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p. 1 Funding Guidelines – Liquidated Builders Customer Support Payment Scheme (April 2024)

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Purpose

The Victorian Government is supporting the Customers of Eligible Liquidated Builders who

signed a Domestic Building Contract or Agreement for a new residential home and paid an

amount to a liquidated builder that failed to secure Domestic Building Insurance.

This scheme covers Customers of Eligible Liquidated Builders (as assessed by the Victorian

Government) that have gone into liquidation between 1 July 2022 and 28 February 2024, as

well as the customers of Porter Davis Homes Group Pty Ltd who made a tender-stage

payment that includes payment for plans and specifications of a value of up to 5 per cent of

the New Home Contract Price. The funding supplied under this scheme is a one-off payment

to eligible affected Customers.

The Liquidated Builders Customer Support Payment Scheme is an extension of the Porter

Davis Homes Customer Support Payment Scheme which has now closed, for customers who

entered into a Housing Industry Association Domestic Building Contract with Porter Davis

and paid a 5 per cent deposit for the building works for their new home but were left without

Domestic Building Insurance.

Capitalised terms used in these guidelines are defined in Appendix 1.

How the support payment works

The scheme is open to Customers of Eligible Liquidated Builders, as assessed by the

Victorian Government, who have signed a Domestic Building Contract or Agreement for the

construction of a new residential home. These Customers have paid an amount (whether

described as a deposit or otherwise), including payment to prepare plans and specifications,

to the Eligible Liquidated Builder under the contract or agreement; they do not have

Domestic Building Insurance as a consequence of the Eligible Liquidated Builder’s failure to

obtain the insurance; nor have they had a building permit issued in relation to the Domestic

Building Contract or Agreement to allow work to start on their site.

The support payments may cover an amount up to 5 per cent of the New Home Contract

Price and will be subject to a cap of $50,000.

Customers must submit all requested documentation providing evidence of their eligibility

and status to initiate the payment process. Once the documentation has been assessed,

applicants will be notified of an outcome or may be requested to provide further information.

Funding Guidelines – Liquidated

Builders Customer Support Payment

Scheme

April 2024

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Those found eligible for payment will then be asked to sign and submit a terms and

conditions form agreeing to the terms and conditions for the support payment as well as

providing bank account details for payment.

Eligible applicants must, in their terms and conditions form, agree to assign to the State of

Victoria their rights under their Domestic Building Contract or Agreement with their

nominated Eligible Liquidated Builder before receiving a support payment. This means

successful applicants cannot claim for the recovery of the amount paid under their

Domestic Building Contract or Agreement through the liquidation process to the extent that

the applicant has received a support payment through this scheme to cover their loss. The

State of Victoria may seek repayment of any money paid under this scheme from the

nominated Eligible Liquidated Builder’s liquidator. It is strongly recommended eligible

customers should obtain independent legal advice before applying.

This scheme is administered on behalf of the State of Victoria by the Department of

Government Services (Department) with support from the Victorian Building Authority (VBA)

and the Victorian Managed Insurance Authority (VMIA).

1. Eligibility

1.1. To be eligible for the support payment, you must be the Customer of an Eligible

Liquidated Builder, as assessed by the Victorian Government, who paid an

amount under a Domestic Building Contract or Agreement that was not

covered by Domestic Building Insurance. You must have:

• signed an eligible Domestic Building Contract or Agreement (see section

2) for the building works for your new residential home in Victoria that

includes payment to prepare plans and specifications with an Eligible

Liquidated Builder (as assessed by the Victorian Government) who went

into liquidation between 1 July 2022 and 28 February 2024 (note for Porter

Davis customers this does not include Englehart Homes). See the current

list of Eligible Liquidated Builders as assessed by the Victorian

Government;

• paid to the Eligible Liquidated Builder an amount up to 5 per cent of the

New Home Contract Price under your Domestic Building Contract or

Agreement at the time you signed the contract/agreement but had no

Domestic Building Insurance in relation to that amount paid; and

• had no building permit issued in relation to your Domestic Building

Contract or Agreement.

