Tasmania Residential Building Framework: Licensing, Contracts and CBOS

What it is

The Tasmania residential building framework rests on two statutes working together. The Occupational Licensing Act 2005 (Tas) licenses builders, designers and tradespeople. The Residential Building Work Contracts and Dispute Resolution Act 2016 (Tas) controls what the contract must say, what warranties apply and how disputes get resolved. Both are administered by Consumer, Building and Occupational Services (CBOS) inside the Department of Justice.

Licensing for Tasmanian builders

The Occupational Licensing Act 2005 (Tas) makes it an offence to do residential building work in Tasmania for reward without a CBOS-issued building practitioner licence. The Act splits practitioners into categories including builder, designer, building services provider and various trades. Each category has its own qualification, experience and insurance requirements set in the Occupational Licensing (Building Services Work) Determination.

Builders working in Tasmania need to nominate at least one licensed practitioner who is responsible for the work, even when the contracting entity is a company. CBOS publishes the public register so owners can verify a licence before signing.

Mutual recognition

Builders licensed in another Australian state can apply for a Tasmanian licence under the Mutual Recognition Act 1992 (Cth). CBOS still issues the actual Tasmanian licence and the practitioner is then bound by Tasmanian law.

Residential Building Work Contracts Act 2016

Part 5 of the Residential Building Work Contracts and Dispute Resolution Act 2016 (Tas) sets the contracting rules for residential building work in Tasmania. Where the contract price exceeds $20,000, section 13 requires the contract to be in writing. Section 14 sets the general content requirements, which include the licence number, contract price or pricing method, scope of work, agreed dates and progress payment schedule, signed and dated by both parties.

Owners get a five business day cooling-off period after receiving a copy of the signed contract, with the exact form and notice requirements set under the Act and the Director's Determination on mandatory contract provisions. The Act also caps deposits and progress payments and prohibits payment for work not yet performed. Builders should check the current Determination for the precise cooling-off wording and deposit limits before issuing a contract, because the Director can update those provisions.

Statutory warranties

Part 6 of the 2016 Act imposes statutory warranties on every residential building work contract in Tasmania. Division 1 of Part 6 sets the warranties that apply to all residential building work contracts. The general warranties include:

• materials supplied will be suitable for the purpose for which they are used and of good quality (and, unless the contract says otherwise, new) - section 22 / 23
• the work will be performed in accordance with all relevant laws and legal requirements - section 24
• the work will be carried out with reasonable care and skill - section 25

Division 2 of Part 6 adds further warranties that apply to particular residential building work contracts, including that the work will be performed in accordance with the plans and specifications set out in the contract, that the work will be carried out with reasonable diligence, and that the dwelling will be suitable for occupation where the contract is for the construction of a dwelling (sections 26 to 29). The full list of statutory warranties is therefore spread across Part 6 rather than sitting in a single section.

The statutory warranties cannot be excluded by agreement and pass to successors in title. The time limit for bringing an action for breach of a statutory warranty is six years from completion of the residential building work, calculated under the Act.

Indemnity and consumer protection

CBOS administers a builder warranty insurance regime for residential work in Tasmania, with thresholds and exclusions set out in the licensing determinations and home warranty legislation. Owners can lodge a complaint with CBOS for breach of statutory warranty, unlicensed work or contract non-compliance. CBOS conciliates first, then matters can escalate to the Magistrates Court Civil Division or, for licensing decisions, to the Tasmanian Civil and Administrative Tribunal.

Why it matters

A builder running jobs in Tasmania needs a current CBOS licence in the right category, a Tasmanian-compliant contract for every job over $20,000, written records of the cooling-off period, evidence of insurance where required and a clear awareness of the Part 6 statutory warranties and the six-year statutory warranty action window. Working without a CBOS licence is both a criminal offence under the Occupational Licensing Act 2005 (Tas) and a basis for owners to recover money paid.