In a recent announcement, the State Government has committed an additional $1.1 million over the next two years to enhance the support for consumers and the building industry in managing building complaints. This funding initiative is aimed at strengthening the capabilities of the state’s consumer watchdog, Consumer and Business Services (CBS), to effectively respond to and support both consumers and builders.
This financial boost will enable CBS to enhance their services in various areas. The supported activities include providing advice to help consumers and traders settle their building disputes amicably and overseeing the conciliation process. The additional staff will also assess complaints to determine the necessity for enforcement actions.
Presently, South Australia boasts one of the lowest rates of builder insolvencies per capita in the nation. While the majority of consumers encounter minimal issues during the building process, the primary concerns reported relate predominantly to delays in completion, rooted in historic problems within the industry.
Simultaneously, the State Government is conducting a comprehensive review, described as the most extensive in nearly 20 years, of the state’s building regulations. This review will look into key issues such as simplifying the consumer dispute resolution process, introducing a permit system to regulate owner-builders, and tightening regulations on building inspectors and developers. Additional considerations will include better protecting consumers against the exploitative use of sunset clauses in contracts and assessing the need for harsher penalties and new categories of offences.
Discussions leading to the review have been shaped by a series of roundtables held by Minister Michaels and CBS with principal industry stakeholders and training providers. Extensive consultations on these topics are set to commence shortly.
In her comments on the initiative, Andrea Michaels MP, Minister for Consumer and Business Affairs, highlighted the comparative resilience of South Australia in handling building industry issues. “South Australia has fared well compared to the eastern states with issues experienced in the building industry, however, where there are complaints, we want to ensure that consumers and builders are supported to reach a resolution as quickly as possible,” said Michaels. She emphasised the government’s commitment to enhancing CBS’s capability to assist in these matters, ensuring quick and effective resolutions for disputes.
In addition to Mrs. Michaels’s remarks, the Chief Executive of Master Builders SA, Will Frogley, thanked for government for the investment, saying “We thank Minister Michaels and the Malinauskas Government for listening to Master Builders SA and the industry and investing to better resource the Department of Consumer and Business Services (CBS). Ensuring CBS is adequately resourced to investigate and resolve complaints will ensure that the very small number of builders who do the wrong thing will not tarnish the reputation of the whole industry,” Frogley said.
This initiative aims not only to address immediate challenges but also to lay down a strong framework for the future, ensuring the building industry in South Australia continues to thrive and consumers are well-protected.
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