SCA Supplement, January 2017

Strata Community Australia (Qld)

| supplement

The voice of the strata industry

Resort News | January 2017

supplement | Strata Community Australia (Qld)

Meet Strata Community Australia (Qld) The Queensland strata title and community management sector is complex, yet well legislated, compared to other countries who have a high number of strata communities.

As at end September 2016, Queensland is the third largest strata title state with 442,609 lots in 46,011 schemes. The government’s budget estimations reveal that more than 50 percent of all new housing approvals are for strata communities, with a projection for South East Queensland being 60 percent infill and renewal as recently stated in the South East Queensland Plan.

The SCA (Qld) Board, November 2016 Strata Community Australia (Qld)’s purpose is to protect these strata communities and as their occurrence and value increases, SCA (Qld) advocates for the

modernisation of this important pillar of the Queensland economy to safeguard the estimated $120 billion replacement value of strata titles.

Founded 33 years ago, SCA (Qld) is a non-profit organisation that exclusively provides education to strata managers in a state that has never introduced licensing or registration for strata managers. Nevertheless, SCA (Qld) members make a conscious choice to join and voluntarily undertake ongoing training to provide excellence in customer service to the 1.1 million Queenslanders living in strata title communities.

The property sector employs one in every four Queenslanders as body corporate managers, lawyers, accountants, builders, tradesmen and contractors.

Representing consumers with a unified voice SCA (Qld)’s representation towards government has a major focus on righting what is going wrong for the 1.1 million Queenslanders living in strata communities.

Just recently, SCA has successfully initiated amendments to the Home Warranty Scheme, which now no longer applies a “multiplier” to painting, rendering, solid plastering, physical termite management work and fire protection works. This change effectively saves strata communities thousands of dollars when improving or repairing communities. SCA has long supported that strata community

2

title schemes should be treated equally to stand alone houses when in fact they are often not, as SCA (Qld) President Simon Barnard knows.

“Have you ever tried to remove a car from a spot they weren’t authorised to park it in?

Pets haven’t been allowed in your scheme? What about the smoking nuisance and what your building has undertaken to stop smoking,” Mr Barnard remarks when discussing differing benchmarks for strata.

The current Property Law Review which commenced in 2014 is addressing these by-law matters and further governance

issues that in some cases cause hundreds of thousands of dollars in additional costs to strata communities and SCA (Qld) is focussing on representing consumers. Underpinning this critical objective of the organisation is the reinstatement of the so-called Stakeholder Umbrella Group, which has been formed by non-profits SCA (Qld), ARAMA Qld and OCN Qld. Representing owners, body corporate managers and resident managers, the group collaboratively represents common interests such as removing costs for owners, increase productivity, and reducing red tape. In 2015

Resort News | January 2017 | SCA Supplement

and 2016, the group jointly submitted its responses to two key government options papers where they aligned in 90 percent of all options presented.

“Our aim is to find consensus amongst stakeholders to the benefit of all communities,” Mr Barnard says. “The group embraces technology neutral communication options such as electronic voting and electronic attendance at meetings and we have an endeavour to slice some of those unnecessary costs off communicating with lot owners,” he said. Longer term, SCA (Qld) is certain that the long-awaited Property Law Review will bring critical reforms to owners.

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supplement | Strata Community Australia (Qld)

How are body corporate managers regulated?

Advocating for some form of licensing or registration in Queensland has been a major focus for SCA (Qld) since inception.

However in December 2013, the Council of Australian Governments decided to no longer pursue a licensing regime for the strata sector.

In the absence of any government initiative, the peak industry body has implemented a self-regulatory accreditation pathway to provide a profile for body corporate managers and standards that consumers can rely upon. This pathway offers an accredited and a certified strata community manager level which reflects the intensity of professional development managers can submit themselves too.

As the only industry body in Queensland, advocacy is key to represent owners of strata and community titles. SCA (Qld) has been strongly supporting the Property Law Review that commenced in 2014 and has met with the attorney-general, industry relevant government ministers and opposition regularly. A quarterly stakeholder meeting between SCA (Qld), the Commissioner for Body Corporate and Community Management and industry groups such as the resident managers (ARAMA) and unit owners (OCN) are key to keeping a finger on the pulse of the sector. SCA directors maintain a seat on the Construction & Property Services Industry Skills Council which represent the workforce training and skills development needs of the construction and property services industries. This council is critical in the development of new qualifications such as the

Commissioner Chris Irons, Attorney-General Yvette D’Ath, SCA (Qld) President Simon Barnard, SCA (Qld) General Manager Katrin Schmidt

Commissioner Chris Irons, SCA (Qld) President Simon Barnard and Shadow Attorney-General Ian Walker updated Certificate IV in Property Management (Strata) that is currently being undertaken. A new Diploma in Strata Management is soon available and every accredited or certified strata manager must reach minimum qualification benchmarks as even a small sole strata manager will usually hold or manage in excess

Watch out for the SCA (Qld) Member logo to identify management firms committed to professionalism.

