building and pest inspections can cost $500 to $600, with about half of all buyers paying for multiple reports while searching for a home.
Seventeen per cent of buyers paid for seven or more inspections, spending up to $4,200.
The same data showed 17 per cent of buyers were purchasing without any inspections, “often due to the cost and hassle of obtaining them”.
Opposition Leader Jess Wilson questioned the delayed timeline.
“If they’re so focused on delivering this for the Victorian people and providing that cost of living relief they’ve identified, then why not deliver it in the parliament this year?” she said.
Under the ACT model the government says it will draw from, inspections must be completed within three months of sale by professionals meeting Australian standards.
Vendors can recover costs from the buyer after contracts are signed.
The government said buyers could still commission their own inspections if they chose.
The scheme details remain to be developed, with the government committing to “consult widely with industry”.
