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New Powers to Target Financially Troubled Builders
The Western Australian government has introduced legislation aimed at bolstering consumer protections in the state's construction sector. The new laws would grant the Building Commissioner expanded powers to demand financial information from builders deemed at risk of collapse.
"If builders cannot demonstrate financial viability, homeowners can access home indemnity insurance and hire a new builder to complete their homes."
Commerce Minister Tony Buti confirmed that under the proposed framework, the Building Services Board could impose a temporary suspension on builders who fail to provide the required financial documentation.
Industry and Consumer Reactions
Reactions to the proposed changes have been cautiously supportive.
Nelson, a former customer of the troubled builder Nicheliving, described the legislation as a "decent first step" but questioned whether the measures would be sufficient to prevent future issues.
WA Consumer Protection Commissioner Trisha Blake called the changes "critical" for fostering an efficient market. She added that honest builders should have no reason to be concerned by the new requirements.
Matt Moran, CEO of Master Builders WA, offered support for the reforms but issued a warning. He cautioned against excessive regulation that could inadvertently harm housing supply.
"We support the principle, but we must be careful not to create a regulatory burden that slows down the building of new homes."
Additional Reforms on the Table
The legislation package also aims to clarify the rules around when builders can legitimately increase home construction costs, providing more certainty for homeowners.
Beyond the financial data powers, the government is also proposing a system of mandatory accreditation for building inspectors. Moran described this change as "a big win" for both builders and consumers, promising higher standards of oversight.
Blake highlighted a key driver for the reforms, noting that federal insolvency laws often only apply after harm has already occurred, making earlier state-level intervention critically important.