Government Announces Sweeping Changes to The Home Insulation Rebate

On Sunday 1st of November - Insulation Installers all around Australia received an email notifying them of the government's sweeping changes to the Home Insulation Rebate Program.

When interviewed about these changes Peter Garret MP told reporters - " This has been a phenomenally successful program. Now we have consumer confidence in the system it's appropriate for us to drive some additional competition for installers"

The government states the new Insulation Rebate provisions are aimed at improving the safety for installers (after one installer was killed and number have been injured installing insulation) and also to reduce the risk of fire in households that have insulation installed. However the government's reason for the reducing the rebate from $1600 to $1200 is a lot less clear. 

With the demand for insulation outstripping supply the reduction in the rebate to $1200 could easily be seen as a way to slow the demand down and to also provide more competition to weed out any dodgy installers rorting the system. Since 1 July over a 100 installers have been struck off the list of registered installers and many in the industry suggest this is just the tip of the iceberg.

Supporting this view the government plans to impose more stringent auditing controls on installations including a name and shame list for those installers proven to have failed to follow program guidelines.

Whilst the changes to improved safety measures will be welcomed by the industry and the community, the reduction in the rebate amount & new competition initiatives seems like the government is throwing the bath out with the bath water - As these changes  will also harm homeowners who have not yet received the rebate and those installers that have acted responsibly. 

These new procedures would probably not even be required had the government not allowed so many inexperienced people to open an insulation businesses and be registered as an authorised installer,  simply on the basis of completing a 2 day course!

With so many installers in the market having no installation or business experience it is no wonder this has resulted in a large number of accidents, poorly installed insulation and dodgy sales practices.

I think it have been more prudent for the government to have initially made the criteria for qualifying to be a registered installation business more stringent or even make these changes now!

This website has always promoted and recommended using professional installation companies that existed prior to rebate, as they have much more experience and a lot more to lose from the years spent building up their business and reputation.

It simply stands to reason that with a professional installation company homeowners can expect a better service and safer, more effective insulation installation than someone who has no experience and is just out to make a quick buck.   

Effective 1 November:

• Maximum subsidy under the Australian Government’s Home Insulation Program will be reduced from a maximum of $1,600 per dwelling to a maximum of $1,200 per dwelling
• Ceiling insulation installation must include the use of an appropriate cover over down lights and other relevant ceiling appliances, as approved and installed in accordance with relevant Australian Standards.  This is a key safety fire protection.  Where it is not possible or appropriate to install a cover (e.g. due to space limitations in flat ceilings) installers must still leave the minimum clearance distance required under the relevant Standards.
• Ceiling insulation must be installed without the use of metal staples or other metal fasteners to fasten insulation products as an electrical safety measure.  Taping or fastening with nylon/plastic staples or any other non metallic means will be permitted.
• Quotes must be based from a physical inspection of ceiling area.
• Program funding now capped at $2.4billion

Effective 1 December

• Householders are required to obtain two genuine independent quotes from two businesses on the Installer Provider Register. Householders in rural areas may be exempt from this requirement if they are unable to obtain multiple site inspections for the quotes because of their remote location
• Ceiling insulation must not be installed before a Risk Assessment has been completed by the Installer on the approved template. The completed Risk Assessment must be provided if requested for audit purposes
  
  
  Transitional arrangements- Quoted before 2 Nov 09 & Installation Completed Before 16 Nov 09
  
  Where Householders accepted a quote prior to 2 November 2009 for Ceiling Insulation from an Installer on the Installer Provider Register, the installation must occur on or before 16 November 2009 to receive assistance up to $1,600. Claims for work quoted before 2 November 2009 and completed on or before 16 November 2009 must be lodged before 1 December 2009 to qualify for up to $1,600 in assistance under the Program. All other claims may be eligible for up to $1,200 in assistance under the Program.
  
  

Steps To Obtain Insulation Rebate:

1. Assess   - Your Eligibility for The Insulation Rebate
2. Review  - Guidelines for Obtaining the Insulation Rebate
3. Quotes   - Select an Insulation Installer to Quote Your Homes Insulation Needs
4. Book      - Once happy with your Insulation Installer simply book your insulation date

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