Builder Defects or Unfinished Work? How to Get Your Money Back (Australia 2026)

Last updated 27 October 2026 · Reviewed by the Claim Done team · Not legal advice

Can you get your money back from a builder?

Usually, yes, but a building dispute isn’t an ordinary consumer complaint. Three things decide it: the statutory warranties in your state’s home building law, the building regulator’s dispute process (compulsory before the tribunal in several states), and home warranty insurance, which mostly pays when the builder has died, disappeared or gone broke.

The warranties are the core of your claim. In New South Wales, the Home Building Act 1989 s 18B implies into every residential building contract that the work will be done with due care and skill and to the plans and specifications, with good and suitable materials (new unless the contract says otherwise), in compliance with the law, with due diligence and within the agreed or a reasonable time, and that a home will be reasonably fit to live in. Victoria (Domestic Building Contracts Act 1995 s 8), South Australia, Tasmania and the ACT have their own versions. Queensland protects owners mainly through the QBCC’s defect process and home warranty scheme. Western Australia’s Act has no general warranties but makes every contract include a term that the builder must fix defects you report in writing within 4 months of practical completion.

What a builder can’t do:

• Contract out of the warranties. In Victoria a term restricting your right to sue for a breach is void (s 10), and in the ACT any term limiting the statutory warranty is void. The Australian Consumer Law’s guarantees of due care and skill also apply and can’t be excluded (s 64).
• Say the warranty ended when the maintenance period ran out. A defects liability clause is a contract extra. The statutory periods are set by law and are separate.
• Take more than the legal deposit, or, in NSW, demand any payment on a job needing Home Building Compensation cover before the cover is in place and you have the certificate (s 92).
• Walk away because the house was sold. In Victoria, South Australia, Tasmania and the ACT the warranties pass to later owners.

The most common problems with builders

1. Defects after handover. Cracks, leaking showers and roofs, doors that won’t close, render coming away. Claim: rectification, or another licensed builder’s cost to fix. Our Defects Notice to Your Builder numbers each defect and sets a deadline.
2. Waterproofing failures. In NSW waterproofing is a “major element”, so a failure that makes part of the home unusable can be a major defect with the 6-year period. Victoria’s Home Warranty also treats waterproofing defects as major.
3. The builder stopped turning up. Claim: completion by a set date, or the cost to complete above what you still owe. Start with a Request to Complete Unfinished Building Work ($49).
4. Unagreed variations. The NSW Government says variations must be in writing, attached to the contract and signed by both of you, and you don’t pay for extra work caused by the builder’s own fault. Use our Builder Variation Dispute letter ($49).
5. Running months late. In NSW and Victoria the warranties include finishing within the contract time. Use our Notice to Builder: Past the Completion Date ($49) and keep rent and storage receipts.
6. Work that doesn’t match the plans. Wrong window sizes, different tiles, a lower ceiling. A breach of the plans-and-specifications warranty.
7. Too big a deposit or paying ahead of the work. Beyond being unlawful, it can cut what insurance repays: Queensland’s scheme pays only what you’d have lost following the payment schedule, and the NSW Government says the part of a deposit above the legal limit isn’t covered.
8. The builder went broke or disappeared. Claim: home warranty insurance. Our Home Warranty Insurance Claim Statement ($49) sets out the loss for the insurer.

Home building law in each state

The law of the state where the house is applies. Regulator contacts are in step 3 and the tribunals in the table further down.

