If you live in NSW, you'll have heard of the NSW government's Transport-Oriented Development or TOD planning reforms. These groundbreaking changes are reshaping urban landscapes, offering residents a new way to live, work, and play. Let's explore what these reforms mean for apartment living and how they're revolutionising the way we think about housing and transportation. What is Transport-Oriented Development (TOD)? The Transport Oriented Development (TOD) program aims to address the housing crisis by delivering much-needed housing around 39 transport hubs. Housing in these areas will benefit from an expedited assessment pathway for faster approvals. TOD is a planning approach that prioritises the integration of transportation infrastructure with residential, commercial, and recreational facilities. At its core, TOD aims to create vibrant, walkable communities where residents have easy access to public transit options, such as trains, buses, and light rail, as well as essential amenities like shops, cafes, parks, and cultural attractions. By clustering development around transit nodes, TOD minimises reliance on private cars, reduces traffic congestion, and promotes sustainable urban growth. Where does TOD apply? In Part 1 of the program, the spotlight is on 8 accelerated precincts aimed at developing infrastructure and capacity for 47,800 new homes over the course of 15 years. The NSW Government will rezone land within 1,200 meters of 8 rail and metro stations – Bankstown, Bays West, Bella Vista, Crows Nest, Homebush, Hornsby, Kellyville, and Macquarie Park – to facilitate the creation of more new and affordable homes. Part 2 of the program will concentrate on precincts with existing infrastructure, situated within 400 meters of 31 stations, aiming to accommodate 138,000 new homes over a span of 15 years. Through a new State Environmental Planning Policy (SEPP), newly established planning controls will facilitate expedited delivery of additional housing close to employment opportunities and amenities, allowing for homes of up to 6 storeys. These 31 locations include Adamstown, Ashfield, Banksia, Berala, Booragul, Canterbury, Corrimal, Croydon, Dapto, Dulwich Hill, Gordon, Gosford, Hamilton, Killara, Kogarah, Kotara, Lidcombe, Lindfield, Marrickville, Morisset, Newcastle Interchange, North Strathfield, North Wollongong, Rockdale, Roseville, St Marys, Teralba, Tuggerah, Turrella, Wiley Park, and Wyong stations. 6 further stations were added in April 2024, Cardiff, Woy Woy, Belmore, Lakemba, Cockle Creek and Punchbowl, bringing to a total of 37 locations. Types of Developments Allowed under TOD To support increased housing density, new planning controls will increase maximum building heights to 22 m for residential flat buildings and 24 m for shop-top housing in Transport Oriented Development locations.  maximum floor-space ratio of 2.5:1 will apply, unless local plans specify higher or no ratios. Minimum lot sizes are not established, but a minimum lot width of 21 m at the front building line is required. New controls will promote active street frontages in local employment zones. Developments over 2,000 m² must provide 2% of the gross floor area as affordable housing, managed by a community housing provider, with this requirement increasing over time. Under TOD, there will be no changes to parking. The Apartment Design Guide will continue to be the principal guide for apartment development. The Benefits of TOD in Apartment Living Convenient Access to Transit: For apartment dwellers, proximity to transit hubs is a game-changer. TOD developments are strategically located within walking distance of train stations, bus stops, and other transportation nodes, allowing residents to enjoy seamless connectivity to employment centers, educational institutions, entertainment precincts, and beyond. With shorter commute times and fewer transportation hassles, TOD residents can reclaim valuable time for work, leisure, and social activities. Lifestyle Amenities at Your Doorstep: In addition to excellent transportation links, TOD neighbourhoods boast a diverse array of lifestyle amenities within easy reach. From bustling retail precincts and gourmet dining options to tranquil green spaces and recreational facilities, TOD developments cater to residents' every need and preference. Whether you crave a morning coffee, a leisurely stroll, or a night out on the town, everything is just steps away from your apartment door. Sustainable and Eco-Friendly Living: TOD promotes environmentally sustainable living by encouraging alternative modes of transportation and reducing car dependency. By fostering compact, mixed-use communities, TOD developments minimize urban sprawl, preserve green spaces, and promote energy efficiency. With access to public transit options, residents can reduce their carbon footprint, alleviate traffic congestion, and contribute to a cleaner, greener future for generations to come. Community Engagement and Social Interaction: TOD fosters a strong sense of community and social interaction among residents. By design, TOD developments feature pedestrian-friendly streetscapes, public gathering spaces, and vibrant urban plazas where neighbours can connect, interact, and forge meaningful relationships. Whether it's a neighbourhood block party, a farmers' market, or a