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of $1 million of body corporate funds. SCA (Qld) is continuing its commitment to provide self-

regulatory standards where there is no government scheme in place.

Housing Minister Mick de Brenni, SCA (Qld) President Simon Barnard in December 2016 at the SCA (Qld) Christmas Networking Function in Brisbane

Resort News | January 2017 | SCA Supplement

Strata Community Australia (Qld)

| supplement

supplier profile CAPITOL BODY CORPORATE ADMINISTRATION

Choosing the right body corporate manager Capitol Body Corporate Administration is an industry leader in body corporate management in Queensland.

They adopt a professional and innovative approach to their dealings with building managers/ caretakers, committees and owners and are always looking at ways to better deliver their services. Below are some of Capitol’s points of difference.

Capitol Community Relationship Managers are formally qualified experts in management and are all members of Strata Community Australia (Qld). You can read more about each manager on the Capitol website.

Innovative technology solutions Capitol offers lot owners access to a secure online portal where you will find information about your body corporate.

Expert advice and community relationship management

•

Statements and levy information

Capitol’s services are personalised and cost effective. The team has over 100 years of collective relevant experience which is applied to every situation, with a tailored approach when working with building managers/caretakers, committees and owners to achieve the best outcome every time.

All clients are provided direct contact details for their Community Relationship Manager.

•

Community management statement (including by-laws and plans)

•

•

Building reports (including insurance valuations, safety audit reports and sinking fund forecasts) Meeting minutes

Committee members and building managers have access to additional information including financial statements.

Easy online invoice approvals – Invoice approval hub Capitol has recently introduced the invoice approval hub. The system enables the committee to approve invoices quickly and securely online. The system is flexible and can support your existing approval arrangements (e.g. building manager approves first, then treasurer approves). This system is provided at no additional cost, and your creditors will be paid faster.

Capitol does things differently •

Assistance with arranging maintenance and repairs

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Emergency after-hours maintenance phone service

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Online forms for lot improvements, pet requests, insurance claims and more

•

Easy to understand explanations of body corporate topics in their resource centre

•

Records stored electronically,

Resort News | January 2017 | SCA Supplement

for quick supply of information when you need it Capitol has a dedicated new business team who ensure seamless transition to Capitol for existing bodies corporate, and work with developers in establishing new schemes.

Committee and owner training sessions The best communities have the most informed owners and so it is vital that you find a manager who provides free ongoing education materials to owners on body corporate topics. To assist with this, Capitol provides valuable resources including links to external training providers, content from the Capitol seminar series and video presentations by expert speakers.

Find body corporate information, seminar materials and more in the resource centre by visiting www.capitolbca.com.au.

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supplement | Strata Community Australia (Qld)

Queensland is becoming Strata-land The Queensland strata sector has continued strong growth.

A year-on-year growth of 3.8 percent in lots registered in Queensland is quite encouraging for the strata sector as 1,259 schemes with 16,737 lots have come onto the market within the 2015/16 financial year.

This represents a 2.8 percent (schemes) and 3.8 percent (lots) growth in Queensland.

Logan, for the first time, was in the top six of local authorities with 15,077 lots registered. Most schemes fall into the standard module (29,009), followed by the small schemes module (9,513 schemes).

The Queensland market is dominated by six lots and under schemes (32,126) with another 9,379 schemes falling into the under 20 lot category. There are

only 423 “super-size” schemes (or under one percent) in Queensland having 100 lots and more.

The strongest growth in scheme development by far has been the six lot and under segment (869 schemes with 2,374 lots registered in the last 12 months).

Most of the 16,737 new lots in the March-to-June 2016 quarter were registered in Brisbane (2,775) with the Gold Coast (583) and Moreton Bay (482) following significantly lower.

Of the over 2.6 million strata titled lots Australia-wide, SCA (Qld) members represent more than 283,000. That is a large proportion of the 442,609 lots in the state, especially considering that many of the 104,725 lots registered in six packs and under are not professionally managed. ■

Accreditation pathway attracts talent to the sector Implementing a quality seal for professional strata managers that transparently and confidently demonstrates the level of commitment to excellence in service has increased the trust in SCA members.

Serving as an objective set of qualifications, accredited and certified strata community managers have mandatory training requirements to receive these post-nominals and are required to subsequently undergo professional development continuously. The SCA (Qld) accreditation pathway fosters professionalism and is designed for a sector that seeks more talent as the growth ensures sustainable career development.

Member companies make a public statement that they care about being the best they can be for their clients and that they put the needs of clients at the centre of everything they do.

A career in strata has mostly been on-the-job training in the past until the industry developed qualifications that relate closely to the day-to-day work (for example a Certificate IV in strata and the introductory A100 course).

With SCA as the major driver behind industry qualifications, the organisation is now at a stage where the fine tuning of qualifications will meet industry standards better than ever before.

The Certificate IV in strata and the diploma-level strata certification are education benchmarks and serve as the organisation’s endorsement of strata managers.

