The NSW Parliament recently passed a Bill to reform the Home Building Compensation scheme to allow competition into the market.
“We are delivering on our promise to deliver a modern fit for purpose scheme,” says Minister for Finance and Property, Victor Dominello. “The future scheme will be risk-based, self-funding, sustainable, innovative and competitive.”
Late last year, Minister Dominello revealed plans to reform the scheme, which includes:
- the ability to offer split cover for defects and non-completion, with cover up to $340,000
- risk-based pricing, which was phased in at the start of April
- clarifying that providers may offer products that exceed the minimum standards prescribed in law
- enabling the State Insurance Regulatory Authority (SIRA) to use data analytics and enhanced information sharing between building regulators to detect and manage builder insolvency.
Meanwhile, icare is seeking brokers for its HBCF Distributor Panel.
In the coming months, SIRA will be publicly consulting on the regulations and guidelines needed to implement the reforms.
More information about the reforms, including information about consultation, will be progressively published on its website.