By Lauren Cassimatis
As a criminal defence lawyer, I spend much of my professional life giving legal advice to people who never expected to end up on the wrong side of the law. But there’s one group I never imagined I’d be advising as frequently as I do now: interior designers.
And I’m completely serious. Here in Victoria, thanks to a regulatory tripwire known as the $10,000 rule, many interior designers are inadvertently crossing into criminal liability and getting caught out.
So, what’s the rule?
In Victoria, any design project valued at more than $10,000 is considered regulated building work. That includes some work that most people would deem “simply” cosmetic, like a paint refresh, replacing light fixtures, or cabinetry updates.
And while most jobs can start out as under $10,000, if there are even slight creeps in scope and quantum, the project can suddenly be treated as full-fledged building work.
If the project exceeds $10,000 and involves domestic building work like painting, plastering, tiling, cabinetry installation, the individual (the interior designer performing or coordinating it) must be registered with the Building and Plumbing Commission (BPC). This registration is always required for builders – for major/structural tasks like demolition and re-stumping, regardless of cost.
And if a designer is coordinating multiple trades or providing more than one skill – like plastering and painting, and the total job exceeds $10,000, they’re legally treated as a builder and must also be registered.
On top of registration, a building permit may be required for layout changes, façade modifications, or anything affecting safety systems. And once work surpasses $16,000, domestic building insurance becomes mandatory.
Most people have never heard of this rule. Many designers don’t even know it exists. But in law, ignorance is not a defence, and crossing this threshold can trigger serious, costly consequences, including invalid contracts, offences for unregistered building work, loss of insurance, and exposure to personal liability.
An example I recently dealt with was a Melbourne designer who quoted just over $10,000 to design and install new kitchen cabinets. The job seemed straightforward enough. Except once work began, hidden issues emerged. Suddenly, there were plaster repairs, brickwork touch-ups, plumbing relocations and new wiring to take care of. When they started to coordinate trades, the quantum blew out, and the works became regulated as building work – putting them in a non-compliant situation.
This isn’t an isolated story. Last year alone, Victorians spent $3.902 billion on permitted renovation works – close to the record annual spend. With renovation culture booming, it’s almost guaranteed that tens of thousands of design projects surpassed the $10,000 limit, converting designers into unlicensed builders overnight.
Most designers don’t discover any of this until something goes wrong – and they’re left without any recourse to fees from clients because they haven’t been compliant with registration or insurance as builders, resulting in their contract being void.
It’s a costly exercise that can impact livelihoods and careers.
Before undertaking any projects:
1. Verify your licensing requirements
If there’s any chance the job could be classified as building work, engaging with legal professionals can clarify whether specific work requires a building permit. A 15-minute call can prevent a $50,000 mistake.
2. Research local regulations
Compliance varies by scope, suburb, and council. A job that appears to be ‘cosmetic’ could be deemed ‘structural’.
3. Consult protection insurance
Explore insurance options to cover potential liabilities associated with building work. Professional indemnity and contractor liability insurance could safeguard you against unforeseen legal challenges.
So, before you confirm the next client brief or book that next trade, take a moment to check your legal footing. Because in Victoria, one extra task, one hidden defect, or one small cost increase is all it takes to stumble into builder territory.
Don’t let a $10,000 threshold become a $100,000 problem.
Lauren Cassimatis is a criminal defence lawyer, Accredited Specialist in Criminal Law, and the Founder and Principal of Gallant Law.