As the peak industry body this is expected of SCA (Qld) and while it has been a mission to advocate for licensing or registration in Queensland, the pathway is the closest the strata sector will be able to get to in this political climate. ■

A national footprint with a local focus.

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Insurance Replacement Valuations Sinking Fund Forecasts

Painting Services

Workplace Health & Safety Reports

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Fire Evacuation Plans & Diagrams Fire Safety Training Pool Barrier Inspection & Certification Engineering Reports Quantity Surveying & Cost Planning Asbestos Auditing Termite & Pest Tax Depreciations

Contact us to find out more: programmed.com.au or call 1800 620 911

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Resort News | January 2017 | SCA Supplement

Strata Community Australia (Qld)

| supplement

Why are you in better hands with an SCA (Qld) member?

All members are qualified professionals by way of training and experience.

- Qualified: Minimum entry level for a strata management company is having a certified strata community manager on the team. To qualify for this level of accreditation, the individual must show evidence

of a Certificate IV qualification in strata management.

- Insured: Strata management companies prove a minimum level of professional indemnity insurance annually ($2 million).

- Experts: Accredited and certified strata community managers complete minimum Strata Management

A body that provides value

(Qld)’s professional standards committee.

professional development every year. The accreditation pathway sets objective criteria for strata manager’s qualifications and provides consumer confidence.

- Informed: SCA (Qld) members are up to date with legislative changes and best practice principles, participate in training that encompasses all facets of strata management including industry, regulatory and technical aspects.

- Accountable: Members abide by the SCA Code of Ethics, hence professional standards concerns can be addressed and resolved through the SCA Strata Services

Strata Owners

Aligning with a highly-respected industry body, represented in major media and the public Professional representation at government level with a focus on consumer protection and enhancing community living, reducing costs to owners and effective administration of schemes Timely information services – e-news, industry magazine, alerts

Inexpensive and convenient way to keep upto-date with industry and legislative changes

SCA (Qld) offers membership to strata management, strata services and strata owners.

Be represented on the SCA Directory available to the public Up-to-date professional education to suit the individual’s level of experience

Engagement with the managers of 85 percent of the managed lots in Queensland

Connect with top strata management and services professionals in an informal setting

Services are extended on various levels.

Access to a wide array of strata industry service providers

Build worthwhile relationships with a sector worth in excess of $100bn

SCA members are consumer advocates

Accreditation Pathway enables managers to drive their career

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Resort News | January 2017 | SCA Supplement

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supplement | Strata Community Australia (Qld)

Meet the 2016-17 board of directors

Strata Community Australia (Qld) is governed by a volunteer memberelected board of eleven directors supported by SCA (Qld) staff. Directors are elected at the annual general meeting or appointed by the board and serve a two-year term.

The strategic mission of the board is to lead, support and represent members and to promote the strata industry.

Simon Barnard FSCM (Qld) PRESIDENT

SENIOR VICE PRESIDENT

Richard Allard FSCM (Qld) TREASURER

Ian D’Arcy FSCM (Qld)

Michael Hurley FSCM (Qld)

Kerri Anthon FSCM (Qld)

James Nickless

Jason Carlson

Kay Trimble LMSCA (Qld)

Sue Seymour FSCM (Qld)

Kelly Roberts CSCM

SECRETARY

DIRECTOR

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James Freestun FMSCA (Qld)

DIRECTOR

DIRECTOR

VICE-PRESIDENT

DIRECTOR

Resort News | January 2017 | SCA Supplement

DIRECTOR

DIRECTOR

Strata Community Australia (Qld)

| supplement

Supplier Profile SMART STRATA

New online resource connects unit owners with strata experts Time poor strata managers, resident managers and Committees now have access to a one-stop digital resource, which improves industry education and provides seamless access to suppliers, news and events

mittees looking for fast access to a local services and information.

“Whether you’re looking to build your business portfolio, learn some handy new strata tips, or simply want to help others in the field, Smart Strata is a viable, free platform to contribute and access up-to-date news,” he said.

Smart Strata, developed by Archers the Strata Professionals, provides users with the latest news, events and education tools available, allowing unit owners and strata industry professionals to share cutting-edge knowledge and information on strata living.

“Smart Strata is simple to use and can help customers locate industry suppliers for their specific needs within seconds,” he said.

Archers the Strata Professionals partner Grant Mifsud said Smart Strata is the first resource in the industry to offer a comprehensive online business directory that instantly connects users with consultants, tradespeople and service suppliers.

“Once a business is listed on our Industry Supplier Portal it becomes instantly accessible to more than two million unit owners across Australia.” The portal gives businesses and tradespeople the option to upload their full list of services, business logo, licensing, insurance

details and links to their company’s website and social media pages.

“Customers are given the opportunity to rate services and provide first-hand testimonials through a unique customer rating system,” Mr Mifsud said.

Mr Mifsud said Smart Strata provides an interactive platform for businesses to engage with unit owners and help promote their services to body corporate com-

“Smart Strata allows unit owners to engage with interactive education courses and fact sheets that focus on new ways of thinking and provides valuable resources in a more efficient and economical way than ever before.

