Chapter 4 Administrative matters

Each lot that is scheme land for a community titles scheme is a separate lot, piece or parcel of land for a law imposing charges, levies, rates or taxes on land.

(1) For calculating the value of a lot included in a community titles scheme for the purpose of a charge, levy, rate or tax payable to a local government, the commissioner under the repealed Land Tax Act 1915 or other authority, the value of the scheme land is apportioned between the lots included in the scheme in proportion to the interest schedule lot entitlement for each lot.

Note—

For assessing liability for land tax on a lot included in a community titles scheme after 30 June 2010, see the Land Tax Act 2010, section 29.

(2) Subject to section 198, the body corporate is not liable for a charge, levy, rate or tax on the common property based on the value of land.

Examples of operation of this section—

1 If the value of the scheme land for a basic scheme that includes 3 lots, each with the same interest schedule lot entitlement, is $120,000, the value for each lot is $40,000. Effectively, each lot’s value includes a component for the value of the common property.

2 This example applies to a community titles scheme (scheme A) that is not a basic scheme but includes 2 lots (and common property), with each lot being a basic scheme (scheme B and scheme C), each having the same interest schedule lot entitlement listed for it in scheme A’s interest schedule. If the value of the scheme land for scheme A is $800,000, the value for scheme B’s scheme land is $400,000. To calculate the value of each lot included in scheme B, the figure of $400,000 must be apportioned between the lots included in scheme B according to the interest schedule lot entitlements of those lots as listed in scheme B’s interest schedule.

(1) The body corporate for a community titles scheme is liable for a charge for water, gas, sewerage, cleansing or another utility service supplied to the common property if the charge is—

(a) for a utility service that is separately measured for its supply to the common property; and

(b) separately charged to the body corporate; and

(c) calculated in a way that is unrelated to the value of land.

Example—

The body corporate is liable for charges made by the local government for water, separately measured and supplied to the common property for gardens or a swimming pool, and, if appropriately levied by the local government, for a flat rate fee applying in relation to the supply of water to the common property.

(2) The owner of a lot included in the scheme is liable for a charge for water, gas, sewerage, cleansing or another utility service supplied to the lot if the charge is—

(a) for a utility service that is separately measured for its supply to the lot; and

(b) separately charged to the lot owner; and

(c) calculated in a way that is unrelated to the value of land.

(1) This section applies to a community titles scheme if—

(a) there is no practicable way available to a utility service provider to measure the extent to which the utility service is supplied to—

(i) each lot included in the scheme; and

(ii) if the utility service is also supplied to the common property—the common property; and

(b) the supply of the utility service to scheme land is charged according to usage, and is not charged for on the basis of the value of land.

(2) A lot owner is liable to the utility service provider for a share of the total amount payable for the provision of the utility service to scheme land.

(3) The share is proportionate to the contribution schedule lot entitlement for the lot.

(4) However, the body corporate may, by arrangement with the utility service provider, take on liability for owners or occupiers of the lots for the utility service supplied for the benefit of owners or occupiers.

(5) If an arrangement is in force under subsection (4), the utility service provider can not separately charge the owners or occupiers for the utility service to which the arrangement relates, and the body corporate must satisfy the liability to the utility service provider out of—

(a) the contributions paid by lot owners to the body corporate under the regulation module applying to the scheme; or

(b) a levy imposed on the individual lot owners in the way stated in subsection (6).

(6) The levy must be made—

(a) for lots for which the body corporate has a way of measuring the extent to which the utility service is supplied to each lot—according to the extent of supply; and

(b) for lots for which the body corporate does not have a way of measuring the extent to which the utility service is supplied to each lot—

(i) equally between the lot owners; or

(ii) proportionately among the lot owners according to the contribution schedule lot entitlement for each lot.

(7) Subsections (8), (9) and (10) apply if—

(a) an arrangement is in force under subsection (4); and

(b) the body corporate fails to satisfy the liability to the utility service provider under the arrangement by the day the liability becomes payable.

(8) If the utility service provider is a local government, the unpaid amount of the liability becomes an overdue rate under the Local Government Act 2009 that is payable proportionately by each lot owner according to the contribution schedule lot entitlement for the lot.

(9) If the utility service provider is MEDQ, the unpaid amount becomes a special rate or charge under the Economic Development Act 2012 that is payable proportionately by each lot owner according to the contribution schedule lot entitlement for the lot.

(10) If the utility service provider is not a local government or MEDQ—

(a) the unpaid amount is payable proportionately by each lot owner, according to the contribution schedule lot entitlement for the lot; and

(b) the amount payable by a lot owner is a charge on the lot.

(11) For applying the Economic Development Act 2012, section 117 for the purposes of subsection (9), the reference in the section to the land is taken to be a reference to each lot.

(12) Subsection (10) is in addition to any other remedy the utility service provider has for recovery of the unpaid amount.

