February 4, 2022
Elise Archer, Minister Delegate for Occupational Safety and Consumer Affairs
The Liberal Government of Tasmania ensures that Tasmanians who build a home are protected if their builder dies, disappears or becomes insolvent.
We recognize that buying or building a home is the biggest investment many people will make, and that is why we are taking action by developing a home warranty insurance program to be implemented in Tasmania later this year, after it was abandoned by the Labor Party in 2008.
In recent months, two construction companies have gone into administration in Tasmania, affecting around 50 landowners in Tasmania.
To ensure that these owners are not disadvantaged during the development of the program, as Attorney General and Minister of Consumer Affairs, I am pleased to confirm that a financial assistance package will be provided by the Liberal Government of Tasmania during this interim period.
This assistance package will be based on the financial support that would likely be available if a home warranty insurance plan was still in place allowing:
- owners whose construction project is incomplete can claim up to 20% of the contract price, up to a maximum of $200,000, for their loss; and
- owners who have paid down payments but whose work has not yet started can claim up to 5% of their contract price for their loss. This is in line with legal protections that already exist to prevent deposits above 5%.
We also intend that all building owners conditionally approved for HomeBuilder grants will be able to continue to access this support in the same way as if their building had not become insolvent. Homeowners who have been conditionally approved for the HomeBuilder Grant and are affected by an insolvent builder should contact the State Revenue Office.
This aid will be available to owners affected by the death, disappearance or insolvency of a builder since July 1, 2021.
I urge anyone needing immediate advice on construction related matters to contact CBOS on 1300 654 499.
More press releases from Elise Archer
Other press releases from the Minister of Workplace Safety and Consumer Affairs