Running a trade business in Victoria: registration, the 2026 warranty switch and new payment laws

Victoria is mid-reform: the regulator has been rebuilt, warranty insurance changes over in July 2026, and the biggest security of payment overhaul in two decades is commencing. Here is what to track.

Registration and licensing

Domestic building work over $10,000 requires a registered building practitioner, and a major domestic building contract in writing. Plumbing is licensed and registered through the plumbing regime, and electrical work requires an Energy Safe Victoria licence, with contracting businesses holding Registered Electrical Contractor status. The Victorian Building Authority's functions have moved into the Building and Plumbing Commission, so expect paperwork and portals under the new name.

The July 2026 warranty switch

Domestic Building Insurance (required over $16,000) is being replaced: from 1 July 2026, Home Warranty cover applies to eligible domestic building work over $20,000. Jobs contracted around the changeover need care so cover is issued under the correct scheme, and builders should confirm eligibility with the new scheme early rather than discovering a gap at contract signing.

Security of payment: catching up with the east coast

Victoria's SOP Act has long been the odd one out, with excluded amount rules that blunted it. Amendments passed in 2025 and commencing during 2026 align Victoria with NSW and Queensland: progress payment terms capped at 20 business days, unfair time bars restricted, and a cleaner adjudication path. Update contract templates and get your claims process ready; the first contractors to use the new regime well will get paid faster than their competitors.

WorkCover and GST

WorkSafe Victoria premiums are mandatory for employers, contractor deeming rules catch many subcontract arrangements, and GST is 10%. Owner-builder rules and defects liability on domestic work remain consumer-protection minefields, so document variations and handovers thoroughly.

FAQs for Victoria trade businesses

What changes on 1 July 2026 for warranty insurance?

Domestic Building Insurance is replaced by Home Warranty, and the threshold moves from $16,000 to $20,000. Check transition rules on jobs contracted around the changeover so cover is arranged under the right scheme.

Who needs to be registered for domestic work?

Anyone contracting for domestic building work over $10,000 needs registration, plumbing work needs licensed or registered plumbers, and electrical work needs an Energy Safe Victoria REC. The regulator is now the Building and Plumbing Commission.

What is changing in security of payment?

Victoria passed sweeping SOP amendments expected to commence during 2026, aligning it with NSW and Queensland: a statutory cap of 20 business days on progress payment terms, restrictions on unfair time bars, and a stronger adjudication path. Update your contract terms before it lands.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.