DECEMBER 2015 | Outlook
Outlook • The SCA National ConveNTion 2016 PAGE 10 • An outlook for 2016 and beyond PAGE 12 • Building an entrepreneurial enterprise PAGE 14
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contents Reports President’s Report
SCA National ConveNTion 2016
NATIONAL FEATURES Outlook An outlook for 2016 and beyond
What’s apples for apples?
Chief Executive Officer Kim Henshaw Ph: 02 9492 8252 E: firstname.lastname@example.org SCA National Office Level 1, Suites 101 & 102 845 Pacific Highway Chatswood, NSW 2067
Building entrepreneurial enterprise: The seven pillars of success
Insurance market update
Pace of change
Debt collection: Insight into the Australian debt collection industry
Lifestyle The sun in a different perspective
State Pages New South Wales
Australian Capital Territory
ABN: 57 074 729 007 Contact: PO Box 824 Surfers Paradise QLD 4217 Phone: 1800 222 757 Fax: 1800 063 151 Email: email@example.com Website: www.crowtherblayne.com.au Editor: Samantha Regan Production Controller: Yvonne Okseniuk Business Development Manager: Trish Riley Sales Manager: Peter Bunn Studio Manager: Byron Bailey Design Team: Andrew Crabb, Michelle Triana and Danny McGirr Printed By: Newstyle Printing
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REPORTS presidentâ€™s report
SCA National President Message Our recent 2015 AGM saw the end of the terms of two of our National Board members. David Ferguson from NSW and Mark Atkinson from WA. They should be thanked for the large contribution they have made on our Board and the Strata Sector over a long period.
and will require our membership management system to be working across all States and Territories. This - along with our Branding and Communication initiatives - will help us to achieve our goals of improving provision of services to members, as well as broadening brand recognition.
We welcome back Fiona Michel and Simon Barnard as National Board Appointees. We also welcome Bill Collaros (Coles) and Andrew Chambers as newly elected members of the Board. All of our members have a lot to contribute in what will become an action packed 2016.
To achieve these goals further, we then set the platform with Governments and regulators to standardise legislation across states. This should facilitate mobility of our workforce across State boundaries and achieve further efficiencies in doing Strata work.
Research - which was delivered by Kim Henshaw at a recent convention - indicates that 50% of Australiaâ€™s population will be living in strata dwellings by 2030. That Asset Pool is conservatively valued at 1.2 trillion dollars. At present there are approximately 2,600,000 strata lots across Australia. Fifty per cent of Strata Lots are self-managed and the balance is managed by a combination of SCA members and nonSCA managers, many of whom are not officially qualified to do this work. In his article, Kim Henshaw outlines the importance of Management professionals needing to be properly educated and to have their study and experience recognised to achieve a consistent standard across Australia in this rapidly growing sector.
There is a lot of work yet to be done in all of this, but we have the luxury of a very good team in all of our SCA offices in Australia coupled with a very sound financial platform that is greatly assisted by our sponsors.
In 2016 we would like to have converted all States to Chapters of Strata Community Australia, and to become a well-defined and recognised National Body that represents many participants in this sector, including owners. We also aim to have a consistently tiered membership fee system and Accredited Educational System that clearly provides pathways to advancement for our members. With this we must standardise membership and committees to be most effective,
I look forward to working with the Board, the Board Committees and staff to realise our vision for 2016.
Erik Adriaanse FCPA National President Strata Community Australia
REPORTS ceo’s report
SCA National CEO Message In the last edition, I indicated that over the following five editions I’d update you all on SCA’s strategic priorities. In September I talked about branding; in this edition I’d like to raise the matter of careers - careers in strata management. Australian Governments - both state and federal - have generally been unwilling to embrace any meaningful regulation of the strata management industry. The exception is New South Wales where a Certificate of Registration is required to practice as a strata manager. The educational requirement for that certificate is competency in three modules from a Certificate III qualification. Consequently, strata management has not been viewed in any real professional light. Which has not made a career in the industry appear very attractive. All that is about to change.
Cert IV and Diploma will be nationally recognised vocational qualifications providing a consistent standard for the industry across Australia. In 2008 the Coalition of Australian Governments (COAG) committed to putting in place a system of National Occupational Licensing. SCA, like many other industry associations, spent a great deal of time engaged in the ensuing design process. At their 2013 meeting COAG abandoned NOL when it became obvious that the states and Commonwealth could not agree on a framework. Two years later SCA has all but completed an industry based replacement for the failed COAG initiative, which on its implementation in early 2016, will provide a defined career path and professional accreditation scheme for the strata management industry.
SCA believes that for strata management to become an attractive career it must be elevated to the status of a profession. To achieve that requires both education and accreditation pathways. Strata management professionals need to be properly educated and have their study and experience recognised. To this end SCA is in the final throws of establishing an entirely new education and accreditation pathway for strata managers. It begins with the A100 “Introduction to Strata” course and moves through Certificates III and IV and on to a Diploma in Strata Community Management. Mapped to each educational outcome is a four level accreditation scheme that recognises these educational outcomes and is also dependent on workplace experience. Importantly the Cert III,
Kim Henshaw Chief Executive Officer Strata Community Australia
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THE SCA NATIONAL CONVENTION 2016 Alice Springs, 25-27 May 2016
A place rich in Aboriginal history and rugged, natural beauty, the Northern Territory offers the quintessential Australian experience. With a huge array of wildlife, colourful outback characters and awe-striking landscapes, Alice Springs is a place of adventure, where you can lose or ďŹ nd yourself. Pictured: The Alice Springs Telegraph Station
SCA NATIONAL CONVENTION 2016 UPDATE
The SCA National ConveNTion 2016 25 - 27 May 2016 : Alice Springs, NT
SOCIAL HIGHLIGHTS The Welcome Cocktail Party
Alice Springs, NT The SCA National ConveNTion 2016 will be held in the beautiful outback Australia location, Alice Springs. From Wednesday, 25 May to Friday, 27 May 2016, this is an event you won’t want to miss.
The Alice Springs Telegraph Station Historical Reserve marks the original site of the first European settlement in Alice Springs Established in 1872 to relay messages between Darwin and Adelaide, this location is as historic as it is beautiful.
Did you know? “Alice” was named by surveyor William Whitﬁeld Mills after Lady Alice Todd, wife of the telegraph pioneer Sir Alice Todd.
The ConveNTion Dinner Ooramina Homestead is a genuine, family owned outback Central Australian cattle station. This is a truly iconic Outback experience, with red dusty roads and rocky ranges surrounding the 1920s style pub and township.
With a rich and rugged history, Alice Springs sits as much at the heart of the Australian drive to innovate, adapt and succeed as it does at the actual heart of Australia. It’s a place of adventure where you can lose or ﬁnd yourself.
Closing Cocktail Party A number of scenic gaps pierce the West MacDonnell Ranges. One of these is Simpson’s Gap, site of one of the most prominent waterholes in the region.
Further details will be released shortly. Don’t forget to mark the dates in your diary!
Post-conference touring to Uluru available!
The sunset at Kakadu, NT
How does it affect our industry?
An Outlook for 2016 and Beyond Every so often we need to consider where we are going as a strata/bodies corporate industry and those that supply services to them, so we can try to plan our future in business and as an industry. In order to do that we have to look back in order to consider what may happen into the future. Recently I had cause to read the Urban Development Institute of Australia report into the “State of the Land report 2015”. This report provides some statistical insight across Australia in what is happening with land releases and new developments (I suggest you get a copy). This report confirmed in my mind some of the thoughts SCA and my office had been having over where the industry is going, what is happening in the market and where we should consider our focus as an industry. Some of the interesting statistics are: ww There is an increase in available “stock” of lots across Australia with South East Queensland, NSW and Victorian cities being at the forefront (55%, 61% and 29% respectively). The only exception being Adelaide, which went down 11%. ww Prices remained relatively flay during the 2013/14 period of survey with Sydney up 5% and Perth the biggest with 9%. ww Greenfield lot production was a very interesting review with every sample showing a decrease in land size and an increase in overall price per square metre (period from 2009 until 2014). ww NSW $518 per square metre at an average of 520 square metres in 2009 to $755psm for 450sm in 2014. And the trend continues around the country with Melbourne $334psm for 514sm to $458 for 445sm, SEQ $398psm for 660sm to $480psm for 509sm, Perth $405psm for 515sm to $610psm for 428sm (ouch!) and Adelaide $378psm for 446sm to 368psm for 444sm.
