Home warranty insurance legislation to protect Tasmanians against incomplete or defective building work will be introduced in the first half of this year, Premier Peter Gutwein says.
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Home warranty insurance was abolished in the state in 2008 and Tasmania is the only state without the coverage.
Under the legislation, home builders would be protected for unfinished or defective work in the event that a builder becomes insolvent, dies or disappears.
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Mr Gutwein said he expected home warranty legislation would be introduced to Parliament in the first six months of this year and to pass through both houses by the end of the year.
Consumer Affairs Minister Elise Archer said a model for home warranty insurance was under development by the Justice Department and Treasury.
"This model will be the subject of consultation with stakeholders in the coming months," she said.
Ms Archer announced on Tuesday the government would develop a financial support package for those affected by the recent failures of building businesses Tasmanian Constructions and Inside Out Constructions.
Mr Gutwein said the government would look back to July 1 as a time frame for people to access the scheme.
"But we're taking advice on that," he said.
"We do have a significant number of people that have been impacted and we will look to ensure that we can mirror the home warranty scheme in terms of the provisions that we would make available to them."
Labor's building and construction spokeswoman Jen Butler said the financial package, while welcomed, would do little to help home builders who had previously been stung by a lack of consumer protection.
"What is clearly needed is a broad inquiry to consider the best way to protect all industry players and ensure the system operates fairly for everyone," she said.
Property Council of Australia state executive director Rebecca Ellston said the government should provide further investment in construction skills and training to support best practice within the construction industry.
"We feel for and understand the hardship clients who have genuinely lost money as a result of the failures of these companies are now facing," she said.
"We acknowledge the government's announcement that it will take steps to mitigate this hardship, but also urge the government not to lose sight of the bigger picture which is the need to support good quality housing supply."
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