SCA Inside Strata June 2017

JUNE 2017

THE 2017 SCA

National Conference BETTER TOGETHER | 14 - 16 JUNE | HUNTER VALLEY, NSW

PAGE 18

Customer Satisfaction PAGE 2 Helping Strata Managers to thrive in a competivive environment PAGE 12 What is a Strata Inspection Report? PAGE 52

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JUNE 2017

INSIDE STRATA

1

President’s Report

In every facet of life these days we experience new ways of service delivery.

Take Amazon’s entry into our retail market. It is a genuine disrupter in the retail space, and its imminent entry into Australia has generated a war of words from established retailers like Harvey Norman.

Erik Adriaanse FCPA President Strata Community Association

At the heart of the criticism is the lack of personal service from organisations like Amazon. We need to take notice of this and look for further ways to generate member satisfaction. We can no longer stand still and be satisfied – the status quo is good enough. Clients are becoming more informed, more discerning, and ready to compare the value proposition with competitors.

The Strata Industry is unique, and relies on experience, personal service and a thorough understanding of owners’ needs.

But I can see this industry morph into something far more sophisticated, far more systemised and far more reliant on costeffective offshore solutions.

There are so many aspects to managing the common areas of buildings, and there is a heavy reliance on service providers and the Managers. This is why owners have to have confidence in what Managers do. They have to feel confident our members

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JUNE 2017

are skilled enough, and have been educated and trained to a very high level to do the job properly.

We believe we are on the right track with our courses and accreditation system. Clients can choose the standard of Manager they need and pay the commensurate price for this service.

We need to be satisfied that as an industry we are agile enough to understand that our standards and service levels must continue to improve if we are going to get the respect from our clients so that they will pay the correct price for the service.

If we are going to create further overseas chapters, we also need to be assured our value proposition is good enough to enable us to expand. The SCA Board is currently looking at overseas opportunities and this can enable this organisation to increase our revenue base and use the greater intellectual capital those overseas organisations offer.

It gives me great pleasure to report that we continue to progress the initiatives that emerged from our recent Strategic Planning session. One of those was a review of our staffing structure that Greg Haywood, Kim Henshaw and I recently

conducted, to further improve the service levels to our members. Communication of our achievements and services goes hand in hand with these changes.

The National Conference in the Hunter Valley on 14-16 June will provide speakers who will give us insights into the Big Picture so we can all grow bigger, more informed and better at what we do. We will explore the opportunities at the conference.

The conference will also provide us with the ability to network, dance and have fun. While we focus on member services, we recognise that we also need to give back to our community.

We have therefore introduced the SCA National Charity Golf Day on 14 June, an optional extra activity designed to give you ample networking time while benefiting a very worthy cause.

100 per cent of proceeds raised from the SCA Charity Golf Day will go directly to Headspace, our selected charity. Headspace is the National Youth Mental Health Foundation providing early intervention mental health services to 12 to 25 year olds, along with assistance in promoting young peoples’ wellbeing. This covers four core areas: mental health, physical health, work and study support and alcohol and other drug services.  I look forward to seeing you there.

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Contents Reports

Chief Executive Officer Kim Henshaw P: 02 9492 8252 E: kim.henshaw@stratacommunity.org.au W: www.stratacommunity.org.au

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CEO’s Report

9

Features

SCA National Office Level 1, Suites 101 & 102 845 Pacific Highway Chatswood, NSW 2067

14 ABN: 57 074 729 007 Contact: PO Box 824 Surfers Paradise QLD 4217 P: 1800 222 757 F: 1800 063 151 E: publications@crowtherblayne.com.au W: www.crowtherblayne.com.au

Helping Strata Managers to thrive in a competitive environment

12

Innovation: The secret to future success

14

2017 SCA National Conference Better Together

18

Collective sales and redevelopments

24

A blueprint for the perfect paint colour selection

26

Your obligations to insure for full reinstatement and replacement value

28

Online is the norm, not the exception

30

Ann Shevill Essay Award: 2051 – A Strata Odyssey

32

State Pages

Managing Editor: Trish Riley Production Manager: Lynda Keys Design Team: Andrew Crabb, Judith Terrill, Michelle Triana

President’s Report

28

Advertising Sales: Peter Bunn, Vivianne Reiss, Daniel Rutland

New South Wales

35

Victoria

37

Queensland

38

Western Australia

40

South Australia

42

New Zealand

44

Membership SCA education report

47

SCA in the media

50

Social Pages

58

Events Calendar

64

General Features

Advertising Coordinator: Yvonne Okseniuk

What is a Strata Inspection Report?

52

Do you have vacancies in your strata committee?

55

Who is responsible for the removal of dangerous trees?

56

52 National partners

Education

Business supporters

JUNE 2017

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Window Safety Compliance for Strata Communities • Risk Management Reporting • Tailored Compliance Solutions • Supply & Installation of Safety Devices • Certification & Record Management • Annual Compliance Re-Inspections • Education & Awareness

02 9785 7893 strata@asqbwindowsafety.com.au 8

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www.asqb.com.au

CEO’s Report

SCA Australasian Awards

Kim Henshaw Chief Executive Officer Strata Community Association

It’s no secret that being praised often makes people feel good. Pride, pleasure and increased feelings of self-esteem are all common reactions to being paid a compliment or receiving positive feedback. This is because being praised triggers the release of dopamine, a neurotransmitter that helps control the reward and pleasure centres of the brain. As well as making us feel good, dopamine can also contribute to innovative thinking and creative problemsolving at work. (The Toolkit for Managers) As you all know, SCA has been working hard to bring an increased level of education and professionalism to our industry over the last couple of years through the development of education and accreditation initiatives. I’m pleased to report that both the new educational qualifications and the National Accreditation Scheme have been warmly embraced by members and are finding increased favour with regulators.

But what I think has been missing from the equation thus far is a means of publically acknowledging the outstanding efforts of those who strive to

be the best they can be in our industry.

The quote included above is a reminder that positive reinforcement is a powerful tool and here at SCA we’ve embraced that concept by creating the SCA Australian Award program. Members from all states and territories will have the opportunity to enter the awards at their local level and local category winners will receive an automatic entry into the Australasian Awards that will be presented at the SCA National Convention from 2018 onwards. Watch out for details of the program over the coming months.

This is an initiative that shows SCA IS the organisation that truly represents the strata industry across Australia and New Zealand. Award categories, entry criteria, the awards platform and judging methods are the result of discussion and collaboration between SCA staff and volunteers from Perth to Auckland and all places in between.

It is a perfect example of the tagline for our upcoming Convention – Better Together. My thanks to all involved in the process and best wishes to all who enter.

JUNE 2017

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Customer Service JUNE 2017

Decorative Finishes

2016

2016

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Difficult Access

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Feature

Helping Strata Managers to thrive in a competitive environment.

BCB is looking forward to partnering with SCA again for their 2017 ‘Better Together’ National Convention in the Hunter Valley.

BCB is delighted to be sponsoring Rod McGeoch AO, known to many of us in the wake of his successful leadership during the bid for Sydney’s Olympics in 2000. Rod has also distinguished himself through a career spanning multiple professions including business, sports and law. Rod has been described as one of Australasia’s most influential directors.

Rod McGeoch is an accomplished media presenter, whose career highlights include winning (with Margaret Throsby) the Golden Gavel Award for excellence in legal reporting. Rod was also the official media spokesman for the Law Society of New South Wales and comments frequently on television, radio and in newspapers on all aspects of the law, the legal profession, the Olympic Games, transport issues and issues to do with the development or otherwise of Sydney. Rod has published two best-selling books: McGeoch and The Bid. In 2013 he was made an Officer of the Order of Australia (AO) for distinguished service to the community through contributions to a range of organisations and to sport, particularly through leadership in securing the Sydney Olympic Games.

With our considerable focus on the future and an eye on potential digital disruption, how do we anticipate the changing business environment and adapt in order to thrive? One thing other than constant change is certain and that is our strata sector will grow and become ever more competitive. Smarter systems and processes will drive people skills such as problem solving and insightful communication of complex issues to the fore.

Utilising his broad experience from a remarkable career, Rod will highlight the deadly perils of maintaining status quo and complacency. Rod’s insights and wisdom have increasing relevance at this time when leadership and uniting our teams are becoming extremely critical to success under fierce competition. The margin of our success or failure may come down to the performance of our people under pressure.

Rob McGeoch, Keynote speaker 2017 SCA National Conference 14-16 June Hunter Valley

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Be sure to attend this keynote session at our upcoming National Conference and come and chat with Rod and the BCB team following his presentation, at Stand 7–8.

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Insurance

Innovation – The secret to future success Advances in digital technologies, coupled with significant shifts in consumer behaviour, are forcing all businesses in all industries to look at the way they do business to ensure they will remain relevant in the future.

The Strata industry is not immune from this.

CHU recognised the threat and the very real opportunity that digital disruption poses to the insurance industry, anticipating that digital will one day permeate Strata Insurance as it has so many other facets of life. We realised that it is critical to meet and even pre-empt the emerging and changing needs of our intermediaries and customers in order to remain relevant into the future. CHU had to take the proactive step of Disrupting Itself to meet this challenge.

CHU considered the recent research into transforming businesses and looked outside of the insurance sector understand the impacts of digital disruption better. We studied the history of disruption and we learned a great deal from the impacts of the likes of Uber and Airbnb on their respective industries. We looked at case studies featuring innovation including Jetstar and Qantas and the Formula 1 motor racing teams ‘Red Bull’ and ‘Toro Rosso’.

Throughout this analysis phase, we sought feedback from key stakeholders and independent experts through both formal and informal means. This combination of activities and research helped not only to formulate our strategy but also to create the sense of urgency needed to mobilise and execute it.

Once we had arrived at the decision to disrupt ourselves in a move designed to future proof the CHU business, we quickly formed the concept of The Digital Underwriting Agency.

CHUiSAVER would be a ‘fully digital’ business that would be a ‘sand box’ for all future CHU innovations, but it would also meet a very real market need that of value/no-frills strata insurance products.

CHU has established the StrataTech platform to host CHUiSAVER, Australia’s first Digital Underwriting Agency for the Strata Insurance sector. The new agency adopts a revolutionary approach to a traditional business and pioneers a large number of innovations. Every time we innovate we take a risk, in addition to being a business in its own right, CHUiSAVER has provided CHU a vehicle to try new things and determine their success before adopting more broadly across the CHU business, thus managing any downside risk of innovation to our core business.

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Key components of the innovation include: •• The development of a proprietary digital platform (StrataTech) to support the operation of a diverse product set, including Insurance products and other Strata products and services for the broader strata community.

•• The establishment of CHUiSAVER, a Digital Underwriting Agency with its own AFSL, to act both as a provider of value strata insurance products, and as an ‘innovation lab’ for the broader CHU business.

•• The digital automation of the full policy lifecycle of quoting, binding cover, documentation, endorsements and renewals of Strata Insurance.

•• Full use of Cloud. The entire business sits on the AMAZON cloud (AWS) for reasons of cost, flexibility, scalability and security and utilises less traditional corporate IT tools such as Gmail and the google toolset.

The Challenges of Innovation The key challenge for any company with a long history is to ‘detach’ itself from legacy systems and thinking processes. To overcome this challenge, we found inspiration in Formula 1.

‘Red Bull’ run a second team ‘Toro Rosso’; where they try out innovations and test new equipment and technologies those that are successful are promoted to Red Bull.

Every opportunity to symbolically and physically detach CHUiSAVER from our legacy was taken with one exception, we wanted to leverage the ‘halo effect’ of the CHU service and quality to be reflected in the new company.

••

••

••

••

choose, and quickly adapt it as you see what is working and what is not (‘Fail Fast’).

Do not kill innovation with traditional operational KPIs (such as ROI), before they’ve ever had a chance to get traction.

Use flexible, controls by setting short review cycles and assessing the outcomes achieved before making further investment decisions.

Open up the organisation network for collaboration by making it easy for people to meet, share what they are working on and the information from their learning.

Encourage people to build up new ideas together and not break the new ideas of others.

Build a culture of ‘intrapreneurship’ in your business. Find and empower people doing the work to make them as successful as they can be to further drive change in the business.

Make a long-term commitment to invest as change takes time and needs support, funding and protection to build momentum over time.

