Body Corporate and Community Management and Other Legislation Amendment Bill 2023
Plain English Summary
Overview
This bill reforms Queensland's body corporate and off-the-plan property laws. It creates a new process for terminating ageing community titles schemes that are no longer economically viable, modernises body corporate governance rules around pets, smoking, and parking, and protects off-the-plan buyers from developers misusing sunset clauses to cancel contracts.
Who it affects
Apartment and townhouse owners gain clearer rights around pets and smoking, and a new option to collectively sell uneconomic schemes. Off-the-plan buyers get stronger protections against contract cancellation by developers.
Key changes
- Bodies corporate can terminate uneconomic schemes with 75% lot owner approval, with minimum compensation for dissenting owners based on compulsory acquisition values
- Bodies corporate can make by-laws banning smoking in outdoor areas like balconies and courtyards, and regular second-hand smoke exposure is now treated as a nuisance
- Blanket pet bans in body corporate schemes are prohibited — bodies corporate must consider pet requests on their merits and can only refuse on specific reasonable grounds
- Bodies corporate can tow illegally parked vehicles from common property without going through the full by-law contravention process
- Developers can no longer use sunset clauses to automatically cancel off-the-plan land contracts — they need buyer consent or a Supreme Court order
- Buyer deposits for off-the-plan purchases cannot be released early to the developer, protecting buyers if the developer becomes insolvent
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee24 Aug 2023View Hansard
Referred to Legal Affairs and Safety Committee
The Legal Affairs and Safety Committee examined the bill over six weeks, receiving 95 submissions and holding a public hearing and briefing with the Department of Justice and Attorney-General. The committee recommended the bill be passed and made eight additional recommendations covering education campaigns, review of sunset clause practices, guidance on smoking provisions, pet-keeping timeframes, vehicle towing powers, and the interaction between body corporate laws and minimum housing standards. The Queensland Government supported or supported in principle seven of the nine recommendations, and did not directly support two (regarding pet-keeping timeframes and minimum housing standards) while committing to information campaigns and monitoring on those issues.
Key findings (5)
- The committee received broad stakeholder support for the bill's intent but noted concerns about the proposed 75% vote threshold for terminating uneconomic community titles schemes
- Stakeholders generally supported prohibiting by-laws that ban pets in community titles schemes, though questions were raised about the interaction between body corporate approval processes and the 14-day landlord response timeframe under the RTRA Act
- The meaning of 'regularly' in the new smoking provisions (section 167) was flagged as potentially unclear, with stakeholders seeking more definitive guidance
- Consumer protection reforms limiting the misuse of sunset clauses in off-the-plan contracts were supported, with the committee recommending a 24-month review of their effectiveness
- The REIQ raised concerns about the interaction between new Minimum Housing Standards and body corporate obligations, particularly where maintenance responsibility falls on the body corporate rather than the individual lot owner
Recommendations (9)
- The committee recommends the Body Corporate and Community Management and Other Legislation Amendment Bill 2023 be passed.
- The committee recommends that the Queensland Government develop an education campaign with the CTL Working Group to provide guidance and resources to organisations and individuals to support the proposed reforms, in particular information on dispute resolution processes available for lot owners.
- The committee recommends that the Queensland Government review the proposed section 167 and consider whether guidance should be provided around the word 'regularly' contained within the section.
- The committee recommends that the Queensland Government, in collaboration with the CTL Working Group, review the interaction between the Residential Tenancies and Rooming Accommodation Act 2008 and the Body Corporate and Community Management Act 1997 regarding timeframes for requests to keep pets.
- The committee recommends that the Queensland Government, in collaboration with the CTL Working Group, consider providing additional guidance and resources to bodies corporate regarding their powers to tow vehicles parked in contravention of a by-law, in particular vehicles owned or operated by visitors.
- The committee recommends that the Queensland Government consider amending the relevant sections of the 5 module regulations under the Body Corporate and Community Management Act 1997 to clarify whether the prescribed fee for obtaining a copy of a body corporate record applies to digital copies as well as printed copies.
