The Tasmanian Government is offering assistance for people affected by the collapse of building companies as work continues on proposed legislation for a home warranty scheme. 
 
Minister for Workplace Safety and Consumer Affairs Elise Archer says the Government is providing a Financial Assistance Package during the interim period ahead of the new scheme starting, with support based on the help they would have received if it had been in place. 
 
Property owners with an incomplete building project are able to claim for their loss up to 20% of the contract price, up to a maximum of $200,000 through the package. 
 
Owners who have paid deposits but where work is yet to commence are able to claim for their loss up to 5% of their contract price, in line with the statutory protections that already prevent deposits beyond 5%. 
 
Submissions on a draft Residential Building (Home Warranty Insurance) Amendments Bill closed on March 31 and proposed legislation is being drafted. 
 
Tasmania, which became the only state without some form of home warranty insurance after a previous scheme was abolished in 2008, moved last year to develop new arrangements after an increase in building failures. Problems have continued with Multi-Res Builders placed in liquidation earlier this month.