Victoria is in the final stages of public consultation for its upcoming strata reform legislation. This seeks to overhaul their current system into something which is more in line with strata legislation in other states.
The Bill proposes a range of amendments to:
- the Owners Corporations Act 2006 (VIC);
- the Retirement Villages Act 1986 (VIC); and
- Part 5 of the Subdivision Act 1988 (VIC).
The proposed changes will include the introduction of a 4-tier system of schemes according to size. This will impose requirements for committees of larger owners corporations (“OC’s”) and will impose restrictions in management contracts to prevent unfair terms.
The major changes being proposed are as follows:
- 4 tier system for OC’s;
- Increasing the amount of public liability insurance required;
- Future proofing the maintenance fund;
- Stronger disqualification and insurance provisions for managers;
- Giving VCAT more power to rule terms of management contracts unfair;
- Expanding the fiduciary obligations of managers;
- Prohibiting managers from pooling money from multiple OC’s in a single bank account; and
- Improve governance and financial administration generally.
More Information: Consumer Affairs Victoria.