The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 and it’s implications for Owners Corporations.
The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 (Vic), which was introduced into the Victorian Parliament on November 27, 2024, will bring significant changes across multiple sectors, including Owners Corporations (OCs). This is because the bill is both extensive and far-reaching. While much of the media focus has centred on reforms for rental and real estate agents, the bill also proposes crucial reforms specifically aimed at enhancing the standards and accountability of owners corporation managers. These proposed changes are set to reshape the landscape of OC management, providing greater oversight, accountability, and professional development.
The Owners Corporations Act 2006 will undergo transformative amendments under the bill, targeting key areas that affect the management and operation of OCs. There are three main amendments as relates to Owners Corporations:
Mandatory registration for officers in effective control
Compulsory education for OC mangers and their officers
Stronger penalties for non-compliance
Mandatory registration
One of the most notable reforms for OC managers is the introduction of mandatory registration for officers in effective control. Under the proposed changes, corporate OC managers will be required to appoint a registered natural person as the officer responsible for supervising and managing the operations of the owners corporation. This individual will be tasked with ensuring that the OC functions efficiently, transparently, and in compliance with relevant legislation.
This requirement is a critical step in improving the professionalism and accountability of those who manage owners corporations. By requiring a designated, registered individual to oversee the OC, the bill aims to create clearer lines of responsibility and ensure that owners corporations are managed by individuals with the appropriate expertise and training.
Compulsory education
The bill introduces compulsory education requirements for OC managers and their officers. These reforms include initial training as well as ongoing professional development. Both the training and development programs will be mandatory, ensuring that those in charge of managing OCs are equipped with the necessary skills and knowledge to effectively perform their roles. This training extends from practical management skills to understanding legal requirements and best practices in the industry.
These education requirements are designed to raise the professional standards within the industry. By mandating training and ongoing development, the bill seeks to ensure that OC managers stay up to date with the latest industry trends, legal developments, and best practices. This will ultimately contribute to better governance, enhanced community engagement, and more effective management of owners corporations.
Penalties for non-compliance
Finally, the Bill proposes stronger penalties for non-compliance. OC managers who fail to register or do not meet the required education standards may face significant penalties, including fines and the suspension or cancellation of their registration. This aspect of the reform is designed to ensure that OC managers comply with the new regulations, promoting a culture of accountability within the sector.
The reforms to the Owners Corporations Act 2006 will require amendments in several key areas, including the appointment and registration of officers, initial education requirements, and continuing professional development. These changes reflect the government's commitment making certain that OC managers are qualified and held to high professional standards.
Concluding remarks
The amendments also extend beyond owners corporation management to include significant changes to the Conveyancers Act 2006 and the Residential Tenancies Act 1997, indicating the broad scope of the Bill.
These reforms mark a pivotal moment for the OC management industry, providing an opportunity to elevate standards, enhance accountability, and deliver better outcomes for both managers and the communities they serve.
To learn more about any of the matters discussed here, or if you require legal assistance, please contact Chris Moshidis, Director and Principal Lawyer on +61 9521 7956 or chris@urbanlawyers.com.au.