Audit Summary
Information and communications technology (ICT) is a significant enabler in the delivery of government programs and services.
Audit Summary
Background
Regulations have a significant role in the Victorian economy. They are a key instrument used by government to achieve its social, economic and environmental goals by directly influencing how private firms and not-for-profit organisations do business. Regulation is meant to effectively protect the community and the environment while allowing regulated businesses and professionals to prosper.
Audit Summary
This report presents the outcomes and observations from the financial audits of the nine portfolio departments and the 201 associated entities that are not addressed in our other sector based reports, including the five Victorian alpine resorts.
Appendix B. Audit Act 1994 section 16-submissions and comments
Introduction
In accordance with section 16(3) of the Audit Act 1994, a copy of this report was provided to the Victorian Building Authority, Building Practitioners Board, Department of Justice & Regulation (Consumer Affairs Victoria), Victorian Managed Insurance Authority, Department of Environment, Land, Water & Planning, Department of Treasury and Finance, and the Essential Services Commission.
Appendix A. Building practitioner registrations 2013-14
Figure A1
Categories and numbers of building practitioners
|
Category |
Class description |
No. registered |
|---|---|---|
|
Domestic builder |
Domestic builder-unlimited (DB-U) May personally carry out, manage or arrange for sub‑contractors to carry out all components of domestic work. |
4 Domestic building insurance
At a glance
Background
Domestic building insurance (DBI) is mandatory for domestic building works over $16 000. DBI is 'last resort' protection for the consumer because it only protects them when a builder fails to complete works to a satisfactory standard and the builder dies, disappears or becomes insolvent. The withdrawal of private insurers from the DBI market during 2009 and 2010 prompted government to direct the Victorian Managed Insurance Authority (VMIA) to provide DBI from the end of March 2010.
3 Consumer education and dispute handling
At a glance
Background
Consumer Affairs Victoria (CAV) manages key parts of Victoria's consumer protection framework for domestic building. It provides education and information, undertakes conciliation, compliance activities such as the Better Business Initiative and enforcement action under the Domestic Building Contracts Act 1995.
2 Building practitioner registration, discipline and compliance monitoring
At a glance
Background
The Victorian Building Authority (VBA) monitors and prosecutes noncompliance with the Building Act 1993. Private and municipal building surveyors also play a key role in compliance. The Building Practitioner's Board (BPB) registers and disciplines practitioners. Consumer Affairs Victoria (CAV) educates building practitioners about their obligations under the Domestic Building Contracts Act 1995 and enforces this Act.
1 Background
1.1 Introduction
Domestic building is a significant area of economic activity. In 2013–14, over 101 000 permits were issued for building works in Victoria with an estimated value of more than $25.3 billion. Domestic building work made up around 82 per cent of all permits and accounted for half of this value.
Audit Summary
Building or renovating a house is typically the single biggest investment an individual consumer will make in their lifetime. While most consumers do not experience significant issues and problems with their builder, a significant number do. Consumers may be ill-equipped to manage a building contract and resolve building construction issues. For those consumers that do experience problems, the impacts can be profound—ranging from significant additional costs and time delays to extreme frustration, stress and anxiety.