Building Units and Group Titles and Other Legislation Amendment Bill 2022
Plain English Summary
Overview
This bill reforms governance of older multi-owner property developments in Queensland that pre-date the Body Corporate and Community Management Act 1997. It strengthens protections for unit owners in these older schemes by improving committee eligibility rules, financial accountability, dispute resolution, and transparency. It also enables the state's Office of Fair Trading to issue infringement notices for breaches of gift card requirements.
Who it affects
Unit owners in older strata developments gain significantly improved governance protections. Body corporate committee members and service providers face stricter eligibility and conflict of interest rules. Gift card sellers face new enforcement powers.
Body corporate governance reform
The bill brings older strata developments (under the Building Units and Group Titles Act 1980 and Mixed Use Development Act 1993) closer to the protections available in newer schemes. It tightens who can serve on body corporate committees, requires bodies corporate to act reasonably, and improves financial management and transparency.
- People who owe debts to a body corporate (and their business associates) are ineligible to serve on committees
- Service contractors, letting agents and body corporate managers cannot be voting committee members but become non-voting members
- Bodies corporate and committees must act reasonably in their decision-making
- Full and accurate meeting minutes must be provided to all owners within 21 days
- Bodies corporate must commence debt recovery within 2 years and 2 months of amounts becoming outstanding
- A new education and information service helps owners understand their rights and dispute resolution options
- Dispute resolution referees can award costs of up to $2,000 against frivolous applications
- Subsidiary bodies corporate can retain voting rights if their debts arise from non-payment by undeveloped lot owners
Gift card enforcement
The bill enables Queensland's Office of Fair Trading to issue infringement notices for breaches of the 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 (expiry dates, post-purchase fees, display requirements)
- 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 2022View Hansard
Referred to Legal Affairs and Safety Committee
The Legal Affairs and Safety Committee examined the bill over seven weeks, receiving 15 submissions, holding a public departmental briefing and a public hearing. The committee recommended the bill be passed, finding it would address significant deficiencies in body corporate governance under the Building Units and Group Titles Act 1980 and the Mixed Use Development Act 1993. While stakeholders broadly supported the reforms, many called for broader harmonisation with the Body Corporate and Community Management Act 1997 that was beyond the bill's scope. One committee member filed a Statement of Reservation raising concerns about inadequate funding for the Office of the Commissioner for Body Corporate and Community Management and the narrow scope of the reforms.
Key findings (5)
- The bill addressed significant deficiencies in body corporate governance identified at developments such as Couran Cove Island Resort, where conflicts of interest, costly disputes, and disruptions to utility services had been ongoing problems.
- Stakeholders broadly supported the reforms but many called for broader harmonisation of the Building Units and Group Titles Act 1980 with the Body Corporate and Community Management Act 1997, which was beyond the bill's scope.
- The committee found the bill's measures to tighten committee eligibility, prevent conflicts of interest, and improve transparency were largely modelled on existing BCCM provisions and would bring fairer governance protections to unit owners in older developments.
- The Strata Community Association Queensland raised concerns that the mandatory debt recovery requirement could place bodies corporate in a worse financial position without the ability to recover legal costs.
- The committee assessed the bill's compatibility with the Human Rights Act 2019, finding that limitations on freedom of association, privacy, and property rights were justified and proportionate to the aim of improving body corporate governance.
Recommendations (1)
- The committee recommends that the Building Units and Group Titles and Other Legislation Amendment Bill 2022 be passed.
Committee report tabled
▸Second Reading28 Oct 2022View Hansard
▸15 members spoke14 support1 mixed
Introduced and championed the bill as Attorney-General, emphasising its targeted reforms to improve body corporate governance for proprietors in older developments, particularly addressing the crisis at Couran Cove Island Resort.
“The clear focus of the bill is making body corporate governance arrangements under these two acts fairer and more transparent for unit owners.”— 2022-11-08View Hansard
Supported the bill as shadow Attorney-General while criticising the government for taking four years to act on the QUT property law review recommendations, and urged swift commencement and adequate resourcing for the body corporate commissioner.