You must also agree, that if you are found eligible, you will:

• assign your rights under your contract to the State of Victoria. This means

you cannot claim for the recovery of the amount you paid under your

Domestic Building Contract or Agreement through the liquidation process

to the extent that you have received a support payment through this

scheme to cover your loss. The State of Victoria may seek repayment of

any money paid under this agreement from the liquidator.

1.2. Where there is more than one signatory to the Domestic Building Contract or

Agreement, one person must apply on behalf of all signatories. The applicant

must attest:

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• that they have authorisation and written permission from all signatories

to apply on their behalf and to provide their personal information, and, if

the application is successful, for the payment to be paid into a bank

account where the person applying is the/an account holder;

• that all signatories agree to assign their rights as an Unsecured Creditor

of their nominated Eligible Liquidated Builder (or an associated entity of

the Eligible Liquidated Builder) to the State of Victoria if the application is

found eligible and they wish to accept the payment; and

• that they will distribute any payment in accordance with the amount

payable to each individual they have attested to representing.

1.3. The Department will contact any additional signatories to confirm that they

have provided you with written authorisation to apply on their behalf.

2. What is an eligible Domestic Building Contract or

Agreement?

2.1. For the purposes of this scheme, a contract or agreement will be eligible if it is a

signed written agreement between an Eligible Liquidated Builder and Customer

to carry out, or to arrange or manage the carrying out of, domestic building

work (as defined in the Domestic Building Contracts Act 1995 (Vic)) for a new

residential home (Domestic Building Contract or Agreement). The contract

must include payment to prepare plans and specifications.

2.2. The type of Building Contracts and Agreements that may be eligible may have

a number of different titles. For example, the contract type may be called a

domestic building contract, major domestic building contract, new homes

contract, tender agreement, tender-stage contract, preliminary tender

agreement, minor works agreement, major works agreement, building works

contract, cost plus contract, design and construct contract, construct only

contract, trade contract, new home contract.

2.3. If you have only signed other, earlier agreements in the building planning

process, such as holding or fixing contracts, consultancy agreement, early

contractor involvement contract, letter of intent, or memorandum of

understanding, you are not eligible to receive the support payment.

2.4. A quote or quotation document will not be accepted – the contract must outline

a specific agreement between two parties.

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3. Ineligible applicants

3.1. The following customers are not eligible for a support payment:

• developers (defined as any person or company for whom three or more

homes were proposed to be built under a single Domestic Building

Contract or Agreement)

• customers who have signed a Domestic Building Contract or Agreement

for a property site located outside of the State of Victoria

• customers who have been insured by VMIA or another insurer and are

therefore eligible to make an insurance claim

• customers who have signed a contract or agreement for building works of

anything other than a new residential home

• customers who paid an amount up to $2000 for an activity such as soil

testing only

• customers who have not signed any contract or agreement

• customers of liquidated builders that have been assessed by the Victorian

Government as ineligible for this scheme

• customers who have transferred (novated) their Domestic Building

Contract or Agreement and amount paid under their New Home Contract

Price to another builder and they have incurred no financial loss (i.e: they

have received a credit towards their New Home Contract Price with their

new builder despite the transfer and they are not at a monetary

disadvantage after the novation process).

4. Payments

4.1. If you are found eligible, you will be offered a support payment for the amount

you have paid to the Eligible Liquidated Builder under your Domestic Building

Contract or Agreement. The payments may only cover an amount paid of up to

5 per cent of the New Home Contract Price and will be subject to a cap of

$50,000. The payment will be based on the New Home Contract Price of the

Domestic Building Contract or Agreement at the time the applicant signed the

contract/agreement and paid the amount to the Eligible Liquidated Builder.

The maximum of 5 per cent is in line with the legal maximum deposit payment

under the Domestic Building Contracts Act 1995 (Vic).