New South Wales

• Time limits: 6 years from completion for a breach causing a major defect, 2 years otherwise, plus 6 months if it shows up in the last 6 months (s 18E). A major defect is a defect in a major element (foundations, floors, walls, roof, beams, a fire safety system or waterproofing) that makes the home unusable for its purpose, or threatens its destruction or collapse. Unfinished work: the period runs from when the contract ended or work stopped.
• Contracts: written contract over $5,000 incl. GST; deposit capped at 10% (s 8); an unlicensed builder can’t enforce the contract against you (s 10).
• Insurance: Home Building Compensation cover (icare HBCF) for projects over $20,000. A last resort: it pays when the builder dies, becomes insolvent, disappears, or has its licence suspended for not paying an NCAT or court order. Defects alone aren’t a trigger. Limit $340,000 per property; notify within 12 months if work never started or stopped.
• Before NCAT: a home building complaint to Building Commission NSW, where an inspector can issue a Rectification Order. NCAT then hears claims up to $500,000 (s 48K). A warranty claim must be lodged within the warranty period above (s 48K(7)); most other building claims within 3 years. For defects, NCAT must consider that rectification by the builder is the preferred outcome (s 48MA).

Victoria

• Warranties and time: s 8 warranties run with the building (s 9). A building action generally can’t be brought more than 10 years after the occupancy permit or certificate of final inspection (Building Act 1993 s 134).
• Contracts: work of $10,000 or more needs a written contract with a registered builder (the BPC’s figure). Deposit 10% under $20,000, 5% from $20,000 (s 11). A builder who varies the plans without your signed consent generally can’t recover money for it (s 37), and can’t demand the final payment before the work matches the plans and you have the occupancy permit or certificate of final inspection (s 42).
• Insurance: signed before 1 July 2026, Domestic Building Insurance (over $16,000; generally up to $300,000 if the builder died, disappeared or became insolvent). Signed from 1 July 2026, the BPC’s Home Warranty (over $20,000; up to $400,000), which can pay when the builder fails or refuses to complete or fix the work. Claim within 12 months of becoming aware of a defect. If the builder is still trading, it first gets a written complaint notice and 28 days to respond.
• Before VCAT: the Building and Plumbing Commission’s free dispute resolution. VCAT won’t take a domestic building dispute without a certificate of conciliation (s 56). No money cap.

Queensland

• Licence and deposits: QBCC licence for building work over $3,300. Deposit 10% for $3,301-$19,999, 5% from $20,000.
• QBCC first: QCAT requires the QBCC’s process and outcome letter. Before lodging a defects complaint, give the builder written notice of every defective or unfinished item with a timeframe (14 days, for example) and access on 48 hours’ notice. Lodge within 12 months of completion (non-structural) or of noticing a structural defect. The QBCC can direct rectification but can’t order refunds.
• Home warranty: covers residential work over $3,300, up to $200,000 per category, and can cover defective work as well as non-completion. Strict deadlines: structural defect claims within 3 months of noticing; non-structural defects noticed within 6 months of completion and claimed within 7 months; non-completion claims within 3 months of the contract ending.

Western Australia

• Defects: notify defects in writing within 4 months of practical completion (s 11). Contracts of $7,500-$500,000 must be written and signed; deposit 6.5%; later payments only for work done or materials supplied (s 10).
• Insurance: home indemnity insurance over $20,000: completion up to $200,000 (including defects for six years) and lost deposit up to $40,000, if the builder dies, disappears, becomes insolvent or loses registration on financial grounds.
• Building Commissioner: give Building and Energy’s Notice of proposed complaint 14 days before you complain. Defect complaints generally within six years of completion; contract complaints within three years. Fee $122. The Commissioner can order repairs, payment for someone else to repair, or compensation (up to $100,000 without consent) and refers complex cases to the State Administrative Tribunal.

South Australia

• Warranties: proper work to trade standards and the plans, good materials, reasonable diligence and a home fit to live in. CBS says you have up to five years from completion to sue for a breach.
• Contracts and insurance: written contract and a 5% deposit cap from $20,000. Building indemnity insurance for council-approved work of $20,000 or more pays if the builder dies, disappears or becomes insolvent; defect claims usually up to 5 years from completion.
• CBS: voluntary conciliation, or a compulsory conference the builder must attend. Money claims go to the Magistrates Court.

