Strata Schemes Management Regulation 2016

This Regulation is the Strata Schemes Management Regulation 2016.

(1)  Except as provided by subclause (2), this Regulation commences on 30 November 2016 and is required to be published on the NSW legislation website.

(2)  Part 8 commences on 1 January 2018.

cl 2: Am 2017 No 25, Sch 6 [2].

(1)  In this Regulation—

approved form means a form approved by the Secretary.

close of the ballot—see clause 15(8).

Department means the Department of Customer Service.

pre-meeting electronic voting, for Part 2—see clause 3A.

the Act means the Strata Schemes Management Act 2015.

Note—

The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this Regulation.

(2)  Notes included in this Regulation do not form part of this Regulation.

cl 3: Am 2018 No 65, Sch 8.11[1]; 2020 (323), Sch 1[1]; 2022 (564), Sch 1[1].

In this Part—

pre-meeting electronic voting means voting on a matter by electronic means before the meeting at which the matter will be determined.

cl 3A: Ins 2022 (564), Sch 1[2].

For the purposes of section 13(1)(h) of the Act, the following functions of an owners corporation are prescribed as functions that may be delegated to or conferred only on a member of the strata committee or a strata managing agent—

(a)  arranging for inspections for the purposes of fire safety in accordance with section 123 of the Act,

(b)  ensuring that the owners corporation complies with any relevant requirements under the Work Health and Safety Act 2011,

(c)  entering into contracts relating to the maintenance of common property or the provision of services to the common property (other than contracts relating to a parcel),

(d)  arranging for inspections of records and other documents under section 183 of the Act,

(e)  giving certificates under section 184 of the Act.

(1)  For the purposes of section 15(p) of the Act, the agenda for the first annual general meeting of an owners corporation is to include the following item, if a tenant representative has been nominated for the strata committee in accordance with section 33 of the Act—

to receive the nomination of a tenant representative for the strata committee

(2)  The agenda for the first annual general meeting of an owners corporation is also to include the following item, if the initial period of the strata scheme ends not later than 12 months after completion of building work for which a building inspector is required to be appointed under Part 11 of the Act—

to approve the appointment of a building inspector for the purposes of Part 11 of the Act

cl 5: Am 2020 (323), Sch 1[2].

For the purposes of section 16(1)(f) of the Act, the following documents obtained or received by the original owner or lessor and relating to the parcel concerned, or any building, plant or equipment on the parcel, are prescribed—

(a)  if a building is required to be insured under Division 1 of Part 9 of the Act, any valuation of the building,

(b)  maintenance and service manuals,

(c)  all service agreements relating to the supply of gas, electricity or other utilities to the parcel,

(d)  copies of building contracts for the parcel, including any variations to those contracts,

(e)  the most recent BASIX certificate (issued under the Environmental Planning and Assessment Act 1979) for each building on the parcel.

(1)  A person who is entitled to convene an annual general meeting of an owners corporation that has tenants for at least half of the number of lots in the scheme must convene a meeting of eligible tenants for the purpose of the nomination of a person for the position of tenant representative on the strata committee.

(2)  The person must give notice of the meeting to each eligible tenant at least 14 days before the annual general meeting and the tenants meeting may be held at any time before the annual general meeting, but not earlier than 7 days after notice of the meeting is given.

(3)  Notice may be given in one of the following ways—

(a)  by causing a copy of the notice to be prominently displayed on any notice board required to be maintained by or under the by-laws on some part of the common property,

(b)  by written notice given to each eligible tenant.

(4)  The convenor of the meeting, or a tenant nominated by the eligible tenants present at the meeting, is to chair the tenants meeting.

(5)  An eligible tenant may nominate for, or nominate another eligible tenant for, nomination as the tenant representative at the meeting.

(6)  The tenant representative to be nominated by the eligible tenants for a strata scheme is to be determined by majority vote of tenants present at the meeting.

(7)  The quorum for the meeting is one person.

(8)  The term of a tenant representative commences at the end of the annual general meeting at which the nomination is received.

(9)  A person is an eligible tenant for the purposes of this Part if the tenant is a tenant notified in a tenancy notice given in accordance with the Act.

