OK, this is as much as I have been able to glean. As far as Fair Trading and Strata Community Australia (the strata managers) are concerned, the OC has to repair damage done in effecting repairs to common property but doesn’t have to pay for repairs required by the original failure of common property. That’s their policy and that’s why it’s part of the “who’s responsible” document that they and others in the industry jointly formulated.
However, talking to lawyers, it seems there are other principles involved here, such as common law. If you think you can prove that the damage to your lot was the result of Owners Corp negligence, you can ask them to pay. If they refuse, and you think it’s worth all the hassle, you can go go to your District Court and make a claim there.
And this is where we may have been getting confused – assuming that Fair Trading, the CTTT and strata managers are the final arbiters on this. They’re not (see Peter C’s posting above). If you aren’t happy with the response, from your strata manager, there’s clearly little point in taking it to Fair Trading because they are in agreement on this. However there’s always the District Court and the Supreme Court beyond that (if the cost of the repairs merit it).
It feels like this policy is designed to weed out opportunistic claims against the Owners Corp, such as getting your ceiling repainted because of a tiny patch of damp in the corner. But it’s not the be-all and end-all of the law – it’s just a guideline.
Is it right, fair or logical? That is a whole other issue. However, even if your executive committee, strata manager,Fair Trading and the CTTT will probably bounce your claim for repairs to damage caused by the initial flaw, at least there are other avenues if you feel strongly enough that you’ve been hard done by.
The best answer may be just to get a decent home and contents insurance policy and let them deal with it.