So, what does all of this mean? Well, we are getting smaller sizes for more money (a decrease in land size and apartment size compared with an increase on price per square metre), we have an increase in supply but still not reaching demand (in some cities) and there are more buildings being built (so the “mid-life financial” crisis we had in 2009/10 seems to be over in the main cities).
With the increasing volume of lots coming onto the market as highlighted above, the ever increasing complexity with titling across the country, the undersupply of stock in some areas and most major states/territories undertaking legislative review, we as an industry are in for a wild 2016 and beyond.
Where do I see the challenges for 2016 and beyond? There are probably plenty more than the ones I propose here but the editor will shoot me if I have more than 4. In my view the major challenges we face as an industry are: Technology – technology is taking over our lives. If you can’t get it instantly it isn’t worth having. We want it and we want it now. In managing buildings this will be an ever-increasing challenge as technology moves at a rapid pace. a. Meetings being held on line (watching the “worm” move from yes to no as owners enter their vote), b. Video conferencing for meetings, c. Managers having technology with them wherever they are and issuing work orders, notices, photos on problems whilst they are standing onsite or at a meeting, d. Greater access to building information (notices, minutes, web sites, work scheduling), e. Greater sense of community and access to community events. Legislative review – almost everywhere is in legislative review mode. The difficultly is that each state/territory have their own views on title structures, procedures and dispute resolution. With businesses now crossing borders more and more this creates many problems. Having “harmony” in laws is something I gave up on a long time ago. As the song goes, “just love the one your with”. The industry will continue to grapple with changing laws in each jurisdiction and we must all be diligent in making sure that things don’t go to astray. Construction - there are so many facets to this topic that you could write volumes but developers/builders need to have confidence in the market and consumers need to feel that what they are purchasing won’t fall down around their ears. Certification of building construction and the ensuing construction defects will continue to be a major impact on the lives of all those in the industry from owners through to managers and suppliers. Until we have better construction laws with proper safeguards to protect the end consumer this area will continue to be a cause of concern. Lot owners – owners are becoming more involved in the daily activities of their buildings. They are asking more, listening more and want to be involved in the decision making process. Going hand in hand with that they are now more demanding of service from providers. Trying to find the balance between service and expectations will continue to be a challenge to all of those involved in the industry. In conclusion, 2016 will be the beginning of the fastest rise in the strata industry for a while to come.
Know. Act. Resolve
This article was kindly supplied by Grace Lawyers
What’s Apples for Apples? Some of the major paint suppliers offer Strata managers a free service, providing them with specifications for their upcoming projects and recommending contractors to do the work for them.
SMART BUILDING SERVICES
Whilst in theory one would think they are getting “apples for apples”, this isn’t always the case: ww It’s important to use the right paint, but it’s equally important to apply it correctly. Applicators that are not aligned to one particular paint supplier are more likely to find the best solution for you. ww Some paint suppliers are locked in to using generic specifications, “over specifying” projects, resulting in unnecessary inflated costs. ww Not all paints are created equal, paints are becoming more sophisticated and their formulations increasingly specialised. Being stuck to one brand means you may not always be using the best paint product available. Understanding the different features, benefits and limitations of different paints is what applicators do best.
Mystrata and Urbanise have joined forces to offer strata managers and their customers the most comprehensive and innovative technology solution for the industry. This partnership not only means Mystrata clients benefit from an increase in technology investment, services and people, but it also means they can access the first cloud based Building Service Delivery Platform. Strata managers and their suppliers now have access to remote asset monitoring and improved FM solutions to deliver significant cost savings, streamlined operations and greater visibility and control of suppliers. With the Urbanise e-commerce portal strata managers can generate new revenue streams and improve the services provided to their owners and tenants. Now that’s Smart!
ww Some paint suppliers share specifications with their preferred contractors without the consent of the strata manager or committee. You may be missing out on using the most appropriate applicator for your project. ww In some instances there are multiple paint specifications for the same project, suggesting different paint products therefore eliminating “Apples for apples”. Higgins has the capacity to meet with the Strata owners, develop the most cost effective scope of work and paint specification which if required can be issued to other contractors to follow when quoting.
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This article was kindly supplied by Higgins
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Building an Entrepreneurial Enterprise: The Seven Pillars of Success Many small businesses start with a great idea and nothing to lose. But as they find success and grow, scale can be both an opportunity and a hindrance.
have expertise in that area first,” explains Firth. So if you’re considering growth in a new area, you may need to invest in specific expertise to avoid costly errors of judgment. It’s worth spending time on careful, strategic organic growth as it could have a lasting impact. “A simple idea that focuses on client needs may eventually become a much larger part of your business,” he adds.
Be disciplined with cost management It’s essential to be rigorous with the financial details, especially in the early phase of any new business. By keeping unnecessary costs to a minimum and always looking for the return on investment on any new investment, you establish a framework for efficient, focused growth.
As Macquarie’s Head of Business Banking Dean Firth notes in our new Business Banking panel discussion video on Entrepreneurial spirit and digital disruption: “when you reach a point you have something to lose, you often become a bit safe. You may become complacent about the way your market operates, you may be encumbered by the environment you’re operating in.”
Hire industry experts where needed
Adopting an entrepreneurial mindset is crucial in a fast-paced economy. But it can be challenging to balance that mindset with the needs of a growing enterprise. Where we’ve seen our own clients succeed, it’s because they have managed to achieve that balance and create an ‘entrepreneurial enterprise.’
Research has found human capital is more valuable than physical capital, and it’s essential to invest in your people, empowering them to become more productive and engaged.
Firth defines an entrepreneur as someone who “puts their own capital at risk with the hope of a future return.” This is a mindset Macquarie understands instinctively, having opened its doors as a business of just three people 45 years ago. Today, Macquarie is a global business operating in 28 countries around the world.
A delicate balance between agility and rigour Firth believes small business embodies the entrepreneurial mindset of Australia and the spirit of innovation.
Firth says successful entrepreneurs are distinguished by their ability to actively seek out opinions that may contradict their own. “They understand they don’t have all the answers.” Partner with the best expertise you can find or bring it in house.
Empower your people
“At Macquarie, our leaders don’t try to pick the next big opportunity,” notes Firth. “We ask our staff to, because they’re closest to their clients.” He says relationship knowledge is just as important as sector knowledge. “Clients want to work with people who were there for the last transaction. So when you invest in your staff you’re investing in those relationships.”
Keep the essence of your business alive Don’t lose sight of the things that have made your business a success. What are the principles you live and work by? “Remember why you first backed yourself,” says Firth. “That’s how you can keep the entrepreneurial spark alive.”
“To grow sustainably, you need to balance the things you’d like to be able to do as a larger business with the things you already do very well,” he says.
Stay on top of new technologies and innovations
Small businesses are agile and can achieve speed to market, but as you grow the potential risk of those quick decisions can be greater – and this causes tension.
Digital disruption is changing the game in just about every sector of the economy. It’s human nature to fear the unknown, but approaching this with a positive mindset can make all the difference.
It’s the pull between ownership and accountability, and operational efficiency. Between bold innovation and robust risk management, agility and scalability.
Consider how technology makes new things possible – what could your business become? Firth suggests taking a step back and thinking about how you’d do things differently if you were to start your business again today.
An entrepreneurial enterprise needs to find an even keel. Here are seven ways you can apply this thinking into your business. For the latest best practice knowledge, research, market and industry information, visit the Macquarie expertise hub, macquarie.com.au/business
Be patient You need the foresight to persevere through short term challenges for longer term gains. Keep an eye on the bigger picture and stay true to your strategy. That may mean starting small and slowing down the pace.
Grow expertise by building your business organically
This material has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 ("Macquarie") for general discussion purposes only, without taking into account your personal objectives, financial situation or needs. Before acting on this general information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service.
“When Macquarie provides small business owners with equity investment to grow into an adjacent market, we ensure they
This article was kindly supplied by Macquarie Bank
Insurance Market Update Preparing the annual budget for an Owners Corporation (OC) is often the most important yet challenging task a managing agent undertakes for their clients each year. The managing agent is often faced with a set of competing priorities: Lot owners want the building to be maintained to the best possible standard but also want levy increases to be kept to a minimum. Add into the mix the general market conditions of increasing costs, and the issues are self-evident. For the majority of schemes in Australia, the statutory insurance of common property, required by legislation to protect the interests of the OC and lot owners, will be one of the largest single expenses an OC has to budget for each year. It is critical the insurances of the scheme are given the careful consideration they deserve from both a cost and benefit perspective within the budgeting process.
