The Independent Pricing and Regulatory Tribunal (IPART) is reviewing the NSW home building compensation scheme, which helps property owners recover money for faulty or unfinished work if their builder can’t be pursued.

The scheme, regulated by the State Insurance Regulatory Authority, can gain a court-provided money order in cases where a builder is insolvent, has died or disappeared or had their licence suspended for non-compliance.

The review will examine whether the present arrangements provide sufficient protection, taking into account other avenues open to consumers, and consider how changes might affect the financial sustainability of the home building compensation insurance market.

Currently the scheme applies to residential building work projects over $20,000, such as the construction of new houses, terraces, villas, multi-units up to three storeys in height, as well as renovations and swimming pools.

Submissions on the draft terms of reference close on January 24 and a draft report will be publicly released within six months of the terms of reference being finalised.

More details are available here.