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PARLIAMENT OF VICTORIA
Owners Corporations and Other Acts Amendment
Bill 2019
TABLE OF PROVISIONS
Clause Page
Part 1--Preliminary 1
1 Purposes 1
2 Commencement 3
Part 2--Amendment of Owners Corporations Act 2006 4
3 Definitions 4
4 Functions of owners corporation 5
5 Sections 7 and 8 substituted and new section 7A inserted 5
6 Section 10 substituted 7
7 New section 17A inserted 8
8 Heading to Division 4 of Part 2 amended 9
9 Section 18 substituted 9
10 New section 18A inserted 9
11 Who must witness the use of the common seal? 10
12 Section 23 amended 10
13 New section 23A inserted 11
14 Section 24 amended 12
15 Liability of lot owners 13
16 Final notice 13
17 Section 34 substituted 13
18 Section 35 substituted and new section 35A inserted 14
19 Section 36 substituted 16
20 What must a maintenance plan contain? 16
21 Section 41 repealed 17
22 Payments into maintenance fund 17
23 Extraordinary payments from maintenance fund 17
24 Extraordinary payments for urgent matters 17
25 New section 47A inserted 17
26 Cost of repairs, maintenance or other works 18
27 When can an owners corporation authorise a person to enter a
lot? 18
28 What notice of entry must be given? 18
29 New Division 5A of Part 3 inserted 19
30 Public liability insurance 21
31 Insurance for lots in multi-level developments 21
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Clause Page
32 New section 61A inserted 22
33 Valuation of buildings 22
34 What documents must be provided at the first meeting? 23
35 New sections 67A to 67C inserted 24
36 Obligations of initial owner 25
37 Notice of special general meetings 27
38 Quorum for a general meeting 27
39 Can a general meeting proceed even without a quorum? 27
40 Notice of ballot 28
41 Resolution by ballot 28
42 Division 6 of Part 4 substituted 28
43 Sections 91, 92, 93 and 94 repealed 35
44 Interim special resolutions 35
45 Election of committee 36
46 Membership of committees 36
47 Notice of meetings 36
48 Ballots 37
49 Resolutions of committee to be resolutions of owners
corporation 37
50 Section 117 substituted 37
51 Appointment and removal of manager 38
52 New section 119A inserted 39
53 Duties of manager 41
54 New sections 122A and 122B inserted 43
55 Report 47
56 Address of absent owners 48
57 Power to make rules regarding proxies 48
58 New section 138B inserted 48
59 Rules to be of no effect if inconsistent with law 49
60 New section 141A inserted 50
61 New Part 8A inserted 50
62 Availability of records 53
63 Availability of register 53
64 Owners corporation certificate 53
65 Complaints 53
66 Decision whether to take action in respect of alleged breach 54
67 How may notice be given? 54
68 VCAT may hear and determine disputes 54
69 VCAT may dismiss application 55
70 What orders can VCAT make? 55
71 Penalty for breach of rules 56
72 What must VCAT consider? 56
73 New Division 1B of Part 11 inserted 56
74 Eligibility for registration 58
75 New section 182A inserted 59
76 New section 185A inserted 61
77 Automatic cancellation of registration 61
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Clause Page
78 New sections 186A and 186B inserted 63
79 Section 199 repealed 65
80 New section 199 inserted 65
81 New section 200A inserted 67
82 Money to be paid to Victorian Property Fund 68
83 Section 203 amended 68
84 New Part 14 inserted 69
85 Amendment of Schedule 1 71
Part 3--Amendment of other Acts 73
Division 1--Amendment of Retirement Villages Act 1986 73
86 Residents committee 73
Division 2--Amendment of Subdivision Act 1988 73
87 New section 27EA inserted 73
88 Plan must specify lot entitlement and lot liability 73
89 Creation of owners corporation 75
90 How can lot entitlement and liability be altered? 75
91 Applications relating to plans 76
92 Statute law revision 76
Part 4--Repeal of this Act 77
93 Repeal of this Act 77
═════════════
Endnotes 78
1 General information 78
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PARLIAMENT OF VICTORIA
Introduced in the Assembly
Owners Corporations and Other Acts
Amendment Bill 2019
A Bill for an Act to amend the Owners Corporations Act 2006,
the Retirement Villages Act 1986 and the Subdivision Act 1988
and for other purposes.
The Parliament of Victoria enacts:
Part 1--Preliminary
1 Purposes
The purposes of this Act are--
(a) to amend the Owners Corporations
5 Act 2006--
(i) to provide for five tiers of owners
corporations that allow for the degree
of regulation of owners corporations to
be based on the number of occupiable
10 lots; and
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Part 1--Preliminary
(ii) to remove the requirement for owners
corporations to have a common seal;
and
(iii) to allow owners corporations to
5 levy fees to cover the premiums
for reinstatement and replacement
insurance or for any excess amount
on an insurance claim; and
(iv) to allow owners corporations to dispose
10 of goods abandoned on the common
property; and
(v) to provide for what may be disclosed
at the first meeting of an owners
corporation; and
15 (vi) to amend the duties of members of
committees and sub-committees of
owners corporations; and
(vii) to further restrict the circumstances in
which a person with a criminal record
20 may be registered as the manager of an
owners corporation; and
(viii) to insert new duties of managers of
owners corporations relating to
contracts for goods or services, money
25 held on behalf of owners corporations
on trust and the obligation to disclose
beneficial relationships with suppliers
of goods or services; and
(ix) to provide for owners corporations
30 incorporated in respect of land used
or to be used for the purposes of a
retirement village; and
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Part 1--Preliminary
(x) to empower VCAT to make orders--
(A) that authorise lot owners to
commence, prosecute, defend or
discontinue any proceeding on
5 behalf of owners corporations; or
(B) to require lot owners to pay
the reasonable costs of owners
corporations; and
(xi) to make other amendments to otherwise
10 improve the operation of that Act; and
(b) to amend the Retirement Villages Act 1986
to enable the residents of a retirement village
to elect a resident committee; and
(c) to amend the Subdivision Act 1988--
15 (i) to specify how lot liability and lot
entitlement must be allocated; and
(ii) to require an initial owner to engage a
surveyor to set out the initial allocation
of lot liability and lot entitlement; and
20 (iii) to make other minor and related
amendments.
2 Commencement
(1) Subject to subsection (2), this Act comes into
operation on a day or days to be proclaimed.
25 (2) If a provision of this Act does not come into
operation before 1 January 2021, it comes into
operation on that day.
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Owners Corporations and Other Acts Amendment Bill 2019
Part 2--Amendment of Owners Corporations Act 2006
Part 2--Amendment of Owners
Corporations Act 2006
3 Definitions
(1) In section 3 of the Owners Corporations
5 Act 2006 insert the following definitions--
"guest does not include a contractor or a
tradesperson engaged by the occupier of a
lot;
non-occupiable lot means--
10 (a) a car park; or
(b) a storage locker; or
(c) a lot that is not ordinarily used for
residential or business purposes;
occupiable lot means a lot that is ordinarily used
15 for residential or business purposes;
services only owners corporation means an
owners corporation for a subdivision that
has no land or building that is designated
as the common property and either--
20 (a) the initial owner of the subdivision has
arranged for a utility company to install
common meters that are designated as
the common property; or
(b) the subdivision has a common supply
25 or common service that is unmetered;
tier five owners corporation has the meaning
given by section 7(6);
tier four owners corporation has the meaning
given by section 7(5);
30 tier one owners corporation has the meaning
given by section 7(2);
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Part 2--Amendment of Owners Corporations Act 2006
tier three owners corporation has the meaning
given by section 7(4);
tier two owners corporation has the meaning
given by section 7(3);
5 2-lot subdivision means an owners corporation
comprising of 2 occupiable lots;".
(2) In section 3 of the Owners Corporations
Act 2006, the definition of prescribed owners
corporation is repealed.
10 4 Functions of owners corporation
In the note at the foot of section 4 of the Owners
Corporations Act 2006 omit "and a common
seal".
5 Sections 7 and 8 substituted and new section 7A
15 inserted
For sections 7 and 8 of the Owners Corporations
Act 2006 substitute--
"7 The five tiers of owners corporations
(1) For the purposes of this Act, an owners
20 corporation falls within one of 5 tiers as
specified in this section.
(2) A tier one owners corporation is an owners
corporation that consists of more than
100 occupiable lots and is not a services only
25 owners corporation.
(3) A tier two owners corporation is an owners
corporation that consists of 51 to 100
occupiable lots and is not a services only
owners corporation.
30 (4) A tier three owners corporation is an owners
corporation that consists of 10 to 50
occupiable lots and is not a services only
owners corporation.
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Part 2--Amendment of Owners Corporations Act 2006
(5) A tier four owners corporation is an owners
corporation that consists of 3 to 9 occupiable
lots and is not a services only owners
corporation.
5 (6) A tier five owners corporation is--
(a) an owners corporation for a 2-lot
subdivision; or
(b) a services only owners corporation.
(7) If an owners corporation consists of less than
10 10 occupiable lots and more than 50 non-
occupiable lots, the tier into which the
owners corporation falls is to be determined
in accordance with subsections (2) and (3)
as if a reference in those subsections to
15 an occupiable lot were a reference to a
non-occupiable lot.
(8) If an owners corporation consists solely of
non-occupiable lots, the tier into which the
owners corporation falls is to be determined
20 in accordance with subsections (2) to (6)
as if a reference in those subsections to
an occupiable lot were a reference to a
non-occupiable lot.
7A Owners corporation for 2-lot subdivision
25 (tier five owners corporations)
(1) An owners corporation for a 2-lot
subdivision is exempt from compliance
with--
(a) sections 18, 31, 32, 59, 60, 61, 61A, 62,
30 65, 89A, 89B, 95, 96 and 97; and
(b) Divisions 2, 3 and 4 of Part 3; and
(c) Divisions 1, 2, 3, 4 and 5 of Part 4; and
(d) Divisions 1 and 2 of Part 9; and
(e) Division 1 of Part 10.
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Part 2--Amendment of Owners Corporations Act 2006
(2) In any provision of this Act or any other
Act as it applies in relation to an owners
corporation for a 2-lot subdivision, a
reference to--
5 (a) a unanimous resolution means a
resolution passed by the total votes
for those lots; and
(b) a special resolution means a unanimous
resolution.