“These new resources present an opportunity for strata professionals to share expert views and collaborate with a large consumer base which would otherwise be unavailable to them.”

Be Smart about Strata www.smartstrata.com

Your comprehensive online Strata platform that covers all things strata.

Driven by professionals that know what matters most to you, Smart Strata is your newest and most comprehensive online Strata platform that covers all things strata.

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FOUNDATION MEMBERS Resort News | January 2017 | SCA Supplement

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supplement | Strata Community Australia (Qld)

SCA (Qld) networking events SCA provides members opportunities to meet important stakeholders and build a professional network

Conferencing with SCA (Qld) The annual conference attracts more than 250 professionals from the strata sector for two days of learning and excellent networking opportunities

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Resort News | January 2017 | SCA Supplement

Strata Community Australia (Qld)

| supplement

SCA (Qld) media strategy Contributing to a better understanding of the needs in strata, SCA (Qld) has a dedicated media strategy that promotes professionalism and raises consumer issues with the public

Resort News | January 2017 | SCA Supplement

11

Painting Amalgamated Property Maintenance have transformed many buildings, some with major remedial work being carried out prior to painting. We have long standing relationships and work closely with Body Corporates, Building Managers, Committees, Hotel Engineers, Project Engineers, Project Managers and Paint Manufacturers to ensure the best possible outcome.

W

A

v

Sunshine Coast Hospital

Water Proofing

Water Proofing

Water We Proofing specialise in remedial waterproofing upgrades

We specialise in remedial waterproofing upgrades to rooftops, balcony decks, planter boxes and all other leaking substrates.

Concrete Rectification

to rooftops, balcony decks, planter boxes and all other leaking substrates.

We specialise in remedial waterproofing upgrades to rooftops, balcony decks, planter boxes and all We also carry out chemical injection of substrate other leaking substrates. cracks, even at height via rope access.

We also carry out chemical injection of substrate cracks, even at height via rope access.

We also carry out chemical injection of substrate Concrete Cancer cracks, even at height via rope access.

can affect any building in which reinforced concrete is used. Early Treatment of spalling concrete will reduce the extent of the damage and be less expensive to repair.

Water Blasting

Water Blasting

Water Blasting

1.

Removal of the spalled concreteHigh pressure water blasting is always used in external

2.

paint preparation and also forms part of a paint water blasting is always used in external Cleaning and treatmentHigh of pressure the rust manufacturer’s Warranty. especially those in paint preparation and also forms part of aBuildings, paint affected steel coastal areas, attract especially salts and those pollutants. manufacturer’s Warranty.

Buildings, in

3.

Washing down your building regularly will extend Application of a suitable repair material

4.

Reforming the profile

coastal areas, attract salts and pollutants.

theyour life building of your coating as meeting the paint Washing down regularly as willwell extend of your coating as wellWarranty as meeting the paint manufacturer’s conditions. concretethetolifethe original manufacturer’s Warranty conditions.

High pressure water blasting is always used in external paint preparation and also forms part of a paint manufacturer’s Warranty. Buildings, especially those in coastal areas, attract salts and pollutants.

Washing down your building regularly will extend the life of your coating as well as meeting the paint manufacturer’s Warranty conditions.

Abseiling

Abseiling Abseiling

Amalgamated Property Maintenance offeres

Amalgamated Maintenance offeres Amalgamated Property Property Maintenance offeres

team fully trained, highlyabseilers. skilled abseilers. a teamaof fully of trained, highly skilled This method of Hi Riseoftradesmanship can result in: This method Hi Rise tradesmanship can result in:

a team of fully trained, highly skilled abseilers.

This method of Hi Rise tradesmanship can result in:

•

Reduced hire cost hire scaffold • Reduced cost scaffold

•

Reduced hire cost scaffold

•

Safety workersand the publicthe public • toSafety to workersand

•

Safety to workersand the public

•

Speeds up repaint • Speeds upprocess repaint process

•

Speeds up repaint process

Protecting Steelwork

Protecting Steelwork

Protecting Steelwork

Amalgamated Property Maintenance is experienced in coating all Amalgamated Property Maintenance is experienced in coating all Property Maintenance is experienced in coating all types of steelAmalgamated substrates. “Our commitment is your guarantee of types of steel substrates. “Our commitment is your guarantee of high quality workmanship efficient, cost service.” types of steeland substrates.

“Oureffective commitment is your guarantee of

high quality workmanship and efficient, cost effective service.”

qualityoutcome workmanship andthe efficient, cost effective service.”

The key to a high successful starts with comprehensive The key to a successful outcome starts with the comprehensive and thoroughThe surface preparation.

