Threshold for Home Warranty Insurance Increased
The Home Building Amendment Act 2011 provides for a short form contract for small jobs. It also increased the threshold for the requirement for home warranty insurance for residential building work from $12000 to $20000.
The regulation does three things. First, it clarifies that the short form contract for small jobs can be used by contractors.
Secondly, it provides that a contractor’s licence can be issued to an undischarged bankrupt, or a person who has been discharged from bankruptcy, as long as the value of the work does not exceed $20000. This is up from $12000 and it is consistent with the increase in the threshold for holding home warranty insurance.
thirdly, it clarifies that a person can hold a contractor’s licence without holding home warranty insurance if their licence only authorises them to carry out building work of a kind that is not required to be covered by the insurance.
Readers should not act or rely on this information without first seeking out professional advice concerning their particular circumstances