10 8 Services only owners corporation (tier five
owners corporations)
A services only owners corporation is
exempt from compliance with--
(a) the provisions specified in
15 section 7A(1); and
(b) the following provisions--
(i) sections 48, 49, 50, 51, 61A, 129,
133 and 135;
(ii) Division 8 of Part 4;
20 (iii) Division 3 of Part 9.".
6 Section 10 substituted
For section 10 of the Owners Corporations
Act 2006 substitute--
"10 Execution of documents by owners
25 corporation
(1) An owners corporation may, in its own name
or on behalf of its members, execute any
document or do anything necessary or
convenient to enable it to carry out its
30 functions, powers, rights and obligations.
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Part 2--Amendment of Owners Corporations Act 2006
(2) A document executed or any thing done
under subsection (1) has effect as if the
document was executed or the thing was
done by the members of the owners
5 corporation.
(3) An owners corporation may authorise a
document to be executed by at least 2 lot
owners of separate lots who--
(a) sign the document; and
10 (b) print on the document--
(i) each lot owner's full name and
address; and
(ii) a statement that each lot owner is
a lot owner or a director of a body
15 corporate that is a lot owner.".
7 New section 17A inserted
After section 17 of the Owners Corporations
Act 2006 insert--
"17A Water on common property
20 (1) Any rainwater or other water that falls,
occurs or flows on the common property
(otherwise than in a waterway or a bore) is
taken to be part of the common property.
(2) For the purposes of section 8(4)(c) of the
25 Water Act 1989, an owners corporation is
the occupier of land to the extent that the
land is common property.
(3) In this section, waterway and bore have the
same meanings as in section 3(1) of the
30 Water Act 1989.".
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Part 2--Amendment of Owners Corporations Act 2006
8 Heading to Division 4 of Part 2 amended
In the heading to Division 4 of Part 2 of the
Owners Corporations Act 2006, for "bring legal
proceedings" substitute "commence legal
5 proceeding".
9 Section 18 substituted
For section 18 of the Owners Corporations
Act 2006 substitute--
"18 Power to commence legal proceeding
10 (1) Subject to subsection (2), an owners
corporation must not commence any legal
proceeding unless it is authorised by special
resolution to do so.
(2) If a matter is within the civil jurisdictional
15 limit of the Magistrates' Court and an
owners corporation is authorised to do so by
ordinary resolution, the owners corporation
may commence any legal proceeding in--
(a) the Magistrates' Court; or
20 (b) VCAT or any other tribunal; or
(c) a court of another State or a Territory
that corresponds to the Magistrates'
Court.".
10 New section 18A inserted
25 After the heading to Division 5 of Part 2 of
the Owners Corporations Act 2006 insert--
"18A Owners corporation not required to
have or use common seal
(1) An owners corporation is not required to
30 have or use a common seal.
Note
Section 10 provides for the execution of documents
of an owners corporation by signature.
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Part 2--Amendment of Owners Corporations Act 2006
(2) Section 19 applies only to an owners
corporation that has a common seal.
(3) Sections 20, 21 and 22 apply only to an
owners corporation that has a common seal
5 and uses the common seal on a document.
(4) An owners corporation that has a common
seal under sections 19, 20, 21 and 22 may,
by ordinary resolution, determine that the
common seal is no longer required and can
10 be destroyed.".
11 Who must witness the use of the common seal?
In section 21(2A) of the Owners Corporations
Act 2006 omit "in accordance with section
151(4)(c)".
15 12 Section 23 amended
(1) In the heading to section 23 of the Owners
Corporations Act 2006, before "fees" insert
"annual".
(2) For section 23(3) and (3A) of the Owners
20 Corporations Act 2006 substitute--
"(3) Subject to subsection (3A), the annual fees
set must be based on lot liability.
(3A) The owners corporation may levy an
additional annual fee on a lot owner if--
25 (a) the owners corporation has incurred
additional costs arising from the
particular use of the lot by the lot
owner; and
(b) an annual fee set on the basis of the
30 lot liability of the lot owner would
not adequately take account of those
additional costs.
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Part 2--Amendment of Owners Corporations Act 2006
(3B) Any additional annual fees under subsection
(3A) must be levied on the basis that the lot
owner of the lot that benefits more from the
use of the lot pays more.".
5 (3) In section 23(4) of the Owners Corporations
Act 2006, before "fees" insert "annual".
13 New section 23A inserted
After section 23 of the Owners Corporations
Act 2006 insert--
10 "23A Owners corporation may levy fees in
relation to insurance
(1) In addition to the annual fees levied under
section 23, an owners corporation may levy
fees to cover the costs of the premium for
15 reinstatement and replacement insurance
taken out in accordance with Division 6 of
Part 3.
(2) The fees levied under subsection (1) must be
based on lot entitlement.
20 (3) An owners corporation may levy a lot
owner a fee to cover the cost of any of the
following--
(a) an excess amount or an increased
premium resulting from or attributable
25 to an insurance claim, if the claim is
caused by a culpable or wilful act or the
gross negligence of--
(i) a lot owner; or
(ii) a lot owner's lessee; or
30 (iii) a guest of a lot owner or a guest of
a lot owner's lessee;
(b) damage to the common property that is
caused by a lot owner or a lot owner's
lessee where either--
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Part 2--Amendment of Owners Corporations Act 2006
(i) the damage is not covered by
insurance; or
(ii) the cost of the damage is less than
the excess amount that would
5 have been payable on an insurance
claim in relation to the damage;
(c) an excess amount on an insurance
claim if the claim solely relates to a
lot owner's lot.
10 (4) The owners corporation may determine
the times for payment of fees levied under
subsection (1) or (3).".
14 Section 24 amended
(1) In the heading to section 24 of the Owners
15 Corporations Act 2006, after "fees" insert
"and charges".
(2) In section 24(2) of the Owners Corporations
Act 2006, after "fees" insert "and charges".
(3) In section 24(2A) of the Owners Corporations
20 Act 2006--
(a) after "Fees" insert "and charges";
(b) for "undertaken" substitute "carried out".
(4) After section 24(2A) of the Owners
Corporations Act 2006 insert--
25 "(2B) The owners corporation may levy special
fees and charges on a lot owner relating to
repairs, maintenance and other works arising
from the particular use of a lot by the lot
owner.".
30 (5) In section 24(5) of the Owners Corporations
Act 2006, after "fees" insert "and charges".
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Part 2--Amendment of Owners Corporations Act 2006
15 Liability of lot owners
(1) In section 28(2) of the Owners Corporations
Act 2006, for "A lot owner" substitute
"Subject to sections 24, 49 and 53, a lot owner".
5 (2) Section 28(3) of the Owners Corporations
Act 2006 is repealed.
16 Final notice
In section 32(1) of the Owners Corporations
Act 2006, for "send" substitute "give".
10 17 Section 34 substituted
For section 34 of the Owners Corporations
Act 2006 substitute--
"34 Financial statements
(1) An owners corporation that is a tier one
15 owners corporation, a tier two owners
corporation or a tier three owners
corporation must prepare annual financial
statements for presentation at the general
meeting of the owners corporation in
20 accordance with the Australian Accounting
Standards.
(2) A tier four owners corporation must prepare
annual financial statements for any financial
year in which it levies annual fees.
25 (3) In this section, Australian Accounting
Standards has the same meaning as in
the Associations Incorporation Reform
Act 2012.
Note
30 Annual financial statements prepared under this section may
be either General Purpose Financial Reports or Special
Purpose Financial Reports as defined by the Australian
Accounting Standards Board.".
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Part 2--Amendment of Owners Corporations Act 2006
18 Section 35 substituted and new section 35A inserted
For section 35 of the Owners Corporations
Act 2006 substitute--
"35 Audit of financial statements of owners
5 corporations
(1) A tier one owners corporation must, after the
end of each financial year, cause its financial
statements to be audited by--
(a) a registered company auditor; or
10 (b) a firm of registered company auditors;
or
(c) a person who is--
(i) a member of CPA Australia, the
Institute of Public Accountants or
15 Chartered Accountants Australia
and New Zealand; and
(ii) authorised to conduct the audit by
CPA Australia, the Institute of
Public Accountants or Chartered
20 Accountants Australia and New
Zealand.
(2) A tier two owners corporation must, after the
end of each financial year, cause its financial
statements to be reviewed by an independent
25 person who is a member of, and holds a
current practising certificate from--
(a) CPA Australia; or
(b) the Institute of Public Accountants; or
(c) Chartered Accountants Australia and
30 New Zealand.
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Part 2--Amendment of Owners Corporations Act 2006
(3) Despite subsection (2), a tier two owners
corporation, at its annual general meeting,
may resolve that its financial statements are
to be audited after the end of the financial
5 year in accordance with subsection (1).
(4) A tier three owners corporation, at its annual
general meeting, may resolve that its
financial statements are to be audited in
accordance with subsection (1) or reviewed
10 by an independent person in accordance with
subsection (2) after the end of the financial
year.
(5) A tier four owners corporation, or a tier five
owners corporation, at its annual general
15 meeting, may resolve that its financial
statements are to be audited in accordance
with subsection (1) or reviewed by an
independent person in accordance with
subsection (2) after the end of the financial
20 year.
(6) A person who audits the financial statements
of an owners corporation must provide the
owners corporation with a written report of
the audit.
25 (7) A person who conducts a review of the
financial statements of an owners
corporation must provide the owners
corporation with a written report of the
review.
30 (8) A person must not be engaged to audit or
review the financial statements of an owners
corporation under this section if the person
has a direct or indirect personal or financial
interest in the owners corporation.
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Part 2--Amendment of Owners Corporations Act 2006
35A Exemption from requirement to audit
financial statements
(1) A tier one owners corporation may apply in
writing to the Director for an exemption
5 from the requirement to audit its financial
statements under section 35(1).
(2) The Director may grant an exemption under
subsection (1) subject to any conditions the
Director thinks fit.
10 (3) The Director, at any time, by notice in
writing, may vary or revoke an exemption
granted under subsection (2).".
19 Section 36 substituted
For section 36 of the Owners Corporations
15 Act 2006 substitute--
"36 Maintenance plan
(1) A tier one owners corporation or a tier two
owners corporation must prepare and
approve a maintenance plan for the property
20 for which it is responsible.