What’s influencing the current market conditions? Over the last decade we have witnessed a number of upward and downward cycles in the prices of insurance. Most recently Strata related insurance premium rates have generally been falling. This is due to a combination of a period of minimal catastrophe activity and the entrance of a number of new providers within this niche insurance sector. The reality for many OC’s has been falling prices for their insurances. Insurance commentators are now predicting the end of the current ‘soft’ market and the related rise in insurance premiums. The first signs of this “hardening” of the market will be the stabilization of rates offered. In fact a number of Strata Managers are now reporting a slight increase in the premium levels from the previous year.
CHU has paid out over $750million in claims over the last 5 years protecting the interests of OC’s. CHU policies are underwritten by QBE, arguably one of the world’s most stable and financially secure insurers. CHU and QBE have experienced a number of these cycles and remain committed to the Strata Sector.
Prudent budgeting business practice – Insurance Expenses For OC’s and managing agents, planning their annual budgets is a time that demands the upmost prudence due to balancing competing priorities and forecasting market trends. Firstly, managing agents need to ensure their budgets account for the possibility of increases in the majority of expenses. As mentioned it is likely the market will start feeling the upward pressure on insurance. Simply taking last year’s actual expenses and “rolling them over” or only applying a small increase, may lead to a cash shortfall for the scheme. Secondly, managing agents can work with insurers to commence or continue pro-active maintenance/loss prevention programmes. An effectively implemented program can often help with the reduction in the frequency and costs of claims therefore minimizing any premium increases. Lastly, review the current Building Sum Insured (BSI) for the OC’s. Not all states have adopted the requirement for “Valuations for Insurance Purposes” to establish the BSI, however this is best practice within the industry. CHU is Australia’s first and largest specialist strata insurance provider with the ability to give advice and specialist support to you and your OC’s. CHU’s consistency over a 37 year period in helping to lower your risk exposure is unique and particularly advantageous in these turbulent times.
Australia has experienced a relatively high number of severe storms over the last 6 months. The Insurance Council of Australia has estimated the cost of these to be in excess of $2.2b, and as the impact of the claims from these events filters through, we can expect to see upward pressure on insurance premiums.
What does the proliferance of new market entrants mean for owners corporations? In any industry, competition in its best form drives innovation, as providers look for ways to increase service levels to their clients and gain market share. Competition in its worst form, drives pricing to unsustainable levels as new entrants compete heavily on price to gain market share. This has been the recent trend for strata insurance. It is a reasonable expectation based on previous cycles within the strata sector, that not all of the new entrants will still be in the market in a couple of years’ time. OC’s need to keep this in mind when they are reviewing their insurances for the year ahead. When choosing a policy it’s important, especially in these uncertain times, to remind yourself of the insurer’s credentials, their financial strength, the extent of cover provided and their track record and history on pricing specialist risk such as Strata.
Bobby Lehane CEO, CHU Underwriting Agencies Pty Ltd
This article was kindly supplied by CHU
General Advice Disclaimer: The information provided in this article should be considered as general advice only as it does not take into consideration the specific needs and or requirements of the Body Corporate and/or reader.
Premier Painting Company WINS PRESTIGIOUS AWARD
Domain Apartments in Woolloomooloo
Premier Painting Company, one of SCA (NSW)’s valued bronze sponsors, is proud to announce that one of its recent projects (Domain Apartments in Woolloomooloo) has won the highly valued Award for Excellence from the Master Painters Association of NSW .
The Dulux Accredited Program recognises individuals and businesses in the painting industry that show a high commitment to quality workmanship and a professional approach to customer service. A panel of judges comprising senior managers from the Dulux paints business-assessed entrants against certain criteria which focuses on the Dulux Accredited Charter of Values and business excellence which each Accredited Member adheres to.
The project was an exterior re-paint of a multi-story block of units – a high profile building in the heart of Sydney – which show cases the reason “Premier Painting Company’ are the go to painting company for Strata painting projects.
Mr Conway said that Premier Painting has continually been highly commended for the business and services it provides.
‘Premier’ can also add “Dulux Accredited Painter of the Year Large Business” to their list of titles after winning the prestigious award recently. The Annual Dulux Accredited ‘Painter of the Year awards’ were held at Melbourne’s Grand Hyatt and attracted over 180 entries out of 700 members. Premier Painting’s Manager Anthony Conway says the company enters every year and has been awarded highly commended 9 out of 12 years until finally winning the “National Painter of the Year” award this year along with awards for Customer Service and Safety and Sustainability. “This is a thrill for us to win and now be a recognised leader in the painting industry with Dulux Accredited,” Mr Conway said.
“We have a strong focus on customer service and communication. As well, we are continually updating skills and product knowledge in order to keep a motivated team of happy employees.” Dulux said that the judging panel was extremely impressed with the quality of entrants across all of the categories. Painters from the Dulux Accredited Painters Program continue to be excellent representatives of the coatings industry and the Dulux Accredited brand by setting industry benchmarks with better workmanship and personalised services. Congratulations to Premier Painting Company –a well-deserved win for a really great team.
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P a c ePace o fof Change Change The world is changing at a pace never seen before. What we believe to be future technology actually exists today and is rapidly infiltrating our everyday lives. In this article, we explore the key building blocks of technology, which ar e shaping our future. The implications to business and our personal lives are profound. How are you positioning yourself to adapt to the future?
How far we have come Take a journey back 15 years and look at what has changed in technology. Processing power, storage capacity, and network speed combined provide a good measure of the advancement in technology across the board.
Processing Power In the 1990s the biggest and best computer HP produced was the HP Superdome, which sold for more than $1.5M USD and weighed in excess of 1.2 tonnes. Today this would be equivalent to the processing power of three smart phones at a cost of under $1500USD and weighing less than half a kilogram (1000 times cheaper and 3000 times lighter).
Following is an explanation of these underlying technologies and some key strategies for thriving and surviving in this environment of rapid change.
Building Blocks of our Future Any individual technology will not change the world in isolation – it is the combination of technological innovations that will truly change the world. What’s most exciting is that the building blocks of the future, each important in their own right, are here today and evolving at a rapid pace.
Networks The essential foundation for almost all technological innovation is a network. This is the ability for a device, computer, or piece of technology to communicate with another or a user. There needs to be an appropriate level of speed and quality of service for the technology to be effective. Following is a snap shot of current mobile technologies compared with the new 5G network tipped to be a reality by 2020.
Storage Capacity In the year 2000 people shared files on 3.5-inch floppy disks with a storage capacity of 2.88 MB, which is not big enough to store a single photo from your current phone. Today we share physical files by Micro SD card with storage of 64GB. This represents an increase in capacity of more than 20,000 times plus a decrease in physical size of over a hundred times.
Network Speed One of the most common ways to connect to the Internet in the year 2000 was via a 56K dial up modem. Today people connect via ADSL, cable or wireless receiving messages at 24.7Mbps per second. This is roughly 441 times faster than in 2000. These are improvements from as little as 441 right through to 20,000 times. The human brain doesn’t do well extrapolating beyond a factor of 10 or 100, let alone 20,000. Let’s face it, it’s really quite hard to imagine far beyond a reality that currently exists.
Present Dayism This observation has led to coining the phrase – Present Dayism that is defined as “the inability to image the future based on our current view of the world.” The average person has expectations of tomorrow that are only slightly advanced upon from today and slightly more advanced than yesterday. What we fail to factor in is the compounding effect of continual advancement.
The world is about to change Whilst stuck in our Present Dayism we are somewhat oblivious to the momentous change under foot. In reality a compounding rate of advancement in a number of key technologies has created the perfect storm of technologies that are going to irrevocably change our lives in the most profound of ways.
Wearables/Internet of Things (IoT) We have evolving networks that are far-reaching, stable and fast enough to support the emergence of billions of connected “things”. The Internet of Things refers to the collection of traditionally passive objects that are being given smarts and connected to the Internet. This includes an ever-expanding group of objects from the mundane to the incredible. Here are just two examples to highlight this: Tooth brushes – Putting smarts in an electric toothbrush is surprisingly useful as it allows you to monitor healthy oral hygiene habits through intelligent phone apps. Baby Onesies – This little innovation provides the ultimate in peace of mind for any parent. The Lilypad is a machine washable Baby Onesie with an array of sensors stitched into its fabric. It then has a small click on chip that communicates directly with a phone app to tell you the orientation of your baby, their body temperature, heart rate, breathing and even allows you to listen to them via audio.