Amalgamated Property key to a successful outcome starts with the comprehensive and thorough surface preparation. Amalgamated Property Maintenance’s highly skilled team works in conjunction with paint and thorough surface preparation. Amalgamated Property Maintenance’s highly skilled team works in conjunction with paint manufacturers and independent consultants to achieve quality Maintenance’s highly skilled team works in conjunction with paint workmanship in all types of challenging conditions. manufacturers and independent consultants to achieve quality manufacturers and independent consultants to achieve quality workmanship in all types of challenging conditions. workmanship in all types of challenging conditions.

supplement | Strata Community Australia (Qld)

Clearing up the muddled lines: What is a body corporate?

Many people have found themselves confused about what duties fall under the responsibility of the body corporate versus the strata manager.

We spoke with Capitol Body Corporate Administration and Chris Irons, the commissioner for body corporate and community management, about clearing up this confusion. What followed was a comprehensive list of key differences between the responsibility of the body corporate and that of a strata manager, according to Capitol and the BCCM office.

Misconceptions about the duties of a strata manager 1. The strata manager is not the body corporate.

2. Body corporate levies are paid into the body corporate bank account and do not go to the strata manager.

3. The strata manager has no authority to carry out the functions of the body corporate (unless there is no committee and the strata

manager has been engaged to carry out all the functions of the body corporate under Chapter 5 of the Act).

4. The strata manager cannot approve owners’ requests as these must be approved by the committee or by owners at a general meeting (depending on the nature of the request).

5. Compliance items such as work health and safety, fire safety, insurance valuation, sinking fund forecasts and asbestos reports are imposed by various legislative requirements, they are not strata manager requirements.

Disclaimer: This information is general information only and does not constitute legal advice. These bullet points do not intend to cover all responsibilities of a body corporate manager or a body corporate. The contractual arrangement between a body corporate manager and a body corporate would normally disclose the duties of a body corporate manager.

This may or may not include all of the following duties detailed in this document. The contract should be the primary reference to determine the responsibilities of a body corporate manager engaged by a body corporate. â–

Body corporate levies are paid into the body corporate bank account and do not go to the strata manager

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

For membership enquiries: www.arama.com.au

14

(07) 3257 3927

national@arama.com.au

The body corporate

The strata manager

Maintains, manages and controls the common property for the benefit of all lot owners

Carries out the duties contained within the administration agreement with the body corporate

Sets the budgets, the amounts to be paid by the owners to make sure the body corporate has sufficient funds to meet expenses

Prepares draft budgets and financial statements for the committee to consider, approve and submit to all owners for consideration at the at the annual general meeting

Makes decisions (committee or general meeting), enforces the by-laws (the rules that apply to owners and occupiers to help regulate the use of common property and lots at each scheme)

Has no decision-making power and can only act on the instruction of the committee (including, for example, by assisting the committee to prepare the required paperwork for the enforcement of by-laws)

Insures the common property and buildings (and also insures against public risk) as required by the legislation

Arranges the insurance and pays the premiums on behalf of and at the instruction of the body corporate

Manages and maintains body corporate assets and approves related expenditure from body corporate funds

Maintains the body corporate records in accordance with the legislative requirements; conducts banking under the instructions of the committee

Keeps records for the body corporate, including minutes of meetings, roll of owners details, financial accounts, registers of assets, improvements to common property by owners, contracts register

Distributes correspondence, meeting agendas and minutes of meetings

Approves the agenda and meeting material before it is distributed (other than owner motions, which must be included without change)

Prepares meeting material and minutes of meetings at the direction of the committee.

Does not have authority to submit or amend a motion or to add an item to a meeting agenda

Chairperson chairs all meetings he or she is present at; if chairperson is not present, the persons present and entitled to vote decide who chairs the meeting (does not have to be the body corporate manager or another committee member)

Cannot chair the meetings if the chairperson is present; if chairperson is not present the persons present and entitled to vote decide who chairs the meeting (does not have to be the body corporate manager or another committee member)

Resort News | January 2017 | SCA Supplement

Strata Community Australia (Qld)

| supplement

supplier profile BILLABONG POOL SERVICE & SUPPLY

Billabong Pool Service & Supply Pty Ltd has been established on the Sunshine Coast since 1974.

For more than 35 years Billabong Pools has grown from a small business employing two, to a major presence in the industry, now employing 35.

Our shop fronts are fully stocked with the usual pool shop items as well as a considerable range of whole products and spare parts. Staff are trained and fully able to provide answers to all of your questions. We use quality Taylors Testing equipment to provide accurate results. We pride ourselves on providing accurate advice on water testing, water balance, maintenance enquiries and pool problem solutions.

Billabong Pool Service is the Coasts’ largest supplier of Dolphin Robotic pool cleaners. Since introducing these products 6 years ago, this new technology has been widely accepted and embraced by home owners and resorts. Billabong are now a Maytronics Elite Dealer offering accredited warranty & charged repairs on Dolphin products. We have found that the robotic pool cleaning technology is becoming more the norm as a standard level of equipment for new and existing pools.

Billabong pool Service & Supply are not just another Pool Shop, but a committed pool service company that holds a sound technical knowledge of the Pool Industry. Their aim is to build long-term relationships with loyal customers and assist in presenting pools in a safe and attractive condition that enhances the image of the property.