(2) A tier three owners corporation, a tier four
owners corporation or a tier five owners
corporation may prepare and approve a
maintenance plan for the property for which
25 it is responsible.".
20 What must a maintenance plan contain?
After section 37(1) of the Owners Corporations
Act 2006 insert--
"(1A) An owners corporation may, by ordinary
30 resolution, amend an approved maintenance
plan.".
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Part 2--Amendment of Owners Corporations Act 2006
21 Section 41 repealed
Section 41 of the Owners Corporations
Act 2006 is repealed.
22 Payments into maintenance fund
5 (1) In section 42 of the Owners Corporations
Act 2006, for "maintenance plan" (where twice
occurring) substitute "approved maintenance
plan".
(2) At the end of section 42 of the Owners
10 Corporations Act 2006 insert--
"(2) The owners corporation must, by ordinary
resolution, determine the amount of the
annual fees that under subsection (1)(a)
must be paid into the fund.
15 (3) The amount determined under subsection (2)
must be adequate to fund the approved
maintenance plan.".
23 Extraordinary payments from maintenance fund
In section 44 of the Owners Corporations
20 Act 2006, after "maintenance fund" insert
"other than in accordance with the approved
maintenance plan".
24 Extraordinary payments for urgent matters
In section 45(2)(c) of the Owners Corporations
25 Act 2006, for "maintenance plan" substitute
"approved maintenance plan".
25 New section 47A inserted
After section 47 of the Owners Corporations
Act 2006 insert--
30 "47A Lot owners must not repair, alter or
maintain common property or services
(1) This section is subject to section 56 of the
Equal Opportunity Act 2010.
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Part 2--Amendment of Owners Corporations Act 2006
(2) A lot owner must not repair, alter or
maintain--
(a) the common property of the owners
corporation; or
5 (b) a service in or relating to a lot that is for
the benefit of more than one lot or the
common property.
(3) Subsection (2) does not apply if a lot owner
has been expressly authorised by the owners
10 corporation to carry out the repairs and
maintenance in accordance with section 46
or 47 as an agent of the owners
corporation.".
26 Cost of repairs, maintenance or other works
15 In section 49(1) of the Owners Corporations
Act 2006, for "undertaken" substitute "carried
out".
27 When can an owners corporation authorise a person
to enter a lot?
20 At the end of section 50 of the Owners
Corporations Act 2006 insert--
"(2) An owners corporation may authorise a
person to enter a lot or a building on a
lot where necessary to carry out repairs,
25 maintenance or other works on its behalf
on the common property.".
28 What notice of entry must be given?
After section 51(2) of the Owners Corporations
Act 2006 insert--
30 "(2A) On receiving notice given in accordance
with this section, the occupier of the lot
must grant entry to the lot or a building
on the lot to a person authorised by the
owners corporation under section 50.".
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Part 2--Amendment of Owners Corporations Act 2006
29 New Division 5A of Part 3 inserted
After section 53 of the Owners Corporations
Act 2006 insert--
"Division 5A--Disposal of goods
5 abandoned on common property
53A Owners corporation may dispose of goods
abandoned on common property
(1) An owners corporation may dispose of the
goods abandoned on the common property
10 in accordance with this Division.
(2) Sections 60 to 65 and 73 to 76 of the
Australian Consumer Law and Fair
Trading Act 2012 apply to the disposal of
abandoned goods by an owners corporation
15 as if--
(a) a reference to uncollected goods were a
reference to the abandoned goods; and
(b) a reference to the receiver were a
reference to the owners corporation;
20 and
(c) a reference to the provider were a
reference to the person who abandoned
the goods.
53B Notice of intention to dispose of goods
25 abandoned on common property
(1) A notice of the owners corporation's
intention to dispose of abandoned goods
must be in writing and include--
(a) the plan number and address of the
30 owners corporation; and
(b) a description of the goods; and
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Part 2--Amendment of Owners Corporations Act 2006
(c) an address at which the goods may
be collected; and
(d) a statement that on or after a specified
date the goods will be disposed of by
5 the owners corporation unless the
goods are collected; and
(e) a statement that the owners corporation
will retain from the proceeds of sale of
the goods an amount not exceeding the
10 cost to dispose of the goods.
(2) A notice of intention may be given to the
person who abandoned the goods personally
or left at, or sent by post to, the person's last
known address.
15 (3) A notice to a person with a publicly
registered interest in the abandoned goods
is taken to have been given if it has been
sent by post to the person's address in the
register in which the interest is registered.
20 (4) In this section, publicly registered
interest has the same meaning as in the
Australian Consumer Law and Fair
Trading Act 2012.
53C Removal of goods to safe place
25 Before disposing of the goods, an owners
corporation may move the goods to a safe
place, if--
(a) the goods block reasonable access to
a lot or the common property; and
30 (b) the owners corporation has made
a reasonable attempt to locate or
communicate with the person who
abandoned the goods in order to
give the person a notice of intention
35 to dispose of abandoned goods.
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53D Disposal of goods
An owners corporation must not dispose of
the goods if--
(a) a dispute exists between the person who
5 abandoned the goods and the owners
corporation in relation to the goods; and
(b) an application has been made to VCAT
by the owners corporation in relation to
the dispute.
10 53E Owners corporation not liable in relation
to disposed goods
An owners corporation that disposes of
goods under this Division is not liable in
relation to the goods by reason of the
15 disposal.".
30 Public liability insurance
In section 60(3) of the Owners Corporations
Act 2006, for "$10 000 000" substitute
"$20 000 000".
20 31 Insurance for lots in multi-level developments
After section 61(2) of the Owners Corporations
Act 2006 insert--
"(3) If a plan of subdivision has separate
buildings and either--
25 (a) one or more of those buildings is a
multi-level development and each
multi-level development has its own
owners corporation (including a tier
one owners corporation); or
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(b) one of those buildings is a multi-level
development with its own owners
corporation (including a tier one
owners corporation)--
5 the owners corporation of the multi-level
development must only take out
reinstatement and replacement insurance
and public liability insurance in respect
of the multi-level development on the
10 plan of subdivision for which that owners
corporation is liable.
Note
See also section 64.".
32 New section 61A inserted
15 After section 61 of the Owners Corporations
Act 2006 insert--
"61A Insurance for multiple single dwellings on
a plan of subdivision
An owners corporation on a plan of
20 subdivision for multiple single dwellings
with common property may, by unanimous
resolution, resolve that the lot owner of each
single dwelling is responsible to insure their
lot.".
25 33 Valuation of buildings
For section 65(1) of the Owners Corporations
Act 2006 substitute--
"(1) An owners corporation must obtain a
valuation of all buildings that it is liable
30 to insure.
Note
A tier five owners corporation is exempt from
compliance with this section. See sections 7A and 8.
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(1A) An owners corporation of a multi-level
development referred to in section 61(3)
must only obtain a valuation of the
multi-level development on the plan of
5 subdivision for which it is liable to insure.".
34 What documents must be provided at the first
meeting?
(1) For section 67(d) of the Owners Corporations
Act 2006 substitute--
10 "(d) a maintenance plan;".
(2) For section 67(j) of the Owners Corporations
Act 2006 substitute--
"(j) the building maintenance manual;
(k) an asset register;
15 (l) copies of any warranties or, if copies
are not able to be provided, details of
any warranties;
(m) copies of any specifications, reports,
certificates, permits, notices or orders
20 in relation to the plan of subdivision.".
(3) At the end of section 67 of the Owners
Corporations Act 2006 insert--
"(2) For the purposes of section 67(1)(l), a
warranty must be assigned to the owners
25 corporation if--
(a) the warranty holder is the sole
beneficiary of the terms of the
warranty; and
(b) the warranty is capable of being
30 assigned to the owners corporation.".
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35 New sections 67A to 67C inserted
After section 67 of the Owners Corporations
Act 2006 insert--
"67A What must be disclosed at the first
5 meeting?
At the first meeting of the owners
corporation the applicant for registration
of the plan of subdivision must disclose--
(a) any relationship with the manager of
10 the owners corporation; and
(b) any immediate or future financial
transactions that will, or will
foreseeably, arise out of the
relationship with the manager of
15 the owners corporation and any
specific benefits which flow to the
applicant for registration as a result
of that relationship.
67B Contract entered into by applicant for
20 registration of the plan of subdivision
prior to first meeting
(1) If the applicant for registration of the plan of
subdivision appoints a third party manager
prior to the first meeting of the owners
25 corporation, the contract of appointment of
the third party manager expires at that first
meeting.
(2) If the applicant for registration of the plan
of subdivision enters into any other contract
30 (other than a contract of appointment) that
relates to the owners corporation and
benefits the applicant for registration, any
term of that contract must not exceed 3 years
in duration.
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(3) In this section--
third party manager means a person
appointed as the manager who
is neither an initial owner or a lot
5 owner of the owners corporation.
67C Minutes of first meetings
(1) The owners corporation must arrange for
minutes to be kept of the first meeting of
the owners corporation.
10 (2) The minimum information to be recorded
in the minutes for the first meeting is the
information referred to in section 81(2).
(3) Any disclosure made under section 67A
must be recorded in the minutes of the first
15 meeting.".
36 Obligations of initial owner
(1) In section 68(3) of the Owners Corporations
Act 2006--
(a) for "the majority of the lots" substitute "a lot
20 to which is, or the lots to which are, attached
the majority of the lot entitlements of the
lots";
(b) for "5 years" substitute "10 years".
(2) After section 68(4) of the Owners Corporations
25 Act 2006 insert--
"(4A) The initial owner of land affected by an
owners corporation or an associate of the
initial owner must not--
(a) be appointed as the manager of the
30 owners corporation; or
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(b) vote on any resolution of the owners
corporation that relates to a defect
in or on a building on the plan of
subdivision.
5 (4B) The initial owner of land affected by an
owners corporation must not--
(a) propose an annual budget of the owners
corporation that is unreasonable or
unsustainable; or
10 (b) designate as a private lot what normally
would be common property or services;
or
(c) receive any payment from the manager
of the owners corporation in relation to
15 the manager's contract of
appointment.".
