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HBC exemptions

Home Building Compensation cover is not required for:

  • residential home building work with a contract price of less than $20,000 including GST
  • work that is excluded from the definition of ‘residential building work’ in clause 2 of Schedule 1 of the Home Building Act 1989
  • work involved in the construction of new multi-storey buildings (buildings with a rise in storeys of more than three and containing two or more separate home units, and where ‘storey’ and ‘rise in storeys’ have the same meaning as they have in the Building Code of Australia of the National Construction Code Series (clause 56 of the Home Building Regulation 2014)
  • certain residential building work in specified types of retirement villages (clause 57 of the Home Building Regulation 2014)
  • contracts to do built-in furniture work, and any incidental electrical wiring work involved in the installation of lighting as part of built-in furniture (clause 58 of the Home Building Regulation 2014)
  • specified community care work funded by the State  or Commonwealth government for contracts entered into before 1 July 2018 (clause 59 of the Home Building Regulation 2014 )
  • works funded by the Teacher Housing Authority of NSW for contracts entered into before 1 September 2018 (clause 60 of the Home Building Regulation 2014)
  • contracts to supply components of kit homes (clause 65 of the Home Building Regulation 2014)
  • automatically exempt works by virtue of section 103E of the Home Building Act 1989
  • projects with an exemption approved in writing under section 97 of the Home Building Act 1989 before work starts.

More information about these exemptions can be found in the Home Building Regulation 2014 and the Home Building Act 1989 No 147.

Special exemptions 

Developers or contractors doing residential building work can apply to us for an exemption from their HBC obligations.

We are not required to grant any exemptions but can decide to do so if we’re satisfied there is evidence of exceptional circumstances or that full compliance is impossible or would cause undue hardship.

Where SIRA decides to grant an exemption, it can do so unconditionally or subject to conditions. Residential building work done by some government departments is automatically exempted from the insurance provisions (section 103E Home Building Act 1989 and clauses 59 and 60 of the Home Building Regulation 2014).

How to apply for an exemption

If you are considering seeking an exemption to home building compensation requirements, please call the State Insurance Regulatory Authority on 13 10 50 (8:30am to 5pm, Monday to Friday).

Written applications must be sent to the Executive Director, Workers and Home Building Compensation Regulation Division, State Insurance Regulatory Authority, Level 6, McKell Building, 2-24 Rawson Place, Sydney, or emailed to contact@sira.nsw.gov.au