Tasmania

• The 2016 Act covers contracts of $20,000 or more. Warranties last six years from practical completion. Deposit 10% for $20,000-$50,000, 5% above.
• Dispute path: write to the builder with a reasonable time (14 days, for example); your building surveyor can direct a builder to fix serious or non-compliant defects. Then a notice of dispute to the Director of Building Control for mediation (no application fee; work under 6 years old). TASCAT can decide the dispute only after mediation has been attempted.

Australian Capital Territory

• Warranties: for work on a residential building needing approval and costing $12,000 or more: 6 years for structural elements (including weatherproofing), 2 years for the rest.
• Insurance: residential building work insurance (QBE) or a Master Builders Fidelity Fund certificate. Since 1 January 2025: claim within 180 days of learning the builder is insolvent, dead or missing; minimum cover $200,000.

Northern Territory

• Fidelity fund certificate: for new homes, units up to three storeys, and additions over $25,000 that add floor area. Pays if the builder is bankrupt, dies, disappears or loses registration: moving to a new builder, non-structural defects in year one, structural defects for six years.
• Commissioner of Residential Building Disputes (certificate work only): can order work fixed or money paid. Apply within 90 days of the builder stopping work, or within 6 years (structural) or 1 year (non-structural) for defects. It can’t decide delay claims.

What you can claim

• Rectification of defects by the builder at no cost to you.
• Another licensed builder’s cost to fix or finish, where the builder refuses, stalls or has gone. Get at least two written quotes.
• The extra cost to complete: what finishing costs, minus your unpaid contract balance.
• Money paid for work never done, such as a deposit for a job that never started.
• Overcharges: unagreed variations and charges above the contract price.
• Foreseeable loss: extra rent and storage during delays, an independent inspection report, belongings damaged by a leak.

Example (round numbers, for illustration only): your contract price is $300,000 and you’ve paid $260,000 when the builder stops work. Another licensed builder quotes $70,000 to finish. You still owed $40,000 under the contract, so the loss is $30,000. Add $6,000 of extra rent for a three-month delay and a $1,200 inspection report: a claim of $37,200.

Evidence to gather

1. The signed contract, plans, specifications and every signed variation.
2. Proof of every payment, and the builder’s invoices and progress claims.
3. The home warranty insurance or fidelity fund certificate.
4. The builder’s licence or registration number, legal name and, for a company, an ASIC extract.
5. Dated photos and video of each defect, numbered to match your list.
6. An independent building inspector’s report on each defect, its cause and the cost to fix.
7. Written quotes from other licensed builders.
8. Every email, text and site-meeting note, and a short timeline.
9. Permits and certificates, including the occupancy permit or certificate of final inspection.
10. Your written defects notice and the date sent. In Queensland and WA that date can decide whether you’re covered.

How to get your money back: 5 steps

Step 1: Tell the builder in writing what’s wrong and what you want

Talk on site if you like, then write the same day. Number each defect or unfinished item, attach photos, say what you want (fixed, finished or paid), give a deadline such as 14 days, and offer access. Keep a copy. In WA, make sure it reaches the builder within 4 months of practical completion.

Step 2: No answer, a refusal or a runaround? Send a formal Defects Notice

Our Defects Notice to Your Builder sets out your state’s warranties and time limits, lists every defect and demands rectification by a fixed date. In Queensland it can serve as the written notice of every defective item that the QBCC asks to see first. For a job left unfinished, use the Request to Complete Unfinished Building Work ($49). The general Letter of Demand ($49) is a fallback.

Send a Defects Notice to Your Builder – $79

Step 3: Take it to your state’s building regulator

Compulsory before the tribunal in NSW, Victoria and Queensland; in Tasmania you must attempt mediation first. Attach your letters.

• NSW: Building Commission NSW, 13 27 00, lodge a home building complaint (free; NCAT’s page still calls this NSW Fair Trading).
• VIC: Building and Plumbing Commission, 1300 067 088, dispute resolution (free).
• QLD: QBCC, 139 333, defective work complaint.
• WA: Building and Energy, 1300 489 099, building dispute resolution.
• SA: Consumer and Business Services, 131 882, building disputes advice form.
• TAS: Building Standards Tasmania, 1300 654 499, notice of dispute and mediation.
• ACT: Access Canberra, 13 22 81, building disputes and complaints; contract disputes can also go to the Conflict Resolution Service or ACAT.
• NT: NT Consumer Affairs, 1800 019 319; for fidelity fund work, the Commissioner of Residential Building Disputes.