cultural festival, TOD communities offer ample opportunities for residents to come together and celebrate shared experiences. The new development standards for Transport Oriented Development (TOD) locations will significantly benefit urban communities by supporting increased housing density, enhancing building designs, and ensuring affordable housing availability. These changes will create vibrant, well-connected neighbourhoods that are both functional and attractive, promoting a higher quality of life for residents. Equally important in ensuring this higher quality of life is having an experienced strata manager who can offer guidance based on first-hand experience and help owners make informed decisions about their community. Compass Strata is ready to partner with communities to navigate the challenges that come with apartment living. Contact Compass Strata today to learn how we can support your strata management needs and drive your investment forward.

Owning a swimming pool or spa within a strata or community scheme comes with shared responsibilities and legal obligations. As joint owners of these facilities located on common property, lot owners must ensure compliance with the Swimming Pools Act 1992. Here's a comprehensive guide to understanding and fulfilling these regulatory requirements, brought to you by Compass Strata. Understanding the Law The Swimming Pools Act 1992 applies to any structure capable of holding water to a depth greater than 30cm, designed for human aquatic activities. This includes swimming pools and spa pools within strata or community schemes. To comply with the law, pool owners must register their facilities online through the NSW Swimming Pool Register. This registration process ensures accountability and provides a certificate of registration for verification. CPR Signage: A Vital Safety Measure Clear and updated CPR signage near pool areas is essential for guiding emergency response procedures. These signs must be prominently displayed, easily visible, and accessible to facilitate prompt and effective action during emergencies. As a critical safety measure, CPR signage helps ensure the well-being of pool users and aids in emergency preparedness. The signage, which can be purchased from Royal Life Saving, should be well-maintained and easily legible from a distance of 3 meters. Fencing Requirements for Child Safety Proper fencing is crucial to prevent unauthorised access to pool areas. Make sure that pools are enclosed by a child-resistant safety barrier, effectively separating them from any residential buildings and adjoining areas. Additionally, ensure that doors and gates providing access to the swimming pool are kept closed at all times. All pool enclosures must comply with Australian Standards to safeguard against drowning incidents and ensure child safety. By adhering to fencing requirements, strata communities create a secure environment for residents and mitigate potential risks associated with pool ownership. Pool Cleaning Systems: Mitigating Accident Risks To reduce the risk of accidents, pool owners must secure cleaning systems and skimming devices to prevent entrapment, particularly involving children. Clear labelling and awareness of filtration system controls are also vital safety measures to uphold. By prioritising pool cleaning and maintenance, strata communities uphold operational efficiency and safety standards, fostering a safe and enjoyable pool environment for residents. What is a skimmer box? A pool skimmer box is a vital component of a swimming pool's filtration system. It is typically located at the water's surface level along the pool's edge. The skimmer box works by drawing water from the pool through a skimmer basket, which captures leaves, debris, and other floating particles before they sink to the bottom. The collected debris is then trapped in the skimmer basket, preventing it from clogging the pool's filtration system. Skimmer boxes help maintain the cleanliness and clarity of the pool water by efficiently removing surface debris. Certification and Maintenance: Ensuring Compliance All pools or spas must be registered to ensure their safety for all users. Upon registration, the owners corporation will receive a certificate of registration. Residents/owners can lookup registration online. Pool inspection self-assessment checklists are available for different types of pools. Strata schemes with more than two lots must schedule pool inspections by the local council at least every three years to verify compliance with regulatory standards. Owners Corporation can also engage registered private certifiers to inspect on request, who can issue either a certificate of compliance or non-compliance after an inspection. ⚠️ Kids can’t help themselves around water, you need to. ⚠️ Keep Watch to keep your child safe around water. Essential Community Pool Safety In summary, navigating pool ownership within a strata or community scheme requires careful attention to legal requirements and safety guidelines. By understanding and adhering to these regulations, strata communities can create a safe and enjoyable pool environment for residents to relax and unwind. Contact us today to learn more about our comprehensive strata management services and how we can assist you in maintaining a safe and thriving community.

