Applications have opened for an expanded government support scheme to help Victorians whose builder collapsed without having taken out insurance on their behalf – as required by law.
Several hundred extra families could apply for payments, joining clients of Porter Davis Homes who paid a 5 per cent deposit to the company but were left in the lurch when the company did not take out mandatory Domestic Building Insurance (DBI) as they should have.
The expanded scheme now covers Porter Davis Homes customers who paid 3 per cent amounts under pre-deposit “tender agreements”.
Minister for Government Services Danny Pearson said in a statement:
“We’ve moved swiftly to open applications for the expanded scheme because we understand how important this support will be for families. People make big sacrifices to get a deposit and to then lose that through the actions – or inactions – of their builder is heart-breaking. We’ll work to verify claims as quickly as we can.”
The scheme also covers eligible customers of the collapsed Hallbury Homes and Snowdon Developments who made a payment of up to 5 per cent of the value of their building contract, including amounts for plans and specifications, where their builder did not take out DBI.
The scheme covers clients of builders that have gone into liquidation in the 2022/23 financial year where the customers have made deposits but been left without DBI through no fault of their own. Payment of up to $50,000 are available.
Any customer affected by the liquidation of a building company other than Porter Davis, Hallbury Homes and Snowdon Developments during the last financial year, and meets the above criteria, is encouraged to provide their details at vic.gov.au/liquidated-builders-customer-support so this can be followed up.
More than 200 families from the original Porter Davis Homes group of 5 per cent deposit-makers have already been approved for payments.
The Department of Government Services is working with affected customers to process applications for support as quickly as possible.
Domestic builders must by law take out DBI on behalf of customers when they accept a legal deposit.
The Government has announced plans to reform the Domestic Building Contracts Act 1995, strengthen domestic building insurance requirements and introduce a new offence with tougher penalties for builders who request deposits without taking out the required insurance.
Applications under the expanded scheme can be lodged at vic.gov.au/liquidated-builders-customer-support-scheme. More information is available on the website or by calling 1300 579 089.
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