The NSW Strata Magazine | February 2022

The NSW

STRATA MAGAZINE FEBRUARY 2022

What information about our strata insurance options should our strata manager provide?

Page 6 | Strata Insurance Solutions

Is voting for a special levy a general, special or unanimous resolution?

Page 8 | Bright & Duggan

Can the strata committee make parking in common areas legal?

Page 24 | The Strata Collective

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About Us LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.

As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.

Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.

Meet the team

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013.

With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.

Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Professional Development Committee.

More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Nikki Jovicic Owner / Director

Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.

Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.

Liza Jovicic Sales and Content Manager

Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au

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Contents 04 Know your obligations with Embedded Energy Networks Drew McKillican, Altogether Group

06 What information about our strata insurance options should our strata manager provide?

18 What Strata and Building Managers Need to Know About Electric Vehicle Charging IPD

20 Would a bylaw banning dogs be unreasonable?

Tyrone Shandiman, Strata Insurance Solutions

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Is voting for a special levy a general, special or unanimous resolution?

Carlo Fini, Lewis & Charles

22

Andrew Terrell, Bright & Duggan

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Michael Ferrier, EYEON Property Inspections

Who Maintains the Strata Roll?

Tim Sara, Strata Choice

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Should our strata plans comply with the DA conditions?

How much detail about the DA should the OC request?

24 Can the strata committee make parking in common areas legal?

Rod Smith, The Strata Collective

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Leanne Habib, Premium Strata

14 Why airspace is going to be the big real estate trend of this decade

Rod Laws, Tinworth & Co

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Warren Livesey, Buy Airspace

16 Do I need permission to install a deadlock?

Rob Broadbent, 2020 Fire Protection

Where does GST appear in Our Financial Statements?

Reimbursement for Repairs of Common Property Leanne Habib, Premium Strata

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Your guide to the professional standards scheme (PSS) Strata Community Association (NSW)

Thanks to our sponsors

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Know your obligations with Embedded Energy Networks

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There are key differences between having a billing agent manage your embedded network under an exemption scheme versus an authorised energy retailer.

Drew McKillican, Executive Manager of Energy Services at Altogether Group, a leading multi-utility service provider, says that it is important for strata managers and bodies corporate to be aware of the legal and financial ramifications of using the two types of arrangements.

“Many strata managers or bodies corporate are not aware that retail and billing agency arrangements under the Exemption Scheme are vastly different in terms of liabilities and responsibilities under the National Electricity Retail Rules and the regulatory requirements. All energy consumers must always retain their customer rights and protections, however the reality under the two arrangements can differ significantly in terms of having proper access to those rights. Many owners of embedded networks wrongly assume that they are not responsible for the delivery of key consumer protections under an exempt seller arrangement, which means their operation of the embedded network may not be compliant, leaving them vulnerable to financial and legal risk.”

– Drew McKillican, Executive Manager Energy

3 tips for reviewing your embedded energy network arrangement 01

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Consider what matters most to your community in terms of their energy services, this will largely depend on the composition of your building. Do you have a high proportion of owner occupiers, or frequently changing tenants? Do you have vulnerable residents who need help understanding bills, or life support arrangements which are dependent on electricity supply to operate? This can complicate your ability as a body corporate to recover energy costs from residents and compliantly operate your network.

Understand your obligations as an Exempt Seller and whether you are meeting them currently. If you understand the gap, you can select the appropriate strategy to close it.

Refer the AER’s Exemption Guide: AER (Retail) Exemption Guideline Version 5, or simply contact Altogether for an obligation free briefing on Exemption Rules and we can help you navigate the requirements.

Get advice on where you currently stand – Altogether are a specialist energy retailer in the embedded network space. We can help you navigate your obligations and better understand them. As a result, you can assess whether your current arrangement is fit for purpose or not.

From here, you can then consider your options and make the right choice to futureproof your building.

Altogether Group works with strata managers, bodies corporate and developers to design and manage embedded energy networks on behalf of communities.

Enquire today 1300 803 803 altogethergroup.com.au 5

No notification of our strata insurance options

What should our strata manager be providing?

Until recently, the strata manager has never notified us about our strata insurance options.

Is this now mandatory in the new act?

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I see in the current act at section 166, that it is mandatory to be notified about our strata insurance options.

What are the ramifications of not being notified by the strata manager when there could be different financial outcomes if the strata committee had been informed of its options?

If the strata manager decides on an insurance policy on behalf of the owners corporation, they run the risk that they could be held professionally liable if the option chosen is not appropriate.

You refer to Section 166, which states that A strata managing agent must provide the owners corporation with not less than 3 quotations from different providers for each type of insurance proposed by the agent to the owners corporation or provide written reasons to the owners corporation if less than 3 quotations are provided.

Best practice is for the committee to decide on the insurance option in the best interest of the owners corporation based on the quotes provided.

If the strata manager decides on an insurance policy on behalf of the owners corporation, they run the risk that they could be held professionally liable if the option chosen is not appropriate for the owners, particularly in circumstances where there is a claim that is not covered by the strata managers chosen option and if given the choice, the committee would have chosen a different option that did provide cover.

READ MORE ON THIS TOPIC HERE

Additionally, as most strata managers receive commissions for arranging insurance, this conflict of interest should be appropriately managed. This includes placing the buying decision for insurance in the hands of the committee.

If you believe the arrangement of insurance is something the committee should be more actively involved in, this should be discussed with the strata manager. This may include a review of your strata management contract and any terms and conditions which provides that the strata manager has authority to make a buying decision on behalf of the owners corporation.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au

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Voting for a Special Levy Is it a general, special or unanimous resolution?

Is voting for a special levy a general, special or unanimous resolution? If it’s a general resolution, as an equally split OC can a poll be called to help us land on a decision?

