Owners Corporation Law > Government Review
Fair Trading and Consumer Acts Further Amendment Bill 2007
This Amendment Bill contains changes that affect the Owners Corportation Act. A copy of the bill can be viewed here.
The government review continues. . . The extracts from Proof Hansard Assembly 4 December 2007 , 5 December 2007 , 7 February 2008 explain the current situation.
Draft Owners Corporations Regulations 2007 & Regulatory Impact Statement - Take Two
Following on from all of the submissions received, Consumer Affairs Victoria has isued a new Regulatory Impact Statement, and is again inviting public comments regarding the Regulatory Impact Statement and proposed regulations. The document can be viewed and downloaded from our website here.
The OCV response to the RIS can be downloaded from the website here.
Draft Owners Corporations Regulations 2007 & RIS [Regulatory Impact Statement]
Draft regulations to support the new Owners Corporations Act 2006 and replace the Subdivision (Body Corporate) Regulations 2001 have now been prepared. Among other things, the new regulations prescribe:
• classes of prescribed owners corporations
• insurance requirements for owners corporations
• when an existing corporation must establish an owners corporation register
• information to be included on an owners corporation certificate
• fees, costs and charges, and
• model rules for owners corporations.
Consumer Affairs Victoria is now inviting public comments regarding the proposed regulations. To assist with the consultation process CAV has produced a Regulatory Impact Statement (RIS) and is now seeking feedback in regard to both the RIS and draft regulations. The RIS can be viewed here.
The new regulatory regime is proposed to commence on 31 December 2007.
The threshold for prescribed [ie larger] owners corporations determines requirements for maintenance plans and funds, auditing of accounts, and valuations for insurance purposes. The proposed definition of prescribed owners corporation is those with annual fees in excess of $200,000, or more than 100 lots. This captures about 27% of all lots, and 1.2% of all owners corporations.
Other proposed changes include the minimum level of professional indemnity insurance for owners corporation managers to be $1.5 million as opposed to the current $2 million. Registration of managers will, among other things, ensure that insurance cover is in place. The fee levels for the registration of managers are not yet included.
An owners corporation certificate is required to be attached to the Section 32 statement, and the fee level for the owners corporation certificate is proposed to be $150, up from the current $50 + GST.
An owners corporation is required to have a register of important information, and it is proposed to allow 6 months from commencement to establish its owners corporation register.
IBCMV has developed a submission in response.
A media release can be viewed here, and the final submission can be viewed here.
IBCMV makes submission on Removal of Manager and Police Record Checks
IBCMV continues to lobby Government to ensure awareness of the issues surrounding the Owners Corporations Act. A submission and media release have been distributed addressing removal of manager and police record checks.
Owners Corporations Bill Passed by Parliament
The Owners Corporations Bill was passed by Parliament 14/09/2006 with the Royal Assent on 19/06/2006 and will now become the Owners Corporations Act (Act No.: 69/2006), to come into force by the end of 2007. The long implementation phase will allow people time to adapt to the new requirements without experiencing undue difficulties during the transition.
Consumer Affairs Victoria Fact Sheet
Consumer Affairs Victoria media release
Legislative Council 2nd and 3rd Reading pages 3290-3293 and 3447-3462
As a summary of the readings IBCMV has again been named, quoted and our issues raised and supported by the Liberal opposition’s Wendy Lovell in parliamentary debate; and she was surprised that house amendments had not been made. Members for the opposition Liberal Party expressed the view that it is a step forward but it could have been so much better – because it is overly complex, prescriptive and onerous for small owners corporations. IBCMV issues were also raised and supported by the Liberal’s Andrea Coote and The Nationals Damian Drum.
Labour’s Helen Buckingham, who spoke glowingly about the professionalism of the IBCMV and its body corporate managers, notes the government will have an extensive public information campaign to educate ordinary members of owners corporations. She noted the government had considered the criticisms but believed the right balance had been achieved. She also noted the threshold for prescribed owners corporations, which will be subject to public consultation as part of the regulatory impact statement process, could be owners corporations with annual fees over $200,000 [as is the case for incorporated associations].
Labour’s Minister for Consumer Affairs, Marsha Thomson, noted that the complexity of the legislation was born of necessity; and reiterated the balance had been achieved between avoiding excessive regulatory burden yet building in responsibility.
Owners Corporations Bill Passes The First House
The Owners Corporations Bill on Thursday 24/08/2006 had its second and third reading and passed the first house [Legislative Assembly] and also on 24/08/2006 was introduced to the second upper house [Legislative Council] by Hon. Justin Madden and passed its first reading.
IBCMV has been named, quoted, and our issues raised and supported by the Liberal opposition’s Mr Perton in parliamentary debate for concerns to be amended by the Minister. Our issues were also raised and supported by the Liberal’s Mr Thompson, Mrs Shardey & others.
Members for the opposition Liberal Party expressed the view that – it is a step forward, but it could have been so much better.
An insight into the definition of “prescribed” owners corporation, which will be identified in the regulatory impact statement, is given by The Nationals Mr. Delahunty – budget greater than $200,000, or greater than 80 lots.
He also talks about the level of PI insurance cover [which is to be prescribed] – possibly suggesting no change to current $2 million?
The Liberals, Mr Kotsiras, noted the regulations should have been available at same time as bill, and that according to their briefing from the government they are still 12 months away. The Liberals, Mr Dixon, noted further the regulations are often even more important than the actual legislation and that they need to be user friendly.
Read the debate - Pages 205-215, 226-230, 238-246.
Response to the Owners Corporations Bill
The Owners Corporations Bill is scheduled for debate for Tuesday 8th August 2006. A submission and media release has been made responding to the Owners Corporations Bill Introductory Print.
Draft Bill introduced into Victorian Parliament
The Owners Corporation Bill has been introduced to Victorian Parliament. The first reading was on 18 July 2006, and the second reading on 20 July 2006, as is covered in the Media Release of the Minister for Consumer Affairs, 18 July 2006 – Tough new regulations to secure high-rise living needs.
Second reading speech (go to p57-60)
Explanatory memorandum for an overview of provisions
Bill as introduced into Parliament
Reducing the compliance burden from registration of body corporate managers
IBCMV has made a submission to reduce the compliance burden from registration of body corporate managers and issued a Media Release.
Previous Information Relating to the Body Corporate Review
The Minister for Consumer Affairs, Marsha Thomson, released the Final Report of the Body Corporate Review and an exposure draft of the proposed laws on 21st December 2005. The proposed laws will be available for public comment until 31st March 2006.
CAV Media Release.
CAV have published a Fact Sheet explaining the proposed changes to body corporate laws.
The IBCMV forwarded a response to the draft Owners Corporate Bill to Consumer Affairs Victoria. A full copy of the response is below. IBCMV has and continues to put in place extensive programs and strategies to meet the challenges of a growing membership and industry that is facing change. These strategies are geared towards ensuring the IBCMV members are able to offer the best service to their clients and the Victorian community. The industry has a strong track record in the professional and ethical management of bodies corporate and IBCMV is looking forward to working with the Government and Consumer Affairs Victoria to finalise and plan for the implementation of the new legislative framework.
IBCMV Submission March 2006 Owners Corporation Bill
The Institute of Body Corporate Managers (Victoria) Inc. (the Institute) has fully participated in the Review and previously lodged a response to the the Future Directions Paper. A full copy of our "Industry View" position is included below for your information:
IBCMV Response to Future Directions
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