Customers who have paid amounts to their Eligible Liquidated Builder that

exceed 5 per cent of the New Home Contract Price or have paid beyond the

deposit stage of a build such as progress payments, are not eligible to seek

payment for these further payment amounts.

4.2. Only one support payment is available for each Domestic Building Contract or

Agreement with your nominated Eligible Liquidated Builder.

4.3. The payment must be made to a bank account where the person applying is

the/an account holder, or to a bank account in the name of the company, or

trust/trustee that is the signatory to the Domestic Building Contract or

Agreement.

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5. Key dates

Applications open 15 April 2024

Applications close 4 pm, Thursday 20 June 2024

Outcome notifications and

payments

Applicants will be notified of the outcome of

their application within 90 days of submission,

should the Victorian Government have

assessed the liquidated builder as being

eligible at the time of submission. Individual

outcome notification is subject to all

attachments and information being sufficiently

provided.

6. Who can apply?

6.1. You must be a person that has signed the Domestic Building Contract or

Agreement to apply for the support payment.

6.2. Where the eligible Domestic Building Contract or Agreement is between an

entity (such as a company or trust) and the nominated Eligible Liquidated

Builder, then the person applying must be an authorised representative who

can execute contracts and legally bind the applicant.

Depending on the entity type, the following people are authorised

representatives and can apply on behalf of their organisation:

• Companies: a director listed at the Australian Business Register (ABR)

• Trusts: an authorised representative of the trustee, being either the

trustee (if an individual) or a director of the trustee (if a company)

• Partnerships: a partner (a director, if the partnership involves a company).

6.3. You must apply separately for each Domestic Building Contract or Agreement

that you wish to receive a support payment for.

6.4. You must attest that you have the authorisation and permission of all other

signatories to the Domestic Building Contract or Agreement to apply for a

support payment and share their personal information.

6.5. The person who applies must provide information from one of the following

current proof of identity documents on the application form:

• Australian passport or New Zealand passport

• Medicare card

• Australian driver licence or learner permit

• Australian visa (International passport).

If proof of identity is unable to be confirmed, the applicant will receive a follow-

up email with instructions on how to provide their proof of identity details.

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7. How to apply

7.1. You must apply online at

https://grants.business.vic.gov.au/PublicForm?id=LBCSPSREV. Applications

must be submitted by the closure date published on the scheme’s website. Late

applications will not be accepted.

7.2. You must provide the following documentation in support of your application:

• A signed Domestic Building Contract or Agreement with your nominated

Eligible Liquidated Builder (see the current list of Eligible Liquidated

Builders as assessed by the Victorian Government).

If you are unsure if the documents from your nominated Eligible

Liquidated Builder meet the criteria of a signed Domestic Building

Contract or Agreement, provide all relevant agreements you signed with

your Eligible Liquidated Builder.

• A final statement or progress statement from your nominated Eligible

Liquidated Builder (showing amount paid which may have been in

instalments) under your Domestic Building Contract or Agreement, clearly

showing that the full amount required to be paid under the Domestic

Building Contract or Agreement has been paid.

If you do not have a final statement, official receipts from your Eligible

Liquidated builder showing evidence of payment of your deposit may be

accepted. Invoices and bank transaction statements will not be accepted.

7.3. If your application is found eligible, you will be notified via email, which will have

a link to the terms and conditions form where you can agree to the terms and

conditions of the payment, as outlined in these guidelines (and in that form),

and to give details of the Australian bank account where the payment will be

deposited.

7.4. As part of the terms and conditions, you must assign to the State of Victoria

your rights under your Domestic Building Contract or Agreement with your

Eligible Liquidated Builder. This means you cannot claim for the recovery of the

amount paid under your Domestic Building Contract or Agreement through the

liquidation process to the extent that you have received a support payment

through this scheme to cover your loss.

7.5. If applicable you must also have sought and received written authorisation and

permission to apply from all other signatories to your Domestic Building

Contract or Agreement and have their agreement to assign their rights under

the Domestic Building Contract or Agreement as an Unsecured Creditor of your

nominated Eligible Liquidated Builder to the State of Victoria.