(3) For section 68(5) of the Owners Corporations
Act 2006 substitute--
"(5) In this section--
20 associate, of the initial owner, means--
(a) a director of the initial owner; or
(b) an employee or agent of the initial
owner; or
(c) a spouse, domestic partner, parent,
25 brother, sister or child of the
initial owner or the initial owner's
representative; or
(d) a child of the spouse or domestic
partner of the initial owner or the
30 initial owner's representative;
initial owner means the person who was the
applicant for the registration of the plan
of subdivision.".
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37 Notice of special general meetings
In the note at the foot of section 76(1) of the
Owners Corporations Act 2006, for
"will permit" substitute "enables".
5 38 Quorum for a general meeting
In section 77 of the Owners Corporations
Act 2006, for "total votes" (where twice
occurring) substitute "total number of lots".
39 Can a general meeting proceed even without a
10 quorum?
After section 78(1) of the Owners Corporations
Act 2006 insert--
"(1A) Subject to subsections (1B) and (1C), the
manager of an owners corporation may pass
15 an interim resolution at a general meeting
of the owners corporation if no lot owner is
present (whether in person or by proxy) at
the meeting.
(1B) The manager must not pass an interim
20 resolution under subsection (1) that--
(a) affects the contract of appointment
of the manager; or
(b) involves an amount that is greater than
10% of the annual budget of the owners
25 corporation; or
(c) if the annual budget has not been set
for the relevant year, involves an
amount that is greater than 10% of the
annual budget of the owners
30 corporation for the previous year.
(1C) An owners corporation, by ordinary
resolution, may exclude or alter the
power of the manager to make an interim
resolution under subsection (1A).".
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40 Notice of ballot
(1) In the note at the foot of section 85(1) of the
Owners Corporations Act 2006, for
"will permit" substitute "enables".
5 (2) For section 85(2)(a) of the Owners Corporations
Act 2006 substitute--
"(a) the closing date for the ballot, being--
(i) 14 days after the date of the notice; or
(ii) if the matter that is the subject of the
10 ballot is urgent, less than 14 days after
the date of the notice; and".
41 Resolution by ballot
(1) Section 86(1) of the Owners Corporations
Act 2006 is repealed.
15 (2) At the foot of section 86(2) of the Owners
Corporations Act 2006 insert--
"Note
Section 88 provides for the manner in which a lot owner
may vote on a resolution of the owners corporation by
20 ballot.".
42 Division 6 of Part 4 substituted
For Division 6 of Part 4 of the Owners
Corporations Act 2006 substitute--
"Division 6--Voting
25 87 One vote for each lot
For any resolution of an owners corporation,
there is to be one vote for each lot, whether
the resolution is voted on--
(a) at a meeting; or
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(b) by ballot.
Note
Joint lot owners of a lot have only one vote between
them in respect of that lot.
5 88 Voting on a resolution of the owners
corporation by ballot
A person may vote on a resolution of the
owners corporation by ballot by completing
the ballot form and forwarding it to the
10 secretary of the owners corporation in
accordance with the rules of the owners
corporation.
89 Voting on a resolution of the owners
corporation at a meeting
15 (1) Subject to subsection (3), a person may vote
on a resolution of the owners corporation at
a meeting by a show of hands or in another
prescribed manner, unless the meeting
resolves otherwise.
20 (2) Any matter (other than a matter requiring a
special resolution or a unanimous resolution)
must be determined at a meeting by a simple
majority of votes cast at the meeting.
(3) At a meeting, a lot owner may (either in
25 person or by proxy) before or after the vote
is taken for an ordinary resolution, require
that a poll be taken based on one vote for
each unit of lot entitlement.
(4) Voting in a poll under subsection (3) must be
30 by written vote.
(5) If a poll is required after the vote is taken at a
meeting, the decision on a matter determined
by a simple majority of votes cast at the
meeting has no effect and the decision on
35 that matter is the decision of the poll.
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(6) A person who participates in a meeting by a
teleconference or another prescribed manner
is taken to be present in person at the
meeting.
5 89A Does the chairperson have a casting vote?
(1) The chairperson of the owners corporation
has a second vote or the casting vote on a
resolution of the owners corporation if--
(a) the voting on the resolution is equal;
10 and
(b) the chairperson is a lot owner or
authorised to vote on behalf of a lot
owner as a proxy.
(2) If the voting on a resolution is equal and the
15 chairperson does not exercise a casting vote,
the resolution of the owners corporation is
taken to not be passed.
89B Can a lot owner vote if fees are unpaid?
(1) A lot owner who is in arrears for any
20 amount owed to an owners corporation is
not entitled to vote (either in person, by
ballot or by proxy) on a resolution of the
owners corporation unless the amount in
arrears is paid in full.
25 (2) Despite subsection (1), a lot owner who is
in arrears for any amount owed to an owners
corporation may vote on any matter where a
special resolution or unanimous resolution is
required.
30 (3) For the purposes of subsection (1), the
amount in arrears is taken to be paid in
full if it is paid to the owners corporation--
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(a) in cash; or
(b) otherwise, not less than 4 business
days--
before the lot owner is required to vote on
5 the resolution.
89C Proxies
(1) A lot owner may authorise a person in
writing to be the lot owner's proxy in
any of the following capacities--
10 (a) to attend, speak or vote on behalf
of the lot owner at a meeting of the
owners corporation;
(b) to vote on behalf of the lot owner at
a ballot;
15 (c) to represent the lot owner on a
committee of the owners corporation.
Note
See section 138A.
(2) Despite subsection (1)(c), a lot owner who
20 is a member of the committee of the owners
corporation must not authorise a person to
act as a proxy to represent the lot owner on
the committee unless that person is also a
member of the committee.
25 (3) An authorisation under subsection (1)
must--
(a) be in the prescribed form; and
(b) authorise an individual; and
(c) be delivered to the secretary of
30 the owners corporation.
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(4) An authorisation may set out how a proxy is
to vote on particular matters and is effective
from the beginning of the first meeting of the
owners corporation held after the date that
5 the authorisation is delivered to the secretary
of the owners corporation.
(5) An authorisation must not be transferred
by a person who is authorised as a proxy
to another person.
10 (6) An authorisation lapses--
(a) 12 months after it is given by a lot
owner; or
(b) if an earlier date is specified in the
authorisation, on that date.
15 (7) A person who is not a lot owner but who is
the proxy of a lot owner may not vote on any
matter that affects that person relating to--
(a) the delegation of powers and functions
of an owners corporation under
20 section 11; or
(b) the appointment, payment or
removal of the manager of an
owners corporation under Part 6.
(8) A person authorised to act as a proxy must
25 act honestly, in good faith and exercise due
care and diligence.
(9) A contract of appointment of the manager of
an owners corporation made in contravention
of subsection (7)(b) is void unless it is
30 affirmed by the owners corporation by
special resolution.
(10) If a lot owner is in arrears for any amount
of fees or other amount owing to the owners
corporation, the lot owner must not--
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(a) vote as a proxy on behalf of another
lot owner at a meeting of the owners
corporation; or
(b) represent another lot owner as a
5 proxy on a committee of the owners
corporation.
89D Restriction on number of lot owners on
behalf of whom a proxy may vote on a
resolution
10 (1) A person must not vote as a proxy on a
resolution at a meeting of the owners
corporation--
(a) on behalf of more than one lot owner--
if there are 20 or less occupiable lots
15 on the plan of subdivision; or
(b) on behalf of more than 5% of the lot
owners--if there are more
than 20 occupiable lots on the plan
of subdivision.
20 (2) Subsection (1) does not apply if--
(a) the lot owners for whom the person is
authorised to vote on behalf of are
members of that person's family; or
(b) the person votes as a proxy in the
25 prescribed circumstances.
89E Revocation of a proxy
(1) A lot owner may, at any time--
(a) revoke an authorisation of a proxy
under this section by written notice
30 given to the secretary of the owners
corporation; and
(b) vote at a meeting or in a ballot instead
of the proxy.
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(2) A notice of revocation under subsection (1)
takes effect on the date that the notice is
given to the secretary.
89F Voting under power of attorney
5 (1) A person acting under a power of attorney
may vote on behalf of a lot owner at a
general meeting or in a ballot of the owners
corporation if this is authorised under the
power of attorney.
10 (2) Despite subsection (1), a person must
not vote under a power of attorney on
a resolution at a general meeting of the
owners corporation--
(a) on behalf of more than one lot owner--
15 if there are 20 or less occupiable lots
on the plan of subdivision; or
(b) on behalf of more than 5% of the lot
owners--if there are more
than 20 occupiable lots on the plan
20 of subdivision.
(3) Subsection (2) does not apply if the lot
owners for whom the person is authorised
to vote on behalf of are members of that
person's family.
25 (4) A person acting under a power of attorney
for a lot owner may authorise another person
to act as a proxy for the lot owner under
section 89C.
(5) If a person is authorised to vote on behalf
30 of a lot owner under a power of attorney,
this Part applies in relation to that power
of attorney as if the person who holds the
power of attorney was the lot owner.
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89G Person must not require or demand that a
lot owner give authorisation to vote under
power of attorney or proxy
A person must not require or demand that
5 a lot owner authorise that person or another
person to vote on behalf of the lot owner at
a meeting or a ballot of an owners
corporation--
(a) under a power of attorney; or
10 (b) as a proxy.
Penalty: 60 penalty units.
89H Term of contract of sale limiting voting
rights void
Any term of a contract of sale of a lot that
15 limits or controls the voting rights of the
purchaser of the lot in relation to the owners
corporation is void.".
43 Sections 91, 92, 93 and 94 repealed
Sections 91, 92, 93 and 94 of the Owners
20 Corporations Act 2006 are repealed.
44 Interim special resolutions
After section 97(1) of the Owners Corporations
Act 2006 insert--
"(1A) In addition to subsection (1), if at a general
25 meeting of the owners corporation the total
votes in favour of a matter requiring a
special resolution do not otherwise meet
the requirements of section 96 but--
(a) there is a quorum for the general
30 meeting; and
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(b) there are no votes against the
resolution--
the resolution is taken to be passed
as an interim special resolution.".
5 45 Election of committee
In section 100 of the Owners Corporations
Act 2006--
(a) for "13 or more lots" substitute "10 or more
lots";
10 (b) for "13 lots" substitute "10 lots".
46 Membership of committees
(1) In section 103(1) of the Owners Corporations
Act 2006, for "12 members" substitute
"7 members".