The Future of IoT
Imagine a world where almost every object has sensors and smarts. How would your day start in 2025? Perhaps something like this: ww Your pillow has dynamically adjusted your morning alarm by five minutes to allow you to come out of your deep sleep cycle. ww Your coffee machine has ground your beans and dispensed the perfect fresh espresso as you arrive in the kitchen. ww Your 3D food prep printer has prepared pancakes for breakfast. ww As you leave the house for work your front door disengages the deadbolt. ww On the way to work your suit jacket has booked a pickup from the local dry cleaner as it has detected 32 hours of active use. ww While sitting at your desk your chair gives you a gentle vibration against your lower back to remind you to sit straighter. ww Your coffee mug has detected a dip of temperature below the optimum coffee drinking threshold and has initiated the micro-heaters to maintain the temperature. ww You receive a calendar invite via email from your dentist to book in an appointment as your toothbrush had identified a cavity in one of your molars.
To truly bring the future of technology into the physical world we need robots.
Big Data We are currently generating 2.5 billion gigabytes of data a day and this quantity is doubling every year. Experts estimate we are only analysing a mere 0.5% of this data and thus missing out on insights that this could provide. This is where our next technology building block comes into play - Big Data.
The well-known robot duo Baxter and Sawyer are examples of an emerging technology known as multipurpose robots. Whereas typical automation through robotics would set back companies hundreds of thousands if not millions of dollars, these multipurpose robots start at just $29K USD. The ingenious software allows people to train robots to perform specific tasks and to do them safely working right alongside humans. The variety of jobs they can perform is impressive - almost any job performed by a stationary individual. At such a low cost it is easy to see Baxter and Sawyer making their way into factories, packaging companies, and even offices. Whether we are talking multipurpose robots or self-driving cars, the robots are coming and they are going to impact our lives in profound ways.
Firstly, we need to embrace change and try not to fear it. It’s coming whether we like it or not.
Big Data represents a field where extremely large data sets are analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions.
Thriving Through the Change
Big Data is being applied to a myriad of global, industrial and commercial problems and has yielded incredible results. Here is a recent example:
We’ve explored the massive pace of change and the technologies which are shaping our future but how do we maximise our opportunities and protect our businesses from disruption as we move forward?
Netflix regularly uses Big Data to determine what viewers want by mining their databases which contain viewers’ habits across their 30 million plays a day, observing when people pause rewind, stop etc. They are also observing which shows receive likes on social media and are collating all this data to make informed business decisions.
Firstly, we need to embrace change and try not to fear it. It’s coming whether we like it or not.
The outlook for technology in the future is one of rapid change, so we recommend to embrace it, use it to your benefit and enjoy the ride.
To make sense of all this data we need to look to the next level of technology - Artificial Intelligence. IBM’s latest Artificial Intelligence system, simply known as Watson, defeated two champions of the popular TV game show Jeopardy. Since 2011 Watson has been retooled for a variety of industries including health care. A team of experts were involved in training Watson which included vetting sources of information and feeding it over 2 million pages from over 600,000 sources. The experts would then show Watson what the right answers looked like and let Watson guess. When Watson was incorrect they would give the correct answer and then continue the process that is known as Machine Learning. Watson is now used by healthcare companies to aid with patient diagnosis and treatments.
We must strive to grasp how future technology might impact our industry and understand both the role of automation and efficiency where unique people skills will always be required.
Daniel Borin StrataMax This article has been adapted from a presentation given by Daniel Borin at this year’s National SCA Conference in Canberra. The full article can be found here https:// www.stratamax.com/News-and-Articles/ArtMID/545/ArticleID/30/Tomorrows-FutureTechnology-Today
This article was kindly supplied by StrataMax
Insight into the Australian debt collection industry – research report now available Navigating the debt collection industry is a complex task. While the debt collection industry has improved significantly in recent years, consumers are still likely to find debt collection a highly emotional and stressful situation. ‘Research into the Australian debt collection industry’ is a report that provides regulators, consumer advocates and industry a better understanding of this complex industry and identifies those issues that are potentially exposing consumers to risks. With over 500 businesses offering some form of debt collection service in Australia and collectors making up to 65 million contact attempts each year, the report reveals the scale and breadth of the industry which affects many Australian consumers. The publication highlights compliance challenges for various sectors of the industry and outlines a number of key findings including: ww Technology and scale have improved compliance, but there are still challenges for both large and small business ww Issues with debt collection can vary by sector; different debt drives different behaviours and outcomes ww Increased regulatory oversight has led to an improvement in debt collector behaviour ww Despite inconsistent state and territory licensing regimes, the key obligations of debt collectors when dealing with consumers are made clear by the ACCC/ASIC Debt Collection Guideline ww Non-compliant debt collection practices result in significant detriment to vulnerable and disadvantaged consumers. Regulators are willing to take appropriate action in such cases ww Debt collection approaches that impose additional costs can result in harm to consumers. In particular, credit repair businesses often increase costs for consumers with existing debt problems. The report was produced by Anteris Consulting Pty Ltd for the Australian Competition and Consumer Commission (ACCC) and its Consumer Consultative Committee (CCC). It highlights some concerns regarding debt collection approaches that impose additional costs on consumers already in financial distress, in particular credit repair businesses that often increase costs for consumers with debt problems. The research considered a number of sectors including telecommunications, energy, education and healthcare. It noted that the rising costs and nature of energy supply have created a particular set of challenges for the energy sector. Both the ACCC and the Australian Securities and Investments Commission (ASIC) enforce Commonwealth consumer protection laws relating to debt collection and have recently
updated their joint Debt collection guideline for collectors and creditors. This guideline assists creditors, collectors and debtors to understand their rights and obligations within the industry, and ensures debt collection activity is undertaken in a way that is consistent with consumer protection laws. ‘Research into the Australian debt collection industry’ is available online at www.accc.gov.au/publications/researchinto-the-australian-debt-collection-industry. The ACCC and ASIC Debt collection guideline for collectors and creditors is available at www.accc.gov.au/publications/ debt-collection-guideline-for-collectors-creditors. The ACCC and ASIC also publish a guide for consumers who are currently dealing with debt problems, or being contacted by debt collectors. Dealing with debt collectors: your rights & responsibilities is available at www.accc.gov.au/publications/ dealing-with-debt-collectors-your-rights-responsibilities.
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The Sun in a t n e r e f f i D e v i t c e p s r Pe GOING THROUGH SETS OF WORLD BOOK ENCYCLOPAEDIAS AS A CHILD, I KEENLY REMEMBER COLOURFUL PAGES DEDICATED TO THE UNIVERSE. OUR SOLAR SYSTEM GATHERS A SPECIAL SPOT IN MY ATTENTION SIMPLY BECAUSE IT IS THE FLOATING BIT OF COMMUNITY WHERE EARTH RESIDES.
Earth, being the only one with oxygen-based life, is our home. It was a special smidgen in my child-heart, leaping out of the pages and into an extra-curious kid-mind. We are approximately 150 million kilometers from the sun. This big ball of gas, a medium-sized star, propels climate, weather and supports nearly every fragment of life on Earth through a process called photosynthesis. Sparing all of us from the dull grind of revisiting grade high school lessons, photosynthesis simply produces oxygen. Need I elaborate on the importance of that? Imagine – never attempt – the following scenario: Deprive yourself of a breath; let’s say ten minutes. You might die trying. As a child, there existed this constant nag in the corner of my mind: the sun will expire in about 4.5 billion years! Buried in books, I was worrying about the sun swallowing the Earth as the former went through phases of disintegration and eventual exhaustion. Without light all of life would freeze. Earth becomes a chilled wasteland, a piece of ice floating along space. Now, older and a little more informed, I’ve come to the conclusion that 4.5 billion years is more than enough time. Before our sun perishes – dragging the solar system down with it –one might dive through an ocean of opportunities to make use of its light. This photogenic ball of energy is more than just inspiration for Impressionists, videographers and photographers. Seeing the trend of our times, one must admit that it is a resource of power we’ve failed to exploit.