- The committee recommends that the Queensland Government review, within 24 months of the implementation of the Bill, the exercise of sunset clauses giving consideration to current housing pressures, practices by developers and sellers, and the associated impact on consumer confidence and housing supply.
- The committee recommends that the Queensland Government conduct a review within 24 months of the commencement of the Bill to determine and address any unintended consequences that may have arisen from the proposed amendments.
- The committee recommends that the Queensland Government in conjunction with organisations such as REIQ review the interaction between the Body Corporate and Community Management Act 1997 and the Minimum Housing Standards prescribed by the Residential Tenancies and Rooming Accommodation Act 2008, in particular with respect to how these reforms impact on owners in a community titles scheme.
Committee report tabled
▸Second Reading26 Oct 2023View Hansard
▸27 members spoke13 support14 mixed
Welcomed the sunset clause protections and off-the-plan buyer protections but strongly opposed the 75 per cent termination rule, arguing it would allow developers to force vulnerable people such as disability pensioners out of their homes.
“On the one hand, this legislation helps those in need—vulnerable people, especially first home buyers. On the other hand, this legislation takes powers away from and throws to the wolves some of the most vulnerable people in our society.”— 2023-11-14View Hansard
As Attorney-General and responsible minister, moved the second reading and responded to the committee's nine recommendations, defending the bill's balance between enabling termination of uneconomic community titles schemes and protecting individual lot owners' rights.
“The committee report stated in relation to the scheme termination reforms that the majority of the committee believes that the right balance has been struck regarding the interests of lot owners who wish to sell and those who do not.”— 2023-10-26View Hansard
Supported the bill as a balanced approach to body corporate reform, defending the termination provisions as necessary with appropriate safeguards including District Court review, and supporting the sunset clause reforms.
“The bill aims to provide this balanced approach to the termination of community titles schemes, recognising the need to facilitate renewal and redevelopment but also respecting the property rights of individual owners.”— 2023-11-14View Hansard
Speaking on behalf of the LNP shadow attorney-general, announced the LNP would vote against clause 7 (termination of community titles schemes) over concerns about property rights of elderly and vulnerable owners, but would support the sunset clause provisions championed by the member for Theodore and not oppose the remainder of the bill.
“While we will vote against clause 7 around the termination of community titles schemes, we will not be opposing the remainder of the bill and hope those clauses at least bring more protections for Queenslanders buying homes and living in community titles schemes.”— 2023-10-26View Hansard
Described the bill as among the worst legislation in his 17 years in parliament due to the 75 per cent termination rule, which he said was the first time private persons could acquire another person's home. Praised the sunset clause provisions as 'Mark's law'.
“This is for development profit. There is no affordable housing coming out of this. There is no fix to the homelessness problem. This is a sop by a government which is out of ideas.”— 2023-11-14View Hansard
As committee chair, supported the bill including the termination of uneconomic community titles schemes, arguing it is necessary to address the housing shortage and that the 75 per cent threshold provides adequate protection for owners.
“Queensland is at a critical juncture in our state's fight against the housing shortage. Old legislative frameworks are no longer suitable and the time for change is now.”— 2023-10-26View Hansard
Supported the bill, defending the termination provisions with their built-in safeguards including independent expert opinion, 75 per cent threshold, District Court review with costs covered by the body corporate, and noting the bill strikes the right balance on pets and smoking.
“This process provides a range of safeguards for lot owners who are concerned about a proposed termination and ensures people cannot suddenly be forced out of their homes without warning or compensation—those are the facts.”— 2023-11-14View Hansard
Strongly supported the sunset clause amendments, crediting the member for Theodore's advocacy, but opposed the 75 per cent termination provision for community titles schemes, citing concerns from constituents who fear being forced to sell their beachfront units.
