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Financial Assistance Package for consumers affected by construction company failures

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.

Applications for the Financial Assistance Package will open on Friday 4 February 2022.

What is the Financial Assistance Package?

The Financial Assistance Package is a one off 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.

Who is eligible for payment?

You are eligible to access the Financial Assistance Package if you have entered into a residential building contract and if:

  • The builder has died, disappeared or entered voluntary administration since 1 July 2021
  • You have made a deposit and/or payments to the builder or building company and have not received the goods and services for the amount paid.

You are also eligible for Financial Assistance if you have entered into a preliminary services agreement and if:

  • The builder has died, disappeared or entered voluntary administration since 1 July 2021;
  • You have made a deposit and/or payments to the builder or building company and have not received the goods and services for the amount paid.

How much assistance is available?


The payment is designed to cover goods and services which have been paid for but not delivered.

For customers who have paid a deposit and construction is yet to commence, the payment is limited to 5 per cent of contract value. This is inline with existing statutory protections.

For customers with building work that has commenced but is yet to be completed, the payment is limited to 20 per cent of contract value.

The maximum payment available is $200,000.

For customers who paid for a preliminary services agreement, the payment is up to a maximum of $10,000, dependent on the agreement price and amount paid.

How do I apply for the Financial Assistance Package?

To apply for the Financial Assistance Package, you are required to complete the online application form and provide information to demonstrate your eligibility.

You will be required to provide documents to support your eligibility, these are listed below.

For those applying for financial assistance for preliminary services agreements, you will need to follow the same process. Not all fields on the form will be relevant to these agreements.

How long will the application process take?

Each application will differ, due to the assessment requirements a timeframe is not able to be provided.

Applicants may be updated on the status throughout the process, however applicants are able to seek an update at any time.

Before you start the application

Pease make sure you have ready the following information and evidence for upload:

  • Applicant/owner details - you can enter the details of up to three applicants
  • Contract or Preliminary Services Agreement details (including date of signing, total amount and building work details)
  • Building Services Provider details (including name, ABN, last known address and contact information)
  • Bank details (including deposit amount paid and total amount lost) for issuing of support payment
  • Required documents - these can be uploaded as pdf, png, jpg or jpeg file types up to 10mb each.
    • Signed Residential Building Contract
    • Bank statements showing payments made to the builder (evidence is required that shows the amounts paid to the builder that match the invoices issued by the builder)
    • Invoices issued by the builder to date (the invoices will be matched to the bank statements to ensure the payments have incurred)
    • Receipt of payments (receipts from your financial institution and/or the builder)
    • Start Work Authorisation/building approval documentation (if applicable)
    • Statutory declaration - read more about completing a statutory declaration (external link)
    • Certified copies of identification of all applicants - read more about the ID requirements and certification

If you do not have access to this information, or need assistance with completing the form, you can email buildingassist@justice.tas.gov.au or contact us.

Begin the application

FAQs

How is the amount of support provided calculated?

Each property owner’s application will be assessed based on their individual circumstances.

Property owners who have paid a deposit to their builder may be eligible for up to 5% of the contract price.

For property owners with incomplete works the payment will be calculated based on the loss they have experienced up to 20 per cent of the contract price capped at $200,000.

Why is the amount of support available lower if a consumer has lost a deposit?

Consumers have existing statutory protections which limit deposits to 5 per cent of contract value.

I am a contractor or sub-contractor of a builder/building company that has gone into administration, am I eligible for the funding?

No. The Financial Assistance Package is for consumers who have entered into a residential building contract with their builder. This package is based on the likely assistance that would be available from home warranty insurance scheme.

I am a business that has supplied a builder with materials, can I apply for the Financial Support Package?

No. The Financial Assistance Package is for consumers who have entered into a residential building contract with their builder.

My builder died, disappeared or the building company I used became insolvent prior to 1 July 2021, am I eligible?

No, this package only applies to those affected by builders who died, disappeared or became insolvent after 1 July 2021.

If the property is owned by 2 or more people, can each person apply for the funding?

No, the application is per signed residential building contract.

I was approved for the Homebuilder, how will this affect the Financial Support Package?

All enquiries in relation to the Homebuilder will need to be directed to the Department of Treasury and Finance – HomeBuilder Grants | State Revenue Office Tasmania (sro.tas.gov.au)

I am out of pocket more than the capped $200,000. Can I apply for more funding from the Government?

The Tasmanian Government established the Financial Assistance Package to assist consumers up to the amount of $200,000.

Is this financial assistance limited to Hotondo Hobart and Inside Out Constructions?

The financial assistance package is available to property owners who have experienced loss as a result of their builder’s death, disappearance or insolvency, where that event occurred after 1 July 2021.

Updated: 09 Mar 2022

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.