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Victoria has passed a new regulatory framework for offsite manufacturing that introduces prefabrication builders as building practitioners and links factory-produced building systems directly to certification, building permits and compliance.
The Victorian Parliament has passed amendments that bring prefabrication work expressly within the Building Act 1993, establishing a new building practitioner category and compliance regime for prescribed prefabricated building systems. (main image: James and Rachel Briggs inside JMB Modular’s Shepparton manufacturing facility during a Built Offsite tour and interview, with modular housing production underway in the background.)
Significantly, the provisions were not contained in the Consumer Legislation Amendment Bill 2026 when it was introduced to Parliament on 3 June.
The original 186-page Bill made no reference to prefabrication, prefabrication builders or prefabricated building systems. Its proposed changes to the Building Act were described only as minor and consequential amendments.
The prefabrication provisions were subsequently introduced through government amendments in the Legislative Council. On 14 August, the Council agreed to allow new clauses dealing with prefabrication work and prefabrication builders, with the amended Bill passing the Council that day. The Legislative Assembly agreed to the Council amendments on 26 August. The Bill is currently recorded as having passed both Houses.
The as-passed version contains an entirely new Part 12A dealing with amendments to the Building Act, including a dedicated division on prefabrication work. It adds “prefabrication builder” to the definition of a building practitioner and expressly adds regulation of prefabrication work as a purpose of the Act.
Broad definition captures modules and components
The framework extends beyond complete volumetric buildings.
A “prefabricated building system” is defined as either a three-dimensional module or a building component. Building elements potentially captured include structural load-bearing components, building envelopes, waterproofing, fire safety systems and mechanical, plumbing and electrical services.
Prefabrication work includes manufacturing those systems away from the land on which they will ultimately be used, as well as assembling two or more prefabricated building systems offsite.
However, the legislation does not mean every manufacturer of a prefabricated component will automatically require registration.
Much of the practical reach of the framework is left to subsequent regulations, including which prefabricated systems, manufacturing methods and classes of prefabrication work will be prescribed and what work particular categories or classes of registered prefabrication builder will be authorised to undertake.
For work brought within the regime, the penalties can be substantial. Manufacturing or assembling prescribed prefabricated systems that would not comply with applicable building, plumbing or electrical requirements can attract penalties of up to 500 penalty units for an individual and 2500 penalty units for a company. The provisions are also designated as civil penalty provisions.
Registered prefabrication builders supplying specified systems will also have documentation obligations. Systems must be accompanied by information covering their intended use and limitations, certification of compliance with building regulations, relevant electrical and plumbing certificates, and instructions for transportation, handling and use.
Failure to provide the required material carries penalties of 120 penalty units for an individual and 600 penalty units for a company.
The documentation also follows the manufactured system into the onsite approvals process.
For affected prefabricated building systems, a building surveyor will not be able to issue a building permit unless satisfied that the builder will receive the required documentation. An occupancy permit can subsequently be refused unless the surveyor has seen those documents.
MBV questions overlap with national scheme
Master Builders Victoria has criticised the late introduction of the provisions, saying industry was not given an opportunity to assess their practical implications before the amendments were passed.
MBV has also raised concerns about how the Victorian framework will interact with the Australian Building Codes Board’s proposed National Voluntary Certification Scheme for Manufacturers of Prefabricated Construction.
“Without clear alignment, offsite manufacturers and onsite builders risk facing duplicative or conflicting registration, certification and chain of responsibility obligations,” MBV said.
The ABCB scheme is intended to provide an independent, nationally consistent certification pathway for prefab manufacturers. Consultation on the proposed framework and draft scheme rules opened on 14 July and closes on 15 September.
The national scheme is voluntary and is currently expected to become available to manufacturers by mid-2028.
Victoria’s prefabrication provisions can commence earlier by proclamation but, if they have not commenced beforehand, are required to come into operation by 1 December 2027.
That leaves the detail of the Victorian regulations — and how closely they align with the developing national framework — as a significant issue for manufacturers supplying prefabricated systems across state borders.
Find the Consumer Legislation Amendment Bill 2026 HERE
