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NEWS ALERT – Home Warranty Scheme Changes


Effective from the 28th October, 2016, there are changes regarding the Queensland Home Warranty Scheme which will affect the Painting & Decorating industry.


What are the changes?

What is the Queensland Home Warranty Scheme (Scheme)

The Scheme is administered by the Queensland Building and Construction Commission (QBCC) and provides consumers with cover for loss where a building contractor fails to complete residential construction work or performs defective residential construction work and fails to rectify it.

Under the scheme, a licensed contractor who contracts with a consumer to carry out residential construction work valued at more than $3,300, must pay a premium on behalf of the consumer to the QBCC.

The Scheme applies to work for detached houses, unit buildings (not more than 3 storeys) and duplexes.


What are the expansions to the Scheme?

The Scheme will be expanded to include the following work providing it is carried out by a licensed contractor (or by an individual where fraud or certain representations are made) and is for a value over $3,300:

The erection, construction or installation of a residential swimming pool (need not be associated with a contract for a dwelling).

In relation to a residence or related roofed building (e.g. a shed):

• all building work performed within the building envelope (internal or external parts of building);

• anything attached to the building if it requires building approval or plumbing approval;

• any structure attached to the external part of the building where there is no other supporting structure (e.g. an awning or handrail);

• stairs or an access ramp which are permanently attached to the building.

In relation to plumbing and drainage for a residence or related roofed building:

• building work for the primary water supply (e.g. install water tank for primary water supply)

• building work for sewerage or drainage (e.g. work on a sanitary drain connecting a residence to the sewerage main).

• stormwater drainage (e.g. the repair of downpipe or gutter)

The installation of a manufactured home fixed to land in a residential park.


Impacts for industry and consumers

A range of industries are potentially affected by the expansion of the Scheme. For example, if you perform residential construction work within the boundaries of a building (e.g. painting, tiling etc) and are contracting directly with the consumer then you will now be required to collect a premium and pay it to the QBCC for the first time. Pool builders contracting to construct a pool not also part of the contract for a dwelling will also need to pay a premium.

If you are a subcontractor then you will not need to lodge a premium. The head contractor will continue to lodge one premium covering all work under the contract with the consumer.

If you have quotes sitting with Clients, please advise them that if the contract is signed after the 28th October, 2016 this premium will be effective and you will need to adjust the pricing to include this premium.

MPA has attached the premium schedule for you to all be aware of the extra price that you must incorporate into your quotes from the 28th October.

MPA will running an information meeting on Tuesday 25th October at 3:00pm at our Office, to discuss these changes in more detail. If you are able to attend, please contact us.

There are quite a few questions that we are currently awaiting answers on, and if you have any please contact Denis Drum (0400 021 704) or e-mail denis@mpa.org.au , so we can submit them as a collective industry group and respond to all members.

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