10 Year Maintenence Plans
10 Year Maintenance Plans
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.
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.
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.
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.
Consumer Affairs Victoria:
SCA Victoria: https://www.vic.strata.community/
Real Estate Institute of Victoria: https://reiv.com.au/
AESG's knowledge and experience in the building and compliance industry give us the unique skillset and resources to provide National solutions to your building compliance issues. AESG can draw on its team of specialist Architects, Engineers, Compliance Consultants and Building Practitioners.
Contact AESG via 1300 336 339 or email@example.com for further information.