15 (2) After section 103(1) of the Owners Corporations
Act 2006 insert--
"(1A) Despite subsection (1), the owners
corporation, by ordinary resolution, may
resolve that the committee may have
20 more than 7 members but not more than
12 members.".
(3) In section 103(7)(b) of the Owners Corporations
Act 2006, for "the lot owner is" substitute "the lot
owner or the proxy for the lot owner is".
25 47 Notice of meetings
At the foot of section 109(1) of the Owners
Corporations Act 2006 insert--
"Note
The Electronic Transactions (Victoria) Act 2000 enables
30 this notice to be given electronically.".
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48 Ballots
For section 111(2) and (3) of the Owners
Corporations Act 2006 substitute--
"(2) The chairperson or the secretary must give
5 notice in writing of the ballot to each
member of the committee.
Note
The Electronic Transactions (Victoria) Act 2000
enables the notice to be given electronically.
10 (3) The notice must state--
(a) the resolution to be voted on by the
members of the committee; and
(b) the closing date for the ballot, being--
(i) 14 days after the date of the
15 notice; or
(ii) if the matter that is the subject
of the ballot is urgent, less than
14 days after the date of the
notice.".
20 49 Resolutions of committee to be resolutions of owners
corporation
In section 113 of the Owners Corporations
Act 2006, after "any matter" insert "within its
functions and powers".
25 50 Section 117 substituted
For section 117 of the Owners Corporations
Act 2006 substitute--
"117 Duties of members of committees and
sub-committees
30 (1) A member of a committee or sub-committee
of an owners corporation must, in the
performance of the member's functions--
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(a) act honestly and in good faith; and
(b) exercise due care and diligence; and
(c) act in the interests of the owners
corporation.
5 (2) A member of a committee or sub-committee
of an owners corporation must not make
improper use of the member's position to
gain, directly or indirectly, an advantage for
the member or for any other person.".
10 51 Appointment and removal of manager
For section 119(1) of the Owners Corporations
Act 2006 substitute--
"(1) A tier one owners corporation must appoint a
person to be the manager of the owners
15 corporation.
(1A) Despite subsection (1), a tier one owners
corporation, by special resolution, may opt
out of the requirement under subsection (1)
to appoint a person to be the manager of
20 the owners corporation.
(1B) A decision referred to in subsection (1A)
may be reversed and a person may be
appointed to be the manager of the owners
corporation by ordinary resolution at a date
25 later than the date of the special resolution.
(1C) A tier two owners corporation, a tier three
owners corporation, a tier four owners
corporation or a tier five owners corporation
may appoint a person to be the manager of
30 the owners corporation.
(1D) A person must not be appointed as the
manager of an owners corporation for a
period that exceeds 3 years.".
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52 New section 119A inserted
After section 119 of the Owners Corporations
Act 2006 insert--
"119A Contract of appointment of manager
5 (1) A contract of appointment of the manager
of an owners corporation (contract of
appointment) must not include any of the
following terms--
(a) a term that requires the owners
10 corporation, before revoking the
appointment of the manager--
(i) to pass a special resolution, a
unanimous resolution or any other
resolution requiring more than a
15 simple majority of votes; or
(ii) to convene a general meeting of
the owners corporation; or
(iii) to take any other prescribed step;
(b) a term that allows the manager to
20 renew the contract of appointment at
the manager's option;
(c) a term requiring a tier one owners
corporation or a tier two owners
corporation to give 3 months or more
25 notice of its intention to revoke the
manager's appointment;
(d) a term requiring a tier three owners
corporation, a tier four owners
corporation or a tier five owners
30 corporation to give one month or more
notice of its intention to revoke the
manager's appointment;
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(e) a term providing for the automatic
renewal of the contract of appointment
if the owners corporation fails to give
notice, in accordance with the terms of
5 the contract, of its intention not to
renew the manager's contract;
(f) a term that restricts the ability of the
owners corporation to refuse consent
to an assignment of the contract of
10 appointment to a person appointed as
the manager, other than a requirement
that such consent must not be
unreasonably withheld by the owners
corporation.
15 (2) If an owners corporation fails to give
notice of its intention to renew a contract
of appointment, the contract of appointment
is taken to have been renewed on the basis
that it may be terminated by the owners
20 corporation or the manager by giving in
writing--
(a) at least one month's notice; or
(b) if a shorter period of notice is provided
under the contract, that shorter notice--
25 of the owners corporation's or manager's
intention to terminate the contract of
appointment.
(3) For the purposes of subsection (1)(f), an
owners corporation that withholds consent
30 to the assignment of the contract of
appointment to a person who is appointed
as the manager and is a full member of a
professional body or association approved
by the Director is taken to unreasonably
35 withhold consent to the assignment of the
contract of appointment.".
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53 Duties of manager
(1) In section 122(1) of the Owners Corporations
Act 2006--
(a) in paragraph (c), for "person." substitute
5 "person; and";
(b) after paragraph (c) insert--
"(d) must take reasonable steps to ensure
that any goods or services procured by
the manager on behalf of the owners
10 corporation are procured at competitive
prices and on competitive terms; and
(e) must not exert pressure on any
member of the owners corporation
in order to influence the outcome of
15 a vote or election held by the owners
corporation; and
(f) before a contract is entered into
for the supply of goods or services
to an owners corporation under
20 which a manager is entitled to
receive a commission, payment
or other benefit, must give written
notice to the chairperson of the
owners corporation disclosing the
25 commission, payment or other benefit
in accordance with section 122B.".
(2) In section 122(2) of the Owners Corporations
Act 2006--
(a) for paragraph (b) substitute--
30 "(b) if subsection (3) applies, must account
separately for the money held by the
manager for each owners corporation
on the plan of subdivision; and";
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(b) after paragraph (b) insert--
"(c) subject to subsection (3), must hold
all money held on behalf of separate
owners corporations on trust in separate
5 bank accounts; and
(d) must comply, as soon as practicable,
with any reasonable request made by an
owners corporation to provide copies of
financial statements of bank accounts--
10 (i) that contain money held by the
manager on behalf of the owners
corporation on trust; and
(ii) for any period within 3 years
immediately preceding the
15 request.".
(3) After section 122(2) of the Owners Corporations
Act 2006 insert--
"(3) Despite subsection (2)(c), a manager may
hold money on behalf of separate owners
20 corporations on trust in the same bank
account if--
(a) each owners corporation--
(i) is on the same plan of subdivision;
and
25 (ii) has consented to the money
being held in the same account
with the funds of other owners
corporations; or
(b) the bank account is a statutory trust
30 account held by--
(i) a licensed estate agent under the
Estate Agents Act 1980; or
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(ii) an Australian legal practitioner
within the meaning of the Legal
Profession Uniform Law
(Victoria); or
5 (iii) a licensee under the
Conveyancers Act 2006.
(4) Money held by a manager on behalf of an
owners corporation on trust for the owners
corporation includes any interest earned.".
10 54 New sections 122A and 122B inserted
After section 122 of the Owners Corporations
Act 2006 insert--
"122A Manager must disclose beneficial
relationship with supplier
15 (1) For the purposes of this section, a manager
has a beneficial relationship with a supplier
of goods or services if the supplier is--
(a) the manager; or
(b) an associate of the manager; or
20 (c) a body corporate of which the manager,
or an associate of the manager, is a
member; or
(d) a corporation over which the manager
(either individually or jointly with
25 associates), or an associate of the
manager, can exercise control; or
(e) a corporation of which the manager,
or an associate of the manager, is an
executive officer; or
30 (f) in the case of a manager that is a
corporation--an executive officer of
that corporation or an associate of an
executive officer of that corporation; or
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(g) the trustee of a discretionary trust of
which the manager, or an associate of
the manager, is a beneficiary; or
(h) a member of a firm of which the
5 manager, or an associate of the
manager, is also a member.
(2) The manager of an owners corporation must
disclose any beneficial relationship with a
supplier with whom a contract is proposed
10 to be entered into for the supply of goods
or services to the owners corporation.
(3) Disclosure required under subsection (2)
must--
(a) be given by written notice to the
15 chairperson of the owners corporation;
and
(b) subject to subsection (4), be given--
(i) immediately upon the manager
becoming aware that the proposed
20 contract is with a supplier with
whom the manager has a
beneficial relationship; and
(ii) before the contract is entered into
by the owners corporation.
25 (4) If, because of an emergency situation, it is
necessary for the manager to enter into a
contract for the supply of goods or services
and it is not reasonably practicable for the
manager to disclose a beneficial relationship
30 in accordance with subsection (3), the
manager must disclose the beneficial
relationship to the chairperson of the owners
corporation as soon as practicable after the
contract is entered into.
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(5) A manager who fails to disclose a beneficial
relationship in accordance with this section
is taken to breach the duty of a manager
under section 122(1)(c).
5 (6) Subsection (5) does not apply if the
manager--
(a) was not, and could not have reasonably
been expected to be, aware of the
beneficial relationship with the supplier
10 before the contract was entered into;
and
(b) disclosed the beneficial relationship
to the chairperson of the owners
corporation immediately after
15 becoming aware of the beneficial
relationship.
(7) In this section--
associate, of the manager, means--
(a) a director of the manager; or
20 (b) an employee or agent of the
manager; or
(c) a spouse, domestic partner,
parent, brother, sister or child
of the manager or the manager's
25 representative; or
(d) a child of the spouse or domestic
partner of the manager or the
manager's representative;
control has the meaning given by
30 section 50AA of the Corporations Act;
executive officer means any person,
whether or not the person is a director
of the corporation, who is concerned,
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or takes part, in the management of
the corporation.
122B Manager must disclose commission,
payment or other benefit
5 (1) This section applies to a contract for the
supply of goods or services to an owners
corporation under which the manager of the
owners corporation is entitled to receive
(other than from the owners corporation)
10 a commission, payment or other benefit.
(2) Before a contract under subsection (1) is
entered into, the manager must disclose,
by written notice, to the chairperson of
the owners corporation the commission,
15 payment or other benefit to be received
under the contract.
(3) If the contract is an insurance contract and
the commission that the manager is entitled
to receive is a percentage of the premium
20 payable under the contract, the manager must
disclose, by written notice, to the chairperson
of the owners corporation the percentage of
the premium rather than the actual amount of
the commission.
25 (4) If the contract under subsection (3) is
renewed and the percentage of the premium
that the manager is entitled to receive
increases, the manager must make further
disclosures of the percentage of the premium
30 by written notice to the chairperson of the
owners corporation.