“I want it on the record that the LNP will be voting against the proposal in the bill to allow the termination of community titles schemes because we value property rights in Queensland.”— 2023-10-26View Hansard
Supported pet ownership reforms and sunset clause protections but opposed the 75 per cent termination threshold, arguing it creates a pathway for developers to force unit owners out of their homes. Also criticised the exclusion of apartments from sunset clause protections.
“What we cannot support, however, is creating a pathway for big property developers and investors to intimidate and force unit owners out of their home to seize an investment opportunity.”— 2023-11-14View Hansard
As a committee member, supported the bill as necessary to address the housing crisis, including the termination of uneconomic community titles schemes, smoking provisions and pet by-law changes.
“This government is committed to leaving no stone unturned in relation to housing for Queensland.”— 2023-10-26View Hansard
Supported the bill, providing historical context on strata title legislation and arguing the Attorney-General struck the right balance on termination provisions. Noted the risk of buildings becoming condemned without the reform and criticised the LNP for trying to argue both sides.
“Without action, the prospect of a property being condemned and the owners being kicked out is a real risk, something that those opposite and those on the crossbench should take into account.”— 2023-11-14View Hansard
Acknowledged the need to manage ageing body corporate buildings but raised concerns in her statement of reservation about the lack of modelling on how many schemes would be impacted, insufficient unit owner representation on the working group, and short consultation time frames.
“We do not have any modelling or analysis as to how this scheme would impact on the market.”— 2023-10-26View Hansard
Supported the sunset clause reforms, calling them the 'Mark Boothman clause', but opposed the 75 per cent termination rule, arguing it could make people homeless and lead to more housing insecurity.
“We urge the government to reconsider this clause and take into account the sentiments of those people who cannot speak for themselves. The LNP will stick up for the most vulnerable people in society.”— 2023-11-14View Hansard
Supported the bill including the termination provisions, smoking by-law changes and sunset clause protections, noting that most committee members believed the right balance was struck between the interests of lot owners.
“Most committee members believed that the right balance was struck between the interests of lot owners who wish to sell and those who do not, including the need for thorough evidence to support a dissolution of a scheme and an accessible dispute resolution process.”— 2023-10-26View Hansard
Supported the bill with a particular focus on the smoking provisions, arguing they will help break the addiction and protect residents from second-hand smoke.
“Not only do they not smoke so often we see they do not have a choice, especially when they are living in and around smokers who smoke in the home.”— 2023-11-14View Hansard
Passionately advocated for the sunset clause amendments, having campaigned since 2021 for legislative change to protect first home buyers from unscrupulous developers enacting sunset clauses for financial gain.
“Ensuring constituents' rights are protected when they buy property off the plan is terribly important.”— 2023-10-26View Hansard
Supported the sunset clause reforms and smoking by-law provisions but opposed the 75 per cent termination threshold, citing reports of developers already using bullying tactics against vulnerable unit owners and the lack of detail that has created distress.
“Since Brisbane Labor's announcement in February, which contained very little detail, unscrupulous behaviour from some developers has been reported to me by residents.”— 2023-11-14View Hansard
Supported the bill including the termination provisions, arguing that without them older Queenslanders could be trapped in aged, unsafe residences and prevented from redeveloping.
“Without this clause in relation to the community titles scheme, older Queenslanders may well be trapped in their own homes. They may well be denied the chance to sell or redevelop their ageing homes.”— 2023-11-14View Hansard
Opposed the termination of community titles scheme clauses but did not oppose the bill overall. Supported the sunset clause reforms and praised the member for Theodore's advocacy. Criticised the bill as rushed with only six business days for public scrutiny.
“While I will oppose the clauses relating to the termination of community titles schemes, I do not oppose the bill.”— 2023-11-14View Hansard
Supported the bill, welcoming clarifications on pet ownership, smoking restrictions, and the balanced approach to community titles scheme termination with appropriate safeguards.