CHUiSAVER has changed the way we view the CHU business and the future. The release of CHUiSAVER has provided a viable transition path for the traditional CHU business into a modern digital business; CHU is progressively rolling out the StrataTech platform. This is of critical importance to future proof CHU, given the old technology stack and manual process that sits across CHU’s existing business.

A further challenge was to innovate quickly within, what is traditionally a conservative industry (insurance) that is not unlike Strata Management. Many insurers can take years to implement new products.

CHUiSAVER has delivered a key cornerstone of CHU’s strategy to 2020.

Winning organisations are continually experimenting; testing theories to learn what works and what does not. Not every innovation attempt will be successful, but those that do pass the test can have a massive impact on the organisation’s future successes.

There is no single answer to solve every enterprise innovation challenge. However, I always remind leaders to consider the following points: •• Ensure innovation has a strong executive mandate across your organisation. If management are not willing to support it, success can only be incremental at best.

•• Understand your own organisation’s strengths and weakness, then be flexible in the innovation strategy you

This article was kindly supplied by CHU Underwriting Agencies

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Body Corporates and Strata Managers may not be aware that most swimming pools can exist in a potentially unsafe state. Residents may be exposed due to many pools not having satisfactory pool chemistry or safe chlorine.

The state of a pool can change from safe to unsafe in as little as 20 minutes due to chlorine depletion from solar radiation or inadequate hygiene from pool users in shared pool situations.

Using a Pooled Energy Service you can address these issues while saving energy, money and the environment.

This is not a discount or a subsidised offer but an on-going saving made possible by a solution that optimises pools and its interaction with the Electricity Grid. This offer is available as a bundle of pool services, continual automated pool management and electricity for the common services, including the pool.

Help reduce risks and save the environment, energy, chemicals and costs.

Contact us for an obligation free inspection and estimate of the savings for your particular pools. The Service starts with a small upfront fee of $330 (Inc. GST) as part of the bundle. Conditions apply and the Service is currently available in Sydney only.

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Bing integrates seamlessly with your existing Strata software, has no setup cost, no minimum quantities, no software or template changes, and is easy to use.

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JUNE 2017

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SOCIAL HIGHLIGHTS

14 JUNE GOLF DAY

CROWNE PLAZA HUNTER VALLEY

14 Better Together The 2017 SCA National Conference JUNE Giving back to the community WELCOME COCKTAIL PARTY

CROWNE PLAZA HUNTER VALLEY

15 JUNE ROCK N ROLL GALA DINNER HOPE ESTATE

16 JUNE

Strata Community Association is dedicated to building community, as well as assisting the wider community. In efforts to achieve this goal, the inaugral SCA Charity Golf Day was developed. The charity event will be held on Thursday, 14 June 2017 at the Crowne Plaza Hunter Valley. SCA National President, Erik Adriaanse says a few words about the importance of getting involved.

Strata Community Association is committed to assisting the wider communities. This year the SCA National Conference will be supporting Headspace, the National Youth Mental Health Foundation. All of the proceeds from our Charity Golf Day will be donated to Headspace.

The day will be a bit of fun and a great way to socialise with your peers in the strata industry before the start of the conference. This is the first year for this event and we hope the Charity Golf Day will be a regular feature at future our future conferences. Your support is critical.

Please help SCA support this worthy cause.

Headspace is the National Youth Mental Health Foundation providing early intervention mental health services to 12-25 year olds, along with assistance in promoting young peoples’ wellbeing.

We look forward to seeing you on the day and I thank you in advance for your support.

Warm regards, Erik.

CLOSING COCKTAIL PARTY CYPRESS LAKES

Erik Adriaanse, SCA National President

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Our team know first hand the pressures managers are under to meet the needs of owners and committees.

We can help with: | Income Tax & GST | Plan & Statutory audits | Online Services | BMC/SMS Reconciliations | New plan financial analysis & data entry | Best Practice & Process Improvement | Software implementation including XERO

Come over to Booth 34 to have a chat to find out how we can work with you to get the best outcome for your team and your owners.

Contact Aylie Brutman to find out how we can help you.

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better together CONFERENCE 2017 SCA NATIONAL CONFERENCE

The social highlights of the SCA National Conference Our members recognise the annual SCA National Conference as the perfect opportunity to catch up with their peers from across the country, New Zealand, the USA and beyond... and they’re not afraid to have a great time at the social events.

Here’s a snapshot of some of the social highlights you’ll enjoy at our Hunter Valley conference.

Our conference venue is perfectly located in the world famous Hunter Valley wine region, where you can discover a haven of picturesque vineyards and abundant wildlife. After you’ve finished playing golf at the SCA Charity Golf Day, you’ll need a chance to unwind at the welcome cocktail party over local wines from the region. We’ll meet you at the Crowne Plaza Hunter Valley, in the Exhibition Terrace.

One of the top events on the 2017 strata calendar is the SCA National rocking gala dinner. This year’s conference dinner has appropriately got a rock ‘n roll theme due to our five star Aussie rock band.

You’ll enjoy a special rock performance by Steve Balbi from Noiseworks, Paul Gray from Wa Wa Nee, Paul Christie from Mondo Rock, John Waller from Avion and Joel McDonald from Rose Tattoo.

Our barrell-lined venue, Hope Estate gives you the perfect Hunter Valley experience over local fine wine, craft bear and a delcious feast. This is a notto-be-missed night you’ll never forget!

We’ll bid you farewell at our closing cocktail party in Cypress Lakes’ beautiful lagoon marquee.

Listening to smooth tunes by the local due, The Mixed Tape you’ll say goodbye to new friends you’ve met over the past three days, as well as familiar faces.

Our world-class speakers National property report, Michael Matusik Michael Matusik is a leader in residential market analysis and urban investigations in Australia. He is one of Australia’s foremost property experts and is considered a thought leader in the Australian housing industry. A 30 year industry veteran, Michael provides a voice of reason within the ever-changing property industry. Michael helps bridge the gap between property spruik and reality. Michael’s keynote session is sponsored by Strata Community Insurance.

Thriving in a Competitive Environment, Rod McGeoch As one of Australia’s most influential directors, Rod McGeoch knows more than most and that in business, merely maintaining the status quo is not sustainable.

In a thought provoking presentation he postures that complacency is deadly, backing up his argument with examples from the technology sector and attempts at corporate globalisation. The pearls of wisdom are plentiful. Rod’s keynote session is sponsored by BCB. Leading on the edge, Rachael Robertson Rachael Robertson (CSP, MBA) is a former Antarctic expedition leader, Chief Ranger and leader with 20 years of ‘extreme’ leadership experience. As the second female to lead a team to Davis Station in Antarctica she managed a diverse group of up to 120 people, through total isolation, months of darkness, with no way in and no way out. It was a leadership laboratory in the most extreme and hostile environment on Earth, where most of the theory doesn’t apply. Rachael’s inspirational journey will leave you feeling inspired, challenged and equipped to take the next step in their leadership journey.

Rachael’s conference session is sponsored

by StrataMax.

2017 SCA NATIONAL CONFERENCE l 14 - 16 JUNE l CROWNE PLAZA HUNTER VALLEY

better together PROGRAM 2017 SCA NATIONAL CONFERENCE

WEDNESDAY, 14 JUNE Time

Session

9:00am - 10:00am

Registration & networking breakfast for SCA charity golf day Golf course - Crowne Plaza Hunter Valley

10:00am - 3:00pm

SCA National charity golf day - raising funds for Headspace Golf course - Crowne Plaza Hunter Valley

5:00pm - 7:00pm

Welcome cocktail party Exhibition Terrace - Crowne Plaza Hunter Valley Dress code: smart-casual

SCA CHARITY GOLF DAY: 100% PROCEEDS TO

THURSDAY, 15 JUNE Time

Session

7:00am - 9:00am

Registration Exhibition Suite - Crowne Plaza Hunter Valley

7:30am - 8:45am

SCA women in strata breakfast panel Semillon 1 - Crowne Plaza Hunter Valley

9:00am - 9:15am

Official opening Erik Adriaanse, SCA and James Mathison, MC

9:15am - 10:15am

Thriving in a competitve environment Rod McGeoch (Keynote)

10:15am - 10:45am

Morning tea & Networking Exhibition Suite - Crowne Plaza Hunter Valley

10:45am - 11:00am

The SCA company accreditation program Kim Henshaw, Strata Community Association

11:00am - 12:00pm

Your digital future Bobby Lehane, CHU Strata Insurance

12:00pm - 1:00pm

Conference lunch & Networking Exhibition Suite - Crowne Plaza Hunter Valley

1:00pm - 2:00pm

Leading on the edge Rachael Robertson

2:00pm - 2:30pm

Risk Management in your Strata Business Colin Grace, Grace Lawyers

Sponsor

JAMES MATHISON

ROD McGEOCH

RACHAEL ROBERTSON Know. Act. Resolve

2:30pm - 3:00pm

Afternoon tea & Networking Exhibition Suite - Crowne Plaza Hunter Valley

3:00pm - 3:45pm

High performance team strategy Craig Griffin, Macquarie Bank

3:45pm - 4:15pm

Developing a distribution community Alistair Gibney, BCB

PLENARY SESSIONS ARE LOCATED IN THE CONFERENCE & EVENTS CENTRE, CROWNE PLAZA

THURSDAY, 15 JUNE Time

Session

4:15pm - 4:30pm

The Cert IV Strata Community Management Diane Bates, RMIT University

4:30pm - 4:45pm

Wrap-up & gala dinner details James Mathison, MC

6:45pm - 11:00pm

The Rocking Gala Dinner - Hope Estate Coaches pick-up at 6:45pm Dress code: rockwear

Sponsor

SCA ROCKING GALA DINNER

FRIDAY, 16 JUNE Time

Session

9:00am - 9:15am

Welcome & exclusive gala dinner snapshot James Mathison, MC

9:15am - 10:15am

National property market outlook Michael Matusik (Keynote)

10:15am - 10:45am

Morning tea & Networking Exhibition Suite - Crowne Plaza Hunter Valley

10:45am - 11:30am

Building Community - A U.S Perspective Greg Smith, Associa and Dawn Bauman, CAI

11:30am - 12:00pm

The Australian energy crisis and its implications on strata Richard Mintz, Savant Energy Power Network

12:00pm - 1:00pm

Conference lunch & Networking Exhibition Suite - Crowne Plaza Hunter Valley

1:00pm - 2:00pm

Does discrimination apply to strata schemes?

Dr Cathy Sherry, UNSW Law

2:00pm - 2:30pm

Strata property outlook: Broadband internet for multi-dwelling units Timothy Strachan, TPG Telecom

2:30pm - 3:00pm

Afternoon tea & Networking Exhibition Suite - Crowne Plaza Hunter Valley

3:00pm - 3:30pm

Improving the environmental and cost efficiency of Australian apartment buildings Kimberly Crawford, City of Sydney and Claire Berecry, NABERS

3:30pm - 3:45pm

Trade booth prize draws James Mathison, MC

5:45pm - 8:00pm

Closing cocktail party - Cypress Lakes Coaches pick-up at 5:45pm - Dress code: smart-casual

National Partners

Sponsor

MICHAEL MATUSIK

DAWN BAUMAN

DR CATHY SHERRY

CLOSING COCKTAIL PARTY Education Sponsor

Know. Act. Resolve

Legal

Collective sales and redevelopments What is happening with collective sales and redevelopments?

What is it?

If you did not know already, the issue of collective sales and/or redevelopment of strata plans has been the hot topic for some years. All forms of Government in many countries have looked at the issue from time to time on how to rejuvenate old stock of strata and body corporate properties.

The main stumbling blocks are the percentage of owners who need to agree, and what processes are needed to make sure that it is done properly and fairly.

NSW changes the system As the first State/Territory to take on the legislative change challenge, NSW has decided to amend the former provisions (unanimous consent from all owners) to a system of differing decisions at various stages so that the owners’ corporation (NSW) can move through the process and see what is out there in Strata-land for them.

The process involves many stages and checks and balances: • The first real stage is the thought bubble – where an owner or a group of owners (or an approach by a developer/ builder) decide that the property may be a prime site for redevelopment. Those involved need to consider what could be done, what might be the issues, and then get some very basic advice on what to do and what to obtain (experts etc).

• If you can get past that stage and come up with a basic

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•

•

•

•

• •

outline or proposal then attend the first meeting of the owners. There are certain requirements that need to be complied with including reasons, funding, costs etc.