(5) A manager who fails to make a disclosure
required under this section is taken to
breach the duty of a manager under
35 section 122(1)(f).".
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55 Report
(1) In section 126(1) of the Owners Corporations
Act 2006, for "the manager's activities"
substitute "all money held on behalf of the
5 owners corporation by the manager on trust
and any disbursement of that money".
(2) For section 126(2) of the Owners Corporations
Act 2006 substitute--
"(2) The report must include--
10 (a) details of the professional indemnity
insurance held by the manager in
compliance with section 119(5); and
(b) details of receipts and disbursements
of money held on behalf of the owners
15 corporation by the manager on trust in
the relevant year, unless those details
are included in the relevant financial
statements prepared under section 34;
and
20 (c) the amounts of any commissions,
payments or other benefits received by
the manager in relation to contracts for
goods or services supplied to an owners
corporation during the relevant year.".
25 (3) After section 126(2) of the Owners Corporations
Act 2006 insert--
"(3) For the purposes of subsection (2)(c), if the
specific amount of a commission, payment
or other benefit cannot be reasonably
30 ascertained, the manager must include in
the report an estimate of the amount.".
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56 Address of absent owners
For the note at the foot of section 135(2) of the
Owners Corporations Act 2006 substitute--
"Note
5 See section 148.".
57 Power to make rules regarding proxies
In section 138A(1) of the Owners Corporations
Act 2006, for "section 87" substitute
"section 89C".
10 58 New section 138B inserted
After section 138A of the Owners Corporations
Act 2006 insert--
"138B Power to make rules regarding external
alterations and other works affecting lot
15 owners
(1) Subject to subsection (2), an owners
corporation may make rules in respect
of proposed works to renovate or alter
the external appearance of a lot--
20 (a) to protect the quiet enjoyment of all
other lots and the common property
during those works; and
(b) to protect the structural integrity of
any building on the plan of subdivision
25 from those works; and
(c) to ensure the market value of any other
lot does not decrease as a result of those
works.
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(2) An owners corporation must not make rules
that unreasonably prohibit the installation of
sustainability items on the exterior of a lot.
(3) For the purposes of subsection (2)--
5 (a) a prohibition on the installation of a
sustainability item only on aesthetic
grounds is taken to be unreasonable;
and
(b) a requirement that the location of, or
10 the works involved in installing, the
sustainability item must not impede
reasonable access to, or the use of,
any other lot or the common property
is taken to be reasonable.
15 (4) In this section--
sustainability item means any thing that
eliminates or reduces a reliance on
non-sustainable energy sources and
includes--
20 (a) a solar hot water system; and
(b) solar energy panels; and
(c) a roof with colours having a
particular solar absorption value.".
59 Rules to be of no effect if inconsistent with law
25 For section 140(a) of the Owners Corporations
Act 2006 substitute--
"(a) is oppressive to, unfairly prejudicial to or
unfairly discriminates against, a lot owner
or an occupier of a lot; or".
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60 New section 141A inserted
After section 141 of the Owners Corporations
Act 2006 insert--
"141A Occupier to ensure guests comply with
5 rules
(1) An occupier of a lot (including a lot owner
or a lessee of a lot) must ensure that any
guest to the lot complies with the rules of the
owners corporation.
10 (2) If a guest to a lot breaches the rules of
the owners corporation, the occupier of
the lot and the guest are jointly and severally
liable for satisfying any penalty
or compensation payable as a consequence
15 of the guest's breach.
(3) Despite subsection (2), an occupier of a lot is
not liable for a guest's breach if the occupier
of the lot provides the guest with a copy of
the rules of the owners corporation.
20 (4) Nothing in subsection (3) prevents an owners
corporation from taking action in respect of
an alleged breach by a short-stay occupant
under section 159D or affects the operation
of section 169H.".
25 61 New Part 8A inserted
After section 143 of the Owners Corporations
Act 2006 insert--
"Part 8A--Retirement villages
143A Application
30 (1) This Part applies to an owners corporation
incorporated in respect of land used or to be
used for the purposes of a retirement village
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within the meaning of the Retirement
Villages Act 1986.
(2) A term used in this Part that is defined in
section 3(1) of the Retirement Villages
5 Act 1986 has the same meaning given by
that subsection.
143B Fees
(1) Despite Division 7 of Part 4, the owner of
retirement village land used or to be used
10 for the purposes of a retirement village, or
a close associate of the owner, who has a
majority of lot entitlements of the owners
corporation is not entitled to vote on--
(a) a resolution levying annual fees under
15 section 23; or
(b) a special resolution levying
extraordinary fees and charges under
section 24.
Note
20 Under section 3(1) of the Retirement Villages
Act 1986, retirement village land does not include
land in respect of which residence rights are estates
in fee simple (i.e. land occupied by a resident as a
private residence).
25 (2) In the case of a special resolution referred
to in subsection (1)(b), any reference in
Division 7 of Part 4 to the total lot
entitlements of all the lots affected by
the owners corporation is to be read as a
30 reference to those lot entitlements excluding
the lot entitlements of the owner.
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143C Maintenance fees
Section 42(2) does not apply if maintenance
charges within the meaning of the
Retirement Villages Act 1986 are collected
5 as part of the exit fees to be paid by residents
of a retirement village.
143D Obligation of initial owner of retirement
village land
Section 68(4A)(a) does not apply to an
10 initial owner of retirement village land
affected by an owners corporation or an
associate of the initial owner.
143E Appointment of the manager of an owners
corporation
15 Despite section 119(1D), an owners
corporation under this Part may appoint
a person as the manager of an owners
corporation for a period exceeding 3 years
(but not exceeding 5 years).
20 143F Rules of owners corporation of retirement
villages
(1) Despite section 138(1) and (2), the rules
of an owners corporation under this Part
may only be made, amended or revoked
25 by special resolution passed in accordance
with the Retirement Villages Act 1986.
(2) At a meeting of the residents of the
retirement village at which a special
resolution is being considered, the
30 manager of the owners corporation or
the owner of retirement village land
must not--
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(a) participate in the consideration of the
special resolution, except to the extent
resolved by the residents present at the
meeting; or
5 (b) vote on the special resolution.
(3) Subsection (2) does not prevent the manager
or the owner convening a meeting of the
residents of the retirement village to consider
the making, amendment or revocation of the
10 rules of the owners corporation.".
62 Availability of records
In section 146(2) of the Owners Corporations
Act 2006, for "may" substitute "must".
63 Availability of register
15 After section 150(2) of the Owners Corporations
Act 2006 insert--
"(2A) A lot owner must not authorise a
representative who is not a lot owner to
request a copy of the register or any part
20 of the register under subsection (2) for a
commercial purpose without the prior
consent of the owners corporation.".
64 Owners corporation certificate
In section 151(4) of the Owners Corporations
25 Act 2006--
(a) in paragraph (b)(v), for "register; and"
substitute "register.";
(b) paragraph (c) is repealed.
65 Complaints
30 In section 152(4) of the Owners Corporations
Act 2006, after "injury" insert "or the recovery of
any fees, charges, contribution or amount owing
to an owners corporation under section 28".
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66 Decision whether to take action in respect of alleged
breach
(1) After section 153(1) of the Owners Corporations
Act 2006 insert--
5 "(1A) This section does not apply to the recovery
of any fees, charges, contribution or amount
owing to an owners corporation under
section 28.
Note
10 Division 1 of Part 3 applies to recovery of fees and
other amounts.".
(2) In section 153(2)(b) of the Owners Corporations
Act 2006, for "the breach" substitute "the alleged
breach".
15 (3) In section 153(3) of the Owners Corporations
Act 2006, for "an alleged breach" substitute
"a complaint made under section 152".
67 How may notice be given?
At the foot of section 158 of the Owners
20 Corporations Act 2006 insert--
"Note
The Electronic Transactions (Victoria) Act 2000
enables notice to be given electronically.".
68 VCAT may hear and determine disputes
25 In section 162 of the Owners Corporations
Act 2006--
(a) in paragraph (c), for "owners corporation."
substitute "owners corporation; or";
(b) after paragraph (c) insert--
30 "(d) a term of a contract of appointment of
the manager of an owners corporation,
including whether a term is fair; or
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(e) the disposal by an owners corporation
of goods abandoned on the common
property.".
69 VCAT may dismiss application
5 In section 164 of the Owners Corporations
Act 2006, for "a breach" substitute "an alleged
breach".
70 What orders can VCAT make?
(1) In section 165(1) of the Owners Corporations
10 Act 2006--
(a) paragraph (ba) is repealed;
(b) after paragraph (c) insert--
"(ca) an order requiring a lot owner to pay to
the owners corporation reasonable costs
15 incurred by the owners corporation in
recovering an unpaid amount from the
lot owner (other than costs in the
proceeding);";
(c) in paragraph (m), for "Register." substitute
20 "Register;";
(d) after paragraph (m) insert--
"(n) an order requiring an occupier of a lot
to grant entry to a lot or a building on a
lot to a person authorised by an owners
25 corporation for the purposes of
section 50.".
(2) After section 165(3) of the Owners Corporations
Act 2006 insert--
"(4) This section does not affect VCAT's power
30 to award costs under section 109 of the
Victorian Civil and Administrative
Tribunal Act 1998.".
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71 Penalty for breach of rules
(1) In section 166 of the Owners Corporations
Act 2006, for "$250" substitute "$1100 to be
paid to the owners corporation".
5 (2) The note at the foot of section 166 of the Owners
Corporations Act 2006 is repealed.
72 What must VCAT consider?
At the end of section 167 of the Owners
Corporations Act 2006 insert--
10 "(2) For the purposes of an order under
section 162(d), in determining a dispute
or matter relating to whether a term of a
contract of appointment of the manager
of an owners corporation is fair, VCAT
15 must consider Part 2-3 of the Australian
Consumer Law (Victoria) as if a reference
in that Part to a consumer contract were
a reference to the contract of appointment
of the manager.".
20 73 New Division 1B of Part 11 inserted
After section 169H of the Owners Corporations
Act 2006 insert--
"Division 1B--Proceedings commenced,
prosecuted, defended or discontinued
25 by lot owner on behalf of owners
corporation
169I Lot owner may apply to VCAT to
commence, prosecute, defend or
discontinue any proceeding on behalf of
30 owners corporation
(1) A lot owner may apply to VCAT for an order
that authorises the lot owner to commence,
prosecute, defend or discontinue a specified
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proceeding on behalf of the owners
corporation.