I live in a 4 unit strata property. An engineer’s report has indicated we require significant work to replace our roof and façade features.

Due to age and condition, there are also concerns over continued degradation and safety as well. We have shingles, tiles and wooden frame sections gradually falling off onto pedestrian areas.

There’s not enough money in the capital works fund, so we need to raise a special levy.

What are the rules around voting for a special levy? Is it a general, special or unanimous resolution? If it’s a general resolution, can an entitlement poll still be called to help us land on a decision as an equally split OC?

How do we best manage the repayment terms for the special levy? Due to the safety and integrity issues, to expedite the work there’s a preference with some to take the mortgage refinance route. However, others would prefer to run the gauntlet and pay over a couple of years. Can we vote on different timeframes to reach a majority agreement?

It is an ordinary resolution – majority vote. A poll can be called.

Ordinary resolution – majority vote. Yes, a poll can be called by any entitled owner if the decision is split on a per lot vote.

There are ways to balance this, however, strata finance is the best option to get urgent works underway and then you can raise significant levies over a slightly longer timeframe (than if you were needing the money upfront) which should negate paying much interest while giving you flexibility.

READ MORE ON THIS TOPIC HERE

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Andrew Terrell | Bright & Duggan Andrew.Terrell@bright-duggan.com.au

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Who Maintains the Strata Roll?

After many requests to our strata manager, the Executive Committee finally received the strata roll, although details are incomplete.

The only way to communicate to all lot owners is by going through the Strata Manager.

Is this usual?

The Executive Committee of our strata asked through the right channels to receive the strata roll from the Strata Managers. After many excuses mostly regarding privacy laws, we finally got some watered-down and incomplete details. In particular, we did not receive the owner’s details (e.g. emails and phone numbers) for the apartments that are rented, which is what we had requested.

In case of emergencies or if the committee wishes to communicate any information to all the owners, we can’t do it. The only way is to go through the Strata Managers.

I am the Secretary of the committee and when trying 10 www.lookupstrata.com.au

to relay important information, it’s delayed because we don’t have all the owners information. We believe that the Strata Manager should provide us with the full and complete details of the strata roll. Is this a reasonable assumption?

The information may be missing from the strata roll for a reason.

One of the duties of the Secretary of a Strata Committee is to maintain the Strata Roll (in accordance with section 43(c) of the Strata Schemes Management Act 2015 (‘the Act’)), and therefore the Secretary has the right to obtain a copy of it from the Strata Managing Agent.

Anybody else wishing to obtain a copy can do so via an inspection of the records.

It is section 182(3)(a) of the Act that requires this to be given as part of the records to be inspected.

Section 178 of the Act then prescribes what information must be included in the strata roll, which is:

a. t he name of the holder of the estate in fee simple in the lot (in the case of a freehold strata scheme) or the holder of the leasehold estate in the lot (in the case of a leasehold strata scheme), b. an address for service of notices, c. a n Australian postal address, and an email address if the holder has one, if not provided as the address for service, d. the name of the holder’s agent (if any) appointed in accordance with this Act and the agent’s address for service of notices, e. i nformation provided under a strata interest notice, f. i nformation provided under a tenancy notice.

As we see, only the name and address (either postal or email – whichever they have chosen to give) of an owner must be recorded along with any information given either under a strata interest (or “section 22”) notice or tenancy notice.

Furthermore, the information required to be given with a strata interest notice is clarified under section 22 of the Act, being: a. the person’s full name and an address for service of notices, b. the lot concerned and the exact nature of the person’s interest in it, c. the date on which the person acquired the interest, d. if the voting entitlement conferred by the interest is one that, according to this Act, is to be exercised by a nominee, the nominee’s full name and address for service of notices.

Similarly, for a tenancy notice given under section 258 of the Act, the following information must be given: a. the name of the tenant and an address for service of the tenant, and b. the date of commencement or assignment of the lease or sublease, as the case requires, and

information of residents during the performance of their duties and to record that information for the purpose of managing the strata scheme. In that event, there should be no reason not to give this to the Secretary as it would form part of the Owners Corporations’ records anyway (so long as the information was given to them by choice of the person whose information it is, otherwise it may be a breach of their privacy) even though it may not form part of the strata roll.

Lastly, the private contact information of anyone should not be given out unless it is strictly being done in the process of managing the owners corporation (for example, giving a tenants number to a tradesman to arrange access for repairs). It should not be shared with the Committee or others as that would constitute a breach of privacy.

READ MORE ON THIS TOPIC HERE

Tim Sara | Strata Choice tsara@stratachoice.com.au

c. the name of any agent acting for the owner in respect of the lease or sublease.

There’s no mention in any of the legislation about the phone numbers of owners/tenants needing to be given, or email addresses for tenants. An owner may have volunteered the phone numbers in addition to the above mentioned requirements, so if they did, then that too should be recorded on the strata roll (as the legislation regarding what must be recorded on the strata roll includes “information provided under a strata interest notice” or tenancy notice).

The same applies to email addresses unless the owner has given their email address as their address for service of notice (instead of a postal address).

Therefore, this information may be missing from the strata roll for a reason.

However, it is not uncommon for a Strata Managing Agent to have been given contact 11

How much detail about the DA should the OC request?

As Council requires the owners corporation to sign off on a development application before it can be considered, how much detail is the owners corporation justified in asking the lot owner?

An owner of a lot wishes to put in a DA for change of use of a commercial premises in a strata complex that will involve some modifications such as added toilets. As Council requires the owners corporation to sign off on the application before it can be considered, how much detail is the owners corporation justified in asking of the owner?

Can the OC ask for finalised plans and details such as the precise nature of the works including who will perform the work?

