Automatic Eligibility Limit Increases
As part of the Government of South Australia’s BII Reform Package, the Government committed to implementing a process to automatically review and increase builder eligibility limits at regular intervals, to respond to increases in construction costs (Reform 24).
As construction costs increase, builders may find their eligibility limits are reached sooner, putting pressure on their capacity to take on new projects. To help address this, all eligible builders that are insured with QBE will receive a 9% increase to their current eligibility and job profile limits on 1 July 2026, ensuring they can continue to operate effectively and maintain project delivery levels despite cost pressures.
Thereafter, construction costs will be reviewed annually with the intention of applying an increase to builder eligibility and job profile limits on 1 July each year. A range of factors will be considered when determining any increase in future years, and changes to builder eligibility will not necessarily be implemented in every year. Brokers can expect to receive annual correspondence where an increase is to be applied.
A full list of QBE builders eligible for the increase will be provided to brokers on 29 June 2026. Builders who do not wish to accept the increase may choose to opt-out by contacting QBE by 17 July 2026. Builders currently in deferral status will not receive the increase.
For further information builders should contact their registered insurance broker.
Policy Limit
- From 1 October 2025, the policy limit for new Building Indemnity Insurance policies issued by QBE will increase to $250,000. This higher limit will apply only to new policies issued by QBE on or after that date. Policies issued prior to 1 October 2025 will retain their existing $150,000 limit.
- From 10 November 2025, the $250,000 policy limit will be prescribed in the Building Work Contractors Regulations and will apply to all new policies issued in South Australia, regardless of the insurer. Policies issued by insurers other than QBE before 10 November 2025 will continue to be subject to the $150,000 limit.
Threshold
- From 10 November 2025, the threshold at which Building Indemnity Insurance is required in South Australia will increase from $12,000 to $20,000, as prescribed in the Building Work Contractors Regulations. Until this date, policies will continue to be issued for building work valued below $20,000.
Builders are encouraged to contact their brokers or insurers with any queries.
