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Consumer Affairs Victoria has announced that from 1 December 2021, significant changes to the way owners corporations (OCs) operate in the state will take effect.
The Owners Corporations and Other Acts Amendment Act of 2021 will make a number of changes, including different levels of standards based on the size of the OC, revisions to managers’ and developers’ obligations, and other reforms aimed at making OCs better-managed and more livable.
According to Consumer Affairs Victoria, the changes are “critical” for OC managers, property developers, and those who own a property covered by an OC.
The amendments are based on feedback from stakeholders following a lengthy consultation process, and recognise changes to the industry landscape since the Owners Corporations Act 2006 was enacted.
The following are key aspects of the reforms linked to the appointment of OC managers:
- restricting the duration of a manager’s appointment
- enhancing the requirements that OC managers must meet in order to be appointed
- allowing the OC to more easily withdraw or not renew a manager’s appointment.
The amendments will prevent OC managers from being registered if they have been convicted or proven guilty of a variety of serious crimes in the last 10 years, including interstate offences.
In addition, professional indemnity insurance will be needed for managers.
OC managers’ obligations will also be broadened to include new reporting requirements for purchases of goods and services, as well as responsibilities for funds held on behalf of OCs.
Furthermore, the reforms include a five-tiered system for OCs, with increasing degrees of administration necessary based on the number of lots covered by the OC, including financial statements, maintenance plans, and funds.
Based on the announcement, another aim of the reforms is to simplify and streamline the regulation of owners corporations in retirement communities.
Developers will be given more duties for the OCs they establish, including limited authority to nominate OC managers and more budgeting responsibilities. Certain developer obligations will also be extended.
Lastly, the reforms require developers preparing a plan of subdivision to recruit a licensed surveyor, with additional requirements included around supplying information of lot entitlements and liabilities.
ABOUT THE AUTHOR
Noemi Paminuan-Jara
Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for business, health, and education industries. Noemi is a contributing author of an abstract published by the American Public Health Association, and Best Practices in Emergency Pedagogical Methods in Germany. She shares ownership of the copyright of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in Psychology and Marketing Management.
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