Leanne Habib | Premium Strata info@premiumstrata.com.au

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READ MORE ON THIS TOPIC HERE

The legislation doesn’t have any restriction on how much information you can ask for.

The legislation doesn’t have any restriction on how much information you can ask for.

The general rule of thumb is you should be asking for everything that you need to satisfy yourself that the works are acceptable to you as an Owners Corporation or will have no detriment impact or to another law or the common property.

Generally speaking, we asked for all the plans (where relevant) whether they are plumbing, electrical, architectural, structural, depending on the nature of works. We also ask for a detailed letter summarising the proposed changes so that we can then determine if a bylaw is required, and what other consents, as an Owners corporation, are required.

You can ask for any information that you need.

There is no limit. That’s the short answer.

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Why airspace is going to be the big real estate trend of this decade Australia is poised to admit large numbers of immigrants to kickstart the post-Covid economy, which begs an obvious question – where will all these people live?

One answer might be to take advantage of a growing real estate trend called airspace development.

The New South Wales public service recently advised Premier Dominic Perrottet to admit 2 million immigrants over the next five years in that state alone – which would be the equivalent of adding another Perth to the population.

Furthermore, before Covid, Australia’s population was growing by 1.5% per year, according to the Australian Bureau of Statistics, with 79% of that growth occurring in the capital cities.

So Australia’s capital cities are likely to get a large influx of new residents. Most capital city residents want to live in the inner and middle rings. However, all that land has already been taken or is too valuable. The recent property boom has seen prices across the combined capital cities soar by 20.8% over the year to October, according to CoreLogic.

As a result, the only way to fit more people into those suburbs is to build up. Partly, that can be done by replacing houses with apartment blocks. But Warren Livesey, founder of Buy Airspace and a strata property development specialist, said there’s also another solution that will become increasingly popular: airspace development.

Warren Livesey Strata Development Specialist Buy Airspace 0415 254 420 14 www.lookupstrata.com.au

warren@buyairspace.com.au

www.buyairspace.com.au

“With land at a premium and in short supply, this empty space is becoming an increasingly valuable asset – something many strata owners will soon realise.

“Think how many unused roof spaces there are in our capital cities – all of which can potentially be developed into top-floor apartments.

“Rather than letting it go to waste, strata owners will increasingly capitalise on this airspace – especially when they see other developments go up around them.”

Strata owners can sell their airspace to investors or group together and undertake the project themselves. Either way, Mr Livesey said it could be a win-win for all involved.

“Airspace development involves taking the unused roof space in strata complexes and using it to build new properties. I’m convinced it’s going to be the big real estate trend of this decade,” “The developer gets a valuable piece of land they can turn into top-floor apartments – often with stunning views. Penthouses are also typically cheaper to build than apartments at lower levels as the foundations, services and access points are already there. So they only require lightweight construction,” he said.

“Strata owners can use the proceeds from the sale to pay for repairs and maintenance of their building.”

However, Mr Livesey said that for airspace developments to go ahead, strata owners need council approval and also support from their fellow residents. In New South Wales, for example, a project can be approved only if it’s supported by at least 75% of the owners.

“Since 2008, I have been helping strata owners leverage the untapped potential of their strata property” 15

Do I need permission to install a deadlock?

I am concerned about security in my apartment and would like to install a deadlock on my front door.

To comply with fire door safety regulations, do I require approval from the owners corporation?

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The front door and the lock are traditionally common property, so you definitely require approval from the owners corporation.

The front door and the lock are traditionally common property, so you definitely require approval from the owners corporation to modify it.

Once approved, if the door is fire rated, you will also need to select a lock that is approved for fitment on that particular model of fire door.

I’d suggest you use the word “deadlatch” in lieu of “deadlock” as whatever locking mechanism you choose, it must not prevent the door from closing & latching automatically.

Deadlocks and deadbolts often do not allow this.

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WHAT STRATA AND BUILDING MANAGERS NEED TO KNOW ABOUT ELECTRIC VEHICLE CHARGING Electric vehicles accounted for approximately 1.6% of new car sales in Australia in 2021. While this is only a small number, Norway went from a similar level of 0.9% in 2011 to nearly 75% in 2021 and with so many more electric vehicle choices becoming available it’s quite conceivable that Australia will see a similar growth rate in the next decade. Regardless of the exact final number, we will certainly see a dramatic increase in the ownership rates and for buildings with multiple tenants. It is only a matter of time before one or more of those tenants has an electric vehicle. The question is, what is required to support these electric car owners?

TYPES OF CHARGING There are going to be different charging habits depending on the driver. Many people will be able to charge their car at home or at the office. In the industry this is known as destination charging, as opposed to public charging at shopping centres, carparks, or corridor charging stations beside highways.

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There are two charging technologies available, Alternating Current (AC) and Direct Current (DC).

AC charging supplies the car with AC power just like any other appliance and then the Onboard Charging Module (OCM) in the car converts this to DC to meet the requirements of the battery.

With AC charging there are simple cables that plug into the standard 10A General Purpose Outlets which provide 2kW of charging power or there are dedicated wallboxes that range in power from 3.7 to 22kW. The charging speed is often limited by the cars OCM with most models having a 7kW or 11kW capacity.

The other technology available is DC charging which bypasses the OCM and goes straight into the battery allowing greater power levels and faster charging.

DC Charging ranges from 24kW wallboxes, thru 50kW floor standing right up to 350kW versions.

Using a typical EV, for example the Ioniq 5 which has a 62.0kWh battery, charging times will vary using different charging technologies: 2kW 10A GPO Trickle Charging: 22kW AC Wallbox: 50kW DC Fast Charge: 150kW DC Ultra Fast Charge:

36 hours

WILL ADDING CHARGERS FOR EVERY TENANT OVERLOAD MY ELECTRICAL SUPPLY? Unlikely for two reasons. Firstly, not all tenants are going to be charging at the same time, especially when you consider that each tenant may only need 6 hours of charging time in a 168 hour week.