If the general meeting (majority vote) agree then you are in the system and the Renewal Committee can be formed. If it doesn’t pass then the idea is off the agenda for 12 months.

The Renewal Committee prepares the ‘renewal plan’ including costings, budgets etc. and it is the first real time that the ‘drill down’ into the proposal occurs. The committee will need to look at renewal vs redevelopment vs collective sale, and what are the just terms for owners (what do they get in terms of $ value).

The renewal plan needs to be prepared and submitted to another general meeting within 12 months (although this can be extended).

At the next general meeting the renewal plan will be considered. To pass it needs a special resolution (not more than 25 per cent voting against), BUT it doesn’t end there, after the meeting it also needs 75 per cent of owners to ‘sign on the dotted line’ (support notice) within 60 days otherwise it lapses again (12 more months on the sideline).

All going well, it passes and gets the support notices and then it is registered on title, and court approval is the final step.

At any stage there can be disputes, such as procedures that are not followed, votes not counted correctly, unequitable compensation etc. In all of these instances owners can object and seek Tribunal and Court intervention.

As you can see a renewal plan, and the process to get to the end stage takes time and money, the question is how much time and how much money.

If an owners corporation has a developer/builder on the team some of this may be alleviated because of their expertise and access to experts, but there are very few developers that will wait for 12 months with no guarantee of approval.

Whatever you think of the process it is better than one person holding out for that extra dollar or not moving because they have been there for 50 years.

Strata needs to move on and have the ability to regenerate itself, the question is who of the fellow States/Territories will follow suit and take up the cudgel of strata renewal and redevelopment?

This article was kindly supplied by Colin Grace, Grace Lawyers

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Coatings

A blueprint for the perfect paint colour selection for your buildings When it comes to painting large properties, making the right colour choice is crucial and you certainly don’t want to realise you’ve made a mistake after the fact. This is bound to be costly, as well as time-consuming.

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The problem is that there are so many colours to choose from, and so many factors that can affect the overall result that it can be overwhelming trying to decide exactly what will look best.

Interior painting The painting of an internal common area of a building differs completely to the usual process of exterior painting maintenance. Here are some aspects to keep in mind when you are selecting a colour palette for an interior space: • Start with the floor: The floor is the first place you need to consider when working on the interior space of a building.

Ensure that your painting colour selection doesn’t clash with the colour, texture and material that is used for flooring.

• Next is the ceiling: A dark ceiling could make a room feel small and enclosed, and a light ceiling will make it seem more spacious. Ensure that the flooring and the ceiling don’t clash.

• The walls: The walls are the most noticeable aspect of an interior room, and you need to either paint them all the same colour or make sure they match tonally. Try and avoid clashing colours and don’t forget about matching up any skirting boards.

Exterior Painting When painting the exterior of a building, you need to remember that you are working on a large area, and this should play a factor in colour selection. Also, remember that the paint is going to be subject to the elements, so you will need to choose something durable.

Other things to consider: • Three colour rule: In general, you shouldn’t use more than three colours on the exterior of a building: one for the walls, one for the trimming and one for accents. More than that would result in a confusing look, where the colours clash.

• Neutral colours are making a comeback. They are more likely to blend in well with whatever the environment is, and look classy, as well as understated.

• Match the architecture: The paint colour selection for building exteriors is very dependent on the architecture of the building. The colours should suit the era of the building and match its characteristics.

Top tips for selecting the perfect paint colour for your building Our top three things to keep in mind when it comes to paint colour selection are: • Paint colours are going to look lighter on a larger area, such as an exterior wall, so perhaps look at going a shade darker than the paint you like on a small test chip.

• Light, cool, and pale colours are the best way to make a room look bigger and brighter. These kinds of colour palettes are a good way to make small spaces seem larger.

• Dark, deep, and warmer hues are a certain way to make a space seem smaller or more intimate, which isn’t always a bad thing.

Higgins Coatings offers a complete colour consultation, taking into consideration the function and the style of the building in focus.

We also provide a detailed paint specification service to ensure the property is better protected from premature deterioration.

To find out how Higgins can assist with your painting maintenance needs: call: 1300 HIGGINS visit: info.higgins.com.au/sca

This article was kindly supplied by Adrian Butcher, Business Relationship Manager, Higgins Coatings

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Insurance

Your obligations to insure for full reinstatement and replacement value of your strata building Although there may be slight differences in terminology, bodies corporate in each Australian jurisdiction are effectively required to insure for full ‘reinstatement and replacement’ value.

Unless the body corporate has an up-to-date valuation, extra care must be taken to ensure that any movement in building material and labour costs is taken into account throughout the policy period and at renewal.

In addition, costs for the removal of debris and any incidental professional costs such as council fees, remuneration of architects, lawyers and other persons need to be included in the reinstatement and replacement value.

“Without indexation or an up-to-date valuation, a body corporate runs the risk of underinsuring,” notes Paul Keating, Managing Director Strata Community Insurance. “This means that at claim time, full reinstatement and replacement expenses may not be met, potentially leaving the body corporate out of pocket and liable for any shortfall.”

In addition, if the body corporate is underinsured they will not have met their statutory obligations with respect to minimum insurance requirements.

Strata Community Insurance Indexation solution To offset the exposure for bodies corporate and help ensure reinstatement and replacement costs are met, Strata Community Insurance applies indexation by reference to the Cordell Housing Index Price (CHIP) and Cordell Commercial Index Price (CCIP). The CHIP/CCIP tracks movement in building material and labour costs (currently sitting at around three per cent).

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Using this approach, certain sums insured under the body corporate insurance policy automatically increase throughout the year where insured property suffers loss or damage, and renewals are issued in line with the increase applied over the 12-month policy period.

INDEXATION EXAMPLE • Building value = $2,000,000 (sum insured at policy inception) Increase after: 30 days............. $4,931.51

180 days......... $29,589.04 210days.......... $34,520.55

300 days......... $49,315.07

365 days......... $60,000.00 • Based on CHIP/CCIP applied at an average 3% annually • Building value including indexation at the end of policy period $2,060,000 • Renewal terms should be issued at indexed value to ensure an SEC meets their staturatry oblications in renewing for full reinstatement and recplacement value.

“Applying indexation together with the most up-to-date valuation is the most reliable method of ensuring that a strata manager is covered from potential liability and their clients’ strata insurance is sufficient to cover claims,” notes Keating.

“Strata Managers should discuss their clients’ insurance requirements with our experts to ensure that they are covered for full reinstatement and replacement in the event of a total loss.”

For more information on indexation, please contact your local Strata Community Insurance team.

This information is general in nature only and does not constitute financial product advice or legal advice. References to policy terms and conditions are by way of summary only. For full details of policy terms, conditions, benefits and exclusions please refer to the relevant Product Disclosure Statement and Policy Wording, available from Strata Community Insurance.

For more information: call: 1300 SCINSURE (1300 724 678) visit: stratacommunityinsure.com.au

This article was kindly supplied by Paul Keating, Strata Community Insurance

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Electronic Voting

Online is the norm, not the exception Unless Strata Management keeps pace with the way many of our owners live the rest of their lives they may be left behind by those who embrace new technologies and innovation. Using online banking, shopping, education and voting is not something of the future, it is here now as people immerse themselves in new practices to manage their busy lives.

In a one-hour train trip to work, Jenny, a full-time worker and mother of two will have ordered the groceries for the week and organised to have them delivered, paid several bills, replied to an email from her son’s teacher, booked the family’s next holiday, caught up with friends through social media and voted for her preferred candidate in the up-and-coming local government elections – because she wants her vote to count but cannot afford the time to visit a polling booth. This is not science fiction, it is the way our society lives now.

Using online devices to manage our lives is not an option but a necessity for many. To survive in business it is essential to adopt an online approach, which puts the web at the forefront of communication and interaction with clients.

Owners in strata communities, as investors or owner occupiers, are busy people with busy lives and look for effective solutions to manage their affairs. Paying levies, voting on motions, submitting requests for maintenance and keeping informed on what is happening in their community are extra tasks to add to an already long list of daily commitments.

They want to have a say in how their investment is run but need the vehicle that provides this opportunity. Attending a meeting at 10am just doesn’t work for most people.

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There is a solution to this emerging demand that will create efficiencies for Strata Managers running meetings, and give owners the flexibility they are looking for to be actively involved in the decisions being made in their community.

The new era of automated meetings and electronic voting is almost upon us – using devices people are already very familiar with – their mobile phones and tablets.

Introducing automated meetings and electronic voting means that people can trust the results because it allows for a process that is auditable, transparent and secure.

Electronic voting will: •• give owners the flexibility they are looking for; •• offer significant cost benefits over paper in a vote to vote comparison; •• eliminate human error i.e. automating calculations; •• increase engagement and turnout; and •• reduce the need to pass a vote to a proxy.

In strata, it is vitally important that everyone who is eligible to participate in voting can do so without fear or favour.

Electronic voting is a great way of making voting more accessible to all voters. Not everyone is able to attend meetings due to time

or location and they may not wish to appoint a proxy to vote on their behalf or publicly declare how they are voting.

StrataMax, the leaders in software development for strata management in Australia, will be demonstrating a very exciting new online voting solution at the SCA National Conference in June. To find out more go to: stratamax.com/Strata-Voting Whether we like it or not, we increasingly live and function in an online world. It follows that strata voting becomes available and accessible online and StrataMax, the innovators in software development, have recognised the need to make this happen for Strata Managers and owners.

Making online voting the norm, not the exception.

This article was kindly supplied by StrataMax

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Ann Shevill Essay Award

2051 – A Strata Odyssey Queens Wharf ‘Sky Deck’.www.queenswharfbrisbane.com.au

The look and capabilities of the strata buildings of the future, how they are used, and their impact on residents and the environment will be a world away from strata buildings of today.

According to ‘The Guardian’, homes of the future will have ‘Smart ovens, living carpets, robot butlers and beds that remind you to have sex – then make themselves.’1 The scope of change to come to our strata buildings and its supporting industries may be just that startling.

Strata Boom Australia’s major cities are now home to almost 80 per cent of the Australian population. A.B.S. predictions indicate that the population in most Australian capital cities will more than double in the next 45 years2, driving 75 per cent of the total population into strata living.

As space in our cities become more and more scarce, our strata buildings, their capabilities, how they are used and by whom are set to rapidly evolve.

Live-Work-Play The increasing size of our capital cities will continue to blur the lines between residential and commercial/retail buildings, as more and more of us are drawn to the benefits of mixed-use precincts. We will see the emergence of ‘vertical neighbourhoods’, where strata buildings will be combined with retail shops, restaurants, community and commercial areas.

These mixed-use developments will offer reduced distances between where we sleep, work, eat, and play, enabling pedestrian and bicycle-friendly environments, and a deeper sense of community3,4. The idea of leaving home and driving to work will become a memory for many, as more and more people move into these ‘live-work-play’ environments, and technology advances.

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Strata building car parks will in the medium term be increasingly filled with electric vehicles. The adoption of selfdrive vehicles in the longer term will almost do away with the idea of the strata basement carpark. Instead residents requiring longer journeys will schedule drop off and pick ups with their building’s small fleet of common use self-driving vehicles.

New Buildings, New Materials A new era of building products will literally change the shape of what strata buildings can be, and how they are maintained.

Today’s strata buildings are largely made of concrete and steel, but there is a movement growing towards the use of new, engineered timber products to build timber skyscrapers. Timber is the world’s only renewable construction material. Production of concrete and steel consume massive amounts of energy and water, while timber stores carbon. ‘Timber buildings aren’t just healthier for the environment but for the humans who live in them, producing benefits similar to those of being out in nature: lower blood pressure and heart rate.’5 Currently the tallest timber strata building, is Treet in Norway at 14 storeys, which only recently surpassed Melbourne’s 10-storey Forté apartment building.5 However in Stockholm, the Trätoppen, scheduled for completion in 2023, at 40 storeys will open our eyes to a new world of possibilities for timber.6 In a different direction, new materials such as carbon nanotubes, cement composite and diamond nanothreads provide far superior strength at a fraction of the weight to steel and concrete. These new materials will allow skyscrapers ‘to reach unprecedented height and spans’7 and open up a new world of possibilities in strata construction and design.

Up, Down, On and Underwater The Kingdom Tower in Saudi Arabia, due for completion by 2020 is set to become the world’s tallest tower at over 1km tall8 setting a new standard for building heights.

