Homeowner reassurance, made simple
The Master Builders Fidelity Fund gives homeowners confidence by making sure there is always a safety net in place if a builder cannot complete the work.
How we give homeowners confidence
Building or renovating is one of the biggest investments most people will ever make, and it should never feel like a gamble. The Master Builders Fidelity Fund gives homeowners confidence by making sure there is always a safety net in place if a builder cannot complete the work. Through clear rules, independent oversight, and strong financial backing, the Fund ensures homeowners are not left stranded when things go wrong.
Is my build eligible?
To be covered by the Fidelity Fund, your build must fall under the residential building work requirements set out in the Building Act 2004.
It is your builder's responsibility to obtain home warranty cover for your build.
Fidelity Fund certificates are generally required for significant residential projects over $12,000 and help ensure there’s protection in place before work begins. Certificates are linked to the property and remain valid for the statutory period after completion, giving both current and future owners peace of mind.
Who qualifies
Residential building projects such as new homes (Class 1) or multi-unit dwellings (Class 2) up to three storeys, and structural alterations or additions valued at $12,000 or more, typically need a Fidelity Fund certificate before work can start. These certificates are required for licensed builders to comply with the Building Act and Regulations.
Who is exempt
Certain works are exempt from needing a Fidelity Fund certificate, including non-structural items like class 10 structures (for example, standalone swimming pools, fences, landscaping, mailboxes and unattached garages) and Federal or government projects.
If you’re unsure whether your specific project needs cover, a building certifier can help clarify the requirements.
Key information for homeowners
Understanding the fund means understanding your rights. Here's what matters most when it comes to Fidelity Fund coverage.
When you can lodge a claim
A Fidelity Fund claim may only be made in circumstances of a builder’s death, insolvency or disappearance. Disappearance does not mean merely uncontactable.
For the certificates issued before 1 January 2025, homeowners have 90 days from when they became aware that the builder has become insolvent, died or disappeared.
For the certificates issued on or after 1 January 2025, the claim period is 180 days from when they became aware that the builder has become insolvent, died or disappeared.
How much you can claim
Fidelity Fund liabilities are specified in the Building Act 2004 (ACT) and in the Building (General) Regulations 2004 (ACT).
The maximum sum covered under a Fidelity Fund Certificate, in respect of each dwelling that forms part of the work, is $200,000 or an amount equal to the cost of the work, whichever is the lesser.
Under the Building (General) Regulation 2004, the owner is entitled to:
- claim up to a maximum of $10,000 for the loss of a deposit paid to a builder.
- recover payments made to the builder which do not exceed the value of the work completed, such as payments in advance of the works being completed.
Please note that the maximum sum amount increased from $85,000 to $200,000 on 1st January 2025. The certificates issued before 1st January 2025 provide cover of up to $85,000.
Your cost and responsibilities
All claims must be submitted along with a payment of $500.00 for the excess fee. The excess fee is refundable if the claim is declined.
For any claims against Master Builders Fidelity Fund, the owner(s) must exhaust all relevant rights of action and other legal remedies against the Builder for the recovery of money or other property in respect to loss occurred, prior to lodging a claim against the Fidelity Fund.
How it works
We will acknowledge receipt of your claim form. We may require further information from you in order to assess your claim. A building consultant may be required to inspect the defective work and prepare a report to support the claim. Your claim will be presented to the Fidelity Fund Trustees for their consideration and action.
A claim may take up to 90 days to process.
Have more questions?
Homeowner enquiries
We're here to answer what matters to you. Fill out the form below for general enquiries, or get in touch anytime on (02) 6175 5900 or fidelityfund@mba.org.au
