Queensland’s BUGTA amendments changed several practical rules for older body corporate schemes, including levies, committee decisions, meetings and disputes. This article explains which schemes are affected and the main requirements.
What changed in Queensland BUGTA legislation in 2022?
The Building Units and Group Titles and Other Legislation Amendment Act 2022 amended the Building Units and Group Titles Act 1980 (BUGTA) and the Mixed Use Development Act 1993 (MUDA).
The substantive amendments commenced on a day fixed by proclamation.
The changes brought governance in affected schemes closer to protections already familiar under the Body Corporate and Community Management Act 1997 (BCCM Act). They covered reasonable decision-making, levy offsets, debt recovery, records, committee conduct and dispute processes.
Does BUGTA apply to your body corporate scheme?
Most Queensland bodies corporate are governed by the BCCM Act. BUGTA continues to apply to a smaller group of older schemes that have not converted to a community titles scheme under that Act.
Before applying these rules, confirm which legislation governs your scheme. The scheme’s registered documents and professional advice can help if its position is unclear.
What changed for body corporate decisions and levy offsets?
A BUGTA body corporate must act reasonably when exercising its functions, including when making or not making a decision. The committee has the same duty when making decisions.
Good records should show what information was considered and why the outcome was reasonable. Our guide to acting reasonably in committee decision-making provides further practical guidance.
A proprietor may provide land, goods or services to offset a levy only when the arrangement is approved at a general meeting before completion. The offset must have fair value equal to the contribution being satisfied, and the proprietor and their associates cannot vote on the motion.
What changed for unpaid contributions and meeting minutes?
A body corporate may recover an unpaid contribution as a debt once it has remained unpaid for 30 days after its due date. If it remains outstanding for 2 years and 30 days, proceedings must start within the following 2 months. This timeframe applies only to contributions that became due after the amendments commenced.
Meeting minutes must be full and accurate. Copies must be given to each proprietor and first mortgagee within 21 days, unless that person has provided a written instruction not to receive them.
What changed for committee eligibility, conflicts and voting?
A candidate must be an electable person when their election is proposed. The rules consider their relationship to a lot, relevant body corporate debts and connections with body corporate management, service or letting arrangements.
A voting committee member cannot vote if they, or the proprietor they represent, owe a relevant body corporate debt. Conflicts must also be disclosed, and a voting member cannot vote on the affected motion.
Our guide to conflicts of interest in strata explains how committees can manage these situations.
Benefits from parties to service or letting arrangements are permitted only in the circumstances set out in BUGTA, including specified services or authorisation by ordinary resolution.
What changed for committee meetings and dispute resolution?
Committee meeting notices generally require at least 7 days’ notice, an agenda, and notice to committee members, proprietors and first mortgagees. A 2-day period can apply with agreement from all voting members, while a copy must be placed on the noticeboard at least 24 hours before the meeting.
Committees may also vote in writing when the motion is distributed as required and approved in writing by a majority.
See our overview of committee meetings for practical meeting preparation.
When investigating a dispute application, a BUGTA referee must observe natural justice and act quickly, with as little formality and technicality as a fair consideration allows.
The amendments cover decisions, levies, records, committees and disputes for affected BUGTA schemes.
If your body corporate needs help understanding how these requirements apply, contact StrataCare.
