24 July 2024
9 min read
#Property, Planning & Development
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The NSW Government has renewed its focus on the strata management industry, this time looking to impose greater disclosure obligations with regard to insurance commissions and conflicts of interest to improve public confidence in apartment living.
The key changes proposed include:
These reforms, set to be formally introduced in August, were drafted following concerns that strata management companies were receiving undisclosed kickbacks for contractors, suppliers and insurers while charging excessive fees to their clients.
The implementation of a ban on insurance commissions for “uninvolved” strata managers is likely to have a far-reaching impact on the industry, promoting a greater level of engagement by strata managers with strata insurance brokers to source insurance products for their clients.
Both strata managers and insurance brokers benefit from the process of obtaining insurance for an owners corporation. The nature of this relationship between the two parties is often entirely unknown to the owners corporations that they service, namely that:
This arrangement can encourage involved parties to promote products that attract a higher premium, rather than the most suitable insurance product.
The proposed reforms will require strata managers to develop expertise in procuring insurance and to actively engage with brokers if they wish to keep their commission. It remains to be seen whether the fees for this higher level of involvement will be absorbed by the strata managers or passed onto their clients.
Under the current legislation, strata managers can be fined up to $2,200 for failing to disclose commissions they receive. The NSW Government is consulting with the strata management industry before formally increasing these penalties.
For more information, please see the NSW Government’s statement on the proposed reforms here.
Authors: Christine Jones & Brandon Thai
Design concept released for build-to-rent development in East Lismore
As the Minns Government’s focus on boosting housing supply continues, Landcom is implementing a $30 million election commitment to develop a build-to-rent pilot in the Northern Rivers. Plans for 50 apartments in East Lismore that are well-designed, climate-resilient and sustainable have been released for community and stakeholder feedback. Led by Landcom, the development at the corner of Crawford Road at 138-146 Military Road will deliver secure rental housing in a region impacted by rising rents and low housing availability (22 July 2024). Read more here.
Housing in Sydney won't become affordable until at least the 2030s
A new study from the University of New South Wales (UNSW) and University of Technology Sydney (UTS) looks at the relationship between housing affordability and employment contracts. This study has shown that housing affordability in Sydney is going to remain out of reach for much of the population until at least the 2030s (22 July 2024). Read more here.
‘Deeply concerning’: Affordable rent in middle ring suburbs no longer available for Aussie families
Affordable rent in middle ring suburbs is no longer available for key workers and families in Australia’s major cities, a “deeply concerning” analysis has revealed (22 July 2024). Read more here.
The type of property that was supposed to get cheaper – but soared
Rents have skyrocketed since the start of the pandemic, when Australia closed its international borders and left many inner-city apartments sitting empty. CoreLogic research director Tim Lawless hopes that “a year from now we will see the capacity constraints easing up and we see more supply coming in” (22 July 2024). Read more here.
NSW to trial prefabricated ‘modular homes’ to address housing crisis
Premier Chris Minns says announcement “an important milestone in our work to utilise nontraditional methods of delivering more homes sooner”. Pre-built modular homes will be trialled in New South Wales to boost social housing, as research shows new-home construction targets will not be met (22 July 2024). Read more here.
Back in control: Launching our new maintenance service as the first 750 homes set to be revamped
The NSW Government has announced the first tranche of social homes that will undergo critical maintenance upgrades under the $1 billion Repair and Restore Maintenance blitz announced in the recent budget to fix 30,000 public homes in desperate need of repair. The NSW Government has also now reached the next milestone in its commitment to overhauling the public housing maintenance system with the launch of The Maintenance Hub and bringing critical maintenance services back in public hands (14 July 2024). Read more here.
Council performance to be ranked to meet housing targets
The Minns Government is introducing a range of measures to hold local and State Government accountable for the approval of more housing as NSW works towards its commitment of 377,000 homes by mid 2029 under the National Housing Accord. The NSW Government has been clear that addressing the housing crisis is a shared responsibility, and all levels of government must do their part (11 July 2024). Read more here.