(1)  A tenant representative ceases to be a tenant representative—

(a)  if the person ceases to be an eligible tenant, or

(b)  on receipt by the secretary of the owners corporation from the person of written notice of the person’s resignation as the tenant representative, or

(c)  at the end of the next meeting at which a new strata committee is elected by the owners corporation, or

(d)  if the person dies.

(2)  If a tenant representative ceases to be a tenant representative before the next meeting at which a new strata committee is elected, the secretary of the owners corporation is to convene a meeting of eligible tenants for the purpose of the nomination of a person for the position of tenant representative on the strata committee.

(3)  The secretary must give at least 7 days notice of the meeting to each eligible tenant.

(4)  The secretary, a member of the strata committee or a tenant nominated by the eligible tenants at the meeting is to chair the tenants meeting.

(5)  Clause 7(3), (5) and (6) apply to the nomination of a replacement tenant representative.

(6)  The term of a replacement tenant representative is for the remainder of the term of the representative that the person replaces.

(1)  At a meeting of an owners corporation at which the strata committee is to be elected, the chairperson must—

(a)  announce the names of the candidates already nominated in writing for election to the strata committee, and

(b)  call for any oral nominations of candidates eligible for election to the strata committee.

(2)  A written or oral nomination made for the purposes of the election is ineffective if it is made by a person other than the nominee unless it is supported by the consent of the nominee given—

(a)  in writing, if the nominee is not present at the meeting, or

(b)  orally, if the nominee is present at the meeting.

(3)  After the chairperson declares that nominations have closed, the owners corporation is to decide, in accordance with the Act, the number of members of the strata committee.

(4)  If the number of candidates—

(a)  is the same as, or fewer than, the number of members of the strata committee decided on—those candidates are to be declared by the chairperson to be, and are taken to have been, elected as the strata committee, or

(b)  is greater than the number so decided on—a ballot is to be held.

(1)  This clause applies to the election of a strata committee for a strata scheme comprising more than 2 lots.

(2)  If a ballot for membership of the strata committee of an owners corporation is required, the person presiding at the meeting of the owners corporation must—

(a)  announce to the meeting the name of each candidate, and

(b)  provide each person present and entitled to vote at the meeting with a blank ballot paper for each vote the person is entitled to cast.

(3)  For a vote to be valid, a ballot paper must be signed by the voter and completed by the voter’s writing on it—

(a)  the names of the candidates (without repeating a name) for whom the voter desires to vote, the number of names written being no more than the number determined by the owners corporation as the number of members of the strata committee, and

(b)  the capacity in which the voter is exercising a right to vote, whether—

(i)  as owner, first mortgagee or covenant chargee of a lot (identifying the lot), or

(ii)  as a company nominee, or

(iii)  by proxy, and

(c)  if the vote is being cast by proxy—the name and capacity of the person who gave the proxy.

Note—

See the Electronic Transactions Act 2000, section 9, in relation to requirements for the electronic signature of a person.

(4)  The completed ballot paper must be returned to the chairperson.

(4A)  For the Act, section 271(2)(n), the ballot paper—

(a)  may be provided or delivered by electronic means specified in the notice given under clause 14(a) in relation to the meeting, and

(b)  if the ballot paper is provided or delivered by electronic means—must be returned to the chairperson in a way specified in the notice given under clause 14(a) in relation to the meeting.

Note—

See the Act, Schedules 1 and 2, and this Regulation, clause 14, in relation to notices for meetings.

(5)  Until all places for membership of the strata committee have been filled, the chairperson is to declare elected successively each candidate who has a greater number of votes than all other candidates who have not been elected.

(6)  If only one place remains to be filled but there are 2 or more eligible candidates with an equal number of votes, the candidate to fill the place is to be decided by a show of hands of the persons present and entitled to vote.

(7)  For subclause (6), a person is taken to vote by a show of hands on a matter at a meeting if—

(a)  the notice for the meeting specified voting by electronic means while participating in the meeting as a way of voting at the meeting, and

Note—

See the Act, Schedule 1, clause 28(3) and this Regulation, clause 14(a).

(b)  the person uses the electronic means to indicate the voter’s choice on the matter while participating in the meeting.

cl 10: Am 2022 (564), Sch 1[3]–[6].

(1)  The written notice of the first meeting of a strata committee after the appointment of the committee is to include a call for nominations for chairperson, secretary and treasurer of the committee.

