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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.

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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.

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Strata Managers Summary of Amendments | 12.Disposal of Goods Abandoned on Common Property

28 Oct 2021

An Owners Corporation may move goods from common property to a safe place if the goods are blocking access and an attempt has been made to locate/communicate with the owner.
An Owners Corporation may dispose of abandoned goods if it has given written notice of its intention to the person that owns the goods.
Owners Corporation to consider applying Sections 60 to 65 and 73 to 76 of the Australian Consumer Law and Fair Trading Act 2012 to the disposal of abandoned goods. 
Notice of intention to dispose of goods abandoned on common property
(1) Notice must be in writing and to include:
(a) Plan number and address of the Owners Corporation;
(b) Description of the goods; and
(c) Address at which the goods may be collected;
(d) A statement that on or after a specified date the goods will be disposed of by the Owners Corporation unless the goods are collected;
(e) A statement that the Owners Corporation will retain from the proceeds of sale of the goods an amount not exceeding the 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;
(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;
(4) In this section, publicly registered interest has the same meaning as in the Australian Consumer Law and Fair Trading Act 2012.
An Owners Corporation must not dispose of the goods if a dispute exists between the person who abandoned the goods and the Owners Corporation in relation to the goods and an application has been made to VCAT by the Owners Corporation in relation to the dispute.
An Owners Corporation that disposes of goods under this Division is not liable in relation to the goods by reason of the disposal.

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