The second reason is that many chargers can provide load management. The Terra AC Wallbox range from ABB can monitor the electricity usage of the rest of the building and set the charging level based on what supply capacity is available at that time, throttled at busy times in the evening and increased in quiet times late at night.

6 hours 1 hour 18 minutes

The other thing to consider is the charging frequency.

In petrol cars, most people wait until the tank is getting low before pulling into a service station to fill up, rather than stopping every single day because of the inconvenience. However with AC charging available at their own residence, many people will change to a top up mentality. A full battery charge in a car will cover the average driver for a week’s worth of journeys, so the times quoted above are the total amount needed per week, not necessarily in a single session.

IS BIGGER AND FASTER ALWAYS BETTER?

HOW DOES THE TENANT PAY FOR THE ELECTRICITY THEY USE?

In short, no. If a tenant is parking their car in a residential building overnight, they’re going to be there for approximately 12 hours. An AC wallbox will be capable of providing a full charge in one night and are the ideal solution for this situation.

Even if their stays are shorter or interrupted, it’s likely that they don’t need an empty-to-full charge anyway. It’s hard to justify the additional cost of a larger or faster charger when the tenant doesn’t need the quick turnaround time.

In situations where the wallboxes are installed in a shared area, or are fed from a communal supply for wiring simplicity reasons, then the wallbox provides the ability to link charging to a user account. The two simplest methods for doing this are with RFID cards or a smartphone app.

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Would a bylaw banning dogs be unreasonable?

Would a bylaw banning dogs in case they dug up the proposed new lawn be considered ‘harsh, unconscionable and oppressive’?

We live in a small, 12 unit pet-friendly building in Sydney. One owner is trying to ban dogs from our communal backyard or at a minimum insist they be leashed. The courtyard is fully enclosed and this is a big drawcard for those moving in with a dog.

The reason for the change is that ‘if’ we lay new grass, dogs will dig it up. There are 5 dogs in the building and none have dug up any of the gardens to date. All the resident dogs are small and cause no bother.

I assume that to change the rules of the use of communal space, a by-law is required but would this type of bylaw be considered ‘harsh, unconscionable and oppressive’?

It is unlikely that a by-law based on such a hypothetical situation where there is no history to back it up, would be valid.

A by-law approved by special resolution of a general meeting is required to legally regulate activities that occur in a common area such as stipulating binding rules on the conduct and supervision of dogs on a common area such as the communal backyard. However, the rules would have to be reasonable.

You have indicated that there is no history of any dog damaging the communal backyard, and there is only a hypothetical situation that at some unknown point in the future 20 www.lookupstrata.com.au

the owners corporation may want to law new grass which could be damaged by a dog based on the view of one owner out of 12. In line with the principles discussed in the decision in Cooper v The Owners – Strata Plan No 58068 [2020] NSWCA 250, it is unlikely that a by-law based on such a hypothetical situation where there is no history to back it up, would be valid and such a by-law would likely be ruled invalid because it is harsh, unconscionable or oppressive (see sections 139(1) and 150(1) of the Strata Schemes Management Act 2015 (SSMA 2015)).

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Model by-law 4 for pre 1996 strata schemes and the current model by-law 3 that prohibit owners and occupants from damaging lawns and gardens.

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Model by-law 5 for pre 1996 strata schemes that prohibits owners and occupants from damaging common property.

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Section 153 of the SSMA 2015 that prohibits owners and occupants using common property in a manner or for a purpose that interferes unreasonably with the use of the common property by another occupant.

This is backed up by section 137B of the SSMA 2015 and clause 36A of the Strata Schemes Management Regulation 2016 which basically say that if a dog repeatedly causes damage to common property (ie the damage has already occurred and is not a hypothetical situation) then it is deemed to unreasonably interfere with another occupant’s use and enjoyment of the common property.

If your owners corporation is considering passing a by-law to regulate dogs in the communal backyard, then it should obtain legal advice on the proposed by-law.

READ MORE ON THIS TOPIC HERE

Carlo Fini | Lewis & Charles Lawyers carlofini@lewischarles.com.au

A by-law could probably be made regulating dogs in the communal backyard as long as it is not over-reaching eg requiring a dog to be leashed when no one else is present such as children or elderly people may be overreaching and result in the by-law being held to be is harsh, unconscionable or oppressive.

A requirement in a by-law that a dog in the communal backyard be supervised by a responsible person would probably be valid.

Practically speaking, you have indicated that there are enough dog-friendly owners in your strata scheme who if they vote together can probably block a special resolution for a by-law being passed, so even if a by-law is proposed that would be harsh, unconscionable or oppressive if made, it is likely that by-law would never be passed.

There is probably no need to have a bespoke by-law dealing with the risk of dogs damaging the communal backyard because there are other provisions in the SSMA 2015 and model by-laws that can deal with that situation including:

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Should our strata plans comply with the DA conditions?

Should our strata plans comply with the DA conditions and concessions?

If you don’t comply with the DA conditions, then the work won’t comply.

A DA (development application) approval is the basis on which the local council has approved the works at the property. If you don’t comply with those conditions then the work won’t comply, which could mean additional costs to rectify the non-complying issues or requiring the work to be redone.

If they are not happy with the DA conditions etc, there are ways to appeal that approval but there would need to seek legal advice on these options.

READ MORE ON THIS TOPIC HERE

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Michael Ferrier | Eyeon Property Inspections michael.ferrier@eyeon.com.au

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Can the strata committee make parking in common areas legal?

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If the majority of residents in a strata scheme do not want our parking bylaws enforced, can the strata committee make parking in common areas legal?

