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This is the “Benefit Principle” which exists in Victoria. That lot owners that benefit more from certain OC works could pay more.
Sections 23, 24, 28 and 53 of the OC Act (Victoria) relate to it.
S. 28 only confirms that an OC has the right to use the “Benefit Principle”. But in practice, applying the “Benefit Principle” is dependent on how the works are funded.
S.23 (3A) specifically rules out applying the “Benefit Principle” for ordinary annual budgets and the ordinary levies used to fund them. This would include long term maintenance funding in the annual budget.
S.24 (2A) and s.53 (1B) specifically rule in the “Benefit Principle” for extraordinary expenditure or certain upgrading works and the special levies used to fund them.
The bottom line is that it’s only when a special levy is struck that the “Benefit Principle” can be considered. And even then it must be considered with caution.
Some VCAT guidance on how to use it is here, from part 16:
http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VCAT/2017/1550.html