“I believe the bill has regard to this balance with a transparent process to commence, vote on and dispute the termination of a community titles scheme.”— 2023-11-14View Hansard
Strongly opposed the termination of community titles scheme clauses, arguing it would force young home buyers and long-term locals out of their suburbs. Supported other provisions including pet by-laws, smoking restrictions, and sunset clause reforms.
“In the middle of a housing crisis, dramatically decreasing the threshold for termination of community titles schemes will only make things worse.”— 2023-11-14View Hansard
Supported the bill, particularly welcoming the clarity on smoking, pet ownership and towing provisions, which she said were the most frequent issues in her electorate office.
“This is not only about having our rights made clear; it is about reducing conflict in our communities and allowing for good and cordial relations between people who live in close proximity.”— 2023-11-14View Hansard
Praised the sunset clause reforms as the 'Mark Boothman bill' but expressed concerns about the 75 per cent termination threshold, noting that driven developer-owners could manipulate property values over time to force sales.
“Driven developer-owners can very easily manipulate that over a three- or five-year period to drive down the price and to see it affect the affordability of that complex.”— 2023-11-14View Hansard
Supported sunset clause protections and smoking by-law provisions but opposed the 75 per cent termination threshold, arguing it was not sufficient justification to override property owners' rights, particularly for elderly residents.
“The government's position that winding up existing community titles schemes will help drive new housing stock for me is not sufficient justification to override a property owner's rights.”— 2023-11-14View Hansard
Supported the bill wholeheartedly including the termination provisions, arguing 75 per cent is a reasonable threshold and criticising the LNP for opposing every housing measure at every level of government.
“Over 75 per cent ensures that terminating the scheme will be to the benefit of each home owner in that scheme because guess what? They live in a community.”— 2023-11-14View Hansard
Supported provisions on smoking, pets, and sunset clauses but strongly objected to the 75 per cent termination threshold, claiming developers on the Gold Coast are already planning to exploit the provision.
“I had not thought about what the member for Mermaid Beach put forward—that this is the first time we have ever seen legislation where a developer is going to be able to take a unit off someone.”— 2023-11-14View Hansard
In reply, defended the bill's balance on termination provisions, noting the economic viability threshold is unique in Australia, and challenged LNP members to name developers allegedly exploiting the reforms. Cited LNP's own history of increasing body corporate fees on pensioners.
“Unlike the other jurisdictions in this country that have legislated for termination schemes, we are the only one that has a threshold for economic viability.”— 2023-11-14View Hansard
▸In Detail26 Oct 2023 – 14 Nov 2023View Hansard
Three technical amendments to clause 25 correcting section numbering references for the insertion of new section 205AAB (renumbered from 205AAA) and correcting the placement within Chapter 4, part 2, division 2 of the Body Corporate and Community Management Act.
▸1 clause vote (all passed)
Vote on clause 7
Vote on whether to retain clause 7 of the bill, which introduces a new process allowing community titles schemes to be terminated with 75 per cent owner support where the body corporate has established economic reasons for termination. The LNP, Greens and crossbenchers opposed the clause as undermining property rights of vulnerable residents. The government prevailed 46-33.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
▸Show individual votesHide individual votes
Ayes (46)
Noes (33)
Confirmed the LNP would vote against clause 7, arguing the government had not got the termination provisions right despite eight years of consultation, and that property rights must be protected.
“We cannot stand by and allow Queenslanders to be driven out of their homes and out of their communities.”— 2023-11-14View Hansard
Opposed clause 7, arguing the LNP's position was to leave the legislation requiring 100 per cent agreement as it stands, and questioning why only 75 per cent would be needed if the economic case was truly obvious.
“If it is so overwhelmingly obvious, why do they only need 75 per cent? Why would not 100 per cent of people agree to that which is so obvious?”— 2023-11-14View Hansard
Opposed clause 7, arguing it was directly written by property developers and would allow them to exploit upzoning to turf people out of their homes for profit.
“The starting point should be that people are not forced out of their homes. The onus should be on bodies corporate to get an order to the contrary.”— 2023-11-14View Hansard
Assent date: 23 April 2021
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