In today's ever-changing landscape, security is a top priority for strata communities in Sydney. With the rise in urbanisation and population density, ensuring the safety of residents and their property has become paramount. One effective solution that many strata communities are turning to is Closed-Circuit Television (CCTV) surveillance. In this article, we'll explore the key benefits of CCTV in strata communities, what to look out for when implementing CCTV systems, and practical tips for maximising their effectiveness. Benefits of CCTV in Strata Communities: Enhanced Security: One of the primary benefits of CCTV surveillance is the deterrence of criminal activity. The presence of cameras acts as a visual deterrent to potential intruders, reducing the likelihood of break-ins, vandalism, and other criminal acts. Crime Prevention and Detection: CCTV cameras provide real-time monitoring of common areas, entrances, and parking lots, allowing for the immediate detection of suspicious activity. In the event of a crime, recorded footage can serve as valuable evidence for law enforcement and aid in the apprehension of perpetrators. Improved Safety: CCTV surveillance not only protects against external threats but also enhances the safety of residents within the community. Cameras can be strategically placed to monitor common areas such as elevators, stairwells, and recreational facilities, helping to prevent accidents and respond quickly to emergencies. Remote Monitoring: Modern CCTV systems offer the convenience of remote monitoring, allowing authorised persons to access live footage and recordings from anywhere with an internet connection. This enables proactive surveillance and timely response to security incidents, even when away from the property. Peace of Mind: Ultimately, the presence of CCTV cameras provides peace of mind for residents, knowing that their community is equipped with advanced security measures to protect their homes and loved ones. What to Look Out for When Implementing CCTV Systems: Legal Compliance: When installing CCTV cameras in strata communities, it's essential to ensure compliance with the law. The Strata Schemes Management Act 2015 (NSW) doesn't explicitly address the authority of an owners corporation to install security systems on common property. However, it is advisable for owners corporations to pass a by-law governing the installation, upkeep, and operation of security systems, including surveillance systems. The Surveillance Devices Act 2007 (NSW) oversees the use of listening and surveillance devices. While it prohibits the use of listening devices to record private conversations, the Act permits the use of optical surveillance devices, such as CCTV cameras, with the consent of the landowner where the device is installed. If any part of the common property is used as a workplace, like for a building manager, the Workplace Surveillance Act 2005 (NSW) is applicable. This means cameras must be visibly placed with signage at each entry point, as required by law. However, even if not legally mandated, signage is still recommended as it serves as an effective deterrent against unwanted activities. Quality and Coverage: Selecting high-quality cameras with sufficient coverage is critical for effective surveillance. Consider factors such as resolution, field of view, night vision capabilities, and weather resistance to ensure comprehensive monitoring of the property. Integration with Existing Systems: Integration with existing security systems, such as access control and alarm systems, can enhance the overall effectiveness of CCTV surveillance. Look for CCTV solutions that offer seamless integration and compatibility with other security technologies. Maintenance and Upkeep: Regular maintenance and upkeep of CCTV systems are essential to ensure optimal performance and longevity. Establishing a maintenance schedule and conducting periodic inspections can help identify and address any issues promptly, minimising downtime and maximising reliability. Practical Tips for Maximising CCTV Effectiveness: Strategic Placement: Place cameras strategically in areas with high foot traffic, points of entry, and vulnerable areas prone to security risks. Ensure the camera doesn't inadvertently captures private lot activity, affecting the comfort and privacy of lot occupants. Adequate Lighting: Ensure proper lighting conditions for clear and accurate video footage, especially in dimly lit areas or at night. Regular Monitoring: Dedicate resources to regularly monitor CCTV feeds and review recorded footage to identify any security threats or incidents. Community Awareness: Educate residents about the presence and purpose of CCTV surveillance, emphasising its role in enhancing community safety and security. CCTV surveillance is a valuable asset for strata communities seeking to enhance security, deter criminal activity, and promote the safety and well-being of residents. With Compass Strata by your side, you can trust that your community will have the tools and support needed to create a safer and more secure living environment for all residents. Contact us today.

