The Tasmanian Government has established the Financial Assistance Package for consumers affected by construction company failures. The Financial Assistance Package is intended to provide similar coverage to consumers as the future home warranty insurance model, currently being developed by the Tasmanian Government.
What is the Financial Assistance Package?
The Financial Assistance Package is a payment available to the consumers affected by their builder or building company that have died, disappeared or become insolvent since 1 July 2021.
The payment will be paid to eligible consumers and will cover goods and services which have been paid for but have not been received. The amount you are eligible for will depend on the value of your contract and the progress of your building project.
Eligibility and assistance
A consumer may be eligible for the Financial Assistance Package if they have entered into a residential building contract and:
- the builder has died, disappeared or become insolvent since 1 July 2021
- a deposit or other payments have been made to the builder or building company, and the goods or services paid for have not been received.
The payment helps cover goods and services that have been paid for but not received.
If a deposit has been paid and construction has not started, assistance is available for up to 5% of the contract value. This is in line with existing statutory protections.
If construction has started but the building work is not complete, assistance is available for up to 20% of the contract value.
The maximum payment available under the Financial Assistance Package is $200,000.
For more information
This information provides a summary of the Financial Assistance Package. For full eligibility requirements, payment details and application information, visit the Building Standards Tasmania webpage.