Queensland body corporates operate under different regulation modules. The applicable module affects how meetings, committees, voting and financial decisions are managed. This guide compares the Accommodation and Standard Modules, explains the other options and shows how to check the module applying to your scheme.
What is the difference between the Accommodation Module and Standard Module?
The Standard Module is generally more prescriptive and commonly suits predominantly owner-occupied residential schemes. The Accommodation Module is less prescriptive in some areas and commonly suits schemes with more investment or holiday-letting lots.
These descriptions provide useful practical context, but ownership or letting patterns are not the legal test for selecting a module. Your scheme’s registered documents determine which module applies.
The differences can affect:
- committee powers and decision-making
- proxy use at general meetings
- borrowing and spending
- management and letting arrangements
- the length and approval requirements for some contracts
- how quickly owners can challenge certain decisions
The current framework is based on the 2020 regulation modules. Older information may therefore describe rules that no longer apply to your scheme.
What regulation modules apply to Queensland body corporates?
Queensland schemes may operate under the:
- Standard Module
- Accommodation Module
- Commercial Module
- Small Schemes Module
- provisions applying to a specified two-lot scheme
The Commercial Module is generally associated with commercial, retail or industrial premises. The Small Schemes Module is intended for eligible smaller schemes. A specified two-lot scheme is the current terminology for a qualifying scheme with 2 lots. It should not be treated as a generic separate “Two Lot Module”.
The module is not selected solely because a building has investors, residents, holiday letting or a particular type of business. Check the scheme’s Community Management Statement, or CMS, before relying on a general description. A CMS must identify the regulation module applying to the scheme.
You can also read more about what a body corporate is and the information recorded in a Community Management Statement.
What are the main Standard Module rules?
The Standard Module includes detailed requirements for committees, meetings and voting. For example, a committee generally needs at least 3 voting members, unless the scheme falls within the provisions for a minor committee or has engaged a body corporate manager to perform the committee’s functions.
Owners of at least half of the lots can give a notice opposing the implementation of certain committee resolutions. The notice must generally be given within 7 days after the relevant minutes or resolution are provided to owners. Some routine administrative decisions involving limited spending are excluded.
The Standard Module also limits proxy use at general meetings. A person can hold no more than 1 proxy in a scheme with fewer than 20 lots, or proxies representing more than 5% of the lots in a scheme with 20 or more lots. Proxies also cannot be used for certain decisions, including the election of committee members, special resolutions about changing the regulation module and secret ballots.
The Standard Module sets out formal meeting requirements, including written notice, agendas and voting papers. General meetings must generally be held at least 21 days after notice is given to lot owners.
These requirements give committees and owners a clear process to follow before a decision is implemented.
What are the main Accommodation Module rules?
The Accommodation Module is commonly used for schemes with many investment or holiday-letting lots. It can be less prescriptive in some areas than the Standard Module, while still including governance, meeting, financial-management and spending obligations.
For example, an Accommodation Module body corporate must adopt an administrative fund budget and a sinking fund budget for each financial year by ordinary resolution. The sinking fund budget must allow for anticipated major expenditure over at least the next 9 years.
The body corporate must also fix contributions, instalments and payment dates by ordinary resolution. Written notice of a contribution or instalment must generally be given at least 30 days before payment is required.
Accommodation schemes may have more flexibility around borrowing and spending than Standard Module schemes. Limits still apply, and the body corporate must approve borrowing and manage its administrative and sinking funds correctly.
An Accommodation Module scheme may therefore suit a more commercially operated building, while still requiring careful financial management and properly authorised decisions.
How do Commercial, Small Schemes and specified two-lot modules differ?
The Commercial Module is generally intended for premises used for commercial, retail or industrial purposes. Check the scheme’s registered documents to confirm the applicable module and the permitted use of the lots.
The Small Schemes Module is intended for eligible smaller schemes. It is designed for smaller arrangements where some meeting and committee requirements can be simpler.
Specified two-lot schemes are subject to provisions that differ from those applying to other schemes. Check the scheme’s eligibility and applicable provisions rather than assuming every duplex or two-lot arrangement is treated the same way. The Act specifically refers to separate decision-making provisions for specified two-lot schemes.
A smaller scheme still needs to meet its obligations. Fewer formal requirements do not remove the need to maintain common property, manage funds, make valid decisions and follow the applicable regulation module.
How can you check or change your body corporate’s regulation module?
Start by obtaining the current CMS. The CMS is recorded for the scheme and is binding on the body corporate, lot owners and, in relevant circumstances, occupiers.
The original owner signs the first CMS for the scheme. The CMS must identify the regulation module applying to the scheme.
A body corporate may change the module if the qualifying criteria and approval process are satisfied. Changing the module requires the body corporate to consent to a new CMS by special resolution. The new statement must identify the different regulation module and be recorded to take effect.
If you are unsure which module applies, check the CMS first, then ask your body corporate manager or the StrataCare team for help. The module affects the process for many everyday decisions, so confirm it before preparing a motion or considering a contract.
The CMS is the starting point for confirming your scheme’s regulation module and the rules that follow from it. Visit our contact page if you need help reviewing your scheme’s documents.