Our Building Dispute Pack ($97) prepares a notice of dispute, a regulator complaint statement and an evidence schedule together.

Step 4: Still not fixed or paid? Send the final demand

It quotes your notice, the builder’s response or silence, and the regulator’s outcome or reference number, and says you’ll file if it isn’t resolved. If the builder has gone broke or vanished, lodge your home warranty claim now too.

Send the final demand – $49

Step 5: Apply to the tribunal or court in the state where the house is

Attach the regulator’s certificate or letter where your state requires one. In WA the Building Commissioner complaint is usually the formal step, and the State Administrative Tribunal hears referred or reviewed cases. Our Hearing Bundle ($97) orders your contract, photos, reports and quotes the way a tribunal expects.

Prepare your tribunal application – $97

In South Australia, and for claims over $25,000 in the NT, the same product prepares a court claim.

Where your claim goes in each state

Building claims go to the building forum in the state where the work was done.

If your builder is an individual or sole trader living in another state. NCAT can’t decide a dispute between a NSW resident and a resident of another state (Burns v Corbett [2018] HCA 15), so the claim goes to the Local or District Court. VCAT says it can’t hear some cases where a party lives interstate, and WA’s Building Commissioner can’t deal with complaints between individuals where one lives outside WA. None of this applies if the builder is a company, as most are.

After you win: getting paid

If the builder still doesn’t pay, the order can be enforced: in most states it is registered or filed with the court and enforced as a judgment, through a garnishee order on the builder’s bank account or money its clients owe it, seizure and sale of property, or an examination of the builder about its finances. In WA an unpaid Building Commissioner or SAT money order is filed in the Magistrates Court (up to $75,000) or District Court (up to $750,000), and against a registered builder can become a “building service debt” affecting its registration. In NSW a builder’s licence can be suspended for not paying an NCAT order, which can open the way to a home warranty claim.

Tribunals do not collect the money for you. In NSW, Victoria, Queensland, the ACT and the NT, an unpaid tribunal money order is first registered, recorded or filed with a court. In WA, SA and Tasmania the Magistrates Court decides the claim, so you already have a court judgment. Then you apply for the court’s enforcement tools.

Enforce your order – $97

Enforce your order – $97

Questions people ask

How long is a builder liable for defects?

It depends on the state. NSW: 6 years for a major defect, 2 years for others, from completion. ACT: 6 years structural, 2 years non-structural. Tasmania: six years from practical completion. South Australia: CBS says five years from completion. Victoria: a building action generally within 10 years of the occupancy permit. WA: notify defects in writing within 4 months of practical completion.

Can I withhold the final payment until defects are fixed?

Carefully. In Victoria a builder can’t demand the final payment until the work matches the plans and you have the occupancy permit or certificate of final inspection (s 42). Elsewhere it depends on your contract, and withholding without a contractual basis can put you in breach. Put your reasons in writing and get advice first.

My builder went bust. Can I get my money back?

Possibly, through home warranty insurance, if the job was big enough to need it and the builder took it out. The schemes in every state and territory except Tasmania can pay when a builder becomes insolvent (Tasmania’s official consumer guide describes no such scheme). Find the certificate or check the state register, notify quickly because deadlines are short, and use our Home Warranty Insurance Claim Statement ($49).

Does home warranty insurance cover defects while my builder is still trading?

Usually not in NSW, WA, SA, the ACT or the NT, where cover starts when the builder dies, disappears or goes broke (or in NSW loses its licence over an unpaid order). Queensland’s scheme can cover defective work after the QBCC process. Victoria’s Home Warranty, for contracts from 1 July 2026, can pay when the builder fails or refuses to fix the work.

