UPDATE: On 25 May 2020, the Justice and Other Legislation (COVID-19 Emergency Response) Amendment Act 2020, received assent. The amendments to the BCCMA and BUGTA contained in this Act will be effective from 25 May 2020 and expire on 31 December 2020. https://www.legislation.qld.gov.au/view/html/asmade/act-2020-016/lh (Updated 26/05/2020)
The Honourable Yvette D’Ath, Attorney-General and Minister for Justice, has tabled the Justice and Other Legislation (COVID-19 Emergency Response) Amendment Bill 2020 in Parliament today, which will be debated tomorrow. The Bill proposes to make amendments to various acts, including the Body Corporate and Community Management Act 1997 (BCCMA) and the Building Units and Group Tittles Act 1980 (BUGTA). The purposes of these amendment is to provide temporary relief to alleviate the financial burden caused by COVID-19 on Bodies Corporate and Lot owners. The “Relevant Period” will be from commencement until 31 December 2020.
Some of the proposed amendments to BCCMA and BUGTA include:
Amendment of Body Corporate and Community Management Act 1997
Insertion of new Chapter 7, including:
323D Sinking Fund Budgets: A Body Corporate may adjust the sinking fund budget for the current year, by ordinary resolution, to remove or reduce the amount of major capital expenditure and (if it decides to do so) then the Body Corporate must refund any contribution or part thereof paid by a lot owner, that is no longer required because of the reduced budget.
323E Contributions Levied by Body Corporate: A Body Corporate Committee may extend the due date for contributions which have already been levied for an owner of a particular lot (if satisfied of financial hardship) or for all lots (regardless of financial hardship) to a date that is no later than the end of the financial year for the Body Corporate. In making the decision to extend the due date of any contributions , the Committee must consider Body Corporate’s ability to meet necessary and reasonable spending from admin and sinking funds for the current financial year.
323F Penalties for Late Payment: Lot owners will not incur a penalty for late payment of a contribution during the relevant period, but may be liable for penalties for overdue levies before and after the relevant period.
323G Recovery of Body Corporate Debts: Where A Body Corporate would ordinarily be required to commence proceedings for outstanding contributions under the applicable Regulation Module during the Relevant Period, the Body Corporate is not required to commence proceedings to recover an amount of a contribution outstanding as stated under the Regulation Module, however, may still decide to commence proceedings to recover that amount.
Insertion of new Chapter 8 -Part 14 – Upon expiry of Chapter 7, If Body Corporate would have been required to commence proceedings during the Relevant Period, then it is required to commence proceedings within 2 months after the expiry day (so by the end of February 2021).
323H Power to Borrow: A Body Corporate may exceed its prescribed borrowing limit during the Relevant period up to following caps (small schemes – $6,000) and for other schemes up to $500 per lot, essentially doubling the limits for a Body Corporate to borrow without a resolution to authorize the borrowing. This section will not affect schemes which have passed appropriate resolution to borrow under their respective Regulation Modules.
Part 2 (Division 2) Amendment of Building Units and Group Tittles Act 1980
Insert new Part 6A
134D Contributions levied by Body Corporate: A Body Corporate Committee may extend the due date for contributions which have already been levied for an owner of a particular proprietor (if satisfied of financial hardship) or for all proprietors (regardless of financial hardship) to a date that is no later than the end of the financial year for the Body Corporate. In making the decision to extend the due date of any contributions , the Committee must consider Body Corporate’s ability to meet necessary and reasonable spending from admin and sinking funds for the current financial year.
We note that the Bill does not address the potential changes to Body Corporate meeting procedures which will likely be dealt with soon by way of extraordinary Regulations and statutory instruments to be made under the COVID-19 Emergency Response Act 2020.