Revisiting The 2022 BUGTA Legislation Changes

The Building Units and Group Titles and Other Legislation Amendment Act 2022 was introduced to amend the Building Units and Group Titles Act 1980 (BUGTA) and the Mixed Use Development Act 1993 (MUDA). These changes took effect on 1 December 2022.

The Building Units and Group Titles Act was the primary legislation for all Strata schemes from a very early stage until the Body Corporate and Community Management Act came into effect in 1997.

Whilst the vast majority of schemes in QLD operate under the BCCMA, there are still a few schemes that are operating under BUGTA.

The aim of many key changes was to bring this legislation to be greater in line with the more widely used BCCM Act of which the majority of bodies corporate in Queensland are governed under.

10 Key Changes from the 1980 Act

The imposition on the body corporate and its committee of an obligation to “act reasonably” in similar terms to the obligation applying to bodies corporate under the Body Corporate and Community Management Act 1997 (“BCCM Act”).

The empowering of a body corporate, in certain circumstances, to approve and give effect to a levy off-set arrangement with a proprietor of a lot who provides land, goods or services to the body corporate.

That for unpaid contributions, a body corporate –

  • may recover the amount as a debt upon expiry of 30 days after it becomes due and payable; and
  • may, in respect of contributions that have been outstanding for 2 years and 30 days, recover those contributions as a debt; and
  • must start proceedings to recover unpaid contributions that have been outstanding for 2 months after the 2 year and 30 day period referred to.

 

A body corporate must not only keep minutes of its meetings, but the minutes must also be “full and accurate” and a copy must be given to each proprietor and first mortgagee within 21 days of the meeting, unless they have given notice of not wishing to receive copies.

New rules (similar to those in the BCCM Act) have been inserted regarding the eligibility of persons to be elected to a committee and the circumstances in which they vacate their position.

Body corporate managers and caretaking service contractors now become non-voting members of a body corporate committee.

New sections have been added to substantially replicate the provisions of the BCCM Act relating to –

  • Ineligibility of a voting member of the committee to vote at committee meetings where a body corporate debt is owing.
  • The effect of conflicts of interest on voting rights of members of a committee.
  • The circumstances in which a committee member may receive a benefit from a party to a service arrangement with the body corporate.

 

The dispute resolution provisions have been modernized by including –

  • New obligations on a Referee about observing natural justice and acting quickly and informally.

 

New and detailed notice provisions have for committee meetings.

The introduction of voting in writing by committee members (i.e. “voting outside committee or VOC”) to bring 1980 Act committees in line with BCCM Act committees.

 

Disclaimer: This article provides a general overview of the 2022 changes to the BUGTA legislation. For specific details and legal advice, it is recommended to consult with legal professionals.

How Can We Help You?

Call us on 07 3435 5300 and one of our friendly consultants will help