The Strata Titles Amendment Act, which came into effect on May 1st 2020, introduces 10 year maintenance plans, which will be a compulsory requirement for Designated Strata Companies (10+ lots or building replacement cost of $5,000,000+).
The 10 year maintenance plan will assist the council of owners in planning for future maintenance expenses so that large, unexpected special levies will not have to be raised in the future. The exciting addition to the strata regulations will make it so much easier to foresee expenses and have the funds ready to go when the time does come. The report itself has to cover almost everything that most Strata Companies will require to have repaired in the future – and can be completed internally or by a qualified professional (our recommendation).
Jake Kneebone, one of the directors at ESM and original founder, was on the original committee for the Community Titles Advisory committee for 14 year. He believes the addition of a compulsory 10 year maintenance plan is a long overdue initiative that will help Strata Companies stay on top of maintenance and repairs in an intelligent way.
More information:
- Carrying out a 10 year maintenance is now a compulsory requirement for a Designated Strata Company
- A designated Strata Company is a Strata company with 10 or more lots, or
- a scheme with a building replacement cost of more than $5,000,000.00 (as per draft regulations)
- The 10 year plan will be a guide in the setting of reserve funds to facilitate non-recurrent expenditure in the budget
- The 10 year plan can be completed by anyone, but ESM recommends it be carried out by a qualified builder or specialist
- Every 5 years, the 10 year maintenance plan must be revised and extended to cover the next 10 years
- The first 10 Year Maintenance Plan must be submitted for approval at the very next AGM after it was drafted
- It is accepted via an ordinary resolution
You can read more information about the 10 year maintenance plans on our knowledgebase or contact your Strata Manager for more information.
