Exemptions from the Home Building Compensation Scheme

Exemptions

Home building compensation insurance is designed to protect homeowners undertaking significant building projects. However, there are certain scenarios where this insurance is not required:

Approved special exemptions

Projects with an exemption formally approved under section 97 of the Home Building Act 1989 before work commences. See Special Exemptions below for how to apply.

Built-in furniture

Built-in furniture work, including minor lighting installation as part of built-in furniture. See clause 58 of the Home Building Regulation 2014. Some example scenarios are included in the built-in furniture exemption scenarios factsheet.

Build to rent schemes

Residential building work undertaken for a ‘build to rent’ scheme from 2 March 2023, as outlined in clause 59B of the Home Building Regulation 2014.

Certain registered charities

Residential building work undertaken for recognised housing providers from 2 March 2023, as outlined in clause 59A of the Home Building Regulation 2014.

Council developers

Residential building work undertaken for a developer that is a council under the Local Government Act 1993 from 2 March 2023. The contract must specify that the licensed contractor is relying on the exemption under clause 59C of the Home Building Regulation 2014.

Excluded work

Work that falls outside the definition of ‘residential building work’ in clause 2 of Schedule 1 of the Home Building Act 1989.

Kit homes

Suppliers of kit home components are exempt from requiring a licence or HBC insurance, provided they are not assembling the home.

Large multi-storey buildings

The construction of new buildings that have a rise in storeys of more than 3 and contain multiple home units. (‘Storey’ and ‘rise in storeys’ have the same meaning as they have in the Building Code of Australia of the National Construction Code Series).

Public sector agencies

Residential building work undertaken for public sector agencies from 1 September 2018, providing the contract specifies reliance on the exemption under section 103E of the Home Building Act 1989.

Retirement villages

Certain residential building work in specified types of retirement villages. See clause 57 of the Home Building Regulation 2014.

Small-scale projects

Residential home building work with a contract price of less than $20,000 (including GST).

More detail about exemptions

For more information about these exemptions or former exemptions see the Home Building Regulation 2014 and the Home Building Act 1989.

Special exemptions

Developers and contractors (excluding owner-builders acting on behalf of contractors) can apply for an exemption from HBC insurance obligations under exceptional circumstances or where full compliance is impossible or would cause undue hardship.

Applicants must provide evidence that these circumstances exist and are grounds to grant an exemption.

Note: Giving false or misleading information is a serious offence and is punishable by monetary penalties and in some circumstances, imprisonment.

Exemptions can only be issued before building work commences.

Where SIRA decides to grant an exemption, it can do so unconditionally or subject to conditions.

Applying for an exemption

#1 Timing

Apply well before your project’s start date
#2 Contact

To discuss your exemption, please call us on 13 74 72 (8:30am to 5pm, Monday to Friday)
#3 Application for an exemption

Email your written application to contact@sira.nsw.gov.au or send via post to:
The Executive Director
Workers and Home Building Compensation Regulation Division
State Insurance Regulatory Authority
Level 14-15, 231 Elizabeth Street
Sydney NSW 2000

HBC insurance exemption register

You can check whether work done at a particular property was done without insurance on the basis of an exemption granted by SIRA under section 97 of the Home Building Act 1989 using the Home Building Compensation Exemption Register.