Capital works projects are significant investments for any strata community, encompassing renovations, repairs, or upgrades that enhance the value and functionality of the property. However, successfully budgeting for and executing these projects require careful planning, precise cost estimation, and effective project management. In this article, we'll delve into essential tips for strata committees to navigate the complexities of budgeting for capital works projects, ensuring smooth planning and execution from start to finish. Conduct a Comprehensive Property Assessment Before embarking on any capital works project, it's crucial to conduct a thorough assessment of the property's condition and identify areas in need of improvement. This assessment should encompass structural integrity, safety compliance, aesthetic appeal, and functionality of existing amenities. By understanding the scope of work required, strata committees can accurately determine the budget needed for the project. Develop a Detailed Project Plan Once the scope of work is established, develop a detailed project plan outlining specific objectives, timelines, and deliverables. Consider factors such as permits, regulatory compliance, and potential disruptions to residents during construction. Breaking down the project into smaller phases or milestones can help track progress and manage resources effectively. Obtain Multiple Quotes for Cost Estimation When estimating project costs, it's prudent to obtain quotes from multiple contractors or service providers to ensure competitive pricing and quality assurance. Request detailed proposals that itemise expenses, including labour, materials, equipment rentals, permits, and contingency funds for unforeseen expenses. Compare quotes carefully, considering factors such as reputation, experience, and track record of contractors. Allocate Adequate Contingency Funds Capital works projects often entail unforeseen challenges or additional expenses that can impact the budget. To mitigate financial risks, allocate a reasonable contingency fund—typically 10-15% of the total project cost—to cover unexpected costs or scope changes. Having contingency funds in place ensures that the project remains on track without compromising quality or timelines. Prioritise Projects Based on Needs and Impact In prioritising capital works projects, consider the urgency of repairs or upgrades and their potential impact on residents' safety, comfort, and property value. Address critical issues such as structural repairs, plumbing or electrical upgrades, and compliance with building codes before tackling aesthetic enhancements or optional amenities. Engage with residents to gather feedback and prioritise projects that align with their needs and preferences. Explore Financing Options for the Project When it comes to funding capital works projects, strata communities have several options to consider. Utilising existing capital works funds accumulated through regular levies is an efficient way to finance planned projects without additional financial strain on owners. In cases where the existing fund may not be sufficient, owners corporations may opt for special levy, either one-off or spread over specified periods. Alternatively, securing a strata loan from financial institutions can provide upfront capital for larger-scale projects, with repayment structured over time through levies or other revenue sources. Whatever the funding method chosen, careful consideration of financial implications and consultation with owners are essential to ensure consensus and financial sustainability for the community. Implement Transparent Financial Reporting Maintain transparency throughout the budgeting and execution process by providing regular updates and financial reports to owners. Clearly communicate the allocated budget, projected expenses, and any deviations from the original plan. Transparency fosters trust and accountability among stakeholders, ensuring that everyone is informed and involved in decision-making processes. Monitor Progress and Adjust as Needed Effective project management involves diligent monitoring of progress, adherence to timelines, and proactive resolution of issues as they arise. Implement robust project management tools and processes to track expenditures, address delays or setbacks promptly, and adjust plans as needed to keep the project on course. Regular communication with contractors, suppliers, and residents is essential to address concerns and maintain transparency throughout the project lifecycle. 💡 Depending on the scale and complexity of the project, engaging a professional Project Manager to oversee delivery may prove invaluable. Budgeting for capital works projects requires meticulous planning, accurate cost estimation, and effective project management to ensure successful outcomes and maximum return on investment for strata communities. By following these tips and best practices, owners corporations can navigate the complexities of capital works projects with confidence, delivering projects on time, within budget, and to the satisfaction of residents. At Compass Strata, we understand the importance of strategic planning and transparent communication in executing capital works projects. If you're seeking professional guidance and support for your next project, contact us today. Together, let's enhance the value and functionality of your property while ensuring financial prudence and resident satisfaction.

