Important Update: South Australia, Western Australia, and Australian Capital Territory Building Indemnity/Warranty Insurance

We wanted to update you on recent changes for South Australia, Western Australia and Australian Capital territory to Building Indemnity/Warranty Insurance facility limit increases.

What is changing?

Builder Eligibility and Job Profile Limits are being increased to all eligible builder facilities.

What is an Eligible builder facility (builder policy)?

An eligible builder facility is a facility that is

• older than 6 months (i.e. not set up in the last 6 months).
• has a current limit under $50m
• deemed eligible by the underwriter.

Why the change?

Over the last 12 months eligibility limits have diminished because of the rising costs impacting the building industry.

It now costs more to undertake any building work, which means builder eligibility limits are used up rapidly and existing Job profile limits are inadequate.

To support the industry, all eligible builders will be given an increase to their current eligibility limit and job profile limits.

When is the change?

All eligible builder limits will be increased on April 17, 2023.

Limits will be increased as per the below.

Please note: all facilities will remain subject to periodic reviews and existing conditions (security, open job numbers etc).

The increased eligibility of your facility may mean the following requirements will apply at your next review:

• AASB15 compliant financials are required for entities seeking an annual limit over $5M
• General purpose financials are required for entities with revenue in excess of $10M or applicants seeking an annual limit over $10M
• Audited financials are required for entities with revenue in excess of $50M

Every builder’s circumstance is unique, please speak to your broker to understand what this increase means for you.