Well one thing that we have learned from the recent debate about the Body Corporate & Community Management Bill is that the LNP have ditched all those pensioners and people on fixed incomes who live in units by voting against this bill.
They’ve decided to turn their backs on the people who will benefit from this legislation. So in addition to rate increases, Brisbane City Council 400 – 500% under the LNP, they could expect massive increases in their body corporate levies.
This is a very difficult issue, there’s no denying that, but doing nothing is not an option. With every adjustment order many lower income unit residents, pensioners & people on fixed income, will have their lives made much more difficult & some will be forced out of their homes. Expect no sympathy or assistance from the LNP.
The Shadow Minister and Member for Currumbin said, “Bewilderingly, the 2003 Body Corporate & Community Management debate, which the former minister & honorable member for Southport actually spoke to, was not mentioned in his second reading speech & was not referred to in the explanatory notes. Therefore, it is a bit rich to try to buck-pass to the 1997 legislation which was brought in by the conservatives”
I’ve never denied that the 2003 legislation has contributed to the situation that we now find ourselves in but it was the 1997 legislation which first enabled applications to be made to adjust lot entitlements – that is where these problems started. I did speak and vote in favour of the 2003 legislation which passed unopposed.
At times legislation can have unintended consequences and these are often made apparent as a result of Court cases which interpret legislation and the Centrepoint case of 2004 is just such an example.
Another example is the Bossichix P/L case which was decided by the Court of Appeal and which resulted in amending legislation introduced into this house on the 18th June 2009. That legislation amended the BC & C Management Act and was supported by the opposition – the amending legislation had retrospective effect and was not supported by the Law Society – the opposition supported the legislation notwithstanding that it was retrospective. But here with this bill where vulnerable people are at risk they wont support the bill !
The Member for Gaven summed up the comments by many LNP members when he said ”The former minister is correct when he says in his second reading speech “we have a problem in the marketplace. It needs to be fixed”.”
So they acknowledge there is a problem but don’t want to do anything about it ! He goes on “Whilst noting the severity in proportionate terms for those on low or fixed incomes, what the government has done is to delay this bill unnecessarily to almost maximise the pain of these very vulnerable groups. This is grossly unfair and unconscionable.”
So what is the LNP going to do about what they say is delay in introducing this bill and what they say is grossly unfair and unconscionable situations? They are going to vote against this Bill!
The Bill amends the Body Corporate & Community Management Act 1997 and does two things. It provides a new lot entitlements system for community titles schemes and also provides for a new regulation module designed to meet the needs of people living in schemes with only two lots.
There are over 39,000 community title schemes across Queensland comprising over 364,000 lots. Of these 12,000 or almost one third, are two lot schemes.
Existing legislation has created a problem in the market place. The problem is that a lot owner can make an application QCAT or a specialist adjudicator to seek adjustment of a schemes contribution schedule. If successful an adjustment order can significantly change the relativities between the contribution schedule lot entitlements and may drastically increase the amount a unit owner must pay for their body corporate fees. This can have a further effected of reducing the capital value of a lot. Of course an applicant owner – owner of a more expensive unit – can have the body corporate fees reduced. So the duel effect on a lower valued unit is to increase the contribution lot entitlements and therefore body corporate fees and at the same time transfer value to the more expensive unit.
The easiest way to understand just how unfair this present system is, is by way of an example.
A person, perhaps on a pension or fixed income makes enquiries about the purchase of a unit. He/she establishes that body corporate fees of say $100 pw is manageable. They complete the purchase for say $350,000. Some time later another purchaser goes through the same process in respect of the penthouse and body corporate levies are $500 pw. The purchase is completed for say $1M. Under the present system the penthouse owner can make an application which, and these figures are based on an example, reduce his/her levies from $500 pw to $300 pw and at the same time the levies of the prior lower cost unit go from $100pw to $200 pw. This would have not only the effect of making the unit unaffordable for the pensioner or person on a fixed income but would reduce the value of the unit by $30-$40,000 but would increase the value of the penthouse by $80-100,000. So value is transferred from the lower to the higher cost unit.
The owner of the lower cost unit can then find themselves locked into an impossible situation. They can’t afford to live in the unit because of the increased fees yet can’t sell at a reasonable price because of the reduced value.
This bill will provide certainty in the marketplace – if nothing was done then the community title sector would become increasingly unstable.
People on pensions and fixed incomes who have been adversely affected by an adjustment order now have the ability to have their lots entitlements revert to their original settings – those who have not been subject to such an order will no longer have that hanging over their head – they can rest easy in the knowledge that they will not be forced out of their homes.
The passing of this legislation has concluded a process which began for me about 6 years ago. It is a difficult issue which has forced people out of their homes and caused health issues for many residents due to worry from the effects or threat of an adjustment order. It is disappointing that the bill did not have the support of the LNP and, given the statements by many LNP members, I wonder what the future holds for unit owners should the LNP ever form a government !
The full debate can be accessed in Hansard at www.parliament.qld.gov.au