Affected families by the collapse of Victorian builder Montego Homes now can register to claim their lost deposits back.
The State Government is extending the Liquidated Builders Customer Support Payment Scheme to help Victorians whose builders have become insolvent without taking out insurance on their behalf – as required by law.
Around 100 extra Victorians may be eligible for payments from the scheme, joining former customers of Porter Davis Homes who were left without Domestic Building Insurance (DBI) through no fault of their own.
The expanded scheme now covers customers of builders that entered into liquidation this financial year – from 1 July 2023 up until 20 February 2024 – including Montego Homes’ customers.
Montego Homes had advertised house and land packages in Casey South region, Pakenham, and Officer.
The builder went into voluntary administration in January, with Sam Kaso and Shaun Matthews of insolvency service Cor Cordis appointed as administrators to assess the best way to restructure or recapitalise the business.
This extension is occurring under special circumstances and will be funded through the previously announced $13.55 million support package.
The Building Legislation Amendment (Domestic Building Insurance New Offences) Bill 2023 ensures consumers are covered by insurance before providing any money to a builder under a contract for domestic building work costing more than $16,000.
Under new offences introduced last month into the Domestic Building Contracts Act 1995, if a builder receives money under a Major Domestic Building Contract without holding the required domestic building insurance, a penalty of up to $96,000 is in place for an individual or $480,000 for a company.
The new offences are the first in a suite of reforms the State Government says it will deliver to ensure Victorians can build or renovate with confidence.
Applications for the extended scheme are expected to open in the coming weeks. More details are available at vic.gov.au/liquidated-builders-customer-support-scheme