There is a mounting demand for energy from developing countries. Projected energy requirements exceed existing supply, explaining the rise of fossil fuel prices. The total primary energy demand for renewable energies of solar, wind, bio-energy, geothermal and marine is expected to reach 28% by 2030. Mankind, having virtually exhausted about all sources of energy on Earth will have to start turning to alternative resources. It’s that or we eat up the very planet we’re living on and - in this case - we won’t have to wait 4.5 billion years to see the end of existence as we know it. Solar light is an energy resource we’ve failed to harness. Despite being a country illuminated by sweltering summer months and frying itself into a crisp, we’ve done little to put all this light to any productive use. Solar energy – a renewable energy source – may find application through electricity, water and building lighting systems and even for transportation via solar cars. It’s quite reliable too given that we have a few billion years left on its expiration label. Consider Earth’s energy budget. Of the solar light breaking into the planet half is reflected off the surface or absorbed by clouds and the atmosphere; the other half lights up land and bodies of water on the surface. There is also the option of transforming solar light into a source of electricity. Areas under the sun’s intense light aren’t just wellsprings of complaint; they are latent fountains of power too. It’s all a matter of perspective. One man’s trash is truly another’s treasure. For forward thinkers, making better use of available light energy will circumvent the need for ineffectual tirades onto virtual walls of social networking sites. Those whose sights are set on enterprise will find empathy from companies that aim to contribute to a greener Earth as it creatively converts parking spaces into solar carports. These solar carports are made of high strength, light-gauge steel structures with building integrated photovoltaic modules (BIPV), that provide for basic parking needs. Vehicles are shielded from the sun, while its BIPV modules absorb solar energy, converting it into a source of electricity and revenue. To monitor the solar energy generated from the carport one may view the inverter and display mounted in each carport as part of the whole package. The solar carports can be installed onto existing parking spaces or incorporated into building projects that have yet to be constructed. Given its modular characteristics, these carports are flexible enough to appropriate into the spaces provided. This could turn any parking space into a goldmine. BIPV modules used as roofing material for these carports are competitive alternatives to existing materials such as glass canopies, polycarbonate or metal. Providing the same levels of durability these high-impact strength roof panels are fire, water and mold proof – not to mention a welcome spring into reliving each citizens environmental conscience. Somewhat unfortunately, cars are here to stay. People seem to continually buy into the brand of luxury that comes with driving thirsty vehicles without considering the impact they have on the environment. Bigger engines translate into a
more comfortable ride, consuming more fuel. This demand for fuel motivates oil industries to continually eat away at our fossil fuels. Before petroleum products are even burned, the processes leading into their extraction are threatening enough to destroy local ecosystems. Shipping fuel demands more fuel and increases the risk of oil spilling into our oceans, killing creatures in its wake. Vehicles account for one third of air pollution. What is even more disturbing is how toxins such as carbon monoxide are emitted at street level or human level, out of a car’s exhaust pipe, to our noses and breathed into our lungs. Solar powered and electric cars are already in production though still at a level of exclusivity available to the general public. An electric Tesla Roadster for example, travels 394 kilometers per charge with zero tailpipe emissions. It’s easy on the eyes, doesn’t use petrol but is far from a conventional solution to high-emissions given its incredibly high cost of approximately $100,000 AUD. For the moment, one might be urged to consider fuel-efficient cars over monster vehicles with abysmal appetites for fuel. In the long run, you’ll have contributed to cleaner air while keeping your funds a little more abundant. Yet, making use of existing parking spaces and turning them into alternative sources of energy will lessen our dependence on fossil fuel in many ways. This is not a trend, but an emerging way of life. The sooner we dive into it, the greater the advantages there will be in the future. See it as a business opportunity; change your perspective.
Words by Patricia Kyle Gillera Mendoza Reproduced from Eko Lifestyle Magazine
STATE new south wales
President's message NSW IS GEARING UP FOR A BATTLE WITH GOVERNMENT OVER SOME CONTROVERSIAL PROPOSED CHANGES TO TAKE EFFECT WITH THE NEW STRATA SCHEMES MANAGEMENT BILL. A LOBBYIST HAS BEEN APPOINTED TO WORK WITH SCA (NSW) SHOWING THAT WE ARE SERIOUS IN OUR REASONING FOR THE CHANGES THAT WILL BENEFIT OUR MEMBERS. While last edition we were excited to tell you all that the NSW Government was seemingly moving on the NSW strata law reforms with the circulation of two draft Bills, that excitement has turned to concern over some of the proposed changes. SCA (NSW) together with the Association Strata and Community Managers (ASCM) and Real Estate Institute of NSW (REINSW) issued a joint statement in September to the NSW Minister for Innovation and Better Regulation, the Hon Victor Dominello, MP and the Commissioner for Fair Trading, Mr Rod Stowe, airing the concerns all three organisations held. The joint statement called on the NSW Government to consider reviewing certain proposals in the draft Strata Schemes Management Bill 2015. It said that these proposals* would have a negative impact on those working in the strata sector in NSW and that this could also have a flow on effect for thousands of consumers living in strata. Not only does the statement focus on the concerns but it offers solutions as well in the hope that the government changes its mind on these items. Clauses that all three organisations would like the government to review include one on the restrictions around the appointment of a strata managing agent at the first AGM; reporting commissions by a strata manager; acceptance of gifts; obtaining three quotations; prohibition on developer acting as strata manager and the application of a provision relating to building works.
Under the proposed provision where strata managers are required to obtain three quotes, the joint statement argues that this will increase the financial costs for strata managers which would naturally have to be borne by the owners corporation as it is an increase in time and paperwork. At present owners corporations can already instruct their strata manager to seek three quotes so enshrining it in legislation is unnecessary. As to the proposed prohibition on the acceptance of gifts, the joint statement argues that this provision is fine where it applies to public servants but that as a strata managers’ role is in a private enterprise situation it is currently - and should remain - acceptable. Taking this provision further it could curb the amount of sponsorship that is important for events within the industry to occur and this is detrimental. We continue to talk to the NSW government about this and I hope that a report back to members will be provided as soon as possible that is positive. Let me also now take this opportunity to wish you all a Merry Christmas and Happy New Year – The outlook for 2016 is already shaping up to be one of incredible change in NSW. Until then …
Greg Haywood SCA (NSW) President * The Bills have passed through NSW Parliament and will take effect from mid 2016. More information is available on our website: www.nsw.stratacommunity.org.au
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NSW Strata Owners Chapter: Best Year Yet THE NSW STRATA OWNERS CHAPTER – THE FIRST OF ITS KIND IN AUSTRALIA, ENCOURAGES STRATA OWNERS TO GET INVOLVED NOT ONLY IN THEIR BUILDING BUT IN THE INDUSTRY ITSELF. HERE’S HOW THEY DO IT. Several years ago the SCA (NSW) Board felt something was missing from the membership and they quickly realised that in order to be an organisation that truly represented the strata industry in NSW they needed to also have owners as members. Surely if you are going to work for a group of consumers it makes sense to hear from those consumers on a regular basis and they also get to hear from you. And so the Strata Owners Chapter was born. Fast forward to 2015 and the Chapter has been going from strength-to-strength with the help of Director Chris Chapman who represents owners on the NSW Board. SCA (NSW) has for some time been offering owners Consumer Awareness Seminars which 12 months ago were rebranded to Strata Owner Seminars and offered free to members and opened to paying non-members. The seminars are designed to inform and educate owners on their rights and responsibilities, which at the same time, helps strata managers do their jobs successfully. Topics this year have included ‘War stories of the EC’, ‘Effective dispute management before lawyers’ involvement’, ‘EC experiences with NCAT’ and ‘5 P’s in Strata: Pets, Parking, Parties, Puffing
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(smoking and other smells e.g. BBQ) and Politics (intraschemes clique management)’. Industry experts who are mostly SCA (NSW) members are always on hand to present to the owners. This year has seen a large number of them provide guidance and assistance and the Chapter would like to thank Strata Managers Natalie Fitzgerald, Karina Heinz and Chris Duggan for presenting during the year on various topics. Service providers from Macquarie Bank, Bannermans Lawyers, Demlakian Strata & Remedial, Magnatex and Grace Lawyers also put up their hands to present as did representatives from NCAT, Fair Trading and the Owners Corporation Network. The Chapter is very grateful to you all. We’ve also taken the show on the road and presented to groups in Parramatta and Waverley as well as at the office in Chatswood and on the lower North Shore. A monthly electronic newsletter is also circulated to members promoting the seminars but also offering links to the latest information and strata news. Contributions from strata managers and service providers are included on topics owners want to hear about. SCA (NSW) also promotes to owners upcoming events for all members and encourages them to attend. Growth is steady and constant and SCA (NSW) is firmly of the view that having owners on board has given it a new focus and greater opportunities. Watch this space to see what the Strata Owners Chapter does next.