‘Oceanscraper’ concept. www.edition.cnn.com/2016/01/01/ architecture/vincent-callebaut-underwater-skyscraper

‘Earthscraper’ concept, Mexico. www.industrytap.com/worlds-firstearthscraper-75-story-inverted-pyramid-mexico-city/22909

Strata buildings will take on a ‘less traditional appearance, with lush green parks occupying rooftops as more towers are linked together at the top’9 such as the Brisbane’s Queens Wharf Development (currently under construction).

While we will go up, we will also go down and underwater.

Architects in Mexico were looking to increase space available at the historic site Zocalo, while satisfying building and heritage criteria. The only way to do this was to go down. Their ‘earthscraper’ concept, an inverted pyramid descends more than 300 metres into the ground, and could house up to 100,000 people10.

In 2015, Belgian architect Vincent Callebaut revealed plans for his Aequorea project, consisting of spiralling ‘oceanscrapers’ that reach from ocean surface to sea floor that could house 20,000 people each11.

Until not long ago, living under the sea was the realm of fantasy, but around the world today we can find a number of examples of underwater buildings such as the Ithaa Undersea Restaurant in the Maldives, and the Water Discs Underwater Hotel, in Dubai (currently under construction).

Trätoppen,40 storey timber building proposal for Stockholm. http:// andersberenssonarchitects.blogspot.com.au/2016/04/tratoppen.html

Strata Management Many currently manual functions within strata buildings will become automated, and handled by programming, sensors and even robots. ‘Techniques such as biomimicry, the act of copying and furthering nature’s designs’7 have led to and will continue to lead to many advances. Surface coatings will be able to self-clean and self-repair. ‘Self-activating limestone‑producing bacteria will be embedded within concrete, fixing any cracks as they appear.’ 7 The personal service requirements of strata governance, and strata community will play an increasingly vital role in this future, increasingly automated world. The skills and knowledge of strata managers of the future will be light years from where they are today.

As John F. Kennedy said, ‘Change is the law of life. And those who look only to the past or present are certain to miss the future.’ With this in mind, ‘It’s not the strongest of the species that survive, nor the most intelligent, but the most responsive to change.’ Charles Darwin.

Author Scott Witheren, Ann Shevill Award submission – January 2017

Sustainable Strata As our population grows, our natural resources become more valuable, and the impact on our planet becomes clearer, our strata buildings will become significantly more energy and water-efficient, and even self-sustaining.

‘Smart solar panels, wind turbines and piezo plates will be integrated in the building fabric’7. Food, plastic and other wastes will be used to make energy. Rain and wastewater will be captured, not drained away. It will be filtered, and reused and recycled.

Domonic Thompson, Macquarie Bank, Scott Witheridge, Wattblock and Simon Barnard, SCA (Qld) President

References 1. David, N. David, R, Welcome to your low-energy hi-tech future home,The Guardian, 4th December 2015. www.theguardian.com/technology/2015/dec/04/tech-home-future-robots-living-smart 2. Australian Government, Department of Infrastructure and Regional Development, State of Australian Cities 2014–2015, 2015.

3. Cummuns, C, Fusion properties a grown trend as developers favour mix-use model, Sydney Morning Herald, May 6, 2016. www.smh.com.au/business/property/the-secret-is-in-the-mix-20160505gonc0g.html

7. Samsung, Smart Things – Future Living Report, 2016. www.samsung.com/uk/pdf/smartthings/ future-living-report.pdf 8. Carrington, D, Ap, T. Saudi Arabia to build world’s tallest tower, reaching 1 kilometre into the sky, CNN, December 1, 2015. www.edition.cnn.com/2015/11/30/world/meast/saudi-arabia-worlds-tallestbuilding-jeddah-tower/

4. Visited 29th December, 2016, https://en.wikipedia.org/wiki/Mixed-use_development

9. Bisset, C.The sky’s the limit: Trends and challenges for the skyscrapers of the future, ABC,q15 February 2016. www.abc.net.au/radionational/programs/futuretense/trends-and-challenges-for-the-skyscrapersof-the-future/7157064

5. Greg Callaghan, New wood: how it will change our skyline, Sydney Morning Herald, August 27, 2016. www.smh.com.au/good-weekend/new-wood-how-it-will-change-our-skyline-20160815-gqsmrn.html

10. Schilling, D, World’s First Earthscraper: 75 Story ‘Inverted Pyramid’ In Mexico City, November 27, 2014. www.industrytap.com/worlds-first-earthscraper-75-story-inverted-pyramid-mexico-city/22909

6. Anders Berensson Architects, visited 14th January 2017. www.andersberenssonarchitects.blogspot. com.au/2016/04/tratoppen.html

11. Jenkins, T, Plans for underwater ‘oceanscraper’ revealed, CNN, January 4, 2016. www.edition.cnn.com/2016/01/01/architecture/vincent-callebaut-underwater-skyscraper/

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State News

New South Wales

Industry updates and member support We are over the six-month mark since the new strata laws commenced in NSW. During that time we have been focussing on a number of areas, the most important of which is member engagement.

SCA (NSW) has also commenced a top ten strata management members’ lunch. This is an event where the top ten strata management company members, in terms of lots under management, are invited to hear about the current status of SCA (NSW) and our future plans. It was also an opportunity to unveil the 2017 Convention theme ‘Celebrating Strata’, which was well received.

Over the 12 months to March 2017, we have increased our membership by a huge 44.5 per cent, most significantly in the categories of licensed and associate strata managers. This has given us a renewed focus on providing education and events opportunities for all our member categories.

A new initiative is the Young Strata Network. Our launch event attracted a full house with over 100 young movers and shakers in the strata industry turning out to hear from Brent Thomas from Airbnb. We have been planning more targeted events that appeal to the various demographics within SCA (NSW) and Young Strata was a category that we knew needed some attention. Judging by the turnout we are on the right track in engaging with our younger (up to 35 years old) members.

In March we held our stand-alone Strata Owners Day with around 130 owners attending to hear from our guest speakers, ask questions and interact with our strata service members.

A big thank you to our sponsors from Platinum, Gold, Silver and Bronze categories who continue to support our various initiatives. We are noticing a renewed vigour and enthusiasm amongst our membership as we introduce new opportunities.

Stay tuned for more.

This event was well-supported by external thought-leaders in strata such as the City of Sydney, with Councillor Jess Scully opening our event, and Strata Live, with Cindy Martin hosting the Q&A style panel. You can read up on both the opening comments and the panel session questions via the SCA (NSW) website.

Thanks for reading …

Chris Duggan President, SCA (NSW)

In March we held two other events for members. We hosted drinks for sponsors and exhibitors to thank them for their ongoing support, and to also unveil our ambitious plan to deliver a sold-out annual convention in October.

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State News

Victoria

SCA (Vic) continues to advocate for the strata sector At the regulator CAV’s invitation, SCA (Vic) is a member on the Real Estate Reference Panel, along with other peak bodies [both industry and consumer].

As you are aware, the short stay Bill has now been referred to a Parliamentary Committee for report – the Environment and Planning Committee. Amongst a handful of others, SCA (Vic) presented to the public hearing in March 2017.

SCA (Vic) has launched a new Media Award recognising excellence in journalism covering the Victorian strata industry. It is focused on rewarding a journalist for major stories that benefit the sector and consistent coverage of strata issues. The idea is that it encourages more journalists to write, and keep writing about strata.

SCA (Vic) has changed our Awards for Excellence. Harmonised National award categories have now also become the State award categories, so, Vic award winners will get to vie with other state winners for the National awards. There will be six National award categories, plus the one media award that Vic alone is doing. The six National award categories are: •• Rising Star Strata Manager •• Strata Manager •• Strata Management Business – Small •• Strata Management Business – Large •• Support Team Member •• Essay Award SCA National has changed its name and logo to Strata Community Association [same SCA acronym] to accommodate overseas expansion [eg to NZ]. It has also dropped the state abbreviations on the new logo. SCA (Vic) has accordingly decided to adopt and change the Vic logo.There is no change to our legal name at this stage given pending further national integration.

A full review of Vic strata laws is underway and the Options Paper on the review of the OC Act 2006 was published. It proposed sweeping reforms. SCA (Vic) is extremely pleased that the government has listened to all of our policy positions with the Options Paper. SCA (Vic) has made a submission. CAV is now undertaking preliminary legislative impact assessments and sought our help, so we provided statistics for them.

Another Options Paper, regarding the sale of land and business, proposes reforms and SCA (Vic) is pleased that the government has listened to our policy position on pre-sale off-the-plan disclosure. One option proposes to improve pre-sale disclosures by requiring reasonable estimates of financial liabilities for off-the-plan sales. Under this option, there would be specific

requirements for sellers of off-the-plan properties to provide buyers with pre-sale information about the estimated future costs associated with the property following registration of a plan of subdivision, including owners corporation fees.

We have previously advised of the new apartment design standards, and a SCA (Vic) media release was picked up with our comments in regional publications such as the Bendigo Advertiser and the Ballarat Courier. Another article with SCA (Vic) mention, regarding termination, was published in The Age. In relation to the charging of penalty interest on arrears, the current Victorian penalty interest rate has now increased from 01/02/2017 to 10 per cent per annum [was 9.5 per cent]. In calculating, remember that there is no compounding allowed.

Interest may not be charged upon interest. If you are unsure how to calculate, refer to the advice in the Practice Guideline area of the web site.

AWOTE is the ‘proxy’ for fee increases. 2.2 per cent is the latest biannual [half yearly] published number for the year to Nov 2016 [though it was only published late February 2017]. The basis for strata managers increasing their fees over time is contained in our Contract of Appointment in the section Review of Fees [Clause 2.4]. It is based on AWOTE, which is the index for full-time adult ordinary time earnings. AWOTE means the number as published by the Australian Government Statistician for the trend estimate, of private and public sectors, of all persons in Australia, for full-time ordinary time earnings, for the previous year [Publication 6302.0]. This measure recognises that strata management businesses are labour intensive, with salaries the single biggest expense contributing over half the total business expenses.

Prices have been frozen at last year’s prices – for membership renewal fees for 2017/18, the price for the 2017 symposium, and prices for 2017 seminars.

The value of Fee Units and Penalty Units changes each year on 1 July. This directly affects the fees for OC Certificates, and for copies of the Register and Records, which are now indexed annually. For the financial year 1/07/2017 – 30/06/2018, the value of a fee unit is $14.22 and the value of a penalty unit is $158.57.

The 2016 report of the Victorian Population and Household Projections says that Victoria’s population will increase from 6 million to 10.1 million by 2051.

Register now for the 2017 CHU SCA (Vic) Symposium. It’s all about ‘People, Purpose & Passion’ in strata. 18 Aug 2017.

Rob Beck General Manager, SCA (Vic)

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State News

Queensland

Open ears from the Attorney-General Reflecting on three years of solid successes in relation to advocacy and the media, the Queensland Board revisited their strategy and defined some firm objectives for the upcoming five years. The main theme is to continue to increase our profile in the public, enhance the status of strata managers as professionals and continue to build a brand that is easily recognised. We have already set the foundations with the Commissioner, a regular presenter for SCA (Qld) and a close relationship to a few stakeholders in the sector. However, the law review is still not complete, and while we have made some headway with the latest Options Paper on Body Corporate Governance, we are not yet at the final stages.

Queensland Attorney-General Yvette D’Ath

At our Annual Conference in March, the Queensland Attorney-General Yvette D’Ath addressed more than 250 delegates with encouraging comments on licensing or regulation for the strata sector. Her speech couldn’t have been more inspiring for us, an organisation that has advocated for some form of licensing since its inception with a view that this level of recognition of professionalism will give our sector the credentials it very much deserves. Ms D’Ath’s speech reflected a rarely seen openness to the idea of some form of regulation for the strata sector. Consumer protection can be balanced with compliance costs, as passing on costs is not a desired outcome. Our Code of Ethics already supports consumer protection principles, and in the absence of a licensing or regulation scheme we take our role as an industry body seriously.

The Attorney also covered the complexity of the property law review and reiterated that she is committed to only move forward with reforms that do not cause angst or uncertainty.