Billabong Pool Service & Supply are ‘The Pool Problem Solvers’..

Resort News | January 2017 | SCA Supplement

15

supplement | Strata Community Australia (Qld) supplier profile CHU UNDERWRITING AGENCIES PTY LTD

CHU’s New CHUniverse App and ‘Fix it’ providing Solutions for Modern Living Everybody is talking about strata. All you have to do is look at the horizon in any Australian state or city to see the cranes.

The most recent data argues that 50 per cent of Australia’s population will live in strata by 2030, according to Strata Community Australia (SCA).

Over the past few years, the concept of Digital Disruption has received a great deal of media attention. But do we understand what Digital Disruption is and do we understand the implication for the growing Strata Industry?

Let’s take a look at the much publicised Digital Disruptor Uber which is generally considered a good case study of the impacts of Digital Disruption. General frustration was experienced by consumers at the way the Taxi industry appeared to operate with poor service levels, high prices, unreliability and generally not meeting the consumers’ expectations.

Uber’s Rideshare App capitalised on these frustrations and in turn revolutionised the way we think about booking a ride. Uber’s customers don’t have to tolerate long waits on hold waiting for an operator to answer their call, they receive immediate confirmation when a car is booked and can see exactly how far away it is on their map all through the app. Uber also took advantage of the growing

digital trend with Australia being one of the highest subscribers of mobile devices per capita (source: Australian Advertising and Media Research 2015).

The Taxi industry was ripe for disruption and disruption had fairly devastating consequences for the business owners and investors, but arguably very positive impacts for the customers.

So with all of the growth statistics in the media relating to Strata and the above case study in mind, do we think the Strata Industry is susceptible to the entrance of a disruptor? The best defence to the entrance of Disruptor is assessing “are we meeting the growing expectations of our customers?” Is there an opportunity for strata to do things better? Let’s challenge ourselves to imagine a system making it easier to communicate with our customers and reduce the “Tsunami of emails” many of our Managers talk about. So the question is “are we looking at digital solutions?”

CHU has always been at the forefront of the strata market. CHU has been servicing the strata market as one of the most trusted brands since 1978 and has no plans of slowing down.

CHU was founded on the premise of innovation, taking complex problems and You simply Snap providing a simple a few quick solution. This photos commitment has not changed in the face of emerging technology and Select the date possible digital and location it disruption. CHU occurred are again looking at new ways to provide solutions for modern living.

Then hit Submit,

Fix It has been designed with ease of use and simplicity in mind.

•

You simply Snap a few quick photos

•

Select the date and location it occurred

•

Then hit Submit, it’s that easy

The greatest benefit of Fix It is allowing our customers to report something from anywhere at anytime, whether in the office, on site or on the run.

Fix It is not the only part of the CHUniverse app, there are also other time-saving features including: •

Pay It; which allows you to make policy payments quickly and easily.Check It; Instantly requests a certificate of currency.

•

Agent/Broker Log In; For registered agents and brokers and provides easy access to CHU’s online strata portal CHUniverse.

•

CHU 24 Hour Assist; allows you to reach CHU’s 24-hour assistance line for urgent repairs.

it’s that easy

Customers now expect information to be easily and readily available to them anytime, anywhere and on any device of their choosing. The same principal applies to all CHU customers (Resident Unit Managers, Strata Managers, Brokers and Direct clients). Customers are not prepared to wait for office hours to submit a claim or request a quote. Gone are the days where fax and email were the only way to process these requests.

Therefore CHU’s first release of the CHUniverse app is focussed on the Fix It feature and putting the power back into our customer’s hand.

CHUniverse and Fix It is CHU’s free mobile app cutting out the need for lengthy claims forms and the restrictions of standard office hours. Fix it allows you to quickly and easily submit a claim

16

notification in just a few taps of your finger from any mobile device

Resort News | January 2017 | SCA Supplement

The release of the CHUniverse App is only the first step in CHU’s digital plans.

Work is already underway for the next release of the CHUniverse app with even richer features and tools all aimed at providing solutions for modern living.

For more information: visit www.chu.com.au/chuniverseapp

supplement | Strata Community Australia (Qld)

Office of the Commissioner for Body Corporate and Community Management Here at the commissioner’s office, we are only too happy to answer questions (assuming they’re ours to answer) and give information about body corporate matters.

That said, there are some queries that we do hear over and over.

I present to you our list of 10 frequently asked questions you keep asking us. But seriously, the real aim of this list is to help you avoid having to make a call or send an email to our information service by setting out some of the more common queries we receive.

Q1: An owner is requesting a copy of the body corporate roll. We also have owner’s emails and phone numbers.

Do we have to release all the information or just their name and address or is there a privacy issue here?

Can we charge GST on any fees payable to the body corporate?

Chris Irons Commissioner for Body Corporate and Community Management

A1: A body corporate (and a body corporate manager) must release body corporate records upon request and payment of the prescribed fee. Body corporate records are not subject to privacy laws.

