The Independent Pricing and Regulatory Tribunal (IPART) completed its review of the NSW Home Building Compensation Fund (HBCF) on Friday the 9th October 2020. IPART will now provide recommendations for changes to HBCF, to the NSW Government by the 30th November 2020.

Initial findings in IPART’s Draft Report include:

• Premiums are significantly higher in NSW than other states
• Less claims are made in NSW compared to other states, but the claim value is 50% higher in NSW
• Regulatory barriers inhibit entry for private providers to offer home warranty products

IPART recommended icare HBCF provide greater transparency in how it undertakes builder eligibility assessments. They also recommended updating the algorithm that determines builders' premium discounts and loadings.