The strata committee has conducted an online survey with all residents to ask them if they want parking bylaws to be enforced. If the majority of residents in a strata scheme vote against bylaw enforcement in the common area, can the strata committee make parking in common area legal?

What happens to the residents who are affected by others parking on common property? I’m concerned about blocked strata footpaths, internal strata road obstructions, accidents or mishaps occurring due to the relaxing of parking rules.

The Strata Committee is unable to make such a decision.

The Strata Committee is unable to make such a decision regarding visitor parking. Usually, the council will require a certain number of visitors car parking spaces to be provided as part of the Development Approval conditions of consent.

By this point, I mean that even if the Strata Committee passed a by-law / changed the by-laws to allow resident parking in the visitors parking spaces, it would almost certainly be an invalid by-law as it will put the building into a breach of the DA. I think the Strata Committee is heading in the wrong direction on this item.

READ MORE ON THIS TOPIC HERE

Rod Smith | The Strata Collective rsmith@thestratacollective.com.au

The Strata Collective.

Where People Matter.

The Strata Collective was formed with a simple goal – to provide a professional strata management service to clients who want a close, personal relationship with their Strata Manager.

We are a next generation Strata Management business that you can count on.

Find out more about our award-winning services at thestratacollective.com.au 25

Where does GST appear in Our Financial Statements?

Where should the income (refund) show in the financial statements for the return of GST?

The way that is accounted for, is in a liability account in the balance sheet called GST payable.

Every taxpayer in this country whether you’re an individual, a company, an Owners Corporation, that is registered for GST, you are an unpaid employee of the Australian Taxation Office.

GST is a tax that you collect on levies. It’s a tax that you pay on your expenses, your repairs, and whatever is left over, you hand over to the government. The way that is accounted for, is in a liability account in the balance sheet called GST payable. That can be negative sometimes if you’re going to get a refund.

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GST does not go through the income and expenditure statement at all. All of the numbers in the income and expenditure report are GST exclusive. This GST liability account in the balance sheet is like a clearing account. You collect GST, you pay GST out. Whatever’s left you pay to the tax office or if it’s a refund, the tax office pays to you and that GST clearing account at the end of each quarter should come to zero.

READ MORE ON THIS TOPIC HERE

Rod Laws | TINWORTH & CO RodLaws@tinworth.com

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Australian Standards Standards (AS) (AS)

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Records the service cycle of your asset and assists with budgeting.

27

Reimbursement for Repairs of Common Property

The waterproofing on my balcony needs repair. If the decking on the balcony is damaged during the repair, is the owners corporation responsible to replace it?

In my apartment I have an outside balcony deck that has waterproofing underneath.

The waterproofing is leaking into the downstairs lot and is about to be repaired.

The owners corporation is paying for the waterproofing, but do they also pay to pull up the decking? It’s not my fault that it needs to be removed.

If the decking is damaged during the repairs and can’t be reused, is the owners corporation required to replace the decking?

If the Owners Corporation concedes that the waterproofing is at its cost and responsibility, they are liable for any damage to your lot or any of its contents caused by carrying out such works, unless the damage arose because the Owners Corporation was obstructed or hindered.

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If you installed the decking, you should have a by-law authorising such an installation, and, that by-law would likely specify whose ongoing responsibility the waterproofing and/or decking would be.

If your decking is an original installation, ie it was installed at the time of registration of the strata plan, the by-laws and/or strata plan may direct whose responsibility the deck and/or waterproofing are.

For example, the deck may be wholly within your cubic lot space and wholly your responsibility.

As a general proposition, if the Owners Corporation concedes that the waterproofing is at its cost and responsibility, and

carries out such works, the Owners Corporation is liable for any damage to your lot or any of its contents caused by the carrying out of such works, unless the damage arose because the Owners Corporation was obstructed or hindered. If the deck was installed by you, that arguably could be construed as you causing an “obstruction” – ie the Owners Corporation had to remove and potentially damage your deck in order to carry out its duties regarding waterproofing. On the other

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hand, if the deck is properly authorised or common property, it is likely that the Owners Corporation would be liable to rectify any damage or re-instate it if damage occurred.

In sum, it is difficult to determine with any precision whose responsibility damage to the deck would be where it is not known if the deck is an approved structure, lot or common property.

Leanne Habib | Premium Strata info@premiumstrata.com.au

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YOUR GUIDE TO THE PROFESSIONAL STANDARDS SCHEME (PSS)

The SCA (NSW) Professional Standards Scheme (PSS) commenced on 1 July 2021 to ensure high professional standards across the strata industry in NSW. The formal recognition is the first of its kind for the property services sector in Australia.

• An increase in Continual Professional Development (CPD) requirements for Strata Managers and Licensees in Charge will ensure the industry remains up to date, educated and aware of their on-going consumer responsibilities.

What is a Professional Standards Scheme (PSS)?

A PSS is a legal instrument that binds associations, such as SCA (NSW), to monitor, enforce and improve the professional standards of their members and protect consumers.

What are the requirements for SCA (NSW) members under the new scheme?

SCA (NSW) members are bound: » By a Code of Ethics that compels them to act honestly, ethically and with a duty of care to their clients; » To comply with a formal complaint and discipline regime if they receive a consumer or industry participant complaint; » To comply with a continuous education regime that is double the current requirements of a strata manager licence or certificate under Fair Trading; and » To meet certain practice standards in dayto-day operations, and to agree to regular auditing to ensure compliance with the Code of Ethics.

The PSS exists to help consumers, governments and professionals distinguish between the professional and the field of people claiming to be professional.

Every PSS is overseen by the Professional Standards Councils, an independent statutory body that approves, monitors and enforces PSS under three pillars: 1. Protect consumers 2. Improve professional standards 3. Help associations Who will the SCA (NSW) PSS apply to?