In a recent private meeting with the Department of Justice SCA raised our concerns about the proposed lot entitlements model as it has such a far reaching impact on the 450,000 lot owners in the state. The proposal envisages the introduction of three expense categories which are allocated to certain owners, thereby no longer incorporating the value of a lot but rather the actual use of common property. The Attorney appeared to understand that there is little appetite to change the current system and that instead SCA would like to continue reforms on archaic body corporate governance issues. There are more Queenslanders who would benefit from a change in the areas of by-laws, scheme termination and modernisation of body corporate procedures than with a new lot entitlements regime.

To support this message publicly, we invited journalists to cover the topic with great success in mainstream media.

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SCA (Qld) Executive Officer Katrin Watson, SCA (Qld) President Simon Barnard, AttorneyGeneral Yvette D’Ath, BCM Commissioner Chris Irons, March 2017

Channel Nine as well as Channel Seven featured the need for law reform and addressed recurring issues such as defects in their evening news. While we are only seeing small-scale damage in Queensland currently, it is only a matter of time until we get to stages where simply repairing will no longer be economically viable. Interestingly, it seems that the authors of the Law Review Options Paper agree with that observation, now asking the public whether a 75 per cent majority is sufficient to terminate a scheme. As an industry of course we agree, especially as there are some great safeguards suggested as opposed to the current resolution without dissent requirement. This new model is not necessarily a mechanism to demolish a house and rebuild higher with more units, as neighbourhood planning schemes and council regulations often make building at a larger scale more expensive or don’t allow certain structures in certain neighbourhoods in the first place. Any such motion for a scheme must be accompanied by a structural engineer’s report, a quantity surveyor’s report,

State News

The SCA (Qld) Board of Directors. Top row, from left to right: Michael Hurley, Ric Allard (Treasurer), Simon Barnard (President), Kelly Roberts, Jason Carlson, James Freestun (Senior Vice President), Ian D’Arcy (Secretary). Bottom row, from left to right: Kay Trimble, Sue Seymour, James Nickless, Kerri Anthon (Vice President), Katrin Watson (Executive Officer).

a termination plan and a valuation. We are pleased to see some sensible safeguards built in if there are owners opposing to the plan.

The more important recommendations in the Options Paper are around by-law enforcement and the ability for a scheme to prohibit certain conduct. The current legislation clearly states that by-laws cannot be prohibitive in nature and we are pleased to see a recommendation to change this.

As proposed by SCA (Qld) in the consultation process, a scheme can now decide to be pet free from its inception or for existing buildings by way of a resolution without dissent.

If a no pet by-law is adopted in an existing building, there is no retrospective application, meaning pets will be allowed to stay until the end of their approval (e.g. moving).

The same principle is proposed to apply to smoking. The proposed amendments also include a change to the power of the body corporate to regulate activity for outdoor areas that are part of a lot or common property where the smoke drift could affect lot owners.

Unauthorised parking has been contentious in many schemes and there is no functioning process in place to be able to tow cars. This is about to change with the body corporate’s ability to tow without the untimely order needed from the Commissioner’s office, provided they follow a process of statutory notices and reasonable timeframes. The onus of proof that the vehicle has been towed in accordance with the proper procedure is with the body corporate.

The most interesting amendment is one that SCA (Qld) suggested in the consultation process. It may in future be possible to issue fines for the breach of by-laws if owners of a scheme have approved fines for the breach of a particular by-law. Under the current legislation fines do not exist which may explain some of the frustration with trying to enforce by-laws.

SCA (Qld) Golf Day Friday, 4th August 2017

All these proposed amendments will, if implemented take time to be enforceable and functioning. This is however, a step in the right direction as it gives powers back to the body corporate to put measures in place for more harmonic communities.

There will be work to do for bodies corporate in Queensland if these amendment recommendations are implemented – you will need to have signage in place and amend your by-laws so they are enforceable. A small exercise if you consider the benefits to these communities.

Hitting 450,000 lots in Queensland A year on year growth of 5.1 per cent in lots registered in Queensland is the highest increase we have had in the past decade but it is expected that it will slow down in 2017.

1,259 New schemes were constructed and registered throughout the state in 2016 and 50,000 more lots in the last three years. The biggest growth in lots has been in Brisbane.

In the six months from 1 July to 31 December, 9,130 lots were registered whereas the Gold Coast only saw 1,650 new lots registered, 10 in Cairns, and 852 on the Sunshine Coast.

For the first time Logan made the top six of local authorities in 2016 with a total of 15,295 lots registered by 31 December 2016.

SCA (Qld) members represent 283,000 of the 449,936 lots in the state. The strongest growth in 2016 was the six lot and under segment (809 new schemes registered), equally followed by the 710 lots (123 schemes) and the 2,150 lots (129 schemes).

Simon Barnard President, SCA (Qld)

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State News

Western Australia

Strata reforms to benefit WA We have certainly covered a lot of ground already this year, with the State election in March and several key areas requiring our prompt attention.

Our focus over the last three months has been on critiquing the Draft Strata Bill, the preparation of an SCA (WA) Position Paper and a new sponsorship package and advocacy.

Reforms of the Strata Titles Act Over the last three months our Legal Affairs and Public Policy Committee has been meeting every two to three weeks to provide feedback to Landgate on the proposed amendments to the Act. These releases are coming in monthly tranches and we are providing detailed comment for consideration.

I have also been in regular communication with Sean McFarlane and Elain Whitehead from Landgate to discuss our submitted comments and provide further feedback.

In consultation with both the Property Council of Australia and REIWA, SCA (WA) is making a conservative push to include in the amended Act the requirement for the registration of all strata managers and that strata managers complete a minimum education requirement.

These efforts are bearing fruit and we have just received confirmation from Landgate that these amendments will likely be included.

Position Paper SCA (WA) would like to thank all of our fellow SCA Councils and Chapters for their contribution in helping us prepare a Positon Paper for WA. We engaged Market Place Communications and have now finalised this document which has identified five key issues, including: •• Regulation of Strata Managers through registration and minimum education requirements; •• Compulsory Maintenance and Reserve Funds accompanied by a compulsory five-year maintenance schedule to be approved annually by the strata company; •• Introduction of Community Title Schemes which is long overdue in WA; •• Developer Retention Fund of three per cent to protect purchasers in new schemes; and •• Improved Management Provisions, including greater accountable for all parties, simplifying management processes allowing electronic notices, voting and record keeping, making it easier to enforce by-laws and resolve disputes and making it easier to install sustainability infrastructure.

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Sponsorship SCA (WA) are incredibly grateful to have Emma Watton as a councillor, who brings 20 years experience in marketing and communications to the table. Emma has work tirelessly with her Sponsorship and Market Committee who have engaged with all of our sponsors.

With this feedback, we have prepared a new sponsorship package focusing on effective communication and market strategies that will be released to our sponsors at a sundowner to be held at a rooftop bar in the City on the 4th of May. Advocacy With the release of our Position Paper, which was sent to several key Ministers in the new Labour Government, we have secured a meeting with the relevant Minister. Our key focus in this meeting will be to ensure they understand the importance of approving the Amendments to the Act this year. We will also be seeking a commitment following this approval, to form a working group to provide direction on the Licensing of the industry and the implementation of a Developers Retention Fund.

In addition to these meetings, we are gaining significantly greater airtime on radio and have held interviews in regards to the regulation of Strata Managers. We are also working on our first ‘lift out guide’ for the year which features in the West Australian newspaper. Our aim is to deliver four lift-outs in the West this year, each guide focusing on specific key areas.

Scott Bellerby President, SCA (WA)

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State News

South Australia

Achieving excellence over the past year It’s hard to believe that we are almost halfway through the year!

I hope that 2017 has been a terrific year for you so far.

The SCA (SA) has a great start to its educational programme with the Debt Recovery Seminar achieving over 50 attendees.

The session focussed on the debt recovery process in the South Australian legal system. Apart from the legal context, the very real impact on unit holders when others fail to pay their levies/contribution was discussed. This impact can ultimately affect the viability of a Strata Corporation.

The session was presented by Michael Fotheringham who is a Partner in Barry Nilsson Lawyers, based in Adelaide.

Michael brought a wealth of real life examples and best practices gathered from his significant experience in Strata and Community corporations in South Australia. It really was a must-attend event for those wanting to not just follow the

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right legal process, but also do it in a practical, efficient and effective manner.

The SCA (SA) has also been representing the interests of the South Australian membership through our involvement in the National Council strategy meeting held in Melbourne earlier in the year. In particular I would like to thank two of the SCA (SA) executive, Bryan Sutcliffe and Tyson D’Sylva, who flew to Melbourne for the two-day event, taking time out of their weekend, to ensure South Australia were engaged in the national agenda.

Once again I would like to thank our sponsors: CHU and Otis, as our Platinum sponsors, and Longitude, O’Brien Glass, Rockend, StrataLoans and QIA Group at Gold level. With their support and involvement, we will continue to provide high quality education and advocacy for the South Australia strata industry.

Kind regards, Marc Steen President, SCA (SA)

State News

SCA (SA) Funding Capital Works Breakfast Seminar During May 50 members of the South Australian SCA attended a breakfast seminar on Funding Capital Works.

Sponsored by our Platinum Sponsors CHU and Otis, as well as our Gold Sponsors Longitude Insurance, O’Brien Glass, Rockend, StrataLoans and QIA. The event was facilitated by Peter Affleck, Debbie Barker (National Manager, StrataLoans) and Deborah Sullivan (National Client Relations Manager, QIA Group). Our industry experts presented two viewpoints on corporations funding capital works via a loan facility or saving slowly according to a sinking fund budget report detailing future expenditure needs.

Prior to the discussions, Peter Affleck gave an overview of legislation changes regarding sinking funds and some of the limitations of the changes.

Debbie Barker provided an overview of strata loans and mentioned that there is often a negative feel amongst unit owners when a suggestion of a loan is made. There are certainly some clear advantages in the corporation taking a loan, particularly if urgent major works are required as it means the corporation can undertake the work immediately rather than waiting to accumulate sufficient funds or raising large levies.

Deborah Sullivan from QIA presented a view based on the legislative requirements for sinking fund budgets to be based on a short period of time as opposed to the benefit of a longterm projection of future expenses. Deborah feels that sinking fund budgets need to cover at least a ten-year period and be reviewed every five years.

Open discussion where members were encouraged to ask questions followed. The members discussed the pros and cons for owners and buyers in regards to having the benefits of making allowances for future capital works whereas sellers may have an opposing view of not wanting to commit funds towards works they won’t see come to fruition.

After discussion, members felt there was great value in obtaining a long-term sinking fund budget for corporations to consider and having the availability of options for funding either by a loan facility or through regular contributions to ensure that corporations are able to maintain the common property as required by the Acts.

Debbie offered her assistance to help with specific wording for resolutions in regards to lending and Peter Affleck detailed the types of resolutions required for corporations entering into a loan and corporations spending large sums of money. Debbie also provided information on the process for collecting arrears on loan repayments but advised that defaults on strata loans were very rare.

Even though there are legislative requirements to have a sinking fund budget for corporations of seven units or above; there is no requirement for corporations to accept the findings of the report which can be frustrating. However, obtaining the report still allows the individual owner to understand their potential future liability and budget their own finances accordingly.

Strata loans can effectively be used for any worthwhile expenditure of the corporations and can also be used to top up existing sinking fund balances if capital work costs exceed budget amounts. Currently loan rates vary between seven and 11 per cent and can be for terms up to 12 years.

The morning rounded off with general discussion around SA body corporate news, Peter thanked Debbie and Deborah for their presentations and the sponsors without whom such events wouldn’t occur.

Rino Parrella SCA (SA) Chapter Executive Member

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State News

New Zealand

SCA (NZ) launches education pathway Its been an exciting start to the year with the official launch of the NZ100, and the first of a series of e-books that SCA(NZ) will be producing as information and knowledge sharing tools for the various industry sectors.

We are very proud of ‘Introducing Strata’ and for anyone interested in taking a look you can view it at www.stratacommunity.co.nz/ understanding-strata/introducing-strata-ebook We have been lucky enough to work with a group of industry experts who have pioneered the report that has driven the review of the legislation, and our working group continues to work alongside MBIE who presented at our event on the proposals. We understand from Nicole and the team at MBIE that they have had an overwhelming number of submissions and are working through preparing their advice to the Hon Minister Smith on the proposals and reform.

