Letter to the media regarding representation to QBE about indemnity insurance

Dear JOURNALIST/BUREA LIST

Damien D’Ascenzo and the Executive of the Home Builders Action Group [HBAG] join me in wishing you a very happy Festive Season and the best of times in 2025.

In the months ahead, the HBAG will continue to press policies we believe are essential to support the recovery of our industry.

In particular, as a result of approaches from many of our members and other industry participants, the HBAG believes a review of present Housing Indemnity Insurance should be carried out. I am attaching a note sent to the present insurer (with its own attachment) that explains the point of view that we are presenting.

There’s no doubt that 2024 has been a challenging year for many small to medium sized home builders but things now appear to be moving in the right direction. The last of the loss-making legacy home building contracts are being mopped up and, going forward, profitable business is being written. The resources industry – which attracted many trades and others away from our industry – appears to be stabilising at lower than book levels and it appears to be more widely accepted now that our industry problems are supply, and not demand, issues.

At the same time, the recovery is fragile, and it is important to make sure that past mistakes are not repeated. Ill-advised stimulus grants that simply push costs up should be avoided and any assistance to the buyer should be precisely targeted, perhaps through builders.

The state government is to be congratulated on its NILS assistance package to builders who qualify. The maximum level of assistance with no interest loans is now up to $1 million and the industry is grateful for that help. However there has been no consideration for other Builders that have lost hundreds of thousands of dollars during this period due to the stimulus and the nature of Fixed Price Contracts

Again, a very happy Festive Season and a healthy and prosperous 2025 from everyone at the Home Builders Action Group [HBAG].

Best wishes

Yours sincerely,

Damien D’Ascenzo

DEPUTY CHAIRMAN – HBAG
Home Builders Action Group
damien@hbag.com.au
0403 066 028