(2)  Any person who is a member of the strata committee may nominate another member for election as any or all of chairperson, secretary or treasurer of the committee.

(2A)  A nomination must be made by written notice or orally at the meeting in accordance with this clause, or the nomination is ineffective.

(3)  A nomination made by written notice must be given to the person convening the meeting, stating the name of—

(a)  the person nominated, and

(b)  the person making the nomination and that the person nominated consents to the nomination.

(4)  The person convening the meeting must include any prior nominations in the notice of the meeting at which the election is to take place. Notice of any subsequent nomination is to be given by the convenor at the meeting.

(5)  A nomination may be made at any time before the election is held and may be made at the meeting.

(5A)  For an oral nomination—

(a)  the nomination must be made at the meeting, and

(b)  the person nominated must—

(i)  be present at the meeting, and

(ii)  consent to the nomination.

(6)  If a ballot for the election of a person as chairperson, secretary or treasurer of the committee is required, the election is to be conducted by a show of hands of the persons present at the meeting and entitled to vote.

(7)  For subclause (6), a person is taken to vote by a show of hands on a matter at a meeting if—

(a)  the notice for the meeting specified voting by electronic means while participating in the meeting as a way of voting at the meeting, and

Note—

See the Act, Schedule 2, clause 10(3) and this Regulation, clause 14(a).

(b)  the person uses the electronic means to indicate the voter’s choice on the matter while participating in the meeting

cl 11: Am 2022 (564), Sch 1[7]–[11].

For the purposes of clause 24(2)(b) of Schedule 1 to the Act, a priority vote may be cast on a motion if the motion would require expenditure that exceeds an amount calculated by multiplying $1,000 by the number of lots in the strata scheme.

For the Act, Schedule 1, clause 28(3) and Schedule 2, clause 10(3), a notice for a meeting of an owners corporation or a strata committee may specify one or more of the following ways of voting—

(a)  voting by electronic means while participating in the meeting,

(b)  if the strata committee has, by resolution, adopted pre-meeting electronic voting as a way of voting—pre-meeting electronic voting for a meeting of the strata committee,

(c)  if the owners corporation has, by resolution, adopted pre-meeting electronic voting as a way of voting—pre-meeting electronic voting for a meeting of the owners corporation.

cl 14: Subst 2022 (564), Sch 1[12].

For the Act, Schedule 1, clause 28(3) and Schedule 2, clause 10(3), the following applies in relation to voting by pre-meeting electronic voting—

(a)  an election must not be determined by pre-meeting electronic voting,

(b)  for a matter that may be determined partly by pre-meeting electronic voting—the notice of the meeting must include a statement that—

(i)  the relevant motion may be amended by a further motion given at the meeting after the pre-meeting electronic voting takes place, and

(ii)  consequently, the pre-meeting vote may have no effect,

(c)  a motion that is to be determined wholly by pre-meeting electronic voting must not be amended at the meeting for which the pre-meeting electronic voting was conducted,

(d)  a motion that is to be determined partly by pre-meeting electronic voting may be amended at the meeting for which the pre-meeting electronic voting was conducted but only if the amendment does not change the subject matter of the motion,

(e)  if a motion that is to be determined partly by pre-meeting electronic voting is amended at the meeting for which the pre-meeting electronic voting has been conducted—the minutes of the meeting distributed to owners must be accompanied by—

(i)  notice of the change, and

(ii)  a statement setting out the power to make a qualified request for a further meeting under the Act, section 19.

cl 14A: Ins 2022 (564), Sch 1[12].

For the Act, Schedule 1, clause 28(3)(e) and Schedule 2, clause 10(3)(e), the following may constitute reasonable steps—

(a)  providing clear and accessible instructions about how to participate in and vote at a meeting,

(b)  providing multiple ways for a person entitled to vote at a meeting to participate in and vote at the meeting, including ways that do not require the person to access the internet or incur unreasonable expenses,

(c)  using technology that is reasonably accessible to a person entitled to vote at a meeting, including technology that does not require unreasonable costs to be paid by the person.

cl 14B: Ins 2022 (564), Sch 1[12].

(1)  This clause applies to a ballot for determination of a matter by an owners corporation or strata committee that is to be conducted by pre-meeting electronic voting.

