Media release – Elise Archer, Minister for Workplace Safety and Consumer Affairs, 18 May 2023
Rockliff Government taking action to help those affected by building company failures
The Rockliff Liberal Government is committed to helping those negatively impacted by the recent failure of building companies in Tasmania, including the recent liquidation of Multi-Res Builders Pty Ltd.
We recognise that buying or building a home is the biggest single investment that many people will make, and this is why we are taking action by developing a new Home Warranty Insurance scheme for Tasmania.
The Residential Building (Home Warranty Insurance) Amendments Bill was recently released for stakeholder and public consultation, with submissions closing on March 31 2023.
Minister for Workplace Safety and Consumer Affairs, Elise Archer said the Government was taking action to reintroduce home warranty insurance after it was abolished by the then Labor government in 2008.
“I appreciate the significant interest and broad support that was received in consultation on this important Bill, including from building industry stakeholders and the wider Tasmanian community,” said the Minister.
“The Bill will mandate home warranty insurance for residential building work in Tasmania and ensure homeowners are covered for loss caused by incomplete or defective work should unforeseen circumstances occur.
“It also complements other changes already being implemented by the Tasmanian Government to strengthen consumer protections within our building regulatory framework.
“There’s no doubt Labor’s decision to scrap home warranty insurance was the wrong one but our Government is taking action to rectify it, with legislation to be introduced in the coming months.”
To ensure property owners are not disadvantaged while the new home warranty insurance scheme is being developed, our Government has been and still is providing a Financial Assistance Package during this interim period.
This financial assistance provides support for affected consumers, to ensure that they can continue to complete their home building project.
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 to be 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 to be 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.
This financial assistance is providing real and immediate financial relief for those Tasmanians affected by building company collapses, while we develop the model for Tasmania’s Home Warranty Scheme.
The Financial Assistance Package is being administered by Consumer, Building and Occupational Services (CBOS) in the Department of Justice. Further information is available at www.cbos.tas.gov.au
Anyone in need of immediate advice regarding building related matters should contact CBOS on 1300 654 499.
Media release – Jen Butler MP, Shadow Minister for Building and Construction, Shadow Minister for Consumer Affairs, 19 May 2023
More fiction from Rockliff Minority Government when it comes to building compensation
The Rockliff (minority) Government has made an art form of saying things in the media to get pressure off them or to make themselves look good without anything to back it up or any follow through action.
The media release yesterday from Minister for Workplace Safety and Consumer Affairs Elise Archer, which promised support for those negatively impacted by the recently failure of building companies in Tasmania, is pure fiction.
Two home builders I know that are impacted by building company failures have been onto Consumer Building and Occupational Services (CBOS) this morning and there is absolutely no one there that can help them or provide advice.
I have just called CBOS myself and spoke to a lady who said she would take my details and someone would return my call in 5 to 6 days. I was then referred to the CBOS website.
This is typical of a government that will say and do anything to get the media attention away from them or look good when there is in reality nothing of substance backing up their public statements.
