Elise Archer,Minister for Workplace Safety and Consumer Affairs
The Tasmanian Liberal Government is ensuring that Tasmanians who build a home are protected if their builder dies, disappears or becomes insolvent.
We recognise that buying or building a home is the biggest investment many people will make, and this is why we are taking action by developing a home warranty insurance scheme for implementation in Tasmania later this year, after it was abandoned by Labor in 2008.
In recent months, two building companies have gone into administration in Tasmania affecting approximately 50 property owners in Tasmania.
To ensure these property owners are not disadvantaged while the scheme is being developed, as Attorney General and Minister for Consumer Affairs, I am pleased to confirm that a financial assistance package will be provided by the Tasmanian Liberal Government during this interim period.
This assistance package will be based on the financial support that would likely be available had a home warranty insurance scheme still been in place by enabling:
- property owners with an incomplete building project able to claim for their loss up to 20 per cent of the contract price, up to a maximum of $200,000; and
- property owners who have paid deposits but where work is yet to commence able to claim for their loss up to 5 per cent of their contract price. This is in line with the statutory protections that already exist to prevent deposits beyond 5 per cent.
It is also our intention that any property owners conditionally approved for HomeBuilder grants will continue to be able to access this support in the same way as if their build had not become insolvent. Property owners who have been conditionally approved for the HomeBuilder grant and are impacted by an insolvent builder should contact the State Revenue Office.
This assistance will be available to property owners affected by the death, disappearance or insolvency of a builder since 1 July 2021.
This assistance will be administered by Consumer, Building and Occupational Services (CBOS) in the Department of Justice. Further information is available at www.cbos.tas.gov.au
I urge anyone in need of immediate advice regarding building related matters to contact CBOS on 1300 654 499.