(2)  The secretary of the owners corporation must ensure that the form for the electronic ballot paper contains—

(a)  instructions for completing the ballot paper, and

(b)  the question to be determined, and

(c)  the means of indicating the voter’s choice on the question to be determined.

(3)  The secretary of the owners corporation must, at least 7 days before the meeting at which the matter is to be determined, give each person entitled to vote—

(a)  access to an electronic ballot paper, or to a voting website or electronic application containing an electronic ballot paper, that complies with this clause, and

(b)  access to information about—

(i)  how the ballot paper must be completed, and

(ii)  the closing date of the ballot, and

(iii)  if voting is by email, the address where the ballot paper is to be returned, and

(iv)  if voting is by other electronic means, the means of accessing the electronic voting system and how the completed electronic ballot paper is to be sent to the secretary, and

(c)  access to an electronic form of declaration requiring the voter to state—

(i)  his or her name, and

(ii)  the capacity in which the person is entitled to vote, and

(iii)  in the case of a matter that requires a special resolution, the voter’s unit entitlement, and

(iv)  if the vote is a proxy vote, the name and capacity of the person who gave the proxy.

(4)  Each person entitled to vote must vote in accordance with the instructions contained in the information.

(5)  If the ballot is a secret ballot, the secretary must ensure that—

(a)  the identity of the voter cannot be ascertained from the form of the electronic ballot paper, and

(b)  the declaration by the voter is dealt with so that it is not capable of being used to identify the voter.

(6)  An electronic ballot paper and the form of declaration must be sent to the secretary of the owners corporation no later than the close of the ballot.

(7)  The secretary of the owners corporation must ensure that all electronic ballot papers are stored securely until the counting of the votes begins.

(8)  In this clause, the close of the ballot means—

(a)  for a matter to be determined by the owners corporation, the time that is 24 hours before the commencement of the meeting at which the matter is to be determined, or

(b)  for a matter to be determined by a strata committee, immediately before the commencement of the meeting at which the matter is to be determined.

cl 15: Am 2022 (564), Sch 1[13].

(1)  A ballot paper of a voter who votes by means of pre-meeting electronic voting is informal if the voter has failed to record a vote in accordance with the information provided by the secretary.

(2)  If voting is carried out by pre-meeting electronic voting using a voting website or other electronic application, the website or application is to provide a warning message to a person casting an informal vote that the proposed vote is informal.

cl 16: Am 2022 (564), Sch 1[14].

(1)  As soon as practicable after the close of a ballot conducted by pre-meeting electronic voting, the secretary of the owners corporation must—

(a)  review all information and reports about the electronic ballot, and

(b)  reject as informal any votes that do not comply with the requirements of this Regulation, and

(c)  ascertain the result of the electronic ballot.

(2)  The secretary must, at the meeting to consider the matter for which the pre-meeting electronic voting was held, inform the persons present of the result of the ballot.

(1)  For the Act, section 273(7), if an owners corporation has only 1 owner, the seal of the owners corporation must not be affixed electronically to an instrument except in the presence of—

(a)  the owner, or

(b)  if there is a strata managing agent of the owners corporation—the strata managing agent.

(2)  If an owners corporation has only 2 owners, the seal of the owners corporation must not be affixed electronically to an instrument except in the presence of—

(a)  both owners, or

(b)  if there is a strata managing agent of the owners corporation—the strata managing agent.

(3)  If an owners corporation has more than 2 owners, the seal of the owners corporation must not be affixed electronically to an instrument except in the presence of—

(a)  if, for the purposes of this subclause, the owners corporation has determined 2 persons who are owners of lots or members of the strata committee—the persons, or

(b)  if the owners corporation has not made a determination referred to in paragraph (a)—

(i)  the secretary of the owners corporation, and

(ii)  another member of the strata committee, or

(c)  if there is a strata managing agent of the owners corporation—the strata managing agent.

(4)  In this clause—

instrument includes a document.

cl 17A: Ins 2022 (564), Sch 1[15].

(1)  For the Act, section 273(7), if the seal of the owners corporation is affixed electronically in the presence of a strata managing agent under clause 17A, the strata managing agent must attest to the fact and date of the affixing of the seal—

(a)  by the strata managing agent’s signature, or

(b)  if the strata managing agent is a corporation—by the signature of—

(i)  the president, chairperson or other principal officer of the corporation, or

(ii)  a staff member of the corporation who is authorised by the president, chairperson or other principal officer to attest to the fact and date of the affixing of the seal.

