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Like a lot of others we have issues with prolonged parking in visitor spaces. Is it possible to add a by-law that if someone wants to park in the space long-term that they essentially lease the space? Ie rent a space from the owners corporation and the funds get put back into the capital works fund? NSW if that makes a difference.
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I think the property DA would require a minimum number of visitor parking spaces, so renting them out might be a breech of the approval, without council consent.
There would probably already be a by law that prohibits resident parking in those spaces, so your suggestion could create a conflict.
Ie rent a space from the owners corporation and the funds get put back into the capital works fund? NSW if that makes a difference.
As per the post above, you can’t legally let car spaces that have been designated as visitor spots in your DA.
Firsy pass a by-law defining what your building means by “visitor” (number of hours, frequency of use, relationship with other residents etc etc)
Then just hit the buggers with Notices to Comply and apply for fines – no need to go through the Fair Trading nonsense. Straight to NCAT. Revenue from fines imposed by NCAT is paid to the owners corp.
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If the Owners Corporation generates an income (such as from the receipt of renting out a car parking space), then there are likely to be taxation implications that the other owners might not like.
As I understand it (and this is still and area I am very hazy about), paying money to the OC’s account will trigger tax provisions about this money being “non-mutual income”, which the Tax Office regards as money that reduces all lot owners’ levies, divided according to their unit entitlements. So all the owners should declare this non-mutual income in their personal tax returns each year.
If some owners are getting a pension, then they should declare this income there, also, which may cause problems. Plus you need to factor in the administration of these rents, and how the OC will handle anyone who fails to pay the amount owing – these amounts are not levies, so need to be managed separately. Of course, most strata buildings have some additional income (eg, from replacing key/fobs) which is ignored, although I think strata managers tend to hold his in a trust account, rather than distribute this to the owners, to avoid reducing their levy payments, and so, avoid them having to include this in their tax returns.
Also, some strata buildings, especially older ones, will have visitors parking bays that are not specified in the DA (this is the case with our 50 yo building), which should be checked, and if this is the case, then the OC might have some more options.For example, a one-off sale (or exclusive use agreement) of a parking bay, means a single tax declaration in the year it occurs, for all the owners if they agree, and is less complex administratively.
Further to @Quirky’s comment that
As I understand it (and this is still and area I am very hazy about), paying money to the OC’s account will trigger tax provisions about this money being “non-mutual income”, which the Tax Office regards as money that reduces all lot owners’ levies, divided according to their unit entitlements. So all the owners should declare this non-mutual income in their personal tax returns each year
Based on my experience helping out a senior citizen with her strata matters, I wish to confirm that he is correct.
Money received by an OC from the leasing of common property is considered as “income” to the strata scheme and is apportioned by unit entitlement (in theory but not actual) to lot owners who have the obligation to list their portion of the proceeds received by the strata as income in their tax return at ITEM 24 (other income).
The relevant ATO word on the matter is tax ruling TR 2015/3.