The 2023 Strata Defects Survey Report commissioned by the Office of the Building Commissioner NSW surveyed 642 strata managers who completed an extensive survey on behalf of owners corporations they represent. This article delves into the key findings of the report, shedding light on the common defects, their implications for strata owners, and the challenges in rectification. Unpacking the 2023 Strata Defects Survey Report The survey revealed a myriad of defects plaguing strata buildings, ranging from minor nuisances to serious structural issues. Of the 642 strata buildings that were the subject of the research, 53% of the buildings have had serious defects in common property in the 6 years following their construction. Common defects included water ingress, cracking in walls and ceilings, defects related to waterproofing, fire safety breaches, and issues with building structure integrity. These defects compromise the safety, functionality, and aesthetic appeal of strata properties, posing challenges for both owners and residents. The research defined serious defects as those which related to the 5 key building elements: Waterproofing Fire safety systems Structure Key services Enclosure (and non-compliant cladding) Waterproofing Failures Dominate: Among the various types of defects reported, waterproofing failures emerge as the most common issue, affecting a significant number of strata buildings. Waterproofing defects pose serious risks, including water ingress, mould growth, and structural damage, highlighting the importance of proactive maintenance and remediation measures. Severity of Defects: While some defects may seem minor at first glance, their cumulative impact can be significant. Water ingress, for example, may start as a minor leak but can lead to extensive damage to walls, ceilings, and electrical systems if left unchecked. Cracking in building structures may signal underlying structural weaknesses, posing safety risks to occupants. Fire safety breaches compromise the safety of residents and can result in severe consequences in the event of a fire emergency. Impact on Strata Owners: Strata defects have profound implications for owners, affecting both their financial well-being and their quality of life. Owners may face significant financial burdens associated with defect rectification, including repair costs, legal fees, and potential decreases in property values. Moreover, defects can disrupt residents' daily lives, causing inconvenience, stress, and safety concerns. Financial Implications: The financial repercussions of strata defects are substantial. As revealed by the survey, rectifying defects can incur costs ranging from thousands to millions of dollars, varying based on the severity and scope of the issues. These expenses might be shouldered individually through special levies or collectively by the owners corporation, affecting the financial health of the entire strata community. While there's potential to recoup some of these expenses eventually, owners corporations must first cover the initial costs, alongside the community's standard operational expenses, amplifying the financial pressure on owners. According to the report, owners corporations spent a total of $79 million due to serious defects in common property, averaging $283,000 per building. The majority of costs, amounting to $45 million (57%), were attributed to rectifying the defects, followed by professional costs such as technical statements ($15.6 million, 20%) and legal expenses ($11.6 million, 15%). Alarmingly, only 9% of the buildings where defect rectification costs were confirmed, had recovered any of those costs highlighting the financial strain faced by owners corporations dealing with building defects. For these communities, $13.1 million of $24.1 million of costs were recovered or just over half of the total cost incurred. The average amount recovered was $1.05 million per building. Legal and Regulatory Challenges: Rectifying strata defects presents legal and regulatory challenges, further complicating the resolution process. Identifying responsible parties, coordinating repair efforts, and obtaining funding for rectification are key hurdles faced by owners and strata managers. Moreover, navigating complex legislative frameworks and dispute resolution mechanisms adds to the complexity of defect rectification. Proposed Solutions: Stakeholders advocate for a multifaceted approach to addressing strata defects, encompassing legislative reforms, proactive maintenance strategies, and enhanced stakeholder collaboration. Proposed reforms include strengthening building standards, implementing mandatory defect bonds, and improving dispute resolution mechanisms. Proactive measures such as regular maintenance programs, preventive inspections, and educational initiatives are also essential for defect prevention and mitigation. Collaborative Solutions for a Sustainable Future Confidence in the sector is on the rise, and positive changes from ongoing