Labor’s “swiss cheese” consumer bill riddled with holes for homebuyers, older Victorians and small business

Liberal Party Victoria

The Allan Labor Government’s “swiss cheese” Consumer Legislation Amendment Bill risks missing out on what it sets out to achieve and points to a government distracted by its own internal politics.

Shadow Minister for Consumer Affairs Jade Benham says the Bill runs the risk of driving auctions underground, trapping older Victorians in permanent rent increases, and punishing reputable regional businesses for ordinary civil disputes.

“Victorians deserve real consumer protection, not legislation that looks tough on paper and falls apart in practice,” Ms Benham said.

“This Bill could end open auctions in Victoria as we know them. Instead of vendors locking in a reserve and buyers turning up with confidence, we risk pushing sales behind closed doors into private negotiations where there’s no visibility of your competition at all. That’s the opposite of transparency.

While the Liberals and Nationals support the genuine consumer protections offered in the Bill, it is not comprehensive enough to be fully effective and requires numerous amendments.

“We will not oppose this Bill in the Assembly, because Victorians deserve stronger protections against underquoting, unsafe products, tenancy insecurity and illicit tobacco. But the Allan Labor Government must explain why it consulted industry under gag orders, then ignored the substance of what it was told,” Ms Benham said.

“We’ll be moving a disciplined package of amendments in the Legislative Council to fix the parts of this swiss cheese Bill that would leave buyers, renters, older residents and small business worse off, not better. This isn’t about protecting agents or dealers. It’s about making sure Labor’s own transparency agenda doesn’t backfire on the people it’s supposed to help.”

Ms Benham said the proposed Bill was deeply flawed and was further proof that the Government was not focused on its priorities.

“Labor is distracted by internal squabbling and fighting over who should be their party leader, meanwhile Older Victorians in manufactured home parks could be hit with a ‘special’ rent increase that becomes a permanent new normal, compounding against them every year for the rest of their lives.

“And a reputable regional car dealer could have their licence put at risk over a routine VCAT order that has nothing to do with dishonesty or misconduct.

Ms Benham said the Government needed to answer basic questions before the Bill reached the Council.

“This bill lacks scrutiny and the questions need to be asked why a new taxpayer-funded property database was needed when sale data already sits with Land Use Victoria and the State Revenue Office, why a civil VCAT order should be treated as evidence of dishonesty, and why a “special” rent increase for older residents should be allowed to become permanent.”

Real Estate Institute of Victoria CEO Toby Balazs echoed Ms Benham’s sentiments.

“We strongly support greater price transparency in Victoria’s property market, but the Government has repeatedly ignored practical, evidence-based solutions put forward by the industry,” Mr Balazs said.

“We have provided the Government with comprehensive, actionable reforms, backed by independent research and detailed analysis, that would improve transparency while delivering certainty and fairness for both buyers and sellers.

“Instead, the Government has chosen to pursue legislation that risks undermining the very transparency it claims to support. These flawed reforms will create greater uncertainty, add unnecessary complexity and impose costly hurdles on Victorians trying to buy and sell property.

The Government should listen to the evidence, listen to the industry and get this reform right.”

/Public Release. View in full here.