(2)  The requirement for a signature under subclause (1) is taken to have been met in relation to an electronic communication if—

(a)  a method is used to identify the person and to indicate the person’s intention in respect of the information communicated, and

(b)  the method used was either—

(i)  as reliable as appropriate for the purpose for which the electronic communication was generated or communicated, in the light of all the circumstances, including any relevant agreement, or

(ii)  proven in fact to have fulfilled the functions described in paragraph (a), by itself or together with further evidence, and

(c)  the person to whom the signature is required to be given consents to that requirement being met by way of the use of the method mentioned in paragraph (a).

(3)  In this clause—

consent includes consent that can reasonably be inferred from the conduct of the person concerned, but does not include consent given subject to conditions unless the conditions are complied with.

electronic communication means—

(a)  a communication of information in the form of data, text or images by means of guided or unguided electromagnetic energy, or both, or

(b)  a communication of information in the form of sound by means of guided or unguided electromagnetic energy, or both, where the sound is processed at its destination by an automated voice recognition system.

information means information in the form of data, text, images or sound.

cl 17B: Ins 2022 (564), Sch 1[15].

(1)  A payment plan for the payment of overdue contributions is to be in writing and is to contain the following—

(a)  the name of the lot owner and the title details of the lot,

(b)  the address for service of the lot owner,

(c)  the amount of the overdue contributions,

(d)  the amount of any interest payable for the overdue contributions and the way in which it is calculated,

(e)  the schedule of payments for the amounts owing and the period for which the plan applies,

(f)  the manner in which the payments are to be made,

(g)  contact details for a member of the strata committee or a strata managing agent who is to be responsible for any matters arising in relation to the payment plan,

(h)  a statement that a further plan may be agreed to by the owners corporation by resolution,

(i)  a statement that the existence of the payment plan does not limit any right of the owners corporation to take action to recover the amount of the unpaid contributions.

(2)  The strata committee must, at the request of a lot owner who has entered into a payment plan, give the lot owner a written statement for each calendar month (or any longer interval specified by the lot owner) of the plan that sets out the payments made during that month and the amount of unpaid contributions and interest owing.

For the purposes of section 86(5)(c) of the Act, a notice of proposed action to recover an amount of contributions, interest or expenses must include the following—

(a)  the date the amount was due to be paid,

(b)  the manner in which the amount may be paid,

(c)  whether a payment plan may be entered into,

(d)  any other action that may be taken to arrange for payment of the amount.

For the purposes of section 95(4) of the Act, the amount of the annual budget is to be the sum of the following—

(a)  the amount of contributions levied for the year concerned (whether or not they have been paid),

(b)  any income of the owners corporation from any other source,

(c)  any other amounts held by the owners corporation for the purposes of the owners corporation.

The accounting records required to be kept for the purposes of section 96(4) of the Act are as follows—

(a)  receipts consecutively numbered,

(b)  a statement of deposits and withdrawals for the account of the owners corporation,

(c)  a cash record,

(d)  a levy register.

(1)  The levy register must include a separate section for each lot in the strata scheme that is not a utility lot.

(2)  Each of those sections must specify, by appropriate entries, the following matters in relation to each contribution levied by the owners corporation and must indicate whether those entries are debits or credits and the balances for those entries—

(a)  the date on which the contribution is due and payable,

(b)  the type of contribution and the period in respect of which it is to be made,

(c)  the amount of the contribution levied shown as a debit,

(d)  the amount of each payment shown as a credit,

(e)  the date on which each payment relating to the contribution was made,

(f)  whether a payment made was made in cash or by cheque or in some other specified manner,

(g)  whether an amount paid comprised full payment or part payment,

(h)  details of any discount given for early payment,

(i)  the balance of the account.