(2) At the hearing of an application under
subsection (1)--
5 (a) a lot owner has the burden of proving
why VCAT should make an order
under subsection (1) if--
(i) the owners corporation has not
voted on a special resolution
10 relating to the matter that is
the subject of the lot owner's
application; or
(ii) the owners corporation has
unsuccessfully voted on a special
15 resolution relating to the matter
that is the subject of the lot
owner's application and an
ordinary resolution would not
have been passed; and
20 (b) any other party to the application
has the burden of proving why
VCAT should not make an order
under subsection (1) if the owners
corporation has unsuccessfully voted
25 on a special resolution relating to the
matter that is the subject of the lot
owner's application and an ordinary
resolution would have been passed.
Note
30 See section 18.
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169J VCAT may make order authorising lot
owner to commence, prosecute, defend
or discontinue proceeding
(1) On an application under section 169I,
5 VCAT, by order, may authorise a lot
owner to commence, prosecute, defend
or discontinue any proceeding specified
in the order, on behalf of the owners
corporation.
10 (2) VCAT may make an order under subsection
(1) whether or not the application for the
order is made by the lot owner in relation to
an owners corporation dispute under
section 162.
15 (3) If the application for the order is made in
relation to an owners corporation dispute
under section 162, in deciding whether to
make an order under subsection (1), VCAT
must consider the matters specified in
20 section 167.".
74 Eligibility for registration
(1) In section 179(c) of the Owners Corporations
Act 2006, for "corporate." substitute "corporate;
or".
25 (2) After section 179(c) of the Owners Corporations
Act 2006 insert--
"(d) the person, or if the person is a corporation,
a director of the corporation has, within the
last 10 years, been convicted or found guilty
30 of--
(i) an offence involving fraud, dishonesty,
drug cultivation or trafficking that was
punishable by a term of imprisonment
for 3 months or more at the time of the
35 conviction or finding of guilt; or
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(ii) an offence involving sexual slavery or
servitude that was punishable by a term
of imprisonment for 3 months or more
at the time of the conviction or finding
5 of guilt; or
(iii) an offence involving child pornography
or violence that was punishable by a
term of imprisonment for 3 months or
more at the time of the conviction or
10 finding of guilt; or
(iv) a sexual offence or an offence
connected with sex work that was
punishable by a term of imprisonment
for 3 months or more at the time of the
15 conviction or finding of guilt; or
(v) an offence that, if committed in
Victoria, would constitute an offence
referred to in subparagraph (i), (ii), (iii)
or (iv).
20 Note
Despite this paragraph, a person to whom this
paragraph applies may be granted permission to be
registered under this Part if the Business Licensing
Authority is satisfied that it is not contrary to the
25 public interest to do so. See section 182A.".
75 New section 182A inserted
After section 182 of the Owners Corporations
Act 2006 insert--
"182A Permission to be registered as manager
30 despite criminal record
(1) A person to whom section 179(d) applies
may apply to the Business Licensing
Authority for permission to be registered
as a manager.
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(2) An application under subsection (1) must--
(a) be in the form approved by the
Business Licensing Authority; and
(b) contain the information required by the
5 Business Licensing Authority; and
(c) be accompanied by the documents
required by the Business Licensing
Authority; and
(d) be accompanied by the prescribed fee
10 (if any).
(3) In considering an application under this
section, the Business Licensing Authority
may do one or more of the following--
(a) conduct any inquiries it thinks fit;
15 (b) require the applicant to provide any
further information that the Authority
thinks fit in the manner required by the
Authority;
(c) seek advice and information on the
20 application from any other person or
body as it thinks fit.
(4) The Business Licensing Authority may
refuse to consider the application if the
applicant--
25 (a) does not provide any further
information required by the
Authority; or
(b) does not give consent to the
Authority to obtain that information
30 within a reasonable time after the
requirement is made.
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(5) The Business Licensing Authority may
permit the applicant to be registered under
this Part if it is satisfied that it is not contrary
to the public interest for it to do so.".
5 76 New section 185A inserted
After section 185 of the Owners Corporations
Act 2006 insert--
"185A Professional indemnity insurance
(1) A registered manager must, at all times, be
10 covered by professional indemnity insurance
in accordance with section 119(5).
(2) A registered manager must notify the
Business Licensing Authority if the
registered manager ceases to be covered
15 by professional indemnity insurance.".
77 Automatic cancellation of registration
At the end of section 186 of the Owners
Corporations Act 2006 insert--
"(2) Subject to section 186A, a person's
20 registration as a manager is automatically
cancelled 30 days after the person, or if the
person is a corporation, a director of the
corporation, is convicted or found guilty
of--
25 (a) an offence involving fraud, dishonesty,
drug cultivation or trafficking that was
punishable by a term of imprisonment
for 3 months or more at the time of the
conviction or finding of guilt; or
30 (b) an offence involving sexual slavery or
servitude that was punishable by a term
of imprisonment for 3 months or more
at the time of the conviction or finding
of guilt; or
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(c) an offence involving child pornography
or violence that was punishable by a
term of imprisonment for 3 months or
more at the time of the conviction or
5 finding of guilt; or
(d) a sexual offence or an offence
connected with sex work that was
punishable by a term of imprisonment
for 3 months or more at the time of the
10 conviction or finding of guilt; or
(e) an offence that, if committed in
Victoria, would constitute an offence
referred to in paragraph (a), (b), (c)
or (d).
15 (3) For the purposes of subsection (2), the
conviction or finding of guilt of the person
takes effect on the later of--
(a) if the person appeals against the
conviction or finding of guilt--
20 (i) the day on which the conviction or
finding is upheld or confirmed; or
(ii) the day on which leave to appeal
is refused; or
(b) in any other case--at the end of the
25 period during which the person may
appeal against the conviction or finding
of guilt.
(4) If a person whose registration would
otherwise be cancelled under subsection (2)
30 applies for permission under section 186A
to continue to be registered as a manager
within the 30-day period referred to in
subsection (2), the person's registration
is only automatically cancelled if the
35 application is withdrawn or is refused
by the Business Licensing Authority.
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(5) A person's registration as a manager is
automatically cancelled 30 days after the
person fails to be covered by professional
indemnity insurance in accordance with
5 section 185A.".
78 New sections 186A and 186B inserted
After section 186 of the Owners Corporations
Act 2006 insert--
"186A Permission to continue to be registered as
10 manager despite criminal record
(1) A person to whom section 186(2) applies
may, within the 30-day period referred to in
that subsection, apply to the Business
Licensing Authority for permission to
15 continue to be registered as a manager.
(2) An application under subsection (1) must--
(a) be in the form approved by the
Business Licensing Authority; and
(b) contain the information required by the
20 Business Licensing Authority; and
(c) be accompanied by the documents
required by the Business Licensing
Authority; and
(d) be accompanied by the prescribed fee
25 (if any).
(3) In considering an application under this
section, the Business Licensing Authority
may do one or more of the following--
(a) conduct any inquiries it thinks fit;
30 (b) require the applicant to provide any
further information that the Authority
thinks fit in the manner required by the
Authority;
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(c) seek advice and information on the
application from any other person or
body as it thinks fit.
(4) The Business Licensing Authority may
5 refuse to consider the application if the
applicant--
(a) does not provide any further
information required by the
Authority; or
10 (b) does not give consent to the
Authority to obtain that information
within a reasonable time after the
requirement is made.
(5) The Business Licensing Authority may
15 permit the applicant to continue to be
registered under this Part if it is satisfied
that it is not contrary to the public interest
for it to do so.
186B Conditions on permission
20 (1) In giving its permission under
section 182A(5) or 186A(5), the Business
Licensing Authority may impose any
conditions it considers appropriate to
ensure the ongoing protection of the public
25 interest.
(2) The Business Licensing Authority may at
any time impose conditions in respect of the
permission or vary or revoke any conditions
it has previously imposed.
30 (3) A person to whom permission has been
given must comply with any conditions
imposed in respect of the permission.
Penalty: 25 penalty units.
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(4) If the Business Licensing Authority is
satisfied that any condition imposed
in respect of a permission has been
contravened, it may revoke the permission.
5 (5) Before taking action under this section, the
Business Licensing Authority may seek and
use information and advice from any person
or body or other sources as it thinks fit.".
79 Section 199 repealed
10 Section 199 of the Owners Corporations
Act 2006 is repealed.
80 New section 199 inserted
Before section 200 in Part 13 of the Owners
Corporations Act 2006 insert--
15 "199 Application of Australian Consumer
Law and Fair Trading Act 2012
(1) Part 6.4 of the Australian Consumer
Law and Fair Trading Act 2012 (except
sections 152, 153 and 175) extends and
20 applies (with any necessary modifications)
to this Act as if any reference in that Part to
the Australian Consumer Law and Fair
Trading Act 2012 were a reference to this
Act and any regulations made under this Act.
25 (2) Sections 125, 195 and 196 and Part 8.2
(except section 213) of the Australian
Consumer Law and Fair Trading
Act 2012 extend and apply (with any
necessary modifications) to this Act as
30 if any reference in those provisions to
the Australian Consumer Law and Fair
Trading Act 2012 were a reference to
this Act and any regulations made under
this Act.
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(3) For the purposes of subsection (2)--
(a) section 210 of the Australian
Consumer Law and Fair Trading
Act 2012 applies as if a reference in
5 that section to Part 3.1 or Part 6.3 of the
Australian Consumer Law and Fair
Trading Act 2012 were a reference to
this Act and any regulations made
under this Act; and
10 (b) section 212 of the Australian
Consumer Law and Fair Trading
Act 2012 applies as if a reference in
that section to prescribed proceedings
were a reference to--
15 (i) proceedings for an offence against
a provision of this Act or any
regulations made under this Act
(except an offence applied by
subsection (1)); or
20 (ii) proceedings on an application for
an injunction under section 201,
202 or 203 of the Australian
Consumer Law and Fair
Trading Act 2012 (as applied by
25 subsection (2)) against a person
alleged to have contravened a
provision of this Act or any
regulations made under this Act
(except an offence applied by
30 subsection (1)); or
(iii) proceedings on an application
for an order under section 216,
or for damages under section 217,
of the Australian Consumer
35 Law and Fair Trading Act 2012
(as applied by subsection (2)).".