Michael Hurley and Carole Anderson joined us to officially launch the SCA(NZ) education pathway, and Julie McLean and Carole presented our very first NZ100 in March, the first industry specific training offered in NZ, with fantastic feedback from all involved. The next step in this program will be the Committee education workshops currently under development. A big thank you to all involved.

At the coal-face property continues to be a hot topic in an election year, between the ‘housing crisis’ media frenzy, the unitary plan, legislative changes, and the need for improved infrastructure to support higher density living to assist with efficiencies and consumer protection within a fit for purpose framework.

According to government statistics, there are 145,000 New Zealand households living in apartments and townhouses with this number expected to double by 2040. At a recent development summit we were told that a projected 100,000 homes will be required to cope with an extra 290,000 people in Auckland alone over the next 10 years, and similarly the economist’s crystal balls seem to have a positive gleam to them in industry business updates.

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www.stratacommunity.co.nz/understanding-strata/introducing-strata-ebook

‘It always seems impossible until it’s done.’

Nelson Mandela

We also continue to see more diversity in the sector, with a myriad of new suppliers and designs to help foster a sense of community and contribute to a vibrant and sustainable environment. It truly is an exciting time to be involved in the multi-unit sector and with amazing industry support SCA (NZ) continues to be at the forefront and grow from strength to strength!

Having launched the education pathway, we are now focused on the networking goals we set in 2016. This year we will be introducing our first half-day Symposium in September, the biggest battle is refining the list of hot topics, so watch this space!

As our chapter continues to grow and evolve, we are looking forward to both the convention in Sydney and the various other initiatives that came out of the very productive and unified Australasian Council meeting earlier this year.

Finally, I would once again like to thank all our loyal members and generous sponsors for their support on a national level, and of course to our executive for their continued input and engagement to the success of the chapter.

Joanne Barreto President, SCA (NZ)

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Membership

Education

Students pay close attention in the first SCA A100 training course

SCA A100 – Introduction to Living and Working in Strata Communities Canberra 28th – 30th March 2017 Recently, the ACT held its first SCA A100 training course, ‘Introduction to Living and Working in Strata Communities’ which is an introductory course to the strata community industry. There were 13 students in the three-day course. The A100 covers all aspects of the strata community industry including the legal framework, committee functions and responsibilities, lot owner roles and responsibilities, insurance, risk assessment and the financial management of budgets and long-term maintenance plans. As the course was for national industry however, and the industry has state based legislation that differs from state to state, there was no specific information on legislation in it. The onus remains on the local industry SCA support in each state to provide continued education around specific legislation.

involved with the course however, the trainers quickly settled into the delivery of the program, and received the following feedback from grateful students: • Thank you for a wonderful environment to learn, mingle and get to know one another on a personal level. It was lovely meeting you all. I thoroughly enjoyed every minute of the SCA A100 Course; • Thank you to the Class of 2017 for being such wonderful people to learn with and thank you to all the trainers for making the classes fun and enjoyable; • Thank you for organising and making this happen; and • The tips and tools you have shared with us will make our lives as Strata managers more efficient.

The trainers for the course were Sally Shaw, Angela Capri, Robert Craven, Jan Browne, Grant Taylor, Liam Early, Joel Russell and Steve Wiebe. The range of experience within the student group varied from having been in the industry for just a month to another of over five years, with the others being somewhere in between.

The trainers would like to thank the students for their enthusiasm and participation over the three days, and on a personal note, I would like to thank all the trainers, not only in Canberra but Australia-wide for volunteering their time to present to the students who attend the A100. Without the ongoing participation of the volunteer trainers, the delivery of this course Australia wide would not be possible.

This was the first course we have held without our National Trainer, Ms Carole Anderson present, and all trainers were feeling very nervous on the first day. As the students got

Carole Anderson National Education JUNE 2017

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Education EDUCATION

RMIT partners with

Strata Community Association

RMIT University and Strata Community Association (SCA) have collaborated to create a new online course for strata management professionals.

The learning modules are conducted entirely online, allowing members across Australia to receive a national qualification in their own time while they work.

The Certificate IV in Strata Community Management qualification enhances and supports the role of those involved in providing management services for strata communities.

Sample study areas include foundations of working in the strata industry, communication and conflict resolution, legislation and compliance and financial reports and budgets.

As the peak industry body for Body Corporate and Community Title Management in Australia, SCA approached RMIT looking for a partner to increase professional training options for their members.

Industry Program Manager Kate Coady says RMIT is well equipped to deliver this program.

Carole Anderson, National Education Officer at SCA said a number of changes were happening in the industry and RMIT’s reputation and ability to deliver quality training online were key considerations in the decision process.

“Clients are expecting more from their body corporates,” Anderson said.

Buildings are also becoming more technical and complex in their management requirements.

“The development of this national qualification is one of the ways SCA is striving to meet these new challenges with the help of RMIT.”

“We have a long history of working with industry to provide training to suit the needs of the market,” said Coady.

SCA has more than 3,300 members who oversee, advise or manage a combined property portfolio with an estimated value of over $1.2 trillion.

Members include body corporate managers, support staff, committee members and suppliers of products and services to the industry.

The industry-based program is open to anyone working in strata management or real estate wishing to increase their skill set or move into strata management.

RMIT is proud to offer the Certificate IV in Strata Community Management 03 9925 4119 | www.rmit.edu.au/programs/c4394

Membership

Media Report

SCA in the news 2017 is on track to be a big year for SCA in the media and already we are matching the success of the exceptional coverage that was generated last year.

Already since January we have observed over 15 media articles quoting SCA in state, nationally and internationally distributed publications on issues as diverse as an e-book being made available to NZ residents new to body corporate living, to the reform of 20 year old property laws.

You can see all of these mentions on the SCA website.

The ability for SCA to see owners and industry professionals benefit from the media market is improving as the organisation gains more recognition and can increasingly tackle the issues most important to strata stakeholders.

This includes commentary and advocacy on a range of issues whether it is the ongoing building defects saga or the surge in the ‘party houses’ trend.

By generating consistent coverage SCA is bringing these issues to the forefront of the wider public discourse.

Roughly SCA has been generating what translates to a media mention a week for the brand, and that it is a standard we aim to keep and improve on all through 2017.

Establishing regular commentary opportunities positioning SCA as the ‘go to voice’ on all strata property matters is a continuing focus for the organisation in 2017.

SCA has received multiple invitations to regularly join podcasts, run Q&A pieces in industry publications and comment on some of the mainstream media’s on-the-go issues.

On an education level, the unveiling of the A100 course was well received by the media featuring on a mainstream talkback radio program, hosted by John Laws and in industry publications like The Fifth Estate.

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Around the country, multiple state governments are in the process of reviewing strata legislation and the SCA state chapters have been instrumental in their roles of advocating for owners and industry professionals though media activity that will help contribute to positive legislative reform.

Multiple interviews on nightly news programs and primetime talkback programs have been taken by Queensland leaders regarding their current law reform, and with Victoria now at a similar point, a dedicated campaign will be undertaken there to profile key reform issues.

We have also been closely monitoring the complex developments in proposed policy towards Airbnb and short-term letting to ensure owners and communities are advocated for should it require commentary.

Across the ditch, Strata Community Association (NZ) is establishing itself in the local industry with the branch quickly setting itself up as the leading voice on the fledgling NZ strata industry with positive media coverage generated in major New Zealand publications, like the New Zealand Herald, The Waikato Business Times and Stuff.co.nz.

The media’s general awareness of SCA as an organisation continues to progress with industry publications now so aware of what SCA is doing at an advocacy level that stories are being written without our direct involvement or submission of material.

As always, being talked about without having to talk is one of the trademarks of organisational awareness, and it’s something we will look to consolidate for the remainder of 2017.

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A Strata Inspection Report

What is a Strata Inspection Report?

A strata inspection report (also known as a strata search, Owners Corporation Records Inspection or Section 108) is a report that all purchasers of a strata titled, community titled or company titled property should invest in whether this be a residential or commercial property.

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The records of the Owners Corporation must comply with the Strata Schemes Management Act. The Strata Inspection Report is similar to a building report when someone buys a house, but by no means do we suggest that this replaces a building inspection report. The big difference is a Strata Inspection Report will report on the building, also known as the Strata Scheme. It should provide precise details of what is happening within the building or complex. Things such as: •• Who is the current owner?

•• What are the quarterly levies for the property?

•• What are your voting rights? What is your unit entitlement?

•• When are the levies paid to?

•• Have there been? Are there any current or proposed Special Levies (additional contributions outside your quarterly levies that may be raised for building defects or major works)?

•• How much is in the sinking fund and Administrative Fund?

Are any of the funds in deficit?

•• Is there a Sinking Fund Forecast? (A report prepared detailing what the levy contributions should be over the next 10-15 years including detailed maintenance) •• Are there any current legal matters? Have there been any legal matters in the past three years?

•• Does the Strata Scheme comply with fire requirements, Work Health and Safety obligations and asbestos management?

•• Is there any information in the records regarding animals?

Are pets permitted?

•• Are there any building defects or homeowner warranty claims for defects?

•• What are the By-Laws of the building? Have there been any breaches?

•• Is there any disharmony in the building?

•• What is the major income and expenditure over the past three years?

•• Is there any proposed major expenditure?

•• What is the current value of the building?

•• Is the building insured and if so, is it adequately insured?

(View details of the insurance and cover) •• Are there any compliance related matters within the records such as window and balcony compliance?

•• Are there any known disputes within the Strata Scheme?

•• Copies of Annual General Meeting minutes, Extraordinary General Meeting minutes and Executive Committee Meeting minutes; •• Copies of building reports.

Every buyer considering the purchase of a strata titled property, whether it be Residential or Commercial, must engage the services of a fully qualified inspection company with an extensive property background.

Why is a Strata Inspection Report so important if I am considering buying a unit, apartment, townhouse villa or commercial property within a Strata Scheme?

Buying into a Strata Scheme may be one of biggest financial decisions that you may make in a lifetime!

A Strata Inspection Report can cost as little as $250 to $350 – it generally depends on how many Lots (apartments) form part of the Strata Scheme – but the information provided will be far more valuable to you than the initial outlay.

When buying into a Strata Scheme you become part of that Strata Scheme. If for example, something major happens to the common property and there is insufficient money in the sinking and administrative fund, a Special Levy may need to be raised and if this levy has not been raised prior to you purchasing, you will be responsible for part of this special levy.

Some buildings do not comply with current Council Fire Regulations and if Council issue a notice to comply this can turn out to be very expensive and problematic. In a situation like this an engineer will generally need to be appointed to assist the Owners Corporation to comply. Depending on the size of the building this can run from $10,000 to $100,000’s of dollars.

A Strata Inspection Report can also be more important than a Building Inspection report, as it reports on known issues within the building where a building inspection will only report on issues within the unit you are considering purchasing. When buying into a Strata Scheme an owner is generally responsible for a proportion of any outstanding major works.

If you are crazy enough to do your own Strata Records Inspection Report here are some tips on searching the records.

We have listed a number of things to look out for, however a licensed real estate agent who has the experience to carry out the report should know when the alarm bells are ringing!

When carrying out a Strata Records Inspection Report you will need to obtain a Letter of Authority from the seller or their solicitor. Most Strata Management companies will require this before they will allow you to inspect the records.

You will need to provide the Strata Plan Number and Lot Number. This information is on the Contract of Sale.

When you arrive at the strata manager’s office you will be provided with digital or paper files. The initial documents that should be provided are: •• The Balance Sheet which details what funds are in the Sinking and Administrative funds (make sure this balances); •• An income and expenditure statement for the current period detailing recent expenditure; •• A Lot levy notice (the levies that relate to the subject Lot). This will detail the current levies and where they are paid to; •• A Strata Roll (this will detail the current and past owners, the entitlements for the lot and other information.

In addition to the information already gathered, it is important that you request and inspect the following: •• Compliance documents such as Annual Fire Safety Statement (if the building does not comply this could be very costly) •• Any and all Work Health and Safety Reports?

•• Is there an Asbestos Management Report?

•• Is there a WorkCover Certificate for the lifts?

•• Is there a compliance certificate for the swimming pool/s?

•• Is there a legal file? Are there any current legal matters? Has the building been issued any notices to comply from Council?

•• Is there a quotes folder? Is there any major proposed expenditure in the quotes folder?