Sustainable solutions: Setting standards for safer PVC pipes and fittings
Standards Australia has announced a significant milestone in the PVC industry with the publication of the new standard AS/NZS 5395, Best Environmental Practice PVC Pipes and Fittings. This standard, the first of its kind worldwide, is specifically developed for PVC pipes and fittings (15 July 2024). Read more here.
Engineers Australia, Transport Australia society and IPWEA collaborate on draft National Urban Policy response
The Federal Government’s National Urban Policy draft aims to ensure Australia’s towns and cities are liveable, equitable, productive, sustainable and resilient. Engineers Australia, the Institute of Public Works Engineering Australia (IPWEA), and the Transport Australia society collaborated to provide a response touching on housing, sustainability, skills and transport (19 July 2024). Read more here.
Kellyville and Bella Vista TOD rezoning
The NSW Department of Planning, Housing and Infrastructure is seeking your feedback on the Kellyville and Bella Vista TOD rezoning proposal. The consultation period is open until 9 August 2024. View the proposal and supporting documents and make a submission online here.
Hornsby TOD rezoning proposal
The NSW Department of Planning, Housing and Infrastructure is seeking feedback on the Hornsby Transport Oriented Development (TOD) rezoning proposal. The consultation period is open until 9 August 2024. View the proposal and supporting documents and make a submission online here.
Macquarie Park TOD rezoning proposal
The NSW Department of Planning, Housing and Infrastructure is seeking feedback on the Macquarie Park Transport Oriented Development (TOD) rezoning proposal. The consultation period is open until 9 August 2024. View the proposal and supporting documents and make a submission online here.
Crows Nest TOD rezoning proposal
The NSW Department of Planning, Housing and Infrastructure is seeking your feedback on the Crows Nest Transport Oriented Development (TOD) rezoning proposal. The consultation period is open until 16 August 2024. View the proposal and supporting documents and make a submission online here.
Bankstown TOD rezoning proposal
The NSW Department of Planning, Housing and Infrastructure is seeking your feedback on the Bankstown Transport Oriented Development (TOD) rezoning proposal. The consultation period is open until 16 August 2024. View the proposal and supporting documents and make a submission online here.
Homebush TOD rezoning proposal
The NSW Department of Planning, Housing and Infrastructure is seeking your feedback on the Homebush Transport Oriented Development (TOD) rezoning proposal. The consultation period is open until 16 August 2024. View the proposal and supporting documents and make a submission online here.
Building Activity, Australia – Australian Bureau of Statistics
This report provides estimates of value of building work and number of dwellings commenced, completed, under construction and in the pipeline for the March 2024 period (17 July 2024). Read the publication here.
Building Approvals, Australia – Australian Bureau of Statistics
This report provides the number of dwelling units and value of buildings approved for the May 2024 period (10 July 2024). Read the publication here.
Hawach v A & A Building Services Pty Ltd [2024] NSWCATAP 138
APPEALS – Building and construction – Home Building Act 1989 (NSW) – equitable set off – when available.
Civil and Administrative Tribunal Act 2013 (NSW); Civil and Administrative Tribunal Rules 2014 (NSW); Design and Building Practitioners Act 2020 (NSW); Home Building Act 1989 (NSW); Law Reform (Law and Equity) Act 1972 (NSW).
Kanaan v Commissioner for Fair Trading [2024] NSWCATOD 106
ADMINISTRATIVE LAW – home building – application for individual contractor licence – general building work – application of instrument – experience requirements – “wide range of building construction work”.
Administrative Decisions Review Act 1997 (NSW); Civil and Administrative Act 2013 (NSW); Home Building Act 1989 (NSW); Licencing Registration (Uniform Procedures) Act 2002 (NSW).
Marino v Building Commission NSW [2024] NSWCATOD 95
ADMINISTRATIVE LAW – administrative review - Home Building – application for licence – plumbing, gasfitting and related work - experience requirements – requirements of applicable Instrument – requirements of form – fit and proper person.
Administrative Decisions Review Act 1997; Home Building Act 1989; Interpretation Act 1987; Licensing and Registration Uniform Procedures Act 2002.
Regulations and other miscellaneous instruments
Environmental Planning and Assessment Amendment (Development Levies) Regulation 2024 (2024-297) – published LW 12 July 2024
Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.
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