7.6. By completing and submitting the terms and conditions form you are making

an offer to the State of Victoria (on behalf of all contract signatories) and will be

bound by the terms and conditions of the offer if accepted by the State of

Victoria, unless varied by agreement, through a return email.

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8. Assessment of eligibility

8.1. You will be required to confirm and attest you meet the eligibility criteria at the

time of application.

8.2. Applications and payment will be assessed using the information and evidence

provided by you and by verification with other sources as identified in section

8.3.

8.3. As part of this process, any information provided by you may be used and

disclosed by the Department, other Victorian Government agencies and

external parties to determine your eligibility and support the delivery of the

support payments. Your information will be verified against information held by

the VBA and other insurers, the VMIA and against information from your builder

held by the appointed liquidator. Your proof of identify information will be

verified with parties external to the Department where required.

8.4. The Department will contact any additional signatories to confirm that they

have provided you with written authorisation to apply on their behalf.

8.5. You may be requested to provide further information or clarification to assist in

assessment of your application. The Victorian Government reserves, in its

absolute discretion, the right to refuse your application where eligibility criteria

are not met, or where you do not or cannot provide sufficient information in the

required timeframe to assess whether eligibility criteria have been met, or

where a claim cannot be supported.

8.6. Where eligibility cannot be determined

If eligibility cannot be verified sufficiently to the Department’s satisfaction by

evidence verification, either through the information provided by the applicant

or the verification processes described in sections 8.2 to 8.4 above, applicants

may then be considered on a case-by-case basis by the Department at its

discretion.

The applicant will be responsible for providing sufficient evidence to be

considered on a case-by-case basis. In such cases, the decision of the

Department will be final.

The case-by-case consideration will not extend the scope of customers

intended to be covered by this scheme.

9. Application outcome and payment

9.1. The Department will endeavour to notify all applicants of the outcome of their

completed applications and facilitate payments in accordance with the

scheme timelines.

There may be longer processing and assessment times and delays in

notification of the outcome for applicants if:

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• the applicant does not initially provide sufficient information for the

Department to establish that the applicant satisfies the eligibility criteria

• the application is incomplete or contains incorrect information

• further information is required to verify or validate the application as

outlined in section 8.3 above

• other signatories to the Domestic Building Contract or Agreement have

not been declared and/or have not authorised the applicant to apply for

or receive the support payment

• there is difficulty in reaching the applicant or the applicant does not

respond in a timely manner.

10. Terms and Conditions of application and payment

10.1. By applying to receive a support payment, you consent to the Department

collecting, using and disclosing information provided by you, within the

Victorian Government and between the Victorian Government and external

parties for the purposes of validating your identity and eligibility requirements

and processing your application. You also consent to your information being

compared to existing data held by the VBA and VMIA or other insurance

provider(s), and your Eligible Liquidated Builder’s liquidator.

10.2. To receive a support payment, you and all other signatories to the Domestic

Building Contract or Agreement must agree to assign your rights under the

Domestic Building Contract or Agreement up to the value of the support

payment you received through this scheme. This means you will assign your

rights as an Unsecured Creditor of your Eligible Liquidated Builder to the State

of Victoria.

10.3. If applicable, the person applying must have written authorisation and

permission to apply for and receive the payment from all other signatories to

the same Domestic Building Contract or Agreement and that those signatories

are aware of the terms and conditions for payment under this scheme. You and

any other signatories to the contract must acknowledge that you have a duty

of disclosure to accurately share information that could impact the outcome of

your application.

10.4. By applying, you are declaring that the information provided in the application

form and supporting documentation is true, accurate and not misleading about

a material fact.

Fraudulent or deceptive claims

10.5. If any information in the application or claims for payment is found to be

untrue, inaccurate, misleading or fraudulent (as determined by the Department

in its discretion), the payment will be repayable on demand and the Victorian

Government reserves the right to take further action, including referring the

applicant to the relevant law enforcement agency or regulator. Providing

untrue, inaccurate, misleading or fraudulent information may result in an

offence being committed and serious penalties may apply.