Strata management companies and individual strata managers who are members of SCA (NSW) and provide strata management services to consumers who own or live in a strata title property in NSW. How does the PSS benefit consumers?

• SCA (NSW) will oversee and self-regulate the conduct of all members within a structured professional framework.

• Consumers in NSW will have access to a formal complaint and disciplinary system assuring them an independent review and response.

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SCA (NSW) will also be obliged to report to Professional Standards Australia on member activity and adherence to the PSS. Where can I find out more information?

SCA (NSW) website – https://nsw.strata. community/professional-standards-scheme/ Phone: (02) 9492 8200 Email: pss.nsw@strata.community

BECOMING A MEMBER IS EASY....

Contact SCA (NSW) today

MEMBERSHIP BENEFITS Join our industry association to access exclusive benefits such as: 9 Credibility and recognition of being an accredited professional member 9 Continuing Professional Development 9 Strata specific education courses 9 Industry awards recognition 9 Networking events WHO WE ARE The peak industry body for Strata and Community Title Management in NSW. WHAT WE DO Proudly fulfil the dual roles of a professional association and consumer advocate for strata managers, strata owners and suppliers to the sector.

WHY IT MATTERS Raises strata industry standards overall and provides members with professional recognition and a competitive advantage.

(02) 9492 8200

membership.nsw@strata.community

nsw.strata.community 31

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Your source of reliable Strata news and information since 2013 Providing detailed, practical, and easy to understand strata information to all Australians.

Articles & Q&As The Strata Magazine Webinars & Newsletters The LookUpStrata Directory

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ANTENNAS Install My Antenna

Professional TV Antenna Service For You Today P: 1300 800 123 W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au

EDUCATION & TRAINING LookUpStrata

Australia’s Strata Title Information Site W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au

Your Strata Property

Demystifying the legal complexities of apartment living

W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au

Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@stratacommunity

SOFTWARE Taskflo

Online Building and Facilities Management P: 1300 850 837 W: https://www.taskflo.com.au/ E: Info@taskflo.com.au

Mimor

Connecting People – Creating Communities P: 0414 228 644 W: https://www.mimor.com.au/ E: info@mimor.com.au

Streamlining strata P: 1800 656 368 W: https://www.stratamax.com/ E: info@stratamax.com

MYBOS

Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com.au/ E: sam@mybos.com.au

Strata Vault

Securely share documents with third parties P: 1300 0 VAULT (82858) W: https://www.stratavaults.com/ E: julie@thestratavault.com

ACCOUNTANTS Tinworth & Co

Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com

FACILITY MANAGEMENT LUNA

Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management

First Facility Management Pty Ltd Putting You First P: 042083404 W: https://firstfm.net.au/ E: admin@firstfm.net.au

Noble Management Group

We offer premium services in Facilities Management

Stratabox

Customer Service Software for Strata P: 1300 651 506 W: https://stratabox.com.au/ E: contact@stratabox.com.au

ResVu PTY LTD

StrataMax

Building Confidence P: 08 7477 8991 W: https://resvu.com.au/ E: enquiries@resvu.com.au

P: 1300 242 083 W: https://www.noblemg.com.au/ E: grepice@noblemg.com.au

INTERNET & TELECOMMUNICATIONS Spirit Technology Solutions Do IT with Spirit P: 1800 774 748 W: https://www.spirit.com.au/ E: developers@spirit.com.au

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BUILDING ENGINEERS & INSPECTORS Auric Projects

Managing clients’ property projects professionally P: 02 9918 2200 W: https://auricprojects.com.au/ E: info@auricprojects.com.au

Sedgwick

Building Consultancy Division & Repair Solutions W: https://www.sedgwick.com/solutions/global/au E: info@au.sedgwick.com

Leary & Partners

Quantity surveying services since 1977 P: 1800 808 991 W: https://www.leary.com.au/ E: enquiries@leary.com.au

Mabi Services

Valuations, Maintenance Plans, Asbestos P: 1300 762 295 W: https://www.mabi.com.au/ E: info@mabi.com.au

HFM Asset Management Pty Ltd Building Efficiency P: 1300 021 420 W: https://www.hfmassets.com.au/ E: info@hfmassets.com.au

Quality Building Management

keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: qbm@qbm.com.au

Voltin

10,000 safer cities P: 1800865846 W: https://www.voltin.com.au/ E: accounts@voltin.com.au

Roscon

Property services & facilities management P: 1800 767 266 W: https://www.roscon.com.au/ E: info@roscon.com

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Core Project Consulting

Independent Expertise. We’ve got you covered!

P: 02 8961 3250 W: https://core.engineering/ E: admin@core.engineering

Seymour Consultants

Body Corporate Report Specialists W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au

Forte Asset Services

Operational Excellence in Every Building P: 1300 920 752 W: https://www.forteassetservices.com.au/ E: info@forteas.com.au

Independent Inspections

Sinking Fund Forecast, Insurance Valuations, OHS P: 1300 857 149 W: http://www.iigi.com.au/ E: admin@iigi.com.au

QIA Group

Comapliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au

Budget Vals

Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au

Solutions in Engineering

Quality Reports On Time, Every Time!

P: 1300 136 036 W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com

Landlay Consulting Group

A Strata Remedial Consultancy P: 02 8095 8556 W: https://www.landlay.com.au/ E: admin@landlay.com.au

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INSURANCE Strata Insurance Solutions

Online strata insurance quotes P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au

Whitbread Insurance Brokers Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au

QUS Pty Ltd

Strata Insurance Underwriting Agency P: 1300 814 011 W: https://www.qus.com.au/ E: qus@qus.com.au

CHU Underwriting Agencies Pty Ltd

Specialist Strata Insurance Underwriting Agency P: 1800 022 444 W: https://www.chu.com.au/ E: info_nsw@chu.com.au

Strata Community Insurance

Protection for your strata property. And you.

