The current arrangements enable ‘penthouse’ owners to apply to have their contribution schedule lot entitlements changed, thereby lowering their body corporate fees at the expense of other lot owners. The government’s intention is to stop this practice.
Under the proposed amendments, schemes established prior to the amendments being introduced will have their contribution schedule lot entitlements fixed. But for those buildings and complexes which have been subject to a contribution schedule lot entitlement adjustment order by a specialist adjudicator, the Queensland Civil and Administrative Tribunal, the District Court or the Supreme Court, lot owners will be provided with an opportunity to revert the contribution schedule lot entitlements for all the lots in the scheme to their original settings before the adjustment was made. This will mean that some lot owners will pay less for their body corporate fees and others (typically those with more expensive units) will pay more.
By enabling schemes to revert to their original method of dividing body corporate expenses, certainty around body corporate fees will be provided for lot owners who bought their lots prior to an adjustment.
For schemes established after the commencement of the amendments, the contribution schedule lot entitlements will be set on a new basis. For lots in standard format plans (for example, some townhouse-type complexes), their contribution schedule lot entitlements will be set in proportion to the unimproved value of the land, and for lots in building format plans (typically used for multi-storey developments), developers will have to set contribution schedule lot entitlements by some legislative guidelines.
If a developer does not set the contribution schedule lot entitlements for a community titles scheme in accordance with the new system, lot owners will be able to appeal the developer’s decision.
These amendments will provide flexibility for different schemes with unique design characteristics, promote affordable housing in medium- and high- density developments and provide enhanced certainty for lot owners around on-going body corporate costs relative to other lot owners in any particular scheme.
