Building and Pest Inspection Costs in Victoria: Who Pays Under the New Rules?

The 2026-27 Victorian Budget, handed down on 5 May 2026, announced that the cost of pre-purchase building and pest inspections will move from buyers to sellers. The change was flagged in the Budget Overview alongside other property reforms. The Budget Papers do not specify a Bill name, a commencement date, or how sellers will be required to source the reports. This article walks through what the Budget says, what is missing from it, and the related housing reforms sitting beside it. Citations are to the Budget Papers throughout.

The current rule: buyers pay for pre-purchase inspections

In Victoria today, a buyer who wants a building or timber pest inspection arranges and pays for it themselves. Buyers commonly order inspections on more than one property during a search, and pay for each one even when they do not end up purchasing. The Budget Overview describes the position as one in which buyers carry “the cost of multiple inspections” (Budget Overview p.16). The Budget Papers do not change the law in this Budget itself; they announce that legislation will be introduced to shift the cost.

The 2026-27 Budget announcement: sellers will pay

The Budget Overview states that the Government is “introducing changes” so that sellers, rather than buyers, will pay for pre-purchase building and pest inspections (Budget Overview p.16). The announcement sits in the property reforms section, alongside the underquoting crackdown and the move to publish actual sale prices. The Budget Papers do not name the Bill, do not include a commencement date, and do not detail how sellers will be required to commission, share or warrant the reports. Those details are not in the 2026-27 Budget.

The government’s stated reason

The Budget Overview gives a single purpose statement. The legislation is intended to shift the cost of pre-purchase building and pest inspections to sellers, “saving potential buyers the cost of multiple inspections” (Budget Overview p.16). The Budget Papers do not provide further policy reasoning, do not quantify expected savings to buyers, and do not include a revenue or expense line for the measure.

When the legislation takes effect (the Budget did not specify)

The Budget Papers do not state when the new rule starts. There is no commencement date, no transitional provision and no timetable for the Bill in the Budget Overview or BP3. The Budget Overview says only that the Government is “introducing changes” (Budget Overview p.16). For the related sale price disclosure reform, the Budget Overview signals legislation “later this year”; the inspection reform is not given the same timing. Track the Department of Government Services and Consumer Affairs Victoria for updates.

What buyers will still need to check

The Budget Papers do not remove a buyer’s other due diligence obligations. The Section 32 vendor’s statement, title searches, planning checks and contract review continue under existing law and were not amended by this Budget. Buyers should still expect to read the contract carefully and seek advice on the vendor’s statement before signing. For how a conveyancer guides buyers through these checks, see our house conveyancing service page and the broader Victorian Budget 2026-27 property guide.

What sellers will need to organise before listing

The Budget Papers do not set out what sellers will be required to do. The Budget Overview announces only that sellers will pay for pre-purchase building and pest inspections (Budget Overview p.16). Whether reports must be commissioned before listing, attached to the Section 32, refreshed during a campaign, or made available on request is not specified. The Bill, regulations and any guidance from Consumer Affairs Victoria will set those details. Sellers planning to list soon should ask their conveyancer to confirm current obligations at the time.

How this fits with other property reforms

The Budget Overview groups the inspection reform with two related measures. The underquoting crackdown, requiring agents to publish the reserve price before auction, is described as already delivered. Legislation requiring agents to publish the actual sale price after settlement is flagged for “later this year” (Budget Overview p.16). The Budget also commits “$97 million for housing reform and confidence in the building industry” (Budget Overview p.15). See our sale price disclosure article for detail.

Trades registration and licensing: a related housing reform

The same package includes $16 million for trades registration and licensing, with $1 million in 2025-26 and $5 million a year through 2026-27 to 2028-29 (Budget Overview p.15-16; BP3 p.83 Table 1.22). The funding adds carpentry, welding and waterproofing to the licensing scheme and updates plumbing regulation. BP3 records the stated purpose as to “reinforce consumer confidence in the building industry, particularly for apartment builds” (BP3 p.85).

Frequently asked questions

Who pays for building and pest inspections in Victoria? Currently the buyer pays. The 2026-27 Budget announced legislation to shift the cost to sellers (Budget Overview p.16). The commencement date was not specified.

When does the new rule on building and pest inspection costs start? The Budget Papers do not specify a date. The Budget Overview describes the Government as “introducing changes” without a timetable (Budget Overview p.16). The Bill name is not stated.

Do sellers need to provide an inspection report when listing a property? The Budget Papers do not set out what sellers will be required to provide or when. Until the Bill is introduced, those obligations are not knowable from the Budget alone.

Will buyers still need to do their own due diligence? Yes. The Budget Papers do not remove a buyer’s obligations to review the Section 32, the contract of sale and other property checks.

How does this fit with the underquoting reforms? The Budget Overview groups the inspection cost change with the underquoting crackdown (already delivered) and the sale price disclosure reform (legislation flagged for “later this year”) (Budget Overview p.16).

Plain-English help with what changes for you

If you are buying or selling in Victoria in the next 12 months, the rules around inspections, sale price disclosure and Section 32 obligations are moving. Tick Box Conveyancing tracks each Bill as it is introduced and applies the current law to your transaction. Ask for an upfront fee through our instant quote form, talk it through on our contact page, or see our Tick Box Concierge service if you want the legwork handled.

This article summarises the Victorian Budget 2026-27 as published on 5 May 2026. It is general information, not legal advice. For matters specific to your transaction, contact Tick Box Conveyancing.