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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.

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 | 19.Making Rules


28 Oct 2021

External Alterations and Other Works Affecting Lot Owners:

An Owners Corporation may make rules in respect of proposed works to renovate or alter the external appearance of a Lot 

  • to protect the quiet enjoyment of all other lots and the common property; 
  • to protect the structural integrity of any building on the plan of subdivision; and 
  • to ensure the market value of any other lot is protected.

An Owners Corporation must not make rules that unreasonably prohibit the installation of a ‘sustainability item’ on the exterior of a Lot. Withholding approval only based on aesthetic grounds is unreasonable but withholding approval because of the location or access or use of common property.

Rules in general cannot be oppressive to, unfairly prejudicial to or unfairly discriminates against, a lot owner or an occupier of a lot.

Payment Plan:

Allowing Owners Corporation to make rules regarding the payment of fees by instalments by lot owners in financial difficulty. 

Tobacco Smoke:

Allowing Owners Corporation to make rules regulating or prohibiting the drifting of tobacco smoke from a lot in a multi-level development.

Fire Safety Procedures:

Allowing Owners Corporation to make rules requiring advice to be given to occupiers about fire safety procedures and the operation of fire alarm systems.

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