(13) This section does not apply to a community titles scheme established after 1 January 2008 in relation to a utility service that is water reticulation or supply if devices for separately measuring the supply of water to each lot and the common property are installed on the scheme land—

(a) after 1 January 2008; and

(b) under a permit issued under the Plumbing and Drainage Act 2018 or in relation to a compliance request made after 31 December 2007 under the repealed Plumbing and Drainage Act 2002.

(14) In this section—

liability, for an owner or occupier of a lot for which a utility service is supplied for the benefit of the owner or occupier, does not include the owner’s or occupier’s liability for a fee charged by the utility service provider for providing the utility infrastructure for the service.

utility service provider includes a local government in whose local government area scheme land is located but does not include—

(a) a body corporate manager, service contractor or letting agent; or

(b) an associate of a person mentioned in paragraph (a).

(1) If an amount payable to a utility service provider is a charge on a lot under section 196 (10)(b), the utility service provider may ask the registrar to register the charge.

(2) The request must be accompanied by a certificate signed by the utility service provider stating there is a charge on the lot under section 196 (10)(b).

(3) Immediately after the amount secured by the charge is paid to the utility service provider—

(a) the charge ceases to have effect; and

(b) the utility service provider must take the action necessary to release the charge.

(1) If a liability to pay charges, levies, rates or taxes on a lot included in a community titles scheme arises and, before the amount of the liability is paid, the scheme is changed so that the lot or part of the lot is incorporated with another lot included in, or common property for, the scheme, the liability is enforceable jointly and severally against—

(a) the person who was the owner of the lot when the liability arose; and

(b) if the lot or part of the lot is incorporated with another lot included in the scheme—the owner of the other lot; and

(c) if the lot or part of the lot is incorporated with common property—the body corporate.

(2) If a liability to pay charges, levies, rates or taxes on a lot included in a community titles scheme (scheme A) arises and, before the amount of the liability is paid, scheme A is changed so that the lot or part of the lot becomes scheme land for another community titles scheme (scheme B) that is a subsidiary scheme for scheme A, the liability is enforceable jointly and severally against—

(a) the person who was the owner of the lot when the liability arose; and

(b) the body corporate for scheme B.

(3) This section does not apply to a rate or charge owing to a local government, to the extent that it is inconsistent with arrangements in force under the Local Government Act 2009 and the local laws of the local government.

(4) Also, this section does not apply to an amount owing to MEDQ to the extent this section is inconsistent with the Economic Development Act 2012.

If a local government or other entity carries out work on common property for a community titles scheme and a statutory charge for the work would, if the land forming the common property were a single undivided allotment, be a charge on the land—

(a) the charge attaches to each lot included in the scheme proportionate to the interest schedule lot entitlement of the lot (the appropriate proportion); and

(b) a lot may be discharged from the charge by payment of the appropriate proportion of the total amount of the charge.

To avoid doubt, it is declared that the provisions of this part have no application to charges, levies, rates or taxes payable by the body corporate, whether to a local government or to someone else, on the basis of the body corporate’s ownership of body corporate assets.

Part 2 Records

Division 1 Notices

The regulation module applying to a community titles scheme may prescribe requirements about the giving of notices to the body corporate on the transfer of the ownership of a lot included in the scheme or on the happening of other events affecting the lot.

(1) If a mortgagee in possession of a lot included in a community titles scheme decides not to enforce the mortgage, the mortgagee must immediately give written notice of the decision to the body corporate.

Maximum penalty—20 penalty units.

(2) On giving the written notice, the mortgagee ceases to be a mortgagee in possession of the lot and is not the owner of the lot under this Act.

(1) If the body corporate for a community titles scheme suspects on reasonable grounds that a person should have, but has not, given a notice (the earlier notice) under this division (including under a provision of a regulation module made under this division), the body corporate may, by written notice given to the person, require the person to give to the body corporate, within a stated reasonable time (of at least 28 days after the notice is given), a written notice containing the information the body corporate reasonably requires to decide whether the person should have given the earlier notice.

(2) If the body corporate for a community titles scheme is satisfied that a person should have, but has not, given a notice (also the earlier notice) under this division (including under a provision of a regulation module made under this division), the body corporate may, by written notice given to the person, require the person to give to the body corporate, within a stated reasonable time (of at least 28 days after the notice is given), a written notice containing the information required to have been included in the earlier notice.

(3) If a body corporate gives a person a notice under subsection (1) or (2), the person must comply with the notice unless the person has a reasonable excuse.

Maximum penalty for subsection (3)—20 penalty units.

Division 2 Records and provision of information

The body corporate for a community titles scheme must keep rolls, registers and other documents, must give access to them, and may dispose of them, in the way, and to the extent, provided for in the regulation module applying to the scheme.

(1) This section provides for the giving of information by the body corporate for a community titles scheme from the body corporate’s records to an interested person.

