Have your say on the Home Building Compensation Scheme review

9 October 2024

A review of the state's Home Building Compensation (HBC) Scheme is underway as part of the NSW Government's Plan for Building Reform to restore faith and confidence in the industry.

The review will suggest ways to improve the Scheme by addressing issues such as industry insolvencies, homeowner and industry awareness and compliance, insurance adequacy and who should provide insurance.

Homeowners, builders and anyone with a stake in the HBC Scheme are now invited to have their say on identified areas for improvement and to propose reform ideas.

Key areas for feedback include:

The adequacy of the HBC insurance cover amount and the impact of any future adjustments.
The level of awareness and understanding of the HBC Scheme amongst building businesses and homeowners.
Compliance levels and options to help homeowners whose homebuilding work is uninsured.

The consultation is now open to the public and will close on 11 November 2024. You can have your say by completing a survey, making a submission or requesting a meeting with the Reviewer.

About the Home Building Compensation Scheme

Businesses in the residential building industry must buy HBC insurance for each project they do over $20,000 as a principal contractor.

Types of projects that typically require insurance are the construction of a house or low-rise apartment building up to three storeys high, backyard swimming pools, and renovations or additions to existing residential buildings of any number of storeys.

The insurance helps homeowners if the business cannot complete work on their home or honour statutory warranties due to insolvency, death, disappearance, or licence suspension for failing to comply with a court or tribunal order to compensate the homeowner.