P: 1300 724 678 W: https://www.stratacommunityinsure.com.au E: myenquiry@scinsure.com.au

Flex Insurance

Your Cover Your Choice P: 1300 201 021 W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au

ROOFING Apt Roofing Pty Ltd

Everything Roofing!

P: 02 9666 7373 W: https://www.aptroofing.com.au/ E: admin@aptroofing.com.au

STRATA LAWYERS Holman Webb Lawyers

Body Corporate and Strata Dispute Experts P: 61 732 350 100 W: https://www.holmanwebb.com.au/ E: contact@holmanwebb.com.au

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Kerin Benson Lawyers Pty Ltd

Specialised Legal Advice for Strata P: 02 8706 7060 W: https://kerinbensonlawyers.com.au/ E: enquiries@kerinbensonlawyers.com.au

Bannermans Lawyers

High Quality Specialist Legal Services P: 02 9929 0226 W: https://www.bannermans.com.au/ E: enquiries@bannermans.com.au

Lewis & Charles Lawyers

Law shouldn’t be hard, so we’ve made law easy P: 02 9159 9053 W: https://www.lewischarles.com.au/ E: carlofini@lewischarles.com.au

Grace Lawyers

Know. Act. Resolve.

P: 02 9284 2700 W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au

Speirs Ryan

Client focused, boutique property law firm P: 02 9248 3400 W: https://www.speirsryan.com.au/ E: ssaw@speirsryan.com.au

Watson & Watson Lawyers

“when experience matters”…..

P: 02 9221 6011 W: https://www.watsonandwatson.com.au/ E: richard@watsonandwatson.com.au

RC & CO Lawyers

Effective, resource, clear.

P: 1300 072 626 W: https://www.rccolawyers.com/ E: assistant@rccolawyers.com

Bugden Allen Graham Lawyers

Specialising in property development & strata law P: 02 9199 1055 W: http://www.bugdenallenlawyers.com.au/ E: info@bugdenallenlawyers.com.au

JS Mueller & Co Lawyers

Specialist ‘Plain English’ NSW Strata Lawyers P: 02 9562 1266 W: https://www.muellers.com.au/ E: enquiries@muellers.com.au 37

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STRATA MANAGEMENT Premium Strata

Diamond-Class strata management agency P: 02 9281 6440 W: https://www.premiumstrata.com.au/ E: info@premiumstrata.com.au

Vital Strata

Strata Made Simple P: 02 9008 1112 W: https://www.vitalstrata.com.au/ E: hello@vitalstrata.com.au

Sky Living Strata

Providing a superior customer experience P: 02 9299 1100 W: https://www.skylivingstrata.com.au/ E: enquiries@skylivingstrata.com.au

Bright & Duggan

Strata Professionals P: 0299027100 W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au

Civium Communities

When you build trust, you build a community P: 1300 724 256 W: https://civium.com.au/ E: clientservices@civium.com.au

Norwest Strata Management

Efficient & Effective Strata Management Solutions P: 02 9086 9123 W: https://www.norweststrata.com.au/ E: mail@norweststrata.com.au

The Strata Collective

A next generation strata manager. People matter.

P: 02 9879 3547 W: https://www.thestratacollective.com.au/ E: rsmith@thestratacollective.com.au

STRATA REPORTS EYEON Property Inspections

Buy and Sell with More Confidence P: 1300 798 274 W: https://www.eyeon.com.au/ E: info@eyeon.com.au

BIV Reports

Specialist in Strata Compliance Reports P: 1300 107 280 W: https://www.biv.com.au/ E: biv@biv.com.au

Covid19 Plans

Covid19 Safety Plans for Strata P: 1300 828 344 W: https://covid19plans.com.au/ E: plans@covidplans.com.au

CLEANING Pacific Facility Services

Strata Property Cleaning & Ground Maintenance Services

P: 1300 378 388 W: http://www.pacificfs.com.au/ E: a.smith@pacificfs.com.au

Ai Odour Control Systems

Actualise your facilities’ potential P: 1300 728 760 W: https://www.aiodourcontrolsystems.com.au/ E: info@aiodourcontrolsystems.com.au

OZ Bin Cleaning

The Bin Cleaning & Hygiene Professionals P: 1300 651 165 W: https://www.ozbincleaning.com.au/ E: penny@ozbincleaning.com.au

STRATA LOAN PROFESSIONALS StrataLoans

Strata Central

Boutique Strata Management Services W: https://stratacentral.com.au/ E: enquiries@stratacentral.com.au

The Experts in Strata Finance P: 1300 785 045 W: https://www.strata-loans.com/ E: info@strata-loans.com

Townhouse Strata PTY Ltd

Lannock Strata Finance

Strata Management with a Difference P: 02 4971 0363 W: https://www.townhousestrata.com.au/ E: alan@townhousestrata.com.au

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The Leading Strata Finance Specialist P: 1300 851 585 W: https://lannock.com.au/ E: strata@lannock.com.au

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CLOTHESLINES Lifestyle Clotheslines

Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au

DEFECT RESTORATION TD Equipment and Trade Hire

Maintenance Roofing and Cleaning Services P: 0403 032 229 E: tamika@tdequipmenthire.com

Klaar

The Strata Building Specialists P: 02 8003 4547 W: https://klaar.com.au/ E: build@klaar.com.au

ELECTRICAL Altogether Group

Power.Water.Data P: 1300 803 803 W: https://altogethergroup.com.au/ E: eaustin@altogethergroup.com.au

Energy On Pty Ltd

Providing utility network solutions P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au

ENM Solutions

Providing Solutions for Embedded Networks P: 03 9836 6366 W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au