The supply of information from the body corporate roll has been addressed in several adjudicator’s orders.

In one application, the committee sought an order requiring the body corporate manager to provide unit owner

and agent contact details. The adjudicator ordered: “I hereby order that, within seven (7) days of the date of this order, (the body corporate manager) must provide all contact details for owners of lots within body corporate for (the building), and their agents, that are within its possession and which were given to it in its capacity as body corporate manager for the scheme, to the committee for the body corporate for (the building).”

While the order referred only to

the committee being provided with all contact details of owners, in the adjudicator’s reasons for decisions the adjudicator made particular reference to the Privacy Act 1988 and the requirement to release all information contained on the roll or other records, including email addresses and telephone numbers.

The release of the information related not only to committee members but also interested persons as defined by section 205 of the Body Corporate and Community Management Act 1997.

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All suppliers must receive a nomination from a property currently using their services that is completely satisfied with their levels of service and are prepared to recommend them to another complex in the industry (ie. if asked by another manager they could comfortably recommend the required supplier).

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Subject to the satisfaction of these processes and commitments suppliers then go on to the Preferred Supplier Database. Only Preferred Suppliers in this database have the opportunity to utilise the Preferred Supplier logo and make their contact details available to managers via the Preferred Supplier Directory, located in every issue of the Resort News (and online at accomnews. com.au).

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

Resort News | January 2017 | SCA Supplement

For your own peace of mind when dealing with any supplier ask if they are a Preferred Supplier. This can be verified by viewing a Preferred Supplier logo – made available for use in any of their stationery or marketing material or more simply by locating them in the Preferred Supplier Directory.

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Strata Community Australia (Qld)

Q2: An owner has requested a copy of the financial statements for each year from 2012 to 2015. This is going to take time for a staff member to locate and copy these records. Can we charge the inspection fee as well as the copy fee plus our additional charges?

A2: No. If the interested person is simply requesting photocopies of body corporate records, they only need to pay the copy fee ($0.65 per page). They do not need to pay the fee for inspecting the records ($16.10 for a lot owner and $30.95 for a

non-lot owner). With respect to additional fees being charged, this has been considered in many past adjudicator’s decisions and the same approach has been consistently applied since. In Application Ref: 0442-2001 the adjudicator stated: “…I do wish to make some comment on the resolution which has been carried by the body corporate regarding the provision of information or copies of records to owners… “...The body corporate is not permitted to impose

additional charges or fees on the provision of information to interested persons, or at least is not entitled to seek to recover those fees from such persons. If a manager, or other person, requires the payment of additional fees for the provision of information to interested persons, then this is a matter between the body corporate and the manager or other person providing the information on behalf of the body corporate.

The interested person being provided with the information is only required to pay a fee in accordance with the above

Resort News | January 2017 | SCA Supplement

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quoted section of the standard module; namely 50 cents for each page of a record supplied.

Any separate professional charge above this prescribed fee is a matter for the body corporate.”

Q3: Can we charge GST on any fees payable to the body corporate?

A3: GST is governed by federal law and the Australian Taxation Office should be consulted in regards to any queries on GST. However, the prescribed fees in the BCCM Act and regulations are GST-free.

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supplement | Strata Community Australia (Qld)

If a body corporate management company is registered for GST and must charge for their services, those charges are made directly to the body corporate via the services provided to the body corporate under their contract of engagement; not to individual owners.

Tenants keep contacting me about breaches of by-laws and maintenance issues. I have told them to contact their property agent who can then liaise with the body corporate. Is this okay?

In Application Ref: 0721-2014 the adjudicator stated: “…The act and Standard Module provide that the body corporate is required to retain certain records, and to make those records available to “interested persons” (including lot owners) within seven days of receiving a request accompanied by the prescribed fee. The body corporate is to either provide copies of records, or permit an interested person to search the records, as requested by the interested person. The prescribed fees for a lot owner are $15 to inspect the records, and 55 cents per page for copies of the records.

Bodies corporate are not at liberty to inflate the prescribed fees. The fees have the force of law and must be levied at precisely the rate stated in section 205 of the Standard Module. The body corporate’s email to the applicant on July 1, 2014 sought to impose fees of $16.50 to inspect body corporate records, and 61 cents per page for copies of the records. These amounts are 10 percent higher

than permitted by the legislation and may reflect the incorrect view that GST ought to be added to the prescribed fees.

The adjudicator in Balmattum addressed this question: “The fees are set out in the legislation, and there is no provision for GST to be added.

There is no GST payable... These are fees prescribed by legislation.

They do not, and do not intend to, represent actual costs.”

Q4: I don’t have a copy of the legislation. Where do I get it from?

A4: The legislation printing service – Lit Support - can supply upon payment hard copies of the legislation. They can be contacted on 32239200.

Alternatively, electronic copies can be viewed on our website at www.qld.gov.au/bodycorporate under the heading ‘body corporate legislation’ or on the Office of Parliamentary Counsel’s website www.legislation.qld.gov. au.

