Victoria Flags Major Underquoting Reforms, Mandatory Reserve Disclosure Proposed for 2026

The Victorian Government has fired the first shot in what could become one of the biggest regulatory shifts the auction sector has seen in years, announcing its intent to mandate the publication of reserve prices seven days before auction day.

Let’s be clear, this is not a minor tweak.

If legislated, this would fundamentally change how agencies quote, prepare campaigns, manage vendor conversations and update marketing in the critical lead-up to auction day.

The Government’s public messaging frames the reform as an attack on underquoting, but the operational impact for agents is far broader. RETA has broken it down below.

What The Government Wants To Introduce

The proposed laws, expected to be brought to Parliament next year, would require:

• Mandatory publication of the vendor’s actual reserve price at least seven days before auction or fixed-date sale• Immediate updates to all advertising and marketing to reflect that reserve

• Withdrawal of any materials that do not align with the disclosed reserve

• Auctions and fixed-date sales to be halted if the reserve has not been disclosed inside the timeframe

Right now, reserves can be set as late as auction day, and often at levels above the previously quoted range.

The new framework effectively removes that flexibility.

It’s Not Law Yet — And That Matters

The Government has flagged May 2026 as a likely legislative window.Until then:

• These are proposed reforms only

• Nothing changes in practice today

• Current underquoting obligations remain fully active

• The permanent Underquoting Taskforce continues monitoring campaigns, attending auctions and issuing heavy fines

More than 200 infringements and over $2.3 million in penalties have already been issued — signaling that even before this reform lands, enforcement is not theoretical.

REIV Pushes Back On Premature Reform

The Real Estate Institute of Victoria has responded quickly, supporting transparency but warning the Government against a blunt, rushed approach that could disadvantage vendors and undermine competitive tension.

The Institute has already established a Strategic Working Group developing a Blueprint for Price Guides, due for release shortly. The sector has been actively contributing to this work, and today’s announcement effectively leapfrogs that consultation.

As REIV CEO Toby Balazs noted, more than 30 per cent of underquoting complaints come from agents themselves. The industry wants clarity — but it also wants a measured approach that respects vendor rights and reflects market realities.

What Agencies Should Take From Today

Regardless of how the final legislation looks, the message from Government is unmistakable:

Price transparency will become stricter, earlier, and more heavily policed.

Every agency should now be:

• Reviewing quoting and documentation processes

• Tightening internal compliance procedures

• Tracking how reserve conversations are recorded

• Preparing for a world where reserves are locked in earlier

• Ensuring all marketing updates can occur rapidly and consistently

This is regulatory direction of travel, whether the exact version of this reform becomes law or not.

What RETA Will Be Watching Closely

• How the legislation is drafted

• Whether exemptions or conditional clauses are included

• How reserve-price publication interacts with vendor strategy

• The impact on buyer turnout and auction tension

• How networks adjust office procedures in the final week of a campaign

Real Estate Today Australia will continue to provide the industry with the blunt, unfiltered breakdowns you don’t get anywhere else. When the next stage of this reform moves, you’ll hear it from us first.