reforms are becoming evident. However, there's still much work ahead to address existing challenges. The Strata Defects Survey Report provides invaluable insights into the complexities of defects in NSW strata buildings. Effectively managing these issues demands a collaborative approach involving strata managers, building professionals, and regulatory authorities. By shedding light on the prevalence and severity of defects, the report emphasises the pressing need for proactive measures and legislative reforms to ensure the quality and safety of strata living. Through unified efforts, stakeholders can pave the way for a more resilient and sustainable strata sector. Contact Compass Strata today to discover how we can assist your strata community in navigating these challenges and implementing robust defect management strategies.

Compass Strata had the pleasure of attending Strata Community Insurance's 2024 Autumn Forum where keynote speaker Dr Nicole Johnston shared her research findings on Building Care Action in Ageing Strata Properties: Facilitating Better Outcomes. Dr. Johnston is the Founder and Director of Strata Knowledge, and former lecturer at Deakin and Griffith Universities. She leads impactful projects, advises governments, and chairs international forums on strata and community title law and governance, driving progress in areas like building defects and developer governance. The Purpose and Method of Research The research aimed to uncover the underlying factors that influence building care actions in strata properties. By evaluating records from 31 strata schemes across New South Wales, Victoria, and Queensland, Dr. Johnston and her team analysed over 18,000 pages of documents from schemes built between 1938 and 2013. With scheme sizes ranging from 6 to 310 lots, and a mix of older and newer buildings, the study provided a robust overview of the current state of Building Care. Key Findings One of the primary findings was the critical role of committee and owners' corporation (OC) participation. Schemes with low participation and high disengagement often faced significant building neglect. In contrast, schemes that demonstrated proactive building care typically had skilled members, such as experienced strata managers or architects, and were generally larger in size. Maintenance and repairs emerged as a common challenge. The most frequent issues included water-related problems, painting, fire safety, plumbing, windows and doors, lifts, roofs, balconies, façades, and electrical switchboards. Unfortunately, most schemes adopted a reactive approach, dealing with problems as they arose rather than implementing a wholistic, preventative maintenance strategy. This patchwork approach often led to prolonged delays for complex remedial works, sometimes extending from 3 to 10 years, and resulted in multiple issues occurring simultaneously. Decision-making within OCs also proved problematic. Many lacked awareness of their building's condition and frequently deferred necessary works. Financial planning for repairs and maintenance was often inadequate, with confusion surrounding responsibilities for private lot and common property. Although all schemes had a sinking or capital works plan, these were primarily used for budgeting rather than proactive maintenance planning. Over a third of the schemes had balances lower than forecasted, and updates to these plans were rare. The expertise difference between strata managers was clearly evident. Well-drafted minutes and detailed reports were often missing, leading to confusion and poorly documented decisions. Additionally, contracting and oversight were inconsistent, with building works contracts rarely reviewed by lawyers. Compliance was another area of concern. Many schemes consistently defeated or deferred compliance motions due to financial constraints. Furthermore, historical repair and maintenance information was not well-collated, making it difficult to trace past decisions and actions. Addressing Shortcomings in Building Care and Financial Planning The research findings underscore significant shortcomings in current trends and practices regarding building care initiatives and financial planning within Owners Corporations. These inadequacies pose considerable challenges, potentially impeding the effective maintenance and upkeep of buildings. In light of these findings, the expertise and experience offered by Compass Strata emerge as invaluable assets. With decades of experience managing building maintenance and financial planning for communities of all shapes and sizes, Compass Strata is uniquely positioned to address these challenges effectively. By leveraging our wealth of experience, owners can benefit from tailored solutions that optimise building care initiatives and ensure sound financial planning practices. Ultimately, partnering with Compass Strata offers a pathway to improved building maintenance outcomes and enhanced financial sustainability for strata communities.

