NSW Review of Home Building Compensation Scheme

The NSW Independent Pricing and Regulatory Tribunal (IPART) is conducting a review of the home building compensation scheme in the state.

Following initial consultations, IPART has now released an Issues Paper to gather input from interested parties on the operation of the scheme, and the success of the 2018 reforms.

NIBA CEO Dallas Booth said, “Brokers play an important role helping their builder clients get the correct coverage from the scheme. We are interested in the views of brokers on the issues raised by IPART, and on any alternative products that might achieve a similar level of protection for home owners and builders”.

The NSW Government has asked IPART to review the effectiveness and efficiency of the NSW Home building compensation fund (HBCF) in protecting homeowners currently covered by the scheme. As well as reviewing the home building compensation scheme in its current form, IPART has indicated it is interested in receiving information about products and services that would provide more value to builders and to homeowners.

Responses to the Issues Paper are due on 1 June 2020. Further information about the IPART review is available here. A copy of the Issues Paper can be found here.

Interested insurance brokers can provide their comments directly to IPART, or can contribute to the NIBA submission on this issue. Contributions to NIBA should be received by Friday 22 May 2020.