State of the State - Outlook In terms of the outlook the 2015 report of the Victorian Population and Household Projections, to 2051, projects that Victoria’s population will reach 10 million, with 7.8 million people in Greater Melbourne and 2.2 million in Victoria’s regions. How big is the strata sector relative to each state? It’s roughly correlated to population levels in each state (as a proxy for strata). The rule of thumb is pretty close, viz: Victoria’s strata sector is 25% of the total Australian strata sector. When calculated by population, Victoria makes up 25% of the Australian population. Strata is also getting stronger. The Vic Government’s Plan Melbourne strategy says we need an extra 1.6 million dwellings by 2051 and 66% would be apartments or townhouses. That is, 66% is to be strata and only 34% would be detached houses. Of the 66% to be strata, the split between apartments versus townhouses/units is expected to be 46% versus 54%. 50% of all plans being registered by Land Victoria are now strata i.e. owners corporations. Another indicator on the radar is the level of sinking fund reserves. As a proportion of total administration fund levies raised, how much sinking fund levies are raised by professionally managed strata schemes? I.e. (sinking fund levies) / (administration fund levies). From the 2014 SCA benchmarking report of strata managers, the answer is: Vic - 27%, NSW - 35%, Aus - 39%.
The ACCC previously published a report on comparator websites, and has now published further industry guidance. There are comparator websites for strata management contracts. The industry guidance is targeted at the operators of comparator websites and businesses whose products are listed on them. This guidance sets out how industry can comply with competition and consumer protection laws, including setting out three guiding principles of: Facilitating honest, like for like comparisons Being transparent about commercial relationships Clearly disclosing who and what is being compared An intensive government relations campaign conducted for action on Vic strata law reform, successfully resulted in the Minister for Consumer Affairs announcing at our Symposium a full post implementation review of strata laws. This is a post implementation review, about 8 years after it was completely changed, and will be a full public review. The review is expected to begin with an Issues Paper in Nov 2015 followed by an Options Paper in 2016. The review will also incorporate the outcomes that were contained in the draft Bill regarding the review of the regulation of strata managers.
Rob Beck General Manager
2015 CHU SCA (Vic) Symposium ATTENDED BY 334 DELEGATES, MAINLY STRATA MANAGERS, THE 2015 CHU SCA (Vic) SYMPOSIUM WAS A ONE-DAY EVENT ON THE ‘PRACTICE’ OF STRATA MANAGEMENT. ALL ABOUT ‘MEETINGS’, HERE ARE SOME PHOTOS FROM THE EVENT.
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2015 Awards for Excellence SCA (Vic) CONGRATULATES THE WINNERS ON STAMPING THEIR PROFESSIONAL CREDIBILITY.
Tymaline Building Services Rising Star Owners Corporations Manager
CHU Owners Corporations Manager
John Botha, Network Pacific Strata Management
Aaron Healy, Sentinel Strata Services
Pictured from left to right -Rob Beck, SCA (Vic), John Botha, Network Paciﬁc Strata Management, Alan Ferré, CHU
First on left, pictured with Fabio Corelli, TBS & Rob Beck, SCA (Vic)
HWL Ebsworth Lawyers Owners Corporations Management Business (> 3,000 lots)
Buildcheck Owners Corporations Management Business (< 3,000 lots)
Rob Beck, SCA (Vic), Tina Di Camillo & Stephen Briffa, Network Paciﬁc Strata Management, Tim Graham, HWL Ebsworth Lawyers
Rob Beck, SCA (Vic), Sean Madangure, Ace BCM Balwyn, Terry O’Donoghue, Buildcheck
Macquarie Bank Client Award
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Matt Twiselton, Excel Strata Managers, Tim MacKenzie, Macquarie Bank, Rob Beck SCA (Vic)
Rob Beck, SCA (Vic), Gregor Evans, The Knight Alliance, Ann Farrugia, Whtibread Insurance Brokers
Network Pacific Strata Management
Ace Body Corporate Management Balwyn
Matt Twiselton, Excel Strata Managers
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2015 EVENTS CALENDAR Education Seminars 20 Nov
Strata Insurance & Claims Trends Update
VCAT – Do’s and Don’ts
All education seminars to be held at the Manningham, 1 Thompsons Road, Bulleen (unless advised otherwise)
Round Table Discussions (RTD) 27 Nov
RTDs are free open forums (limited to 40 attendees) Venues vary per event, refer website for full particulars
Special Interest Groups (SIG) 10 Nov
Women in Strata
SIG discussions will be held at different venues, please refer to website for full particulars
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President's message Our sector is in a unique position of continued growth that appears to be sustainable over the next few years and I know I’m not alone in being excited about this wonderful opportunity to provide a service that makes a difference to the people residing in 2.5 million Australian lots. While in Queensland we are reaching 420,000 this month, the latest Australian building approval figures show no slowing down with 226,415 to August 2015. That’s 13.1% more than in the same period in 2014. There is no downturn for our sector in sight and I see that as a signal for us to stay relevant as the educator and advocator of our diverse membership. The Board identified in the strategic plan that advocacy and education are at the core of our activities. While it’s always been at the heart of our operations, developing high quality professional development seminars was a key deliverable we set ourselves for 2015 and 2016. We ran a very successful seminar series in all regions about the Brookfield Decision attended by 89 members and a seminar on private short-term letting, such as AirBnB, which more than 70 members attended. The Commissioner for Body Corporate and Community Management Chris Irons has supported our training calendar tremendously with 8 seminar presentations and conference panel participation. QCAT has also supported our education program in 2015 and work is already under way for their 2016 participation as well. At the end of the financial year 3 in 4 members fully complied with our CPD policy and 1 in 5 members even exceeded the required CPD balance. Coming up is a round of By-Law Enforcement seminars, Compliance updates and a Chapter 3 Part 5 Agreement breakfast series. The Board has also recently approved a Government Relations Strategy to get the Queensland property law review back on track. Since the new Labour Government commenced in February 2015 we have met with the Attorney-General to discuss the progression of the comprehensive review but were advised that due to the size of Ms D’Ath’s portfolio there is little chance to get the review progressed before late 2015. The Shadow Attorney-General welcomed us with a depth of knowledge in the strata sector and its stakeholders that assures us in our endeavour to push for reforms. Therefore our General Manager and I have met with some local politicians in October to push for a continuation of the review and encourage the championing of the strata law reform. While we are hoping to instigate the continuation of the review, in
the meantime our Legislation Panel will look at putting our policy statements on paper so members know what we are advocating for at an organisational level. This is part of our Business Plan and the Board is keen to implement some member facing services beyond education in 2016.
Board Welcomes New Directors Shadow Attorney-General Ian Walker recently opened the 32nd SCA (Qld) Annual General Meeting, acknowledging the strata sector as stable, safe and in Queensland associated with little risk. The Shadow Attorney, who said that scrutineers “give him the wobbles”, indicated his support towards SCA (Qld)’s professionalism and opening discussion around a form of regulation for the strata management sector in the State. Members also took the opportunity to network with the Commissioner for Body Corporate and Community Management Chris Irons following the AGM proceedings. Joining the current Board Directors Colin Archer, Alan Buckle, Ian D’Arcy, Michael Hurley and Andrew Suttie, membership elected the following Directors for a two year term: Ric Allard, Kerri Anthon, Simon Barnard, James Freestun, and Kay Trimble.
Taking Up The Utility Providers In light of member experiences with the changes to billing of water and sewerage by Queensland Urban Utilities (QUU), SCA (Qld) has engaged with the utility provider. In July, representatives from the strata sector met with QUU representatives to discuss the current water billing system. The objective of the forum was for strata representatives and the QUU to collaborate in order to improve relationships and processes long term. The major discussion point of the meeting revolved around how to most accurately calculate the water charges that had the least impact on Owners, Bodies Corporates and indirectly Strata Management companies. Based on the feedback and as a starting point, QUU has committed to provide information to all schemes that may be affected by retrospective billing. Moving forward with the reshaping of QUU’s billing options, SCA (Qld) looks forward to undertaking ongoing workshops to collaboratively determine a billing system that will support fair, consistent and accurate records. With much still left to be achieved, SCA (Qld) believe that with help, critical anomalies experienced with the current billing system can be overcome.
