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Has anyone had any luck with this?
The new commercial tenant is a tobacconist so the OC insurance bill has increased due to the risk . According to the Strata Schemes Management Act, section 82(1) we can bill the owner for the difference in premiums if it wasn’t a tobacconist ‘with their consent’.
We have the proof of the difference in the premium so seems fair – our Strata Manager shut us down pretty quick when we asked about charging the owner. Is there any reasonable reason for not providing consent?
Thanks all.
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I think the first thing I would do is ask the strata manager to provide in writing on what grounds thery shut you down. The law is pretty clear on this and given the risks associated with the gang wars over discount cigarettes and vapes, you are right to be concerned.
Why would the strata manager block this? Maybe they are cozy with the owner of the property who might lose a valuable tenant if they have to pay for the increase in levies.
Anybody have a valid reason why the strata manager may be blocking this?
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Here’s Section 82 of the Act – it could not be clearer. The business that’s causing the insurance premiums to be raised can pay the difference voluntarily or the committee or any owner can seek orders at NCAT.
82 Individual contributions may be larger if greater insurance costs
(1) If the use to which a lot in a strata scheme is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.
(2) The Tribunal may, on application, make an order for payment of contributions of a different amount to one or more contributions levied or proposed by an owners corporation on an owner if the Tribunal is of the opinion that the owner’s consent has been unreasonably refused under this section.
(3) An application for an order under this section may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner of a lot or a mortgagee in possession.
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