(2) Within 7 days after receiving a written request from the interested person accompanied by the fee prescribed under the regulation module applying to the scheme, the body corporate must do either or both of the following as requested by the interested person—

(a) permit the person to inspect the body corporate’s records—

(i) if the person and the body corporate agree on a way to inspect the records—in accordance with the agreement; or

(ii) otherwise—in person at a reasonable time and place nominated by the body corporate;

(b) give the person a copy of a record kept by the body corporate—

(i) if the person and the body corporate agree on the way the copy will be given—in accordance with the agreement; or

(ii) otherwise—in the way prescribed under the regulation module applying to the scheme.

Maximum penalty—20 penalty units.

(3) However, the body corporate is not required to allow a person to inspect or obtain a copy of a part of a record under subsection (2) if the body corporate reasonably believes the part contains defamatory material.

(4) An interested person may ask the body corporate for a certificate under this section (a body corporate certificate) giving financial and other information about a lot included in the scheme.

(5) The request must be in writing and accompanied by the fee prescribed by the regulation module applying to the scheme.

(6) Within 5 business days after receiving the request, the body corporate must give the person a body corporate certificate in the approved form for the lot.

Maximum penalty—20 penalty units.

(7) A person who obtains a body corporate certificate may rely on the certificate against the body corporate as conclusive evidence of matters stated in the certificate other than to the extent to which the certificate contains an error that is reasonably apparent.

(8) An interested person may ask the body corporate for stated financial information, of the type included in the approved form for a body corporate certificate, about a lot included in the scheme.

(9) The request must be in writing and accompanied by the fee required by the body corporate.

(10) The fee required under subsection (9) must not be more than the amount payable under subsection (5) for a request for a body corporate certificate for the lot.

(11) Within 5 business days after receiving the request, the body corporate must give the person the requested financial information.

Maximum penalty—20 penalty units.

(12) A person who obtains financial information under this section may rely on the information against the body corporate as conclusive evidence of the information other than to the extent to which the information contains an error that is reasonably apparent.

(13) In this section—

interested person, for a lot included in a scheme, means—

(a) an owner of the lot; or

(b) a mortgagee of the lot; or

(c) a buyer under a contract for the sale of the lot; or

(d) a person to whom an owner of the lot has given a disclosure statement under the Property Law Act 2023, section 99 (1)(a); or

(e) another person who satisfies the body corporate of a proper interest in the information sought by the person under this section; or

(f) an agent of a person mentioned in any of paragraphs (a) to (e).

The approved form for a body corporate certificate for a lot included in a scheme—

(a) must include provision for information about the matters prescribed by the regulation module applying to the scheme; and

(b) may include other matters.

(1) This section—

(a) provides for the giving of information by a body corporate for a community titles scheme in a layered arrangement of community titles schemes from the body corporate’s records to an interested person (layered arrangement); and

(b) applies in addition to, and does not limit, section 205.

(2) Within 7 days after receiving a written request from the interested person (layered arrangement) accompanied by the fee prescribed under the regulation module applying to the scheme, the body corporate must do either or both of the following as requested by the person—

(a) permit the person to inspect the body corporate’s records—

(i) if the person and the body corporate agree on a way to inspect the records—in accordance with the agreement; or

(ii) otherwise—in person at a reasonable time and place nominated by the body corporate;

(b) give the person a copy of a record kept by the body corporate—

(i) if the person and the body corporate agree on the way the copy will be given—in accordance with the agreement; or

(ii) otherwise—in the way prescribed under the regulation module applying to the scheme.

Maximum penalty—20 penalty units.

(3) However, the body corporate is not required to allow the interested person (layered arrangement) to inspect or obtain a copy of a part of a record under subsection (2) if the body corporate reasonably believes the part contains defamatory material.

(4) Also, subsection (5) applies if the interested person (layered arrangement) is not the body corporate for a subsidiary scheme or the owner of a lot that is included in a subsidiary scheme.

(5) If—

(a) the interested person (layered arrangement) is a body corporate for another scheme that is included in the layered arrangement of community titles schemes—the body corporate may only allow the person to inspect the records or give the interested person a copy of the record if the body corporate is satisfied the request is only for the purpose of identifying a person to whom a contravention notice under section 182A or section 183AA may be given; or

(b) the interested person (layered arrangement) is an owner or occupier of a lot included in another scheme that is included in the layered arrangement of community titles schemes—the body corporate may only allow the person to inspect the records or give the person a copy of the record if the body corporate is satisfied—

(i) a dispute about the operation of a by-law exists between the interested person and an owner or occupier of a lot (the accused person); and

(ii) the person’s request is only for the purpose of identifying the accused person in order for the interested person to—

(A) request the body corporate to issue a contravention notice to the accused person; or

(B) make an application under chapter 6 for resolution of the dispute.