10 Year Maintenance Plans

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The Owners Corporation Act 2006 (Vic) had amendments passed in the Victorian parliament in February 2021 and the changes came into effect from December 1st 2021.

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The requirement for a maintenance plan and fund is a new requirement for properties with 51 to 100 lots and so many will not have them in place.

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Five tiers of Owners Corporations have now been created, and the applicable regulations may change depending upon the Owners Corporation tier.

• Tier one: more than 100 lots

• Tier two: 51 to 100 lots

• Tier three: 10 to 50 lots

• Tier four: 3 to 9 lots

• Tier five: 2 lots or a services-only owners corporation

 

There are several additional changes relating to management, fees and Owners Corporation procedures but a couple of the key elements that may relate to your dealings with AESG include the following:

• All Owners Corporations with 10 or more lots will be required to elect a committee. This is reduced from 13 lots previously.

• Tier one Owners Corporations will be required to appoint a manager unless this is decided against by a special resolution.

• Owners Corporations that fall under tier one and two will be required to prepare and approve a maintenance plan and maintenance fund. This has decreased from 100 lots and above.

 

AESG would recommend that all Owners Corporations (regardless of size) create a 10 Year Maintenance Plan as it identifies, and details all required maintenance activity allowing for accurate and fair budgeting.

 

AESG can assist by creating a 10 Year Maintenance Plan for your Owners Corporation that identifies anticipated maintenance, repair, renewal, or replacement of both major and minor capital items.

 

The plan provides a snapshot of the present condition of a building and provides owners corporations with the ability to plan and budget accurately by providing annual costs per lot liability.

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Further information about the requirements for a 10 Year Maintenance Plan can be found under the Owners Corporation Act 2006 (Vic) Part 2, section 7A and Part 2 section 36.

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More Information:

Consumer Affairs Victoria: 

https://www.consumer.vic.gov.au/housing/owners-corporations/property-maintenance/maintenance-plan

SCA Victoria: https://www.vic.strata.community/

Real Estate Institute of Victoria: https://reiv.com.au/