“The LNP will be supporting this bill, of course.”— 2022-11-08View Hansard
Supported the bill while raising three concerns from her statement of reservation: insufficient ongoing funding for the commissioner's office, the limited scope of the bill, and the inability of bodies corporate to recover costs when pursuing levy debts.
“Hopefully, the other changes that are needed will be on the way shortly and all can finally see some light at the end of what has been a very long, dark tunnel.”— 2022-11-08View Hansard
Supported the bill, highlighting its improvements to dispute resolution, requirements for bodies corporate to act reasonably, conflict of interest provisions, and preservation of subsidiary voting rights.
“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 for all parties.”— 2022-11-08View Hansard
Supported the bill, noting the growing number of body corporate residents in his electorate and the urgent need for reform illustrated by the Couran Cove crisis, while calling for broader reforms including to the BCCM Act.
“This legislation goes some way in addressing all of these issues.”— 2022-11-08View Hansard
Supported the bill as Minister for Communities and Housing, framing it as part of the government's broader housing reform agenda to ensure all Queenslanders enjoy the same rights regardless of which legislative framework governs their property.
“All Queenslanders who own units in community title schemes should enjoy the same rights and protections regardless of the legislative framework that the property is governed by.”— 2022-11-08View Hansard
Supported the bill while strongly criticising the government for delays in enacting reforms, highlighting the devastating conditions faced by Couran Cove residents including an 89-year-old legally blind woman left without electricity.
“In my view, the fact that Couran Cove has deteriorated to this point—to the point where Couran Cove residents had to resort to standing on the beach with the words 'Help No Gas' dug into the sand—demonstrates just how slow the state government has been to move on this issue.”— 2022-11-08View Hansard
Supported the bill, noting that as the member for McConnel she has constituents in Cathedral Place under the MUD Act facing similar issues, and praised the targeted approach to addressing critical deficiencies.
“If some of these stories that are coming in here today are deemed to be a reasonable way that a body corporate should act, I will walk backwards and eat my hat.”— 2022-11-08View Hansard
Described the bill as non-controversial but criticised it as 'one tiny step' when urgent, meaningful change is needed, calling for action on building management statements, embedded networks, disaster planning, and proper funding for the commissioner's office.
“This bill is one tiny step towards reform of body corporate law in Queensland, when what we need is urgent, meaningful change.”— 2022-11-08View Hansard
Supported the bill, highlighting the plight of Couran Cove residents and the new requirements for bodies corporate to act reasonably and ensure continuity of essential utility services.
“While the problems around the resort highlight deficiencies within the building units and group titles and mixed use development acts, there are broader concerns about their operations which need to be resolved.”— 2022-11-08View Hansard
Supported the bill as Leader of the Opposition, focusing on the hope it gives to residents of Couran Cove and urging the government to respond quickly if further changes are needed.
“We cannot promise you money or power, but we can promise you hope.”— 2022-11-08View Hansard
Supported the bill, noting increasing density in her electorate and the importance of fair and transparent body corporate governance for people's quality of life.
“The roof that is over your head is fundamental to your quality of life and if things are not right there then a lot of other things are not right either.”— 2022-11-08View Hansard
Supported the bill, sharing stories of Couran Cove residents in her electorate who have been severely impacted, including seniors denied mobility access on the island.
“Those people—they know who they are—should absolutely hang their heads in shame for what they have done to the residents of that island.”— 2022-11-08View Hansard
Supported the bill, emphasising its reforms to improve transparency, fairness and dispute resolution for proprietors in older community title developments.
“I was particularly pleased that these reforms are going to empower people through better information and education services.”— 2022-11-08View Hansard
Supported the bill, focusing on the dispute resolution improvements and their importance for the mental health and wellbeing of residents.
“We need to pass this bill. It is essential for the wellbeing of all people who reside in these dwellings.”— 2022-11-08View Hansard
Referenced Entities
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Sectors Affected
Classified using AGIFT/ANZSIC Australian government standards