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Part 2--Amendment of Owners Corporations Act 2006
81 New section 200A inserted
After section 200 of the Owners Corporations
Act 2006 insert--
"200A Manner in which documents may be given
5 to or served on owners corporation
(1) Any document under this Act required to be
given to an owners corporation may be given
to the owners corporation--
(a) by leaving it with the chairperson or
10 secretary of the owners corporation or a
member of the committee of the owners
corporation; or
(b) by leaving it in the letterbox of the
owners corporation at the address of
15 the owners corporation recorded in
the owners corporation register; or
(c) by posting it, by prepaid mail, to the
owners corporation at the address of
the owners corporation recorded in
20 the owners corporation register; or
(d) by sending it by electronic transmission
to an address or location nominated by
the chairperson or the secretary of the
owners corporation or a member of the
25 committee of the owners corporation.
(2) Any document under this Act required to be
served on an owners corporation may be
served on the owners corporation--
(a) by leaving it with--
30 (i) the chairperson or the secretary of
the owners corporation; or
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Part 2--Amendment of Owners Corporations Act 2006
(ii) a member of the committee of the
owners corporation; or
(iii) the manager of the owners
corporation (if any); or
5 (b) by posting it, by prepaid mail, to the
owners corporation at the address of
the owners corporation recorded in
the owners corporation register.".
82 Money to be paid to Victorian Property Fund
10 For section 201(b) of the Owners Corporations
Act 2006 substitute--
"(b) all penalties (other than a civil penalty under
section 166) payable under this Act.".
83 Section 203 amended
15 (1) In the heading to section 203 of the Owners
Corporations Act 2006, for "bring proceedings"
substitute "commence a proceeding".
(2) In section 203 of the Owners Corporations
Act 2006--
20 (a) in subsection (1), for "brought" substitute
"commenced";
(b) in subsection (2)--
(i) for "In proceedings" substitute
"In any proceeding";
25 (ii) for "bringing the proceedings"
substitute "commencing the
proceeding";
(iii) for "bring the proceedings" substitute
"commence the proceeding".
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Part 2--Amendment of Owners Corporations Act 2006
84 New Part 14 inserted
After section 205 of the Owners Corporations
Act 2006 insert--
"Part 14--Transitional and
5 savings provisions--Owners
Corporations and Other Acts
Amendment Act 2019
206 Definitions
In this Part--
10 2019 Act means the Owners Corporations
and Other Acts Amendment
Act 2019;
commencement day means the day on which
Parts 2 and 3 of the 2019 Act come into
15 operation.
207 Requirement to have maintenance plan
Section 36(1) as substituted by the 2019 Act
does not apply to--
(a) a tier one owners corporation until
20 12 months after the commencement
day; or
(b) a tier two owners corporation until
24 months after the commencement
day.
25 208 Term of contract of appointment void
(1) This section applies to a contract of
appointment of the manager of an owners
corporation that is entered into or renewed
by the owners corporation on or after the
30 commencement day.
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Part 2--Amendment of Owners Corporations Act 2006
(2) If a contract of appointment includes any of
the terms referred to in section 119A(1) as
inserted by the 2019 Act, that term is void on
and after the commencement day.
5 209 Financial statements
(1) Section 34 as substituted by the 2019 Act
and sections 35 and 35A as substituted
and inserted by the 2019 Act apply only
in relation to a financial year commencing
10 on or after the commencement day.
(2) Sections 34 and 35 as in force immediately
before the commencement day, continue
to apply in relation to a financial year that
commenced before the commencement day.
15 210 Review of amendments made by 2019 Act
(1) The Minister must cause a review of the
operation of the amendments made to this
Act by the 2019 Act to be undertaken.
(2) The review must commence at least 2 years
20 after the commencement day and no later
than 5 years after the commencement day.
(3) The review must review the operation of
the amendments made to this Act by the
2019 Act in accordance with the terms
25 of reference determined by the Minister,
including how this Act as amended has
operated and whether further or other
amendments are required.
(4) The person appointed by the Minister to
30 conduct the review must provide a written
report to the Minister.
(5) The Minister must cause a copy of the
review to be tabled before each House of
the Parliament as soon as practicable after
35 the review is completed.
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Part 2--Amendment of Owners Corporations Act 2006
(6) This section is repealed on 1 January
2027.".
85 Amendment of Schedule 1
(1) In clause 1.1 of Schedule 1 to the Owners
5 Corporations Act 2006, for "invitees" substitute
"guests".
(2) After clause 1.4 of Schedule 1 to the Owners
Corporations Act 2006 insert--
"1.5 Requiring advice to be given to occupiers
10 about fire safety procedures and the
operation of fire alarm systems.".
(3) After clause 3.4 of Schedule 1 to the Owners
Corporations Act 2006 insert--
"3.5 Payment of fees by instalments by lot
15 owners in financial difficulty.".
(4) In clause 4.1 of Schedule 1 to the Owners
Corporations Act 2006, after "Use of" insert
"and access to".
(5) In clause 4.2 of Schedule 1 to the Owners
20 Corporations Act 2006, after "Use of" insert
"and access to".
(6) In clause 7.1 of Schedule 1 to the Owners
Corporations Act 2006, for "invitees" substitute
"guests".
25 (7) After clause 7.2 of Schedule 1 to the Owners
Corporations Act 2006 insert--
"7.3 Regulating or prohibiting the drifting of
tobacco smoke from a lot in a multi-level
development.".
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Part 2--Amendment of Owners Corporations Act 2006
(8) For clause 10 of Schedule 1 to the Owners
Corporations Act 2006 substitute--
"10 Common seal
If the owners corporation uses a common
5 seal, the use of the common seal.".
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Part 3--Amendment of other Acts
Part 3--Amendment of other Acts
Division 1--Amendment of Retirement
Villages Act 1986
86 Residents committee
5 (1) For section 36(1) of the Retirement Villages
Act 1986 substitute--
"(1) The residents of a retirement village may
elect a residents committee to represent the
interests of the residents of the village.".
10 (2) Section 36(8) of the Retirement Villages
Act 1986 is repealed.
Division 2--Amendment of Subdivision Act 1988
87 New section 27EA inserted
After section 27E of the Subdivision Act 1988
15 insert--
"27EA Initial owner to engage surveyor
(1) For the purposes of preparing a plan under
this Part, an initial owner must engage a
licensed surveyor to set out the initial
20 allocation of lot liability and lot entitlement
in the plan.
(2) Subsection (1) does not apply to a tier five
owners corporation within the meaning of
section 7(6)(a) of the Owners Corporations
25 Act 2006.".
88 Plan must specify lot entitlement and lot liability
(1) For section 27F(1) of the Subdivision Act 1988
substitute--
"(1) A plan providing for the creation of an
30 owners corporation or for the merger of
owners corporations must--
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Part 3--Amendment of other Acts
(a) specify details of lot entitlement and lot
liability; and
(b) be accompanied by a statement
detailing how the lot entitlement and lot
5 liability is allocated in accordance
with subsection (4).".
(2) In section 27F(2) of the Subdivision Act 1988,
for "The basis for the allocation of lot entitlement
and lot liability" substitute "A statement referred
10 to in subsection (1)(b)".
(3) After section 27F(3) of the Subdivision Act 1988
insert--
"(4) For the purposes of this section--
(a) lot liability in the plan must be
15 allocated equally between the lots
unless--
(i) there is a substantial difference in
size between the lots; or
(ii) different lots have a bearing on the
20 consumption or use of common
utilities or the cost of maintaining
the common property; or
(iii) the number of occupiers in each
lot has a greater bearing on the
25 consumption or use of the
common utilities or the cost of
maintaining the common property
than the size of the lot; and
(b) lot entitlement in the plan must be
30 allocated on the basis of the market
value of the lot and the proportion that
value bears to the total market value of
the lots.
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Part 3--Amendment of other Acts
(5) For the purposes of subsection (4)(a), lot
liability must be allocated on the basis of--
(a) in the case of subsection (4)(a)(i)--the
size of the lot and the proportion that
5 size bears to the total size area of the
lots; or
(b) in the case of subsection (4)(a)(ii)--the
size of the lot and level of consumption
or use by that lot of the common
10 utilities and the common property; or
(c) in the case of subsection (4)(a)(iii)--the
number of bedrooms in the lot.".
89 Creation of owners corporation
In section 28(2) of the Subdivision Act 1988
15 omit "and a common seal".
90 How can lot entitlement and liability be altered?
(1) For section 33(1) of the Subdivision Act 1988
substitute--
"(1) If there is a unanimous resolution of the
20 members, the owners corporation must apply
to the Registrar to alter the lot entitlement or
lot liability.
(1A) An application under subsection (1) must be
made--
25 (a) in the approved form; and
(b) within 60 days of the passage of
the unanimous resolution.".
(2) For section 33(2) and (3) of the Subdivision
Act 1988 substitute--
30 "(2) In making any alteration to the lot
entitlement or lot liability, the owners
corporation must act in accordance with
section 27F(4).".
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Part 3--Amendment of other Acts
91 Applications relating to plans
(1) In section 34D(1)(a) of the Subdivision Act 1988,
after "requiring" insert "or authorising".
(2) For section 34D(3)(c) of the Subdivision
5 Act 1988 substitute--
"(c) the member has or the group of members
have refused consent to the proposed action
and--
(i) the member owns or the group of
10 members own more than half of the
total lot entitlement; and
(ii) all other members of the owners
corporation consent to the proposed
action; and
15 (iii) the purpose for which the action is to
be taken is likely to bring economic or
social benefits to the subdivision as a
whole greater than any economic or
social disadvantages to the member
20 or the group of members who did not
consent to the action.".
92 Statute law revision
In section 3(1) of the Subdivision Act 1988, in
paragraph (b) of the definition of limited owners
25 corporation, for "limitations" substitute
"limitations;".
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Part 4--Repeal of this Act
Part 4--Repeal of this Act
93 Repeal of this Act
This Act is repealed on 1 January 2022.
Note
5 The repeal of this Act does not affect the continuing operation of
the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
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Endnotes
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
By Authority. Government Printer for the State of Victoria.
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