As the end of the financial year (EOFY) approaches, property investors have a unique opportunity to fine-tune their financial strategies and maximise their returns. With the right approach, you can not only optimise your tax position but also set a strong foundation for future growth. Here are some of our essential EOFY tips. 1. Conduct a Thorough Property Review Start by conducting a comprehensive review of your property portfolio. Evaluate each property's performance over the past year, including rental income, occupancy rates, and maintenance costs. This review will help you identify high-performing assets and those that may need attention or restructuring. 2. Maximise Tax Deductions Property investors can claim a wide range of tax deductions that can significantly reduce taxable income: Interest on Loans: Interest payments on loans used to purchase, build, or improve your investment properties are tax-deductible. Property Management Fees: Fees paid to property managers for managing your rental properties can be claimed as deductions. Strata Levies: Strata property investors can claim a deduction for strata levies to reduce the tax they pay on their rental income. However, the nature of these deductions depends on the purpose of the fees. Administration levies are generally immediately deductible, whereas capital works levies must be depreciated over several years once the repair works are completed. Maintenance and Repairs: Costs for necessary repairs and maintenance to keep the property in a rentable condition are deductible. However, improvements and renovations are treated differently and must be depreciated over time. 3. Prepay Expenses Prepaying certain expenses before 30 June can bring forward tax deductions into the current financial year. This includes prepaying property-related costs such as insurance premiums, rates, and even interest on loans (if your lender allows). This strategy can be particularly beneficial if you expect to be in a higher tax bracket this year compared to the next. 4. Write Off Bad Debts If you have rental income that you have not been able to collect, you may be able to write it off as a bad debt. Document all your efforts to recover the debt and demonstrate that it is unlikely to be recovered. Writing off bad debts can reduce your taxable income, offering some financial relief. 5. Plan for Capital Gains Tax (CGT) If you've sold any properties (other than your Principal Place of Residence) during the financial year, you'll need to account for Capital Gains Tax. Consider any available exemptions or discounts, such as the 50% discount for assets held longer than 12 months. If you have any underperforming properties, selling them to realise a capital loss can offset your gains and reduce your CGT liability. 6. Utilise Tax-Effective Structures Review the structure of your property investments. Holding properties in tax-effective structures such as trusts or self-managed superannuation funds (SMSFs) can provide significant tax advantages. Remember any transfer is likely to trigger stamp duty so this must be factored in. Consult with a financial advisor to determine the best structure for your situation. 7. Claim Depreciation Deductions Depreciation is one of the most valuable yet underutilised tax benefits for property investors. Engage a qualified quantity surveyor to prepare a depreciation schedule, which will outline all available deductions for the depreciation of the building and its fixtures and fittings. This can result in substantial tax savings. 8. Plan for the Future EOFY is also a good time to plan for the year ahead. Set clear financial goals for your property investments, whether it's increasing rental income, expanding your portfolio, or improving property management practices. Create a budget that includes provisions for unexpected expenses and potential investments. The end of the financial year is an excellent checkpoint for property owners and investors to review, strategise, and optimise their financial positions. By leveraging tax deductions, prepaying expenses, and planning for the future, you can maximise your returns and set the stage for continued success. Professional and qualified advice is invaluable when it comes to property investment and taxation. Equally, a well experienced strata manager can guide owners corporations not only to protect, but enhance the value of their community. Contact Compass Strata today and benefit from our expertise in strata and community management. Disclaimer: The information provided in this article is for general informational purposes only and does not constitute professional advice. It does not take into account your specific objectives, financial situation, or individual needs. Before acting on any information contained herein, you should consider whether it is appropriate for your circumstances and seek professional advice tailored to your personal situation.