SOUTH AFRICAN STRATA PROFESSIONALS VISIT SCA (Qld) On 1 September, a 15 strong group of South African delegates comprised of Government Officials, including the entire Board of the Community Scheme Ombud Service, the CEO and the Legal Advisor for the Estate Agency Affairs Board (South Africa) met with the SCA (Qld) Board. The delegation visited Australia on an education tour which included attending the Griffith Conference and meetings with the Queensland Commissioner and SCA (Qld). Like Queensland and most Australian states, South African legislation currently contains no licensing or formal qualification requirements to practice as a strata manager. Therefore, the discussion focused on the South African strata legislation and management licensing issues and advice from Queensland’s management firms. In particular, the delegation was interested in the education structure implemented by SCA and how the lack of licensing impacts the professionalism of the strata industry in Queensland.
EVENTS CALENDAR SCA (Qld)’s Education and Training Committee has finalised all seminars and events for the current financial year to enable members adequate advanced planning. Highlights include the upcoming By-Law Enforcement series, a new round of Compliance Update seminars and Standard vs Part 5 Agreements Breakfasts. All of these will be taken to all five regions, so be sure to lock in the dates now and get your CPD balance in order early.
12 Nov 15
By-Law Enforcement Seminar – Cairns
13 Nov 15
By-Law Enforcement Seminar – Townsville
19 Nov 15
Christmas Networking – Sunshine Coast
26 Nov 15
Christmas Networking – Gold Coast
1 Dec 15
Christmas Networking – Cairns
2 Dec 15
Christmas Networking – Townsville
3 Dec 15
Christmas Networking – Brisbane
2 Feb 16
Compliance Seminar – Brisbane
11 Feb 16
Compliance Seminar – Cairns
12 Feb 16
Compliance Seminar – Townsville
2 – 4 Mar 16
2016 SCA (Qld) Conference – Twin Waters (Sunshine Coast)
5 April 16
Standard vs Part 5 Agreements Breakfast - Brisbane
By Simon Barnard SCA (Qld) President
SCA (Qld) 2015 Golf Day The turnout for the 2015 SCA (Qld) Golf Day, held at Brisbane Golf Club, Yeerongpilly was hugely successful with player numbers exceeding both 2013 and 2014. 116 good and not so good players making up 29 teams competed for bragging rights and the coveted SCA (Qld) Golf Day trophy and great prizes provided by our sponsors. It was a fun day with great weather and a lot of smiling faces tearing up the fairway. This yearâ€™s winning team was Hartleyâ€™s Body Corporate Management 1 with players Simon Barnard, Adrian Butcher, Andrew McCorquodale and Grant Inglis.
western australia STATE
President’s Annual Report 2015 I heard the Canadian Astronaut, Chris Hadfield, on the radio the other day. He said that “viewing the Earth from the distance of space every day over 166 days gave him a sense of peace and made him more patient; that challenges seem smaller and much more resolvable with that far away perspective”. Writing an annual report is a bit like looking back at home from outer space. When you’re in the year it just feels frantic and challenging. Looking back on the year from here however, it looks more like an orderly and complete picture, with a golden glow of light beyond suggesting great things ahead. There is a lot to report on the year past. The committees undertake a massive proportion of SCA (WA)’s activities. The committees have reported separately on their achievements this year. Those reports speak for themselves in terms of how full our agendas have been. These are the highlights: -
Law Reform SCA (WA) has been busy reviewing Landgate’s proposed Strata Titles Act Reforms, consulting with members in relation to the proposed reforms including via members, informing members of the content and implications of the reforms and lobbying Landgate and members of Parliament on the Association’s position on those reforms. We have supported the broad agenda of reform. We have identified areas where the reforms do not go far enough. We have highlighted opportunities that the impetus for amending the Act
presents for sustainability and future proofing the legislation. Our position has been and remains the licensing of strata managers is a key to securing high standards and protecting consumers and that anything short of licensing will not be effective regulation. At this juncture we wait to see which parts of our extensive vision will be taken up. Aside from the STAR reforms, we have also made submissions to Landgate for reviewing the S43 certificate fee as contained in regulations and curing the uncertainty left in the wake of SAT’s decision in White City Investments v the Owners of 43 Kinsella Street Joondanna.
Law Week For the first time SCA (WA) partnered with the Law Society to present a public education forum on strata as part of Law Week at the Loftus Recreation Centre. We had great feedback from those who attended and are encouraged to keep this on our calendar of events next year. Involvement in Law Week presents a great opportunity to educate the public about living in strata as well as what strata managers do. This initiative was designed to help us achieve our strategic goal of promoting strata living and improving the public image of strata managers. It also helped us to promote SCA (WA) to the Western Australian public via partnership with the Law Society. Our members who spoke at the event, Warren Kiddle and Phil Monaco, provided those attending with great insights into the role of strata managers and the workings of the Strata Titles Act.
A key focus for the association in the last 12 months has been increasing our media presence. We have striven to achieve this in part through supporting and leveraging SCA Inc.’s national media campaign. But we did not stop there. We have developed resources to increase our on-line presence, engaged a third party to create videos to promote accreditation and commenced a radio advertising campaign on Curtain FM. We have fostered relationships with contacts in print media leading to 3 articles during the year quoting either myself of our other members.
And finally a note about what’s ahead of SCA (WA): This year we reconstituted a Membership Special Interest Group, convened by Warren Kiddle. The work that group has done over the year is aimed at gearing us up for change to ensure we deliver better value to our members and structure our affairs for growth. In establishing this group, we are not looking to tinker around the edges. We are seeking meaningful and if necessary radical change to take us into the future. This work can only continue with proactive participation and feedback from our members. We need to hear your ideas about membership structure, pricing and benefits. Together we can design a membership that will rival West Coast 2016 season in desirability, RAC membership in functionality and the TED App in enrichment and value!
Our Sponsors One of the wonderful things about our industry is the fact that it needs diverse skills, people and organisations to work together. So we have great opportunities to demonstrate the value of partnerships and relationships with service providers to the industry through sponsorship arrangements. It would be utterly remiss of me not to say here that we are very fortunate to have sponsors who are genuinely committed to the wellbeing of the strata industry and its participants: the strata managers and the owners. It has always been a pleasure dealing with our sponsors who have consistently supported SCA (WA) in ways that go well beyond the terms of a contract. I would like to thank our sponsors not only for supporting the Association through their sponsorship, but also for their friendship to our members and us
Awards Perhaps the most exciting achievement of the previous year has been getting the inaugural WA Strata Manager of the Year awards off the ground. Of course the event is yet to come but the start of what we hope to be a long tradition reflects, I think, the state of pride and optimism we feel as a community and the maturity we have reached as an industry. This achievement is attributable to the great work of Suellen Bottecchia, Marietta Metzger and Warren Kiddle. It is also a reflection of the fact that there are so many impressive members we are privileged to be serving. I’m looking forward to receiving and reading many worthy nominations.
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Acknowledgments I would like to extend a huge thanks to Suellen Bottecchia and Jo Wallington, our staff who have worked tirelessly and with enthusiasm throughout the year. Our staff have incredibly difficult jobs to do, supporting not only our members but all of the Council, Committee and national counterpart staff too. They’ve done a great job over the last year. I also welcome Sue Gamble who has recently joined our team to assist with our financial record keeping. My thanks go out as well to our hard working and passionate Councillors and committee convenors: Phil Geary (Treasurer), Janine Chapman (Vice President/Sponsorship), Marietta Metzger (Secretary/Best Practice), Andrew Chambers (Immediate Past President), Leonie Milonas (Education), Ida Smithwick (Legal Affairs and Professional Standards), Warren Kiddle (Membership) and Kristy Ward. The Council has worked constructively together over the past year and each individual member has continued to contribute more than should be expected of volunteers. We are privileged to have them serve our members. I would like to pay special tribute to Councillor Ida Smithwick who is ending her term at this AGM. Ida has given her time, skills and feistiness to SCA (WA) over many years and has never been afraid to tackle a challenge. Ida has also been instrumental in giving support to SCA (WA) office staff and looking out for our members. Thanks Ida, you will be missed.
