The Queensland Government has introduced a Bill to undo those parts of the April 2011 amendment to the Body Corporate & Community Management Act that relate to the contribution entitlements for existing Community Titles Schemes.
Owners in schemes that have had adjustment order contribution entitlements reversed will be able to apply to have the entitlements reinstated. This means that where the Tribunal has made a determination as to what is fair and equitable in relation to contribution entitlements; that determination can now be reapplied.
The other effect is that contribution entitlements in a Community Titles Schemes can again be reviewed and adjusted to maintain an equitable allocation of the costs of operating the Community Titles Schemes rather than being locked into the original entitlements that may no longer be appropriate.
Body Corporate Committees and Managers need to be aware of the process required as there are strict timelines and penalties of up to $11,000 for non-compliance. Once an owner makes an application, the Committee only has 60 days to:
– identify the last adjustment order entitlements for the scheme;
– consider any amalgamations or subdivisions of lots or any other material changes to the scheme and put together a proposed contribution entitlement schedule;
– write to all owners informing them an application has been made, giving them a copy of the last adjustment order entitlements and informing all owners of the Committee’s proposed contribution entitlements schedule; and
– inviting owners to make submissions within a submission period of no less than 28 days.
Once a submission period is closed, the Committee must review the submissions, consider if any modifications are required and make a decision.
The Committee must notify all owners of the decision within seven days and lodge the new CMS for registration within 90 days.
A well informed Committee must also be prepared to deal with objections by owners. The grounds for objection are limited to circumstances where the entitlements proposed by the committee do not reflect the last adjustment order entitlement modified to deal with lot subdivisions or amalgamations or other material changes.
Thynne + Macartney’s property team has extensive experience in supporting Body Corporate Committees and Managers in navigating these emotive provisions and would be pleased to assist Committees and owners in relation to these issues.
This information is intended to provide a general summary only and should not be relied on as a substitute for legal advice.