For the purposes of section 97(2) of the Act, each receipt issued by the treasurer of the owners corporation must include the following—

(a)  the date of issue of the receipt,

(b)  the amount of money received,

(c)  the form (cash, cheque, postal order or other) in which the money was received,

(d)  the name of the person on whose behalf the payment was made,

(e)  if the payment is for a contribution to the administrative or capital works fund—

(i)  a statement that the payment was made in respect of that contribution, and

(ii)  the lot number in respect of which the contribution was made, and

(iii)  the period in respect of which the payment is made (if relevant), and

(iv)  details of any discount given for early payment,

(f)  if the payment is not a payment referred to in paragraph (e)—particulars of the transaction in respect of which the payment is received,

(g)  if the payment is received in respect of more than one transaction—the manner in which the payment is apportioned between transactions.

For the Act, section 102(1), the prescribed amount is $30,000.

cl 25: Subst 2023 No 45, Sch 5.1[1].

(1)  The amount of $15,000 is prescribed for the purposes of section 103(2)(b) of the Act.

(2)  For the purposes of section 103 of the Act, approval is not required under that section to the obtaining of legal services in relation to a matter that is not urgent if the cost of the legal services does not exceed $3,000.

The Common Property Memorandum, published in the Gazette and on the website of the Department of Finance, Services and Innovation on 30 November 2016 is prescribed for the purposes of section 107(1) of the Act as the common property memorandum that may be adopted by the by-laws for a strata scheme.

Note—

The Common Property Memorandum cannot be modified by the adopting by-laws, except to exclude specified items that are not common property for the purposes of the particular strata scheme. Any common property by-law or a by-law made under section 108 of the Act prevails over the by-law adopting the Memorandum if it is inconsistent with the Memorandum (see section 107(3) and (4) of the Act).

Work for the following purposes is prescribed as minor renovations for the purposes of section 110(3) of the Act—

(a)  removing carpet or other soft floor coverings to expose underlying wooden or other hard floors,

(b)  installing a rainwater tank,

(c)  installing a clothesline,

(d)  installing a reverse cycle split system air conditioner,

(e)  installing double or triple glazed windows,

(f)  installing a heat pump,

(g)  installing ceiling insulation.

Note—

The work prescribed by this clause is subject to the requirements set out in section 110(7) of the Act, including requirements that it does not involve structural changes, changes to the external appearance of a lot or waterproofing.

(1)  The initial maintenance schedule for the maintenance of the common property of a strata scheme must contain maintenance and inspection schedules for a thing that is on common property if the maintenance and inspection is reasonably required to avoid damage to the thing or a failure to function properly for its intended purpose.

(2)  Without limiting the matters to be included in the initial maintenance schedule, maintenance and inspection schedules must be included for the following—

(a)  exterior walls, guttering, downpipes and roof,

(b)  pools and surrounds, including fencing and gates,

(c)  air conditioning, heating and ventilation systems,

(d)  fire protection equipment, including sprinkler systems, alarms and smoke detectors,

(e)  security access systems,

(f)  embedded networks and micro-grids.

(3)  The following are to be included with or attached to the initial maintenance schedule—

(a)  all warranties for systems, equipment or any other things referred to in the schedule,

(b)  any manuals or maintenance requirements provided by manufacturers for any of those things,

(c)  the name and contact details of the manufacturer and installer of any of those things.

(4)  The schedule may be in hard copy or in an electronic form that is accessible by the owners corporation.

(1)  A building in a strata scheme is a building to which section 118 of the Act applies if the building contains lots used for residential purposes.

(2)  A window within any such building is a window to which section 118 of the Act applies if—

(a)  it is a window within the meaning of the Building Code of Australia, and

(b)  it can be opened, and

(c)  the lowest level of the window opening is less than 1.7 metres above the surface of any internal floor that abuts the wall of which it forms part, and

(d)  that internal floor is 2 metres or more above the ground surface, or any external surface, below the window that abuts the wall, and

(e)  it is a window on common property to which access can be gained from a residence in a strata scheme or a window on any part of the building that is part of a residence.

(3)  A screen, lock or any other device is a complying window safety device for the purposes of section 118 of the Act if it—

(a)  is capable of restricting the opening of a window so that a sphere having a diameter of 125 millimetres or more cannot pass through the window opening, and

(b)  is capable of resisting an outward horizontal action of 250 newtons, and

(c)  has a child resistant release mechanism, in the case of a device that can be removed, overridden or unlocked.

(4)  In this clause—

Building Code of Australia has the same meaning as it has in the Environmental Planning and Assessment Act 1979.