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SCA (WA) AGM 2015
COMMUNITY AWARDS WE STERN SPONSORED
Strata Community Australia (WA) CORDIALLY INVITES YOU TO THE
SCA (WA) Christmas Party Kim Henshaw, CEO SCA
2015 Strata Community Awards WA TO BE HELD AT
Perth Mint 310 Hay Street, East Perth Thursday, 26th November 2015
Rachel Cosentino, President SCA (WA)
Drinks and Cocktail Food 7.00pm to 11.00pm Members $20 • Owner/Non Members $88 Christmas Party RSVP 19.11.15
Thanks to our Awards Sponsor: Thank you to our Christmas Party Sponsors:
Download Award Nomination Forms at www.wa.stratacommunity.org.au Award nominations close 30.10.15 Email email@example.com
Members at AGM
SCA (WA) ELECTS RYAN MURPHY AS NEWEST COUNCIL MEMBER Ryan is a Director of Richardson Strata Management Services, assisting in running the family business and responsible for a complex portfolio of Strata Companies. Ryan has 15 years’ experience in business banking in NSW and WA and during his last 5 years was a Business Banking Manager, controlling a lending portfolio of $100M & deposit portfolio of $30M. Ryan joins SCA (WA) Council with the desire to have a positive influence in the work being done and to see our industry continue to evolve for all stakeholders, as the peak industry body in strata.
australian capital territory STATE
President’s message After many months of planning, nominations and deliberations, the ACT held our second annual SCA Awards sponsored by Whitbred Insurance Brokers on Friday 30th of October at The Hyatt Canberra – and what a night it was!
Congratulations to all of our winners and nominees, who represent the very best of our industry. Building on the momentum of last year it is now abundantly clear that the bar has been set, and set high.
This year’s event was even bigger than last year’s inaugural awards ceremony, with attendance levels breaking the 300 mark. The spirited group of strata professionals and trade suppliers took full advantage of the opportunity to come together socially, while also relishing the healthy rivalry across businesses and individuals nominated on the night.
A personal note of thanks to the key personal in bringing the night together, in particular Tim Maly and Erin Gillin who really pulled it all together. There is little doubt that this event is now confirmed as the highlight for our local events calendar and we plan to be back next year bigger and better than ever.
Taking home the gong in the coveted awards category of Strata Manager of the Year was Pascal Deschanel.The award for Strata Management Business of the Year went to City Strata, which was accepted by Keith Barlin on behalf of his team.
Other winners on the night included: • • • • • •
Innovation Business of the Year – Civium Strata People Professional Commitment to Ethics and Service – Caroline Mitchell Rising Star of the Year - Tabitha Metherell Strata Administrator of the Year – Barbara Phillips Strata Industry Leader of the Year – Erik Adriaanse Student of the Year – Caitlin Cook
As we now come into the end of the year we are pleased to confirm that SCA (ACT) will host a Christmas Party on Friday, December 11 – free for members. Non-members are also able to register, but at a cost.This will be another opportunity to socialise with fellow professionals and suppliers, in a less formal setting. Registration and sponsorship enquiries to firstname.lastname@example.org We look forward to seeing you there.
Chris Miller SCA (ACT) President
Award category sponsors:
Silver event partners:
Bronze event partners:
Message from the Board STRATA MANAGERS AGREEMENT
The standard management contract for SCA (SA) members is now in its final stages of completion, with some finishing touches just completed. It will shortly be made available exclusively to SCA (SA) members. The contract provides enhanced consumer protection, clear accountabilities and responsibilities, as well as best practice disclosure. This new contract takes best practice from around the country and tailors it for South Australian needs and terminology, thus providing bodies corporate with the best and most transparent management contract.
A terrific programme of events has been set by an events sub-group of the SCA (SA) board (Mark Tonellato, Joshua Baldwin and Carrie McInerney). These events provide excellent training and networking opportunities and have been very well attended in the past. We are planning on holding these quarterly going forward.
STRATA TITLES INQUIRY The Parliament of South Australia is in the final stages of conducting a review of the Community and Strata Titles Act 2012. A hearing is schedules to be held on 20th October 2015, where the SCA will address the Committee with its recommendations. he Committee is due to report by the 3rd December 2015. The SCA (SA) submission proposed changes to the legislation regarding subjects such as: ww Convening of meetings when a quorum is not present ww Simplifying the procedure for a Corporation to issue fines for breach of Articles ww Establishment of Sinking Funds ww Remove inconsistency in calculation of Unit/Lot entitlements in Strata Titles Act and Community Titles Act ww Clarify provision of information from a Corporation with regards to Privacy
The topics for next year are: ww ww ww ww
Role of the Committee and Office Bearers Plans 101 Dealing with Difficult People Managing a Crisis in a Corporation
MEMBERSHIP AND SPONSORSHIP A review is currently being undertaken to look at strategies of expanding both the membership of SCA (SA) as well as levels of sponsorship. The benefits that members and sponsors receive needs to be both meaningful and clearly presented and articulated in order to attract new members/sponsors as well as retain existing members/sponsors. We look forward to engaging with many of you as we develop and refine the membership and sponsorship plan.
Marc Steen SCA (SA) Chapter Executive
northern territory STATE
President’s message SCA welcomes Jacqueline Cavanagh as the new SCA (NT) President. We’d like to thank Alicia Tollner for her contributions to SCA (NT). Born and bred in Darwin, Jacqueline’s interest in the property sector started in her teens whilst completing work experience with her father who managed a number of large commercial developments throughout the Northern Territory. Jacqueline completed her Agent’s Representative License whilst working in an administration role for a local Darwin real estate agent. Upon successful completion of her license, she transitioned into management of a large residential property management portfolio. This role formed a solid base for a progression into strata management.
New SCA (NT) President Jacqueline Cavanagh
Joining Whittles Darwin in 2006, Jacqueline gained experience in a diverse portfolio, including management of marinas and mixed-use developments. Her strong leadership skills and drive for excellence saw her appointed Branch Manager in 2012.
As there are a number of legislative issues that require review, the executive committee’s main objective is to take a more collaborative approach with the local government. Our industry is growing rapidly and it is essential that our industry professionals are consulted in the reform process. Our chapter executives will meet at the end of October to identify key items for consideration, for presentation to the representative of the department of the Attorney General and Justice.
Jacqueline joined SCA (NT) committee in 2013 and is looking forward to leading the chapter in her newly appointed role of President in 2015/16.
We aim to create an identity and increase awareness of SCA (NT) as a unified group representing our industry members and customers.
The AGM for NT Chapter was held on 9th September. The executive committee aim to take a proactive stance on education of members in the coming year. Starting with the A100, the NT chapter will also be working to hold a minimum of four additional training sessions in 2016.
If you are interested in being contacted for sponsorship opportunities, please email: email@example.com
President’s message THE 2016 SCA (Tas) CHU SYMPOSIUM Small State, Big Challenges – Strata Part of the Solution FRIDAY 12 FEBRUARY Following on from the success of the 2013 Symposium, the 2016 SCA (Tas) CHU Symposium has been scheduled for Friday, 12 February 2016 at the Peppers Seaport Hotel in Launceston. This year’s theme is small state, big challenges and Strata is part of the solution. The symposium will focus heavily on compliant strata, an issue which I’m sure all SCA members are interested in. In 2013, members from Tasmania and Victoria attended the Symposium, but we welcome all members across Australia. The conference program will be available shortly, but don’t forget to add the date to your diary. This is an event truly not to be missed.
Celebrate with us at Festivale Registration to the Symposium includes a ticket to Festivale, one of Tasmania’s premier summer events. The celebration is designed to showcase the very best of Tasmanian food, wine, beer, arts and entertainment. Staged in Launceston’s historic and picturesque City Park, the ambiance of this outdoor event is unique. Why not bring your family along and make a holiday out of it?! If you are interested in registering your interest to the 2016 SCA (Tas) CHU Symposium, or for sponsorship opportunities, please contact us on firstname.lastname@example.org or phone us on (02) 9492 8253.
SPONSOR Mike Steele SCA (Tas) President Peppers Seaport Hotel Launceston
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Strata Community Australia is the peak association supporting the strata sector and is well positioned to produce this, Australia’s premier...
Published on Nov 19, 2015
Strata Community Australia is the peak association supporting the strata sector and is well positioned to produce this, Australia’s premier...