•• Is there a Sinking Fund Forecast Report? (This report will give you an indication of what the levies should be over a number of years). Look out for anything that might raise alarm bells. Remember also there may be files that have not been provided! Do you know what to ask for if there are files missing?

The Minute Books should paint a picture of what is happening within the Strata Scheme (building).

•• Is there an Executive Committee?

•• Is there a notice of a meeting that has not been held? (Read the agenda and look for any items on the agenda carefully).

•• Is there any major work proposed in the Minutes?

•• Are there any items noting quotes for major expenditure?

•• What were the annual levies for the current year compared to the past three years (this will give you an indication of where the levies are positioned)?

•• Has there ever been a deficit in the Income and Expenditure Statements over the past three to five years? (This generally indicates the levies are too low or that unplanned expenditure has occurred).

•• Are there any notes regarding compliance that could be costly?

Ensure that you conduct your due diligence thoroughly. For the sake of a few hundred dollars you can obtain a professional Strata Records Inspection Report that could save you buying a unit within a Strata Scheme that has many problems. It is very difficult to sell a property with major ongoing problems and this may be the reason the property is being sold.

If you are wise and make the decision that it is far too difficult to do on your own, make sure you contract a professional person and/or company that have substantial experience within the industry.

Disclaimer: The information provided in this article is a general guide only and not intended as a substitute for legal advice.

This article was kindly supplied by Paul Mulligan.

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CONCRETE FACTS ABOUT STRATA BUILDINGS ACRA believes that when you invest your time to achieve the best results for your client then the only source of dedicated strata specialists for concrete repairs are our members

Do you use professional Consultant services?

Consider a member of ACRA ACOR Consultants AECOM Australia Arcadis ARUP BAAM Consulting Bellmont Façade Engineering

Costin Roe Consulting Diagnostech Duratec Australia GHD Infracorr Consulting Integrated Consultancy Group

Go to

www.acrassoc.com.au

for searchable list of Consultants, Contractors, Material Suppliers and Asset Owners in Australia and New Zealand

email: info@acrassoc.com.au

General Feature

Do you have vacancies in your strata committee?

What do you do when a strata committee member who was also an officer of the Owners Corporation resigns?

The first step is to double check to see if the person wanted to resign their position as a strata committee member or whether they would just be unable to attend a couple of meetings.

Obviously, a resignation has a different effect to a strata committee member being absent for a meeting.

If a strata committee member resigns in writing then they have vacated their position on the committee. A strata committee meeting should then be called to elect a person eligible for appointment to the committee (section 35(2) of the Strata Schemes Management Act 2015 (the Act)). The new strata committee member then holds office as a committee member for the remainder of the original person’s term. For example, if Dave resigns in writing six months prior to an Annual General Meeting and Ann is elected to fill Dave’s position then Ann will be a strata committee member from the date of the meeting electing her until the Annual General Meeting.

Taking it one step further, if Dave our resigning strata committee member was also the Chairperson of the Owners Corporation, then a strata committee meeting should be held to appoint from the strata committee members a new Chairperson (section 45(2) of the Act). This means if Ann was elected to take up Dave’s position on the strata committee, once she was elected she could then put her hand up to be the new Chairperson.

Why should the strata committee fill vacancies when they become available?

The number of members of the strata committee is voted on at the general meeting. This will determine the quorum for each strata committee meeting. Where there are two or more members of the strata committee, the quorum for each meeting is not less than half the persons entitled to vote on a motion.

Expanding on our example above, assume there were four strata committee members (Dave, Susan, John and Mary).

The meeting quorum would be two members present and entitled to vote at the meeting. If, after Dave resigned, Susan stopped paying her strata levies and was not financial and John could not attend, the next scheduled strata committee meeting quorum would not be met. Why? Only Mary would be present and quorum does not change with Dave’s resignation.

Two persons eligible to vote must be present at the meeting for quorum to be met. Without a quorum the meeting cannot consider any motions.

Please note: This is not legal advice. You should seek legal advice particular to your situation.

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General Feature

Who is responsible for the removal of dangerous trees?

This question came in from a NSW Lot Owner enquiring about who may be responsible for the removal of dangerous trees.

Situation: A tree is on private property but it passes into my airspace and into common property airspace. If it presents a potential threat to the common property roof because it leans over it, who is responsible for the removal of this potentially dangerous tree?

This situation has occurred in an ‘Over 55’s’ complex comprised of 12 lots. There is a 20-metre high tree that was already established when the development was approved, and it grows in a private courtyard on ground level below the Lot Owner’s unit. The tree extends beyond the courtyard owners airspace (4.5metres above ground level as per the survey plan) and above the Lot Owner’s unit over the common property roof. The tree leans toward the building to such an extent that the Lot Owner can touch the branches from their balcony.

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The tree leans over the common property roof and there is quite a large amount of overhang. An arborist has assessed the tree and advised that it should be trimmed and the dead branches above removed.

There is significant concern that the tree may fall during a storm, causing damage to the unit or injury to the Owner or visitors.

Question: Who is responsible for removal of dangerous trees?

The Strata Manager has advised that it is between the Lot Owner and the owner below as there has been a number of cases like this in the Land and Environment Court and they have held that it depends on where the tree grows from and in this case it grows from a private property.

It appears that the tree is of concern to other Lot Owners as it may damage the roof and it deposits needles and twigs in the gutters.

There have been two motions submitted at EGM’s under sec 62 but the motion was lost both times. Can you shed light on this somewhat complex issue of responsibility?

As the tree is on private property but passes into the Lot Owner’s airspace and into common property airspace, if it presents a potential threat to the common property roof because it leans over it and may end up causing damage, why isn’t it an Owners’ Corporation issue under sec 62?

General Feature

A further complication in relation to a Lot Owner’s responsibility is that the tree was there when the building was approved as part of the DA application. In this case the original owner passed away and the subsequent owner has rented the property. Does the responsibility for the maintenance of the tree lie in the hands of the owners corporation as the owner at the time was compelled to leave the tree in situ as part of the DA? Answer: The owners’ corporation is responsible for such parts of the tree in the common property and the Lot Owner for those parts situated within their lot space.

This highly technical and complex question raising difficult legal issues and serious outcomes. However, it can be argued that that the part of the tree that protrudes beyond the stratum of the lot is in common property airspace, and is therefore the liability of not only the offending owner but also the Owners’ Corporation.

In any event, the Owners’ Corporation would have a duty of care to ensure that a liability, which poses risk, is investigated.

The critical issue is that the Owners’ Corporation’s insurer should be notified of this new risk and the Owners Corporation should seek confirmation that loss, damage, personal injury, death as a result of the tree (albeit emanating from private property but passing through owners corporation air-space) is currently insured by the current policy.

If there is real risk, the Owners’ Corporation will be under a duty to mitigate damage.

Further, depending on the lower boundary strata notation, some parts of the tree (e.g. roots) might be common property, the trunk to the height of the stratum lot property and the balance of the risk to the Owners’ Corporation because it passes through the common property airspace.

There may be a breach of 116 Owners, occupiers and other persons not to interfere with structure of lot or services to lot (1) An owner, mortgagee or covenant chargee in possession (whether in person or not), lessee or occupier of a lot must not do anything or permit anything to be done on or in relation to that lot so that: (a) Any support or shelter provided by that lot for another lot or common property is interfered with, or (b) The passage or provision of water, sewage, drainage, gas, electricity, garbage, artificially heated or cooled air, heating oil and other services (including telephone, radio and television services) through or by means of any pipes, wires, cables or ducts for the time being in the lot is interfered with.

(b) Use or enjoy the common property in such a manner or for such a purpose as to interfere unreasonably with the use or enjoyment of the common property by the occupier of any other lot (whether that person is an owner or not) or by any other person entitled to the use and enjoyment of the common property, or (c) Use or enjoy the common property in such a manner or for such a purpose as to interfere unreasonably with the use or enjoyment of any other lot by the occupier of the lot (whether that person is an owner or not) or by any other person entitled to the use and enjoyment of the lot.

The needles and pins may be construed as breach of by-law 5 or 9 (rubbish on the common property).

The Owners Corporation would not have been in existence at the time of the lodgement and approval of the original development application.

Fundamentally, the Owners’ Corporation is responsible for such parts of the tree in the common property and the Lot Owner for those parts situated within their lot space. We reiterate our recommendation that the Owners’ Corporation take such steps as required to mitigate damage and resolve the dangerous tree issue.

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

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There will almost certainly, based on the complaint received, be a breach of Section 117: STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 117 Owners, occupiers and other persons not to create nuisance.

(1) An owner, mortgagee or covenant chargee in possession (whether in person or not), lessee or occupier of a lot must not: (a) Use or enjoy the lot, or permit the lot to be used or enjoyed, in such a manner or for such a purpose as to cause a nuisance or hazard to the occupier of any other lot (whether that person is an owner or not), or

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Membership

Social Pages 2017 NSW Strata Day SCA (NSW) held its annual Strata Owners Day on Saturday, 25 March 2017. Over 130 strata owners attended and participated in the Q&A style panel and workshops all designed to enhance strata and community living. Strata services members also participated in an exhibition talking to owners about their strata needs from a legal, insurance, finance, communications and maintenance perspective. Thank you to our sponsors for your support.

Inaugural Young NSW Strata Network event SCA (NSW) hosted 100 young strata professionals at the inaugural Young Strata Network event at Hotel CBD on 30 March 2017. Brent Thomas from Airbnb answered questions from the audience on the short-term letting and the perceived impact on strata schemes and the community at large.Â

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Membership

Social Pages 2017 Queensland STRATA Awards SCA (Qld) has again invited eligible members to nominate for the 2017 Strata Community Awards. We aim to highlight outstanding work within the sector and recognise professionalism. This year we’ve had a substantial increase in nominations – thanks to everyone who has nominated someone or put themselves forward. The awards raise the bar in a sector that is unlicensed, and SCA believes public recognition of professionalism and excellence will improve our sector’s overall performance.

SCA thanks our highly regarded judging panel which consisted of Gary Bugden, Prof Sharon Christensen, Prof Bill Duncan, and Dr Sacha Reid.

from left: Domonic Thompson, Peta Franklin, Scott Witheridge, Sue Cubbin, Michael Hurley, Simon Barnard

Young Strata Manager of the Year: Peta Franklin, Body Corporate Services (Townsville)

Ann Shevill Essay Award: Scott Witheridge, Wattblock

Strata Manager of the Year: Sue Cubbin, Aquila Body Corporate Management

Commendable Strata Supporter of the Year: Hayley Wardrop, Living Strata

President’s Award: Michael Hurley

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Membership

Social Pages SCA (Qld) 2017 Conference “Brave New Strata World” In March, 258 of the bravest delegates in the industry joined us as we leapt into the future of our Brave New Strata World. Kicking off the Conference it was fitting that our keynote speaker Nadine Champion – one of the bravest keynotes we have had to date – walked us through how all it takes to be brave is 10 seconds of courage and how to change your thinking. The martial arts champion set the tone for our delegates to face the unknown and break into new territories.

The conference covered 23 topics around technology, legislation modernisation, committee engagement and working with associated acts and professions.

Presenters included representatives from industry stakeholders such as ARAMA, REIQ, Retirement Living RSL Care, Griffith University, University of Melbourne, University of Sydney, who all participated alongside specialist lawyers, body corporate managers and service providers.

But no conference would be complete without an evening of dazzling dinner and dancing. In 2017 we took the annual Conference and Awards Dinner to new heights – 77 floors up to be specific, as we welcomed our delegates to let their hair down at the magnificent Skypoint at Q1. We celebrated the achievements of the stars of the industry all while looking upon the glittering lights of the Gold Coast, dancing our way into our Brave New Strata World.