Q5: A motion was voted on at a recent general meeting and required a special resolution to pass. The votes were 21 ‘yes’, seven ‘no’ and three ‘abstain’. There is a total of 40 lots. As this didn’t get 75 percent in favour am I correct that the motion failed?

A5: Counting votes by special resolution has three elements that must be satisfied for the motion to pass. The first element states that two-thirds of the votes cast must be in favour of the motion.

Two-thirds is approximately 66.6 percent, not 75 percent. The words ‘votes cast’ means you should add up the ‘yes’ and ‘no’ votes and then calculate 66.6 percent of the total.

The number of ‘yes’ votes must be 66.6 percent of the votes cast (or more than).

Calculation: 21 ‘yes’ plus seven ‘no’ = 28 votes cast. 21 is more than two-thirds of the votes cast so this element passed. The

second element is calculating the percentage of ‘no’ votes out of the total number of lots.

There must not be more than 25 percent of the number of lots against the motion.

Calculation: If there are 40 lots, 25 percent of the total number of lots is 10. As there are only seven votes, this element of the motion passed.

The third and last element to the counting of votes for a special resolution is to consider the contribution schedule lot entitlements of all the lots and then specifically the contribution schedule lot entitlements of those lots that voted against the motion.

If all the lots have equal contribution schedule lot entitlements, then this element is automatically passed.

If the lot entitlements differ, the body corporate must ensure the total contribution schedule lot entitlements of those lots who voted against does not exceed 25 percent of the total contribution schedule lot entitlements for all the lots.

If all three elements are passed, the motion passed by special resolution.

Q6: Tenants keep contacting me about breaches of by-laws and maintenance issues. I have told them to contact their property agent who can then liaise with the body corporate. Is this okay?

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Resort News | January 2017 | SCA Supplement

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supplement | Strata Community Australia (Qld)

A6: No. Tenants have rights under the body corporate legislation.

Specifically, they are referred to as occupiers in the legislation.

Therefore, the body corporate (and the body corporate manager) should communicate directly with the tenant and in some instances, is required by law to communicate directly with the tenant. For example, if a tenant contravenes the body corporate by-laws, the committee serves the contravention notice to the tenant, naming the tenant, and gives a copy to the owner. The tenant also has rights to raise concerns about maintenance issues and request the body corporate take action. There are also a few other matters that the tenants should be communicating directly with the body corporate about.

Q7: The committee want me to call an EGM. Can I conduct the EGM by postal vote?

A7: Not for all schemes.

Schemes registered under the Small Schemes Module and the Commercial Module may vote outside general meetings (section 111 of the BCCM Act).

However, schemes registered under the Standard Module and Accommodation Module cannot

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conduct general meetings by postal vote. They must be called and held in the way provided under the regulation.

Q8: Can the body corporate, in a standard format plan, pass a motion forcing owners to vote on painting the scheme and use body corporate sinking funds?

A8: Under a standard format plan (previously known as a group title plan), the boundaries of lots are defined horizontally with references to marks on the ground or a structural element (for example survey pegs in the ground or the corner of a building) and may be unlimited vertically (section 48B of the Land Title Act 1994). The boundaries of lots are determined by measurements shown on the survey plan along with marks placed on the ground at the time of the survey.

The building on a lot in a standard format plan of subdivision is part of that lot, and not part of common property.

A lot owner is responsible to maintain the lot in good condition.

Therefore, the lot owner is responsible for the maintenance of the building, including painting the building and maintaining the

roof. The responsibility of a lot owner in this regard is not altered if the building is “standalone” as opposed to being part of a block including a building or buildings on another lot or lots in the scheme. As a result, unless the body corporate has the agreement with each owner to supply and charge those owners individually for the service, the body corporate cannot force the painting of the lot or use body corporate funds for a lot owner’s expense.

Q9: The scheme I manage is doing a million-dollar roof replacement because the roof has fallen into disrepair and this is the only option to maintain the roof. What type of resolution is required for this maintenance given the cost is so high?

A9: Maintenance above the committee’s spending limit is always an ordinary resolution.

The type of resolution does not change simply because of the cost of the maintenance.

Only if the work is considered an improvement will the cost of the improvement affect the resolution required to pass the motion.

Resort News | January 2017 | SCA Supplement

Q10: Can an ‘unfinancial’ owner submit a motion for a general meeting or be a part of a request for an EGM? A10: Yes. The legislation does not take the financial standing of an owner into consideration when exercising their right to submit motions or be a part of the 25 percent of owners to request an EGM. Their financial standing is only an issue when voting at general meeting as well as nominating or being elected to the committee.

When in doubt about the interpretation or implementation of any aspect of these Q&As, legal advice should be considered.

For further information about the enforcement of by-laws or for general queries about the body corporate legislation please contact our information service on Freecall 1800 060 119, email bccm@justice.qld.gov.au or see our website www.qld.gov.au/ bodycorporate. ■

By Chris Irons, Commissioner, BCCM

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Resort News | January 2017 | SCA Supplement