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10.6. Applications may be subject to audit by the Victorian Government or its

representatives for a period of up to three years following receipt of the

payment to determine whether the application and information provided was

compliant.

11. Privacy statement

11.1. Information you provide, which includes personal information, will be collected,

used and disclosed by the Department for the purpose of assessing your

application for eligibility, to make payments and for the State of Victoria to

seek repayment of any money that is paid under this scheme if the application

is found to be untrue, inaccurate, misleading or fraudulent (as per section 10.6)

or to recover the amount paid by the State under this scheme from an Eligible

Liquidated Builder’s liquidator.

11.2. By applying for a payment, applicants consent to the collection, use and

disclosure of information as outlined in these guidelines. The Department as an

administrator may contact you to clarify your submitted information, and for

scheme review, reporting, monitoring, audit and evaluation purposes.

11.3. The Department will complete a range of eligibility assessments that may

include data matching to clarify the accuracy and quality of information

supplied by you. The data matching may occur on the information and

personal information provided in your application, your supporting evidence

and your terms and condition form.

11.4. In the case of applications suspected to be untrue, inaccurate, misleading or

fraudulent, the information you have provided may also be shared with law

enforcement agencies and regulators.

11.5. If there is an intention to include personal information about a third party, such

as an additional signatory to the Domestic Building Contract or Agreement, in

the application, the person applying must ensure the third party is aware of

and agrees to the contents of this privacy statement and the terms and

conditions of the payment.

11.6. Any personal information about the applicant applying or a third party will be

collected, held, managed, used, disclosed or transferred and stored in

accordance with the provisions of the Privacy and Data Protection Act 2014

(Vic) and other applicable laws.

11.7. For enquiries about access to, or correction of, your personal information,

please refer to the scheme webpage. Other concerns regarding the privacy of

personal information and Department’s privacy policy can be emailed to

[email protected].

12. Other information

12.1. The Department reserves the right to amend these guidelines and the terms

and conditions at any time as it deems appropriate (subject to appropriate

notice being given either by publication on the support payment website or by

email to applicants and recipients).

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12.2. Receiving a support payment may result in financial, taxation, legal or other

implications for the recipient. It is strongly recommended applicants seek

independent professional advice in regard to these possible impacts.

Applicants may also seek advice from the Australian Tax Office on 1800 806 218

if they have questions about their individual situation.

12.3. The Victorian Government may ask you to complete a survey on how the

payment has helped you. This information will be treated in accordance with

the privacy statement detailed above.

12.4. If an unsuccessful applicant considers that their application has been

incorrectly assessed, they can lodge a complaint. The complaint must be

received within 60 days from the date the Department notifies the applicant of

the outcome of the application. If a complaint is not received within 60 days,

the decision will be final. For more information on complaint lodgement see the

support payment website.

13. Contact

For more information and support, please contact us at

[email protected]ic.gov.au

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Appendix 1: Definitions

Term Definition

Application form

The application to provide information and evidence of eligibility for the

support payment under this scheme

Customer A customer of an Eligible Liquidated Builder that went into liquidation

between 1 July 2022 to 28 February 2024.

Developer

For the purposes of the support payment any person or company for

whom three or more homes were proposed to be built under a single

Domestic Building Contract or Agreement

Domestic Building

Contract or

Agreement

See section 2

Eligible Liquidated

Builder

A builder that went into liquidation between 1 July 2022 to 28 February

2024 (See the current list of Eligible Liquidated Builders as assessed by

the Victorian Government)

New Home

Contract Price

The price for the building works of a new residential home

Terms and

Conditions form

The form that sets out the terms and conditions on which the State of

Victoria may agree to make a support payment to a successful applicant

and includes the bank account details for the State to make the support

payment to the applicant

Unsecured

Creditor

A creditor who does not hold a security interest in the company’s assets

VBA Victorian Building Authority

VMIA Victorian Managed Insurance Authority