STRATA INSIGHTS
In the April edition of our newsletter, we bring you the latest information on the strata sector in Australia, showcasing the rising trends, industry updates and top tips.
Rise in Strata Levies as Cost of Living Soars
More and more people are struggling to pay their levy as the financial strain intensifies due to rising interest rates and cost of living hikes. Therefore, it is vital that properties under strata, operate smoothly to accumulate levies for building maintenance and scheme management.
Owners corporations experience cash flow concerns as people fall behind on their levy payments, which could result in the neglect of important building projects. When strata levies develop into a legal issue, there are several steps to take before taking action to recover overdue from an owner.
Contact your Strata Manager or reach us via info@premiumstrata.com.au if you require assistance with Levy Debt Recovery
The Emergency Services Levy (ESL)
The ESL is a contribution to NSW emergency service organisations, which is added to annual strata insurance payments. ESL contributions go towards financing emergency services, which supports with maintaining the safety of the community in times of dire need.
The ESL is expected to raise $1.2 billion from insurance policyholders to fund emergency services such as fires. This boosts home premiums by 18% annually.
NSW is the only state in Australia where Strata owners are obligated to pay these premiums to fund ESL services
Adoption of EV Charging Stations
Rise in Electric Vehicle (EV) Charging Stations
It’s critical for strata schemes to get prepared for the rising demand of EV charging infrastructure as society embraces environmental sustainability.
Demands for EVs are set to increase and represent almost half of vehicle sales by 2030, According to SCA.
The time is now to install EV charging stations in the common areas of your strata scheme. In addition to making things more convenient for EV owners in your building, the adoption of EV charging stations will also help raise the value of your property.
Challenges
EV charging stations appear to be difficult to implement as considerations are needed towards the installation, location and costs.
Further Implications
However, the adoption of EV charging stations in residential apartments has significant challenges with electrical infrastructure and accessible space.
Future Outlook
Although EVs charging stations will result in rising costs, the Government is set to implement close to $1 Billion in funding for EVs and the implementation of charging stations
The NSW State Government plans to install 30,000 public charging stations and aims to bring changes to strata laws to simplify the process of integrating EV Chargers in apartment buildings.
Please contact your Strata Manager to start a conversation with your strata committee. Alternatively, if you have further questions feel free to reach us via info@premiumstrata.com.au
UPDATE: The Design and Building Practitioners Act 2020
Background
Following on from the Roberts v Goodwin Street Developments Pty Ltd [2023] NSWCA 5 case, the Supreme Court’s ruling that anyone who performs building work for the construction of any type of building owes a duty of care under the Design and Building Practitioners Act, 2020 (NSW) (DBPA) was recently upheld by the Court of Appeal.
What is DBPA?
This Act places additional demands towards construction work for builders and is aimed at improving performance and prevent economic loss.
Duty of Care
The duty of care extends to work involving class 2 buildings such as residential apartments. Construction projects under the Home Building Act of 1989, covers the majority of building work including repairs and restorations that cost more than $5,000.
The DBPA’s duty of care is owed by everyone who performs construction work on any type of building. This not only includes companies in the sector but also individuals who have significant authority over construction, such as a directors and supervisors.
What has changed?
Under the DBPA, any building professional who has or is performing building work in the construction of any building under the EPA Act is potentially liable for a claim for breach of the duty of care owed under the DBPA.
Takeaway
The Court of Appeal’s ruling unequivocally supported the possibility that workers like project managers, supervisors and directors may be found to owe the statutory duty of care. Therefore, people who work in the construction sector should be aware that they must use caution when handling managerial responsibilities interconnected with a project on a construction site.
Milestones
April was an exciting month where the business came together to celebrate the impressive milestone and achievements of our staff members.
It has been 8 years since Sandro Li Causi joined the team as a licensed Strata Manager and had a huge impact with the growth of the business.
Working his way up as Team Leader, Sandro now manages our team of Strata managers here at Premium Strata.
We also celebrate 7 years since Marulie Dulay joined us as a licensed Strata Manager.
Monica has been integral with managing lot owner issues, dispute resolutions and By-law enforcement.
April Marked the 7 year anniversary of our Administration Officer Monica Pirreca.
Monica has had a key role in maintaining our performance standards since day 1.
We all take pride and inspiration from Sandro, Marulie and Monica’s passion, dedication and efforts which they have displayed throughout all these years.