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Owners Corporation Act: Amendments to classifications of owners corporations

As Owners Corporation committees and managers ought to be aware, on 1 December 2021 the amendments to the Owners Corporation Act 2006 will come into effect as a result of the Owners Corporations and Other Acts Amendment Act 2021.

We will provide a series of articles highlighting particular amendments waiting to come into effect.

This article will focus on the amendments to the classifications of Owners Corporations.

Owners Corporations will no longer be classified as prescribed and non-prescribed. Instead, the new section 7 will outline the five tiers of owners corporations, namely:

Tier One More than 100 occupiable lots and is not a services only owners corporation
Tier Two 51 to 100 occupiable lots and is not a services only owners corporation
Tier Three 10 to 50 occupiable lots and is not a services only owners corporation
Tier Four 3 to 9 occupiable lots and is not a services only owners corporation
Tier Five A 2-lot subdivision or a services only owners corporation

 

Additionally:

  1. Owners Corporations with less than 10 occupiable lots and more than 50 non-occupiable lots will be treated as though the non-occupiable lots are occupiable lots and will fall into either Tier One or Tier Two.
  2. Owners Corporations with non-occupiable lots only will be treated as though the non-occupiable lots are occupiable lots and will fall into any of the first four tiers.
  3. An “occupiable lot” is defined as a residential or commercial lot.
  4. A “non-occupiable lot” is defined as a car park, storage locker or a lot that is not a residential or commercial lot.
  5. A services only owners corporation has no land or building that has been designated as common property and:
    1. The initial owner has arranged for a utility company to install common meters that are designated as common property; or
    2. The subdivision has a common supply or common service that is unmetered.

For any advice about how the amendments to the classifications of owners corporations may affect your Owners Corporation contact any of our experienced team: