Building Units and Group Titles and Other Legislation Amendment Bill 2022
Plain English Summary
Overview
This bill strengthens protections for owners in older Queensland multi-owner developments (unit blocks, townhouses, mixed-use complexes) that are still governed by laws from the 1980s and 1990s. It brings these older body corporate laws closer into line with the more modern Body Corporate and Community Management Act 1997 by improving governance standards, financial transparency, and dispute resolution. It also enables the Office of Fair Trading to issue infringement notices for gift card breaches.
Who it affects
Owners in pre-1997 multi-owner developments gain stronger committee governance protections and better access to information about body corporate decisions. Body corporate managers, service contractors and letting agents face new restrictions on committee membership. Gift card retailers can now receive infringement notices for breaching consumer law requirements.
Body corporate governance reforms
Brings older body corporate legislation (BUGT Act and MUD Act) closer into line with the modern BCCM Act. Tightens committee eligibility, requires conflict of interest disclosure, mandates reasonable decision-making by bodies corporate and committees, and establishes an education and information service for owners.
- People who owe debts to the body corporate, and their business associates, are barred from serving as voting committee members
- Service contractors, letting agents and body corporate managers cannot be elected to committees, though some become non-voting members
- Committee members must disclose conflicts of interest and cannot vote on affected matters
- Bodies corporate and committees must act reasonably in their decision-making
- Full and accurate meeting minutes must be provided to owners within 21 days
- At least 7 days notice must be given before committee meetings
- An education and information service will be established to help owners understand their rights and dispute resolution options
Financial management
Strengthens rules around body corporate contributions and debt recovery to protect the financial viability of developments and fairness for owners who pay on time.
- Contributions must be paid as monetary amounts, with limited offset arrangements allowed only if approved at a general meeting
- Bodies corporate must commence debt recovery proceedings within about two years and two months of a contribution becoming outstanding
- Subsidiary bodies corporate can retain their voting rights when debts are caused by undeveloped lot owners not paying
Dispute resolution
Improves the dispute resolution process under the BUGT Act to make it more accessible and less burdensome for everyday owners.
- Referees must observe natural justice and act with minimal formality
- Bodies corporate no longer need a special resolution to apply for dispute resolution against non-proprietors
- Referees can award costs of up to $2,000 against applicants who bring frivolous or vexatious claims
Gift card enforcement
Enables the Queensland Office of Fair Trading to issue infringement notices for breaches of Australian Consumer Law gift card provisions, consistent with powers already available to the ACCC at the Commonwealth level.
- The Commissioner for Fair Trading can issue infringement notices for gift card breaches such as post-purchase fees, insufficient expiry periods, and failure to display expiry dates
- Penalties are 55 penalty units for corporations and 11 penalty units for individuals
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee21 June 2022 – 8 Nov 2022View Hansard
Referred to Legal Affairs and Safety Committee
▸Second Reading28 Oct 2022 – 8 Nov 2022View Hansard
▸10 members spoke10 support
As Attorney-General, moved the second reading and defended the bill's reforms to improve body corporate governance, transparency, and dispute resolution, particularly for developments under the BUGT Act and MUD Act, with urgency for residents affected at Couran Cove.
“The community titles sector needs to be supported by frameworks based on modern, fair and transparent standards of governance as well as effective protections for owners.”— 2022-11-08View Hansard
Confirmed the LNP would support the bill, urging the government to bring the reforms into force as quickly as possible to help residents at Couran Cove and other affected body corporate owners.
“The LNP will be supporting this bill.”— 2022-11-08View Hansard
As committee chair, rose to support the bill, noting the committee recommended it be passed and outlining the amendments to improve body corporate governance.
“I rise to speak in support of the Building Units and Group Titles and Other Legislation Amendment Bill 2022.”— 2022-11-08View Hansard
Supported the bill and urged the Attorney-General to bring forward further reforms to the BCCM Act as soon as possible, noting many issues identified during the committee process fell outside this bill.
“I urge the Attorney-General to bring forward further reforms, especially to the BCCM Act, but other acts as well, as soon as possible.”— 2022-11-08View Hansard
Supported the bill, noting the committee's sole recommendation was that it be passed. Described the amendments as vital despite not being headline-grabbing.
“To the casual observer, the contents of this bill will not set the world on fire, but make no mistake, they are absolutely vital.”— 2022-11-08View Hansard
Supported the bill as establishing a clearer legislative framework for body corporate governance, transparency and communication with stakeholders.
“Where we can establish a clear legislative framework, particularly around the expectations of bodies corporate, the role they play, the boundaries of that role, their expectations and transparency and how they communicate with their stakeholders, that clarity really will, in my view, help with preventing disputes.”— 2022-11-08View Hansard
Supported the bill, noting the committee system worked effectively and expressing hope that the parliament's bipartisan effort would benefit Couran Cove residents.
“I hope that they are still here and can see that the parliament can work together, especially through the committee system, to bring legislation that benefits Queenslanders.”— 2022-11-08View Hansard
Supported the bill as going some way to address body corporate governance issues but expressed concern about the lack of a timeline for further amendments promised as tranche 3.
“This bill goes some way to addressing the problems many bodies corporate and owners have around non-payment of levies, exclusion of subsidiary bodies corporate, non-representation of owners, failure to deliver essential services, conflicts of interest and recovery of costs.”— 2022-11-08View Hansard
Supported the bill, sharing constituent stories about the devastating impact of body corporate governance failures at Couran Cove including denial of basic utilities and mobility access.
“It has just been absolutely traumatic for them outside of this whole crazy structure where people are paying into the body corporate and then taking money out to use for fees to fight the existing landowners.”— 2022-11-08View Hansard
Supported the bill as addressing gaps and manifest deficiencies in the BUGT Act and MUD Act, increasing transparency, fairness and equity of governance for unit owners.
“This bill proposes amendments, in a fair few cases, modelled on existing body corporate and community management provisions to address the gap and the manifest efficiencies of the BUGTA and Mixed Use Development Act.”— 2022-11-08View Hansard