Do I have to go to the regulator before the tribunal?

In NSW, Victoria and Queensland, yes. NCAT needs evidence of the Building Commission NSW process unless an exemption applies, VCAT needs a BPC certificate of conciliation, and QCAT needs the QBCC’s outcome letter. Tasmania requires a mediation attempt first, and in WA you give the Notice of proposed complaint before complaining.

What’s the most a builder can take as a deposit?

NSW 10%. Victoria 10% under $20,000, 5% from $20,000. Queensland 10% for $3,301-$19,999, 5% from $20,000. WA 6.5%. SA 5% from $20,000. Tasmania 10% for $20,000-$50,000, 5% above. Paying more is unlawful for the builder and can reduce what insurance pays back later, so ask for any excess to be refunded in writing.

Can a builder charge for variations I didn’t sign?

You usually have strong grounds to refuse. The NSW Government says variations must be in writing and signed by both parties, and in Victoria a builder who varies the plans without your signed consent generally can’t recover money for it (s 37). Dispute it in writing straight away with our Builder Variation Dispute letter.

The builder is months late. Can I claim compensation?

Often. In NSW and Victoria the warranties include completing within the contract time, so an unexcused delay is a breach and you can claim foreseeable loss such as rent and storage. Check the contract’s extension of time and liquidated damages clauses, then send our Notice to Builder: Past the Completion Date.

Can another builder fix it and I send the bill to my builder?

Give your builder the chance first: list the defects in writing and allow access. If it refuses or doesn’t fix them in a reasonable time, you can generally recover the reasonable cost of another licensed builder. Record every defect in photos and a report before repairs start.

Is the defects liability period the same as the warranty?

No. A defects liability or maintenance period is a contract term for the builder to return and fix listed items. The statutory warranties are set by law and continue after it ends, so the end of a maintenance period doesn’t end the builder’s legal liability.

What if my builder wasn’t licensed?

Report it to the regulator. In NSW an unlicensed builder can’t enforce the contract against you, and NCAT exempts claims against unlicensed contractors from the Building Commission step. Home warranty insurance generally doesn’t cover unlicensed work, so you claim against the person directly.

How much does it cost to take a builder to the tribunal?

Filing fees are modest: $64 to $344 at NCAT, $405.60 at QCAT, and $67.40 to $813.40 at VCAT for claims up to $500,000. An independent building report usually costs more than the fee. Our Defects Notice to Your Builder ($79) is the usual first step.

Sources

Checked 19 October 2026.

• Home Building Act 1989 (NSW): ss 4, 8, 10, 18B, 18E, 48K, 48MA, 92, 99, 101
• NSW Government: Contracts for residential building work; Building Commission NSW: dispute resolution; Insurance cover for building work
• icare HBCF: What am I covered for?; Am I ready to make a claim?
• NCAT: Home building; NCAT fees; NCAT: Federal jurisdiction
• Domestic Building Contracts Act 1995 (Vic): ss 8-11, 37, 42, 56; Building Act 1993 (Vic) s 134
• BPC: Dispute resolution; DBI and Home Warranty; Home Warranty time limits; Make a claim; VCAT: Building and construction
• QBCC: Help with defective work; Home warranty time limits; Maximum amounts; Non-completion claims; Deposits; QCAT fees
• Home Building Contracts Act 1991 (WA): ss 4, 10, 11; Building and Energy: Building dispute resolution; Complaint resolution process; Home indemnity insurance fact sheet
• SA: Disputes with a builder or tradesperson; Building indemnity insurance; CBS consumer guide
• Building Standards Tasmania: Mediation; Residential Building Consumer Guide
• ACT: Statutory warranties; Residential building work insurance
• NT: Fidelity fund certificate; NT: Defective or incomplete work
• Australian Consumer Law: ss 60-62, 64, 267-268

Claim Done is not a law firm and does not give legal advice. This page is general information. For a complex or high-value matter, speak to a lawyer or a free community legal centre.