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Releated articles

Strata Managers Summary of Amendments | 1.Owners Corporation Tier Classification

One of the key important changes to the Act is to identify the Tier Category (Tier 1-5) that your Owners Corporation will fall under. This will involve deployment of the change on the legal records, carry out further regulatory requirement checks depending on the number of occupiable lots and take necessary steps to meet any further requirements driven from this change.

The tiers are structured as follows:

Tier One: More than 100 occupiable lots;

Tier Two: 51 to 100 occupiable lots;

Tier Three: 10 to 50 occupiable lots;

Tier Four: 3 to 9 occupiable lots; and

Tier Five: 2 occupiable lots or a services only Owners Corporation.

Find out more at https://www.legislation.vic.gov.au/as-made/acts/owners-corporations-and-other-acts-amendment-act-2021 

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Strata Managers Summary of Amendments | 2.Insurance Costs and Levies

Owners Corporations will have greater power to levy fees to specific lot owners for additional expenses that are directly contributed by a specific lot owner’s use of their lot when the existing lot liability (apportionment of cost) would not sufficiently take account of these additional costs.

An Owners Corporation may ask a lot owner to pay:

An increase to an insurance premium that has been caused by gross negligence or a wilful act of the lot owner themselves, their tenant or guests;

Consider whether Lot entitlements and liabilities are different and, if they are, whether it would be fairer to apportion the cost of replacement and replacement insurance based on Lot entitlement.

An insurance excess if a claim relates directly to the owner’s lot; and

Fees to cover damage to the common property that has been caused by a lot owner and is not covered by insurance.

It’s important to note that occupiers of lots are considered responsible for their guests’ behaviour, and consequently, they may both be liable for any breach of the Owners Corporations’ rules.

​Find out more at https://www.legislation.vic.gov.au/as-made/acts/owners-corporations-and-other-acts-amendment-act-2021 

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Strata Managers Summary of Amendments | 27.Creation of Plans – Amendment to Subdivision Act 1988


28 Oct 2021

For the purposes of preparing a plan under this Part, an initial owner (Developer) must engage a licensed surveyor to set out the initial allocation of lot liability and lot entitlement in the plan. 

To specify how lot liability and lot entitlement must be allocated. 

1. Lot liability in the plan must be allocated equally between the lots unless : 

  • there is a substantial difference in size between the lots; or 
  • different lots have a bearing on the consumption or use of common utilities or the cost of maintaining the common property; or 
  • the number of occupiers in each lot has a greater bearing on the consumption or use of the common utilities or the cost of maintaining the common property than the size of the lot; and 

2. Lot entitlement in the plan must be 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.

​Find out more at https://www.legislation.vic.gov.au/as-made/acts/owners-corporations-and-other-acts-amendment-act-2021