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Membership

Social Pages

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Membership

Social Pages SCA (NZ) NZ100 and E-Book Launch

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Membership

Calendar JUNE

JULY 21

Platinum Industry Briefing Breakfast

Studio, Sydney Tower

06 23

Young Professionals Repairs and Maintenance and Insurance Obligations

09-11 SCA (NSW) Principals Retreat

Novotel, Queenstown

2017 CHU Strata Community Awards

Doltone House, Hyde Park

07 14

Round Table Discussion: East Contract of Appt: Appt Termination, Handover Sales-Purchase Principals of Strata Management Companies

18

Symposium and Awards for Excellence

Saving you a call, Commissioner Q&A + Law Review

04 Golf Day 23-25 Leadership Forum

VIC

NSW

23

AUGUST

25

WA

QLD

06

Saving you a call, Commissioner Q&A + Law Review

06

Radisson Blu Resort, Denarau Island, Fiji

The Trilogy – ½ Day Technical Workshop

09

Lego-Land of Strata

ACOSH Smoking in Strata Owner and Strata Manager Event

Technology Park, Bentley

Technology Park, Bentley

Owner Event. Australian Institute of Conveyancers, Victoria Park

Surf Club, Mooloolaba

Novotel, Surfers Paradise

02

The Trilogy – ½ Day Technical Workshop

07

Role of the Council

20

Strata Starter

11 11 11

Contravention Notices BMS for Beginners: Part 1* BMS for Beginners: Part 2*

Theatre, Technology Park, Bentley

Theatre, Technology Park, Bentley

Owner Event, South Perth Library

Crown Perth, Burswood

27

23

SA

29

18-20 SCA A100

ACT

Canberra

TBA NZ100’s

NAT

NZ

Auckland and Wellington

64

2017 SCA National Conference Better Together 14-16 June 2017 Crown Plaza, Hunter Valley, NSW INSIDE STRATA

JUNE 2017

Melbourne Park Function Centre, Melbourne

27

How to read a strata plan & what does it comprise?

Understanding Strata Titles

Membership

Calendar SEPTEMBER 14

Gold Sponsors Lunch

Dockside

OCTOBER

NOVEMBER

19-20 SCA (NSW) Annual Convention

30

The Beresford Hotel

12-15 Principals Retreat

17

Achieving Results by Connecting with your Local Councils and Authorities

23

Disaster Management – Planning Disaster Management – Insurance Disaster Management – Maintenance Christmas Networking, Gold Coast Christmas Networking, Sunshine Coast

Hilton Sydney Hotel

SCA (NSW) Annual Christmas Party

NSW

15

Governance and Community Development

Shangria-La Hotel, The Marina, Cairns

21

17

24

AGM and Networking

*Webinar & Shevill North Training Centre, Brisbane

Conflict Resolution and Anger Management (Soft Skills)

23 23 23 30

The Under Belly of Strata

Crown Perth, Burswood

Owner Event Australian Institute of Conveyancers, Victoria Park

19

Understanding Strata Titles

03 23

Role of the Council SCA A100

16 17

03

06

Adelaide Oval

SCA (ACT) 2017 Strata Community Awards

National Arboretum

ACT

SCA (SA) 2017 Strata Community Awards

SA

21

Strata Leaders Golf Day and Symposium Opening night SCA Symposium 2017 WA

WA

14

QLD

21 21

Transfer of records (compliance) PCBU & site inductions (legal) Reading plans, survey plans, easement documents and boundaries

VIC

27 Voting

SCA 2017 Symposium

NZ

NZ NAT

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Advertorial

LEADING INNOVATION IN STRATA MANAGEMENT Interview with Greg Nash, CEO of the PICA Group and David Bugden, Head of Strata at Urbanise.

The PICA Group and Urbanise have signed a 10-year technology agreement, worth over $20M. The partnership marks the largest technological investment to date in the strata management industry in Australia Q: This deal represents a considerable investment in technology and innovation.

Do you think this was a natural progression for the PICA Group?

Greg: Yes, most definitely. Our Group had been using a 20-year old proprietary application software system that we designed ourselves and the technology was becoming out-dated. Two and a half years ago, we decided to replace our core systems. We wanted to secure a strategic partnership with a credible industry partner.

David: The industry in general has a very similar history to Greg’s company. It’s a 40year old industry serviced by a few major technology providers who started early on and are still offering server-based solutions to the market. The industry as a whole hasn’t really innovated from a technological perspective, but it’s growing quickly and is ripe for innovation.

Q: What are the expected benefits of this investment and how do you think your clients are going to benefit?

Greg: Our primary consideration is our customers. They deserve an advanced and modern service delivery system. A winning feature of the Urbanise platform was the self-service web portal that is at the heart of the software suite. It will revolutionise the way properties are managed. Customers now have the ability to efficiently self-service through a portal. Another good example would be the repairs and maintenance area of the business, which the Urbanise technology will streamline significantly by automating most of the process.

David: The technology that Greg is explaining gives visibility to strata managers, customers and the supplier all on one cloud platform. All information about services is being shared in real time to participants. The industry is desperate for smarter tools that reduce the administrative burden of strata managers

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Greg Nash CEO of PICA Group

David Bugden Head of Strata at Urbanise

and allows them to spend more time on asset management.

connecting and communicating with one another over the Internet. By collecting and sending information from the field straight to strata managers IoT devices enable managers to proactively manage assets and locations. Some practical examples include flood sensors in lift wells that detect flooding, motion sensors that detect when garage doors are open too long or vibration sensors on AC units.

These sensors encapsulate the concept of proactive asset management, helping to reduce expensive maintenance costs and insurance risks.

Greg: A sensible aim for any strata management company should be to reduce costs. We estimate the PICA Group will experience a 40 per cent increase in productivity as a result of implementing this technology.

Q: What are the most important trends that will shape the future of strata management in the coming years?

Greg: Knowing your customer. The customer-relationship management system that has been specially built to suit the property service industry by Urbanise is going to be very important. Another current area of interest is the sustainability of buildings and utilities. Many companies, including the PICA Group, are starting to focus on sustainability.

David: Mobile will be a game changer in our industry. We already offer a mobile app for suppliers called ‘Force’ which connects suppliers and engineers in the field to strata managers and their customers. And we are now in the process of launching a community app designed for strata owners and committees which allows them to access their strata information, raise requests and buy services, either strata related or maintenance and lifestyle services.

Another emerging trend is the Internet of Things (IoT). This involves devices

Q: What role do you think strata companies have in making their buildings green and do you think they have a responsibility to keep national emissions down?

Greg: We have a responsibility to try and bring solutions to our clients in many areas, including sustainability opportunities. We are receiving a lot more enquires into what we can do, not just to make buildings greener but also to save money through energy saving opportunities. We are looking at partnering with companies that provide solar systems, embedded networks off the grid, sharing of energy between buildings, lithium battery storage, smart metering systems and smart billing systems. Technology will boost the efficiency of these things over the next 10 to 20 years within the sustainability sector.

Of course, we have a role to play and we take that role very seriously.

SMARTER WAYS TO SERVICE OUR COMMUNITIES Urbanise offers the most comprehensive suite of software solutions for the Australian strata title industry.

These solutions can be used as separate stand-alone modules, as features connected to your current applications, or as an entire integrated platform.

IOT SENSORS

COMMUNITY PORTAL

Smart sensors are attached to key assets delivering real-time visibility of assets and preventing potential failures.

Deliver a level of self-service not available in any competing portal systems. Save time, money and win new business.

NEXT-GEN STRATA PLATFORM Representing the largest-ever investment made in strata management software, consider the next generation of strata solutions.

CUSTOMER MOBILE APP Available on IOS and Android, owners and committee members can now access their strata information on a mobile device.

E-SERVICES STOREFRONT Building an electronic shopfront of strata and “behind-the-door” services for your residents.

MAINTENANCE & ASSET MANAGEMENT Centralise all your workflow around repairs, quotes and insurance claims, and connect your customers, suppliers and strata managers on one mobile platform.

Urbanise Case Study: The PICA Group, Australia’s leading strata management company, has signed a 10-year technology partnership to implement the entire Urbanise technology suite across their 30-branch network. The PICA Group join Urbanise’s existing customer base of over 150 strata management companies in Australia utilising world-class cloud based strata technology.

For more information, visit our website: www.urbanise.com JUNE 2017 INSIDE

STRATA

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ADVERTORIAL Advertorial

COMMON HOUSEHOLD PESTS THAT YOU NEED TO KNOW At Flick Anticimex, we pride ourselves on our pest control knowledge. This knowledge assures that we provide you with the most up to date and effective service in the industry.

It is equally important for property and strata managers to understand and recognise the common household pests your tenants will most likely encounter in their homes.

There are six common household pests to know about. The most common is the nocturnal cockroach that enjoys residing in hidden places. If the tenant spots cockroaches during the day, it would be a cause for alarm and special attention will be required from a professional pest controller. Similarly, if your tenant sees a few ants roaming around in their kitchen, managers should be aware that this is only the tip of an iceberg. There are hundreds of ant species and the treatment method will differ with each. Only a professional will be able to correctly identify the type of ant and properly eradicate them.

Spiders are often the most-feared pest, but most species are beneficial to the environment and only a few are actually dangerous. The dangerous and even deadly spiders that will need special attention from pest controllers include the Red Back, the White-tail and the Funnel-web. They are generally found dwelling near walls, in garden beds, on garden furniture, or in play equipment.

For tenants with pets, their main pest problem would be fleas.

In the third stage of a flea’s life cycle, they form a cocoon and remain dormant for two years. This means that although managers may have treated live fleas in the present, the flea cocoons will open in two years’ time causing a problem for future tenants. The best way to combat this is by scheduling regular professional pest inspections and ensuring the tenant frequently cleans their pets.

Two pests that are known to cause physical damage to your property are rodents and termites. Rodents enjoy living alongside humans, so if the exterior and interior of a property are not regularly cleaned, rodents such as the House Mouse, the Norway Rat, or the Roof Rat can be found living in cavities of the home, storage areas, in sheds or the garden vegetation.

Every year, termites can cause up to $1 billion worth of damage as one in three Australian homes is subject to a termite attack. The termite notorious for causing property damage is the Subterranean Termite, which live underground and access the home by tunnelling up through the timber structure. Unfortunately managers often do not realise the damage done by Subterranean Termites until the property’s timber structure begins to collapse.

We recommend multiple visits by Flick’s skilled technicians to effectively and properly eradicate the pests from the home, as not all pest control methods work the same.

Entrusting us with the regular maintenance of your properties will give you the peace of mind that a comprehensive pest management program will be specially prepared for the requirements of each property. In addition, Flick Anticimex is known for discretion and flexibility, top class solutions, and above all protection for your clients.

To get in touch with a Flick account manager today, visit www.flick-anticimex.com.au or contact us on 13 14 40!

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INSIDE STRATA

JUNE 2017

Enjoy powerful, preventative and predictive detection of problem areas. The real time thermal heat enhancement technology delivers high sensitivity, a wide field of view and fully radiometric imagery, to accurately reflect hidden heat patterns and moisture intrusion.

Benefits of Thermal Imaging: • Be sure – see our consultants pinpoint moisture intrusion and thermal variance with accuracy.

• Hassle free – non-destructive, non-contact and efficient diagnosis of your leaking problem areas.

• Highly visual – quality imagery to diagnose your repair and instantly recognise where the problematic leaking is.

MegasealedTM Thermal Imaging PLUS Electronic Leak Detection for an accurate, complete diagnosis.

Australia’s leading leaking shower and balcony repair specialists. 20 years experience. 18,000 services per year Nationwide. Exclusive Meagasealed product range.

Call your local Meagasealed team today!

For more information Call: 1300 658 007 Visit: www.megasealed.com.au

The master of time STRATA Master is not only the leading Strata and Body Corporate Management Solution on the market, it’s also the solution that saves you more time than any other.

With the STRATA Master solution, you get access to a number of features that save time and automate manual tasks, giving you back time to focus on your business.

STRATA Mobile allows you to access critical information while out of the office as well as send an SMS from within the application.

Our MEETING Master Application lets you run your meetings from your device allowing minute compilation and distribution through a seamless integration, without ever having to use a notepad.

While Owner and Strata Committee portals ensure the owners and strata committee members have 24-hour access to all the information they need through their online login.

STRATA Master is the Strata and Body Corporate Management solution that gives you more time.

To find out more about STRATA Master call us today on AU 1300 657 700 NZ 09 909 7093.

Leadership. Growth. Trust.

MORE THAN INSURANCE

GIVING CUSTOMERS EVEN MORE Our people are solely focused on, and passionate about, protecting the Australian strata community and have been delivering superior customer experiences and products since 1999.

With the security of being backed by Australia’s largest general insurer, IAG, you know we’ll be there when you need us most.

Our national team of strata experts has a proven track record of delivering specialised Residential and Commercial strata insurance solutions.

We are proud to be recognised as Australia’s preferred provider of strata insurance.

INFO@SUU.COM.AU | 1300 668 066 | WWW.SUU.COM.AU