Home Building Compensation construction type definitions

This consultation is about options to change how SIRA regulates insurance premiums for different types of construction work.

  • The Issue

    Consultation period: 19/08/2021 12:30 pm to 13/09/2021 11:59 pm

    The issue

    SIRA currently defines nine types of construction work for premium purposes. This allows for each type of work to be assigned a different premium rate, reflecting the different level of risk associated with different types of work.

    Since the current definitions were adopted in 2017, there have been significant changes in premium rates for some construction types. Base premiums including GST and stamp duty, currently range from 0.3363% to 7.6305% of the cost of the insured work depending on the construction type. This means how the construction types are defined can have a significant impact on the rate of premium that building businesses must pay for a project.

    What next

    We are seeking your feedback to:

    • ensure the way we regulate premiums for different types of construction projects results in a fair allocation of the cost of insuring different types of work; and
    • use descriptions that are understandable and practical for users.

    We will use the feedback we receive from this consultation to help us decide what amendments to make to the Premium Guidelines. We will publish any changes to the Insurance Guidelines on the NSW Legislation website and SIRA website.

    We encourage you to tell us what you think about the options in this paper. You can do this by:

    The consultation period ends at 11:59 pm on 13 September 2021.

    COVID-19 update: due to the impacts of the COVID-19 pandemic all submissions are to be submitted electronically and not by mail.

  • Milestones

    17 August 2021 - the consultation for the Home Building Compensation construction type definitions opens

    13 September 2021 - public consultation process closed. All comments and submissions are to be received by this time

    COVID-19 update: due to the impacts of the COVID-19 pandemic all submissions are to be submitted electronically and not by mail.

  • Outcomes

    During this consultation we received 19 submissions of which 6 were confidential. The remaining 13 submissions have been made publicly available with private information redacted where necessary.

    All the submissions made during the consultation have been read and considered.

    View the submissions here

Documents

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