New Changes Taking Effect July 1

From 1 July 2026, a raft of new property law changes came into effect across Victoria's property market.

The changes include a new Portable Rental Bond Scheme, allowing eligible renters to transfer their bond between rental properties instead of paying a second bond upfront, tougher anti-money laundering laws introducing stricter identity checks for property transactions, and stronger protections for people building new homes.

Here's a closer look at what each change means and who will be affected.

New Portable Rental Bond Scheme

A major rental reform comes into effect from July 1, making it easier and more affordable for Victorians to move home. 

Under the new Portable Rental Bond Scheme, eligible renters can transfer their existing rental bond to a new rental property instead of paying a second bond while waiting for their previous bond to be refunded.

The reform is designed to ease the financial pressure many renters face when moving between properties, while maintaining the existing protections available to rental providers.

What is the Portable Rental Bond Scheme?

Previously, renters were generally required to lodge a new bond before their existing bond had been released, often leaving them to fund two bonds at the same time.

From now, eligible renters can apply to transfer their existing bond to a new Victorian rental property through the Residential Tenancies Bond Authority (RTBA), reducing the upfront costs associated with moving.

The Victorian Government will temporarily guarantee the bond during the transition period, ensuring approved bond claims can still be paid if required.

What does this mean for rental providers?

Although the way some bonds are managed will change, the bond itself continues to provide security for rental providers.

If there is an approved claim at the conclusion of a tenancy, the claim process remains in place. Where a portable bond has been transferred, the Victorian Government will pay any successful claim before recovering the funds from the renter.

For landlords, this means the protections offered by the bond system remain largely unchanged.

New anti-money laundering laws

From 1 July 2026, new anti-money laundering laws are strengthening identity checks and reporting requirements for real estate professionals.

Known as the Anti-Money Laundering and Counter-Terrorism Financing Tranche 2 reforms, the laws bring the real estate industry under the same anti-money laundering framework as banks and other financial institutions.

What it means for investors

Most investors will simply face additional identity and source-of-funds checks when buying or selling property. Transactions involving legitimate, well-documented funds should continue as normal.

Those purchasing through Trusts, SMSFs or companies may need to provide extra documentation, so having records prepared in advance can help avoid delays.

Why are the changes being implemented?

The reforms aim to reduce money laundering, improve transparency in property transactions, and align Australia with International standards.

The reforms don't change property ownership rights or investment fundamentals. 

Instead, they strengthen compliance requirements.

Increased protections for consumers on new builds

Better buyer protection: First-resort Home Warranty Scheme

New homeowner protections will apply from 1 July 2026 for domestic building contracts signed on or after that date.

For building contracts over $20,000 on homes up to three storeys, the updated Home Warranty insurance allows earlier claims for incomplete, defective, faulty or non-compliant work—even if the builder is still trading.

The scheme replaces a “last resort” model, giving homeowners access to support once issues are identified. Cover applies before, during, and after construction.

Homeowners must first notify the builder and allow time for rectification before making a claim. The regulator assesses claims and may arrange repairs or compensation.

If work has not started, up to 5% of the deposit may be claimable, along with possible support for extra costs such as accommodation, removal, and storage.

Greater regulatory enforcement: Rectification Orders

From 1 July 2026, the Building and Plumbing Commission (BPC) will have stronger powers to require building defects to be fixed during construction or for up to 10 years after completion. 

For investors, this means greater accountability across the construction process and a stronger focus on quality, helping reduce the risk of costly defects and protecting the long-term value of their investment.

Bond requirements for developers: Developer Bond Scheme

Developers of apartment buildings four storeys and above must now lodge a financial bond equal to 2% of the project's value before applying for an occupancy permit. The bond is held by the regulator and can be used to fund the rectification of defective building work identified after completion, helping ensure money is available to fix defects if required.