An owner of a lot in a strata scheme who installs a window safety device under section 118 of the Act must give written notice of the installation to the owners corporation within 7 days after completion of the installation.

Note—

Section 262 of the Act sets out the manner in which a document is to be served on an owners corporation.

For the purposes of section 134(3) of the Act, the by-laws for a strata scheme that was in existence before the commencement of the Strata Schemes Management Act 1996 are the by-laws set out in Schedule 2.

Note—

By virtue of section 134(3) of the Act, the by-laws also include any amendments to the by-laws set out in Schedule 2, and any additional by-laws made for the scheme, as in force before the commencement of section 134 of the Act. The by-laws may also be amended in accordance with the Act.

(1)  For the purposes of section 137(3)(b) of the Act, a by-law that limits the number of adults who may reside in a lot has no effect if all of the adults who reside in the lot are related to each other.

(2)  For the purposes of this clause, a person is related to another person who resides in a lot if—

(a)  the person is the parent, guardian, grandparent, son, daughter, grandchild, brother, sister, uncle, aunt, niece, nephew or cousin of the other person, or

(b)  the person is such a relative of the other person’s spouse or de facto partner or former spouse or de facto partner, or

(c)  the person is the spouse or de facto partner of the other person, or

(d)  the person is the carer of, or is cared for by, the other person.

(3)  For the purposes of this clause, a person who is an Aboriginal person or a Torres Strait Islander is also related to another person if the person is, or has been, part of the extended family or kin of the person according to the indigenous kinship system of the person’s culture.

For the purposes of the Act, section 137B(3), the circumstances in which the keeping of an animal unreasonably interferes with another occupant’s use and enjoyment of the occupant’s lot or the common property are—

(a)  the animal makes a noise that persistently occurs to the degree that the noise unreasonably interferes with the peace, comfort or convenience of another occupant, or

(b)  the animal repeatedly runs at or chases another occupant, a visitor of another occupant or an animal kept by another occupant, or

(c)  the animal attacks or otherwise menaces another occupant, a visitor of another occupant or an animal kept by another occupant, or

(d)  the animal repeatedly causes damage to the common property or another lot, or

(e)  the animal endangers the health of another occupant through infection or infestation, or

(f)  the animal causes a persistent offensive odour that penetrates another lot or the common property, or

(g)  for a cat kept on a lot—the owner of the animal fails to comply with an order that is in force under the Companion Animals Act 1998, section 31, or

(h)  for a dog kept on a lot—

(i)  the owner of the animal fails to comply with an order that is in force under the Companion Animals Act 1998, section 32A, or

(ii)  the animal is declared to be a menacing dog or a dangerous dog under the Companion Animals Act 1998, section 34, or

(iii)  the animal is a restricted dog within the meaning of the Companion Animals Act 1998, section 55(1).

cl 36A: Ins 2021 (464), Sch 1.

For the purposes of section 138 of the Act, the by-laws set out in Schedule 3 are model by-laws that may be adopted, either in whole or in part, as the by-laws for a strata scheme.

(1)  A Lloyd’s underwriter authorised to carry on insurance business, or exempted from authorisation, under the Insurance Act 1973 of the Commonwealth is an approved insurer for the purposes of paragraph (b) of the definition of approved insurer in section 4(1) of the Act.

(2)  In this clause—

Lloyd’s underwriter has the same meaning as in the Insurance Act 1973 of the Commonwealth.

(1)  For the purposes of section 161(1)(a) of the Act, the minimum amount for which a building is to be insured is to be not less than the amount calculated in accordance with subclause (2).

(2)  For the purposes of section 161(2) of the Act, the amount to which the liability of an insurer may be limited under a damage policy is to be calculated by adding together the following amounts—

(a)  the estimated cost, as at the date of commencement of the damage policy, of—

(i)  carrying out the work that a damage policy is required to provide for under section 161 of the Act, and

(ii)  making the payments that a damage policy is required to provide for under section 161 of the Act,

(b)  the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 24 months following the date of commencement of the damage policy.

(3)  The amounts referred to in subclause (2)(a) and (b) are to be calculated so as to include any applicable taxes, fees and charges (including taxes, fees and charges of the Commonwealth).

