This article is from the Australian Property Journal archive
THE NSW government is following through on an election promise with the launch of a review to identify better protections for homeowners across the state.
The review of the Home Building Compensation Fund (HBCF), which provides protection for buyers of their builder goes under, hasn’t been updated in over a decade.
The fund’s maximum coverage is currently set at just $340,000, while building costs have ballooned by 60% over the decade.
The HBCF also enables homeowners to make a claim if the contractor dies, disappears or their licence is suspended.
“This review marks a significant step forward for families investing in their homes in NSW, ensuring the fund remains a robust safeguard,” said Mandy Young, chief executive for SIRA.
“We’re eager to see the findings lead to real improvements for those facing building insolvency and other issues, maintaining our commitment to keeping things fair and reliable.”
Over 1000 Penalty Infringement notices have been issued and 188 builders have been prosecuted for failing to hold the correct insurance under the scheme in the last five years.
Bronwyn Weir has been appointed to undertake the review and will advise the government on the high rates of insolvencies in the building industry, consumer awareness and builder compliance and appropriate help for consumers who are unlawfully insured.
Additionally, Weir will assess the adequacy of the current insurance cover amount and how effectively the scheme is running.
“Bronwyn Weir is an industry leader with the right skills and experience to deliver practical recommendations to protect families building and renovating homes in NSW,” said Jihad Dib, minister for customer service and digital government.
“This review complements the broader reform work undertaken by Minister Chanthivong through the Building Commission. Now that I have taken carriage of the State Insurance Regulatory Authority, I look forward to seeing the outcomes of this review progress and delivering a better scheme for people building a home or renovating.”
The Minns government recently revealed the second group of rezoning plans for its Transport Oriented Development to deliver more than 30,000 new homes across Bankstown, Crows Nest and Homebush.
