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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 | 26.Proxy


28 Oct 2021

A lot owner may authorise a person in writing to be proxy, including: 

  • attend, speak or vote on behalf of the lot owner at a meeting of the owners corporation; 
  • vote on behalf of the lot owner at a ballot; 
  • represent the lot owner on a committee of the owners corporation (only if the proxy is themself a committee member). 

A person authorised to act as a proxy must act honestly, in good faith and exercise due care and diligence and cannot require or demand authorisation. 

If there are 20 or fewer occupiable lots on the plan of subdivision, a person must not vote as a proxy on behalf of more than one lot owner. Note: exceptions apply if holding proxies for family members. 

If there are more than 20 occupiable lots on the plan of subdivision, a person must not vote as a proxy on behalf of more than 5% of the lot owners. Note: exceptions apply if holding proxies for family members. 

A Proxy Holder must not transfer the proxy authorisation to another person, so if one person holds too many proxies, they cannot simply assign some proxies to another person. 

If too many proxies are held by a person, that person must nominate which proxies he/she wishes to use and which to discard.

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