McIntosh Electrical Pty Ltd

Powered by Trust P: 1300 627 727 W: https://www.mcintoshelectrical.com.au/ E: jenny@mcintoshelectrical.com.au

FIRE SERVICES 2020 Fire Protection

Experts in Fire Protection for Strata P: 1300 340 210 W: https://www.2020fireprotection.com.au/ E: service@2020fire.com.au

Fire Safety Constructions

Compliant Specialist since 1999 P: 02 9945 3499 W: https://www.firesafetyconstructions.com.au/ E: info@firesafetyconstructions.com.au

Linkfire Pty Ltd

Your Essential Safety Partner P: 1300 669 439 W: http://www.linkfire.com.au/ E: sales@linkfire.com.au

Betta Fire Protection

Compliance you can trust P: 02 8669 9108 W: https://bettafireprotection.com.au/ E: info@bettafireprotection.com.au

PAINTING 3 Colours Painting Services P: 1300 883 635 W: https://3colours.com.au/ E: 3colours@3colours.com.au

Calibre Coatings

Delivering Excellence in Painting Services P: 08 9331 5553 W: https://www.calibrecoatings.com.au/ E: wa@calibrecoatings.com.au

Higgins Coatings Pty Ltd

Specialist painters in the strata industry P: 1300 HIGGINS W: https://www.higgins.com.au/ E: info@higgins.com.au

Dulux Property Services

Total Building Maintenance & Remedial Solutions P: 0434 834 799 W: https://www.duluxconstructionsolutions.com.au/ E: propertyservice@dulux.com.au

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PLUMBING Sydney Central Pumps

Fixing Pump Problems within for 20+ years P: 1300 558 059 W: https://www.scpumps.com.au/ E: service@scpumps.com.au

WINDOWS & DOORS Windowline Pty Ltd

Australia’s strata replacement window & door specialists

P: 02 8304 6400 W: https://windowline.com.au/ E: info@windowline.com.au

The Window Guy

Stormwater Sydney

Inspection, Repair and Maintenance of drainage assets

P: 1300 741 003 W: https://stormwatersydney.com/ E: admin@stormwatersydney.com

HYDRAULICA Pty Ltd

Specialise in Drain & Pipe Cleaning W: https://www.hydraulica.com.au/ E: darren@hydraulica.com.au

SAFETY & SECURITY

Don’t choose any guy, choose The Window Guy! P: 1300 663 664 W: https://www.thewindowguy.com.au/ E: info@thewindowguy.com.au

Select Window Installations

Windows & door replacement specialists P: 02 9938 1500 W: https://www.selectwindows.com.au/ E: sales@selectwindows.com.au

SUSTAINABILITY & ENERGY

QUATRIX PTY LTD

The Green Guys Group

Lock, Stock & Barrel Locksmiths Pty Ltd

Humenergy

Intercoms, Access Control, CCTV, Data Installation P: 1300 659 939 W: https://www.quatrix.com.au/ E: info@quatrix.com.au No matter what time of the day, we’re here P: 0411 700 072 W: https://www.lsblocksmiths.com.au/ E: info@lsblocksmiths.com.au

WATERPROOFING Superseal Protective Coatings (SPC) Waterproofing & Epoxy Specialists P: 02 9774 1004 W: https://www.spcau.com/ E: info@spcau.com

Australia’s Leading Energy Saving Partner P: 1300 511 875 W: https://greenguys.com.au/ E: sean@greenguys.com.au People, innovation and value sharing P: 1300 322 622 W: https://www.humenergy.com.au/ E: Info@humenergy.com.au

LIFTS & ELEVATORS Innovative Lift Consulting Pty Ltd

Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au

FRANCHISERS

Danrae Group

Remedial Waterproofing & Building Specialists P: 1800 326 723 W: https://www.danraegroup.com.au/ E: enquiries@danrae.com.au

The Superseal Group

Network Pacific Strata Franchise

Join our successful team P: 03 9999 5488 W: www.networkpacificstratafranchise.com.au/ E: networkpacific@franchisedevelopments.com.au

Trusted Experts in all aspects of Waterproofing P: 07 5519 4916 W: https://supersealgroup.com/ E: admin@supersealgroup.com

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DELIVERY & COLLECTION SERVICES Groundfloor™

Australian parcel, mail, and refrigerated lockers P: 0399824462 W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com

PROJECT MANAGEMENT Valen Project Services

Client-Side Project Management Specialists P: 02 8542 4293 W: https://valenprojects.com.au/ E: enquiries@valenprojects.com.au

CONSULTING Strata Solve

Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au

INVESTMENT SERVICES Strata Guardian

Fight low returns and rising levies with us.

P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com

RECRUITMENT SERVICES sharonbennie – Property Recruitment

Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au

MARKETING Marketing for Strata

Building Brand Authority & Thought Leadership P: 61 425 232 394 W: https://www.marketingforbusiness.com.au/ E: janette@marketingforbusiness.com.au

Would you like your Strata Story featured in the next edition of The NSW Strata Magazine?

We want to share your strata stories with the LookUpStrata community.

Some examples of what you may wish to share: • A project you have implemented in your complex that has made a positive impact (e.g a process, community building activities, parking procedure, ect) • Do you have a funny story to share about strata living?

• Have you received a response back from one of the LookUpStrata professionals that has positively impacted you or your complex?

• Have you made a change to improve sustainability?

If you would like to share your strata scheme story with the LookUpStrata community, Please send your story and photos to: administration@lookupstrata.com.au Disclaimer: If you send your strata story to

administration@lookupstrata.com.au,

you are agreeing to have your story published on the LookUpStrata platform or via social media.

We must have written permission from each individual shown in the photo. Submissions may be refused for any reason.

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