For the purposes of section 164(2) of the Act, the minimum insurance cover for the purposes of damage to property, death or bodily injury for which the owners corporation could become liable in damages is $20,000,000.

This Part applies to a mediation conducted under section 218 of the Act.

Subject to the Act and this Regulation, the Secretary may give written directions for regulating and prescribing the practice and procedure to be followed in connection with a mediation session, including the preparation and service of documents.

(1)  A mediation session must be attended by each party or a representative of the party if all other parties consent to the representation.

(2)  Other persons may attend a mediation session with the leave of the mediator.

The parties to a mediation are to pay their own costs associated with the mediation.

(1)  A mediator may terminate a mediation at any time.

(2)  A party may terminate a mediation at any time by giving notice of the termination to the mediator and each other party.

(1)  For the purposes of section 7(1)(f) of the Act, a person that is a corporation (the principal person) is connected with another person if the other person—

(a)  is a related body corporate or an associated entity (within the meaning of the Corporations Act 2001 of the Commonwealth) of the principal person, or

(b)  holds an executive position (within the meaning of section 7 of the Act) in a related body corporate or an associated entity of the principal person, or

(c)  holds or will hold any relevant financial interest in the principal person, or is or will be entitled to exercise any relevant power (whether in the person’s own right or on behalf of any other person) in the business of the principal person, and by virtue of that interest or power is or will be able to exercise a significant influence over or with respect to the management or operation of the principal person.

(2)  In this clause—

relevant financial interest, in relation to a principal person, means—

(a)  any shares in the capital of the principal person, or

(b)  any entitlement to receive any income derived from a business carried on by the principal person, or to receive any other financial benefit or financial advantage from the carrying on of the business, whether the entitlement arises at law or in equity or otherwise.

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a)  to participate in any directorial, managerial or executive position in the principal person, or

(b)  to elect or appoint any person to any such position.

For the purposes of section 57(3)(d) of the Act, the amount prescribed is $60.

The fees payable under the Act and this Regulation are set out in Schedule 4.

cl 64: Am 2021 (773), Sch 1[3].

(1)  For the purposes of section 250 of the Act—

(a)  each offence created by a provision specified in Column 1 of Schedule 5 is an offence for which a penalty notice may be served, and

(b)  the penalty prescribed for each such offence is the amount specified opposite the provision in Column 2 of the Schedule.

(2)  If the reference to a provision in Column 1 of Schedule 5 is qualified by words that restrict its operation to specified kinds of offences, an offence created by the provision is a prescribed offence only if it is an offence of a kind so specified or committed in the circumstances so specified.

The seal of an owners corporation in existence before the commencement of this clause may continue to be used as its seal for the purposes of the Act or for any other purpose, unless replaced by the owners corporation.

Schedule 3 Savings, transitional and other provisions Omit clause 8(1) and (2). Insert instead—

  

(1)  A person who held office as an Adjudicator under the former Act immediately before the commencement of this clause ceases to hold the office on a day appointed by the Secretary, being a day not earlier than the determination or finalisation of all proceedings referred to in clause 7.

Schedule 3 Savings, transitional and other provisions Omit clause 14(1). Insert instead—

  

(1)  The term of appointment of a strata managing agent appointed or reappointed before the commencement of section 50(1) of this Act, that is in force on that commencement, ends on the following day—

(a)  if the agent was appointed or reappointed for a term (including any roll over or extension period) of 3 years or more, on the day that is 3 years after the term commenced or that is 6 months after the commencement of section 50(1) of this Act, whichever is the later,

(b)  if the agent was appointed or reappointed for a term (including any roll over or extension period) of less than 3 years, on the day that the term ends or that is 6 months after the commencement of section 50(1) of this Act, whichever is the later.

(1)  This clause applies if—

(a)  before 30 September 2022, the secretary of an owners corporation complied with the requirements under clause 15(3) in relation to a ballot for the determination of a matter by the owners corporation or strata committee that will be conducted by pre-meeting electronic voting, and

(b)  the meeting at which the matter is to be determined has not been held before that date.

(2)  Despite clause 14(b) and (c), the requirement that the owners corporation or strata committee must adopt, by resolution, pre-meeting electronic voting as a way of voting does not apply to the meeting at which the matter is to be determined.

cl 68B: Ins 2022 (564), Sch 1[16].