Australia’s mandatory Last Resort Home Warranty Insurance scheme

Australia’s mandatory Last Resort Home Warranty Insurance scheme

13 November 2008

© Commonwealth of Australia 2008
ISBN 978-1-74229-003-4

View the report as a single document - (PDF 659KB)

View the report as separate downloadable parts:

Membership of Committee (PDF 11KB)
Chapter 1 - Introduction (PDF 26KB)

Conduct of the inquiry
Treatment of adverse reflections and submissions
Summary of evidence received
Structure of the report

Chapter 2 - Description and history of home warranty insurance schemes (PDF 45KB)

Description of home warranty insurance schemes
Recent history
Suggested changes

Chapter 3 - Issues raised by builders (PDF 39KB)

Claimed difficulty getting insurance
Bank guarantees and deeds of indemnity
Arguments that HWI adds to existing skills shortages
Arguments that HWI encourages working outside compliance

Chapter 4 - Issues raised by consumers (PDF 32KB)

Concerns about the HWI insurance product

Chapter 5 - Responses from insurers and regulators (PDF 50KB)

The value of the insurance to consumers
Availability of insurance
Financial assessment by insurers is of benefit to consumers
Claims that insurers are making excessive profits
Claims that commissions are excessive

Chapter 6 - Other consumer protection issues (PDF 36KB)

Need for better regulation of builders
Better public information about builders' licensing record
Need for quicker and cheaper dispute resolution
Discussion of consumer protection needs
Should the insurance be voluntary?

Chapter 7 - Other matters (PDF 64KB)

National Claims and Policies Database
Effect of Corporations Regulation 7.1.12(2): retail vs wholesale clients
Claims of conflict of interest within the HIA
Allegations about Senator Helen Coonan

Chapter 8 - Summary and recommendations (PDF 31KB)

Issues raised by builders
Issues raised by consumers
Need for more detailed information

Additional Comments by Senator Marshall (PDF 8KB)
Dissenting Report – Australian Greens (PDF 16KB)
Appendix 1 - Submissions Received (PDF 20KB)
Appendix 2 - Public Hearings and Witnesses (PDF 12KB)
Appendix 3 - Summary of Australian building regulation and home warranty insurance schemes (PDF 57KB)

New South Wales
South Australia
Western Australia
Northern Territory
Australian Capital Territory

Appendix 4 - Allegations about Senator Helen Coonan (PDF 258KB)

Senator Coonan's building dispute
Senator Coonan and Corporations Regulation 7.1.12

For further information, contact:

Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3540
Fax: +61 2 6277 5719