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My strata in NSW has 18 units. We currently have a bins contractor to place our bins on the footpath, and bring back in.
How can it be set up that a small rota of resident owners can manage this, and receive reimbursement – say by way of a monthly credit to the levies of the owner ‘on bins duty’ for that month?
The bins are on flat ground metres from the footpath, there will be some cost savings for strata, and it helps a few owner residents financially, one of whom is on a payment plan for levies; so this assists our strata in that regard.
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I can’t tell you what the law is regarding this, but by way of example, some years ago a strata I am involved with had a person come around on a regular basis for general cleaning.
One owner asked the committee if instead of paying the cleaner, could he be paid to do the straight forward job instead. He offered to do it at roughly 20% cheaper than the contractor.
The committee at the time advised that in theory there is no problem paying an owner or tenant to do the work but one committee member was strongly against it in case the owner/tenant had an accident and she reasoned, the OC would be liable for compensation as opposed to a self insured contractor, where the OC would not be liable. Owners were at the time unsure if this argument had merit, but nobody was too interested in pushing for the change from contractor to owner/resident, so the matter died and the (external) person hired to clean still has the job.
In the event that you do get your way and an owner/tenant is paid per episode of “bin duty”, I think it is best that payment (whatever it is) be made directly by the strata committee to the person(s) rather than having a contra to the levies because the paying for “bin duty” is an expense of the OC and should be reflected accurately in the accounts. And for the owner/tenant that money is income.
I agree with TrulEConcerned regarding the issues that arise when you pay owners to do a regular job, this opens up a minefield in relation to WHS issues, as it can be said that the OC is employing the relevant people.
In relation to payment, you can’t credit an amount to the levies owed. If the OC decides to proceed, they have to actually pay the relevant people. You are not reimbursing those people, they haven’t spent any money, you are paying them to do a job. That has to be reflected in the accounts. Note also if a person has an ABN they have to charge GST.
The idea is sound but in practice I believe you will run into issues.
And it all revolves around human nature .
Who gets to set the rate? The people not doing the bin moving will say the bin movers are paid too much.
What happens if someone doesn’t do their duty. Do you sack them, and who sacks them .
In my opinion it’s better to keep it at a long arms length and use independent contractors. If you want to reduce the cost, cast around for alternate contractors. There are plenty available at different prices.
what about maybe a local pensioner or school kid?
Sorry I forgot section 46, if a Committee member wants to be paid for services done by them for the OC, that can only be done retrospectively, with the approval of the owners in a general meeting.
For a number of years I did the cleaning and gardening in the Strata in which I live. The Strata management required that I had a company with the suitable insurances and that I invoiced them via that company. I have a mate who put out and took in the bins in his (small) complex. The Strata management company at that place required that he also invoice them directly.
Perhaps your committee could consider asking these residents to put the bins out on a voluntary basis on a rota. Volunteer accident insurance is usually provided in the plan’s policies. The savings in not paying a contractor could result in slightly lower levies (although all owners would get this benefit, not just the volunteers). But again, you could get the problem of reliability if the rostered person neglects to do the job.
Note also if a person has an ABN they have to charge GST.
I don’t think that is strictly correct. You need to have an ABN to be registered for GST, but I think the current ATO requirement is that you need to have turnover of $75,000 per year before you need to be GST registered. If you are registered you need to charge GST
Since there are only 18 units, I think the idea of a volunteers roster has merit. I agree that strata insurance usually includes cover for volunteers. Make it formal by having the committee minute who has volunteered to do what. To make people feel like all are doing something, you could suggest that people who are not up to taking their turn to put out the bins could volunteer for something else such as making tea and cakes for the bin volunteers on some periodic social occasion. You might get one or two who don’t want to be involved at all. They just get to free-load on the rest of you who are doing something for the community and you have to live with that.
Jimmy, I couldn’t get the link “That’s here” to work. Doug
Thanks for the heads-up. Now fixed. It was a long night on the single malts. I appreciate Flatchatters taking the time to tell me when there are flaws and errors.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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