Owners corporations can now determine levy contributions via the new special resolution process. Previously, this could only be achieved through an unopposed resolution, which meant one vote could prevent change. This was particularly an issue in mixed-use developments.
Owners can separate the budgets for different parts of their units plan to apply contribution levies more fairly. Previously, costs had to be consolidated into one budget across an entire units plan. This meant that owners that used, or didn’t use, certain facilities such as lifts could unfairly pay the same amount for them.
Developers can propose different ways of calculating contribution levies from the start, as long as they are fair and equitable, before they register a new units plan. For example, they may choose to adopt a user-pays approach to water charging if the water is mostly consumed by businesses that own units in the complex. Any changes to the method of contributions determined by the developer must be disclosed to buyers in the disclosure statement. Previously, a new units plan defaulted to a standard way of determining levies, based on the value of an owner's unit as a share of the total value of all the units (unit entitlement).
Owners corporations can change the way they calculate contribution levies for their general and sinking funds. The new method of contributions needs to be adopted as an owners corporation rule and registered on the units plan. The ACT Civil and Administrative Tribunal can review any disputes that may occur as a result of a change in contribution methods.
