Hundreds more clients affected by the collapse of home builders in Victoria will receive much-needed financial support, as the state government expands its compensation scheme. 

Eligible victims could receive one-off payments of up to $50,000, provided their builder failed to obtain mandatory Domestic Building Insurance and went into liquidation within the past year.

The expanded scheme now covers clients of Snowdon Developments and Hallbury Homes, in addition to those of Porter Davis, which left approximately 1,700 home building projects in limbo when it went into liquidation in March, with the majority located in Victoria.

Premier Daniel Andrews says the government is committed to assisting those who were previously “eligible for nothing”. 

However, he acknowledged that the scheme would not benefit all affected parties and so there is a need for reforms to the existing home building insurance rules in Victoria, which he described as “nowhere near fit-for-purpose”. 

A review of the Domestic Building Contracts Act is currently underway to strengthen insurance requirements and impose stricter penalties on building companies that fail to obtain necessary insurance or request deposits without it.

Payments to the initial group of Porter Davis customers deemed eligible for support will allegedly be deposited into their bank accounts shortly. 

The opposition in Victoria has voiced support for the expansion of the compensation scheme, deeming it a “fair and right outcome”.