#22434

How does the information below fit in with Jimmyt53’s argument?

Owners Corporation Amendment Bill 2013

During the second reading of the Owners Corporation Amendment Bill 2013, Ms Heidi Victoria, the Minister for Consumer Affairs noted that:

  • The bill seeks to confirm the intention of the Owners Corporation Act 2006, namely that the annual fees of an owners corporation should be set according to each member’s lot liability, as set out in the plan of subdivision, and to overcome the effect of the Supreme Court case of Mashane Pty Ltd v Owners Corporation RN328577 [2013] VSC 417
  • Mashane’s case held that the benefit principle must be applied to levies of annual or special fees that are for repairs, maintenance or other works.
  • There is no objection to the benefit principle applying to levies of special fees for extraordinary works.
  • However as Mashane’s case sets out, the application of the benefit principle for levies of annual fees will require owners corporations, when setting fees, to identify prospective works, allocate an appropriate proportion of the annual fee to those works, identify who will benefit more by those works and by how much, and issue different fee notice to each member based on those estimates.
  • The changes to the act ensure there is no ambiguity about the way the benefit principle should be applied in owners corporations.