❓ The Minister for Commerce outlines reforms to the Home Indemnity Insurance Scheme, increasing payouts for lost deposits and incomplete works due to builder insolvency, and other measures to support homebuyers amidst industry challenges.
AnsweredQoN 642Legislative Assembly
QuestionView source ↗
HOME INDEMNITY INSURANCE
SCHEME
642. Mr G. BAKER to the Minister for Commerce:
I
refer to the McGowan Labor government's commitment to supporting Western
Australians who are building a home.
(1) Can the
minister outline to the house what this government's reforms to the
state's home indemnity insurance scheme will mean for prospective
homebuyers?
(2) Can the
minister advise the house what else that the government is doing to provide
home owners with greater confidence and protection?
SCHEME
642. Mr G. BAKER to the Minister for Commerce:
I
refer to the McGowan Labor government's commitment to supporting Western
Australians who are building a home.
(1) Can the
minister outline to the house what this government's reforms to the
state's home indemnity insurance scheme will mean for prospective
homebuyers?
(2) Can the
minister advise the house what else that the government is doing to provide
home owners with greater confidence and protection?
AnswerView source ↗
(1)–(2) I
thank the member for the question. It is an important question because we know
the home indemnity insurance scheme provides an important protection for people
building homes and investing their life savings to create a roof over their
head. It provides them with the protection and assurance that if things go
wrong, they can recoup some of the costs associated with defects or in the
incidence that a construction company can no longer complete the project. We
are acutely aware of the issues currently impacting the building industry and
consumers, including disrupted supply chains, labour shortages and material
costs. Fortunately, the McGowan government
understands the challenges that the current construction market is going through, and particularly throughout the
pandemic, via the excellent work of the Minister for Housing . We have
placed a high priority on supporting the construction industry and delivering
key infrastructure for Western Australia.
I know many members have been
contacted by constituents who are out of pocket or who are struggling with projects that are yet to be completed, and
that is why we are making important changes to the home indemnity
insurance scheme. It is about protecting homes; it is about protecting home
owners. We know that the current market is producing a tough set of
circumstances, which is the reason that we recently announced some significant
changes. The McGowan government is committed to assisting Western Australians
building a home and protecting their investment. We have approved reforms to
the scheme that will double the maximum payouts to home owners. The home
indemnity insurance scheme reforms will mean that eligible home owners will be
entitled to up to $40 000 for lost deposits and up to $200 000 for incomplete
or defective works in the event their builder becomes insolvent. This will give
prospective buyers peace of mind and the confidence to build, because even
though we know the market is tough at the moment, we do not want to stop people
making investments to secure funding and the construction of their new family
home. This will ensure that they can build with confidence knowing that if
things go wrong, there will be a better safety net to look after them.
Earlier this year, we also extended
the time frame for building bonus grant applications to commence construction from 18 months to 30 months from
signing a contract, which provides additional support for home owners
impacted by industry disruptions. With record employment levels, significant
work has also been underway to attract interstate and overseas workers to ease
the workforce and skills pressures, including
the Build a Life in WA campaign and the Reconnect WA package. The home
indemnity insurance scheme changes will take effect as soon as possible,
and are just one of the ways in which the McGowan government will continue to
ensure prospective homebuyers can have peace of mind and confidence to build their
lives here in Western Australia.
thank the member for the question. It is an important question because we know
the home indemnity insurance scheme provides an important protection for people
building homes and investing their life savings to create a roof over their
head. It provides them with the protection and assurance that if things go
wrong, they can recoup some of the costs associated with defects or in the
incidence that a construction company can no longer complete the project. We
are acutely aware of the issues currently impacting the building industry and
consumers, including disrupted supply chains, labour shortages and material
costs. Fortunately, the McGowan government
understands the challenges that the current construction market is going through, and particularly throughout the
pandemic, via the excellent work of the Minister for Housing . We have
placed a high priority on supporting the construction industry and delivering
key infrastructure for Western Australia.
I know many members have been
contacted by constituents who are out of pocket or who are struggling with projects that are yet to be completed, and
that is why we are making important changes to the home indemnity
insurance scheme. It is about protecting homes; it is about protecting home
owners. We know that the current market is producing a tough set of
circumstances, which is the reason that we recently announced some significant
changes. The McGowan government is committed to assisting Western Australians
building a home and protecting their investment. We have approved reforms to
the scheme that will double the maximum payouts to home owners. The home
indemnity insurance scheme reforms will mean that eligible home owners will be
entitled to up to $40 000 for lost deposits and up to $200 000 for incomplete
or defective works in the event their builder becomes insolvent. This will give
prospective buyers peace of mind and the confidence to build, because even
though we know the market is tough at the moment, we do not want to stop people
making investments to secure funding and the construction of their new family
home. This will ensure that they can build with confidence knowing that if
things go wrong, there will be a better safety net to look after them.
Earlier this year, we also extended
the time frame for building bonus grant applications to commence construction from 18 months to 30 months from
signing a contract, which provides additional support for home owners
impacted by industry disruptions. With record employment levels, significant
work has also been underway to attract interstate and overseas workers to ease
the workforce and skills pressures, including
the Build a Life in WA campaign and the Reconnect WA package. The home
indemnity insurance scheme changes will take effect as soon as possible,
and are just one of the ways in which the McGowan government will continue to
ensure prospective homebuyers can have peace of mind and confidence to build their
lives here in Western Australia.
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