In recent years, a growing number of Australians have embraced a new strategy for entering the property market: rentvesting. Combining the flexibility of renting with the wealth-building potential of property investment, rentvesting offers a unique pathway to financial independence and homeownership. In this article, we'll explore what rentvesting is and the benefits it offers to aspiring homeowners and investors alike. What is Rentvesting? Rentvesting involves renting a property to live in while simultaneously owning and renting out one or more investment properties. Essentially, rentvestors choose to invest in property markets where they can afford to buy, while renting in locations where they prefer to live. This approach allows individuals to enjoy the lifestyle benefits of renting in desirable areas while building wealth through property ownership and rental income. Benefits of Rentvesting Flexibility and Lifestyle One of the key advantages of rentvesting is the flexibility it offers in terms of lifestyle choices. Rentvestors have the freedom to live in locations that suit their preferences and lifestyle, whether it's close to work, amenities, or family and friends. This flexibility is particularly appealing to young professionals, couples, and families who value mobility and diversity in their living arrangements. Diversification and Investment Growth By investing in property markets beyond their current living location, rentvestors can diversify their investment portfolio and spread risk. This diversification allows them to capitalise on potential growth opportunities in different regions or property types, mitigating the impact of market fluctuations and economic downturns. Additionally, rental income from investment properties can help offset living expenses and mortgage repayments, contributing to long-term wealth accumulation. Tax Benefits and Wealth Creation Rentvesting offers various tax benefits and wealth creation opportunities for investors. Mortgage interest, property management fees, maintenance costs, and other expenses associated with investment properties are tax-deductible, reducing taxable income and increasing cash flow. Over time, property values typically appreciate, allowing rentvestors to build equity and generate capital gains upon selling. This wealth accumulation can be further leveraged to purchase additional investment properties or fund other financial goals. Property Market Exposure and Education Engaging in rentvesting provides individuals with valuable exposure to the property market and hands-on experience in property investment. Rentvestors gain insights into market dynamics, property management practices, and investment strategies, enhancing their financial literacy and decision-making skills. This firsthand experience empowers individuals to make informed investment choices and adapt to changing market conditions effectively. Pathway to Homeownership For many rentvestors, rentvesting serves as a stepping stone towards achieving homeownership in their desired location. By building equity and saving for a deposit through investment property ownership, rentvestors can eventually transition from renting to owning their own home. This gradual approach allows individuals to enter the property market sooner and achieve their homeownership goals while maintaining lifestyle flexibility. When rentvesting in strata property, selecting a community that is well managed is paramount for ensuring long-term capital growth and investment success. Proper repairs and maintenance are essential aspects of maintaining the value and appeal of strata properties. A well-managed strata community not only enhances the living experience for residents but also safeguards the investment interests of property owners. At Compass Strata, we take pride in our commitment to excellence in strata management. Our dedicated team of professionals works tirelessly to ensure prompt resolution of any issues that may arise. By partnering with Compass Strata, owners can rest assured that their investment properties are in capable hands, poised for growth and prosperity in the dynamic property market. Disclaimer: The information provided in this article is intended for general informational purposes only and should not be construed as financial advice. Readers are encouraged to seek professional advice from qualified financial advisors or experts before making any investment decisions or taking any action based on the content of this article.

Living in an apartment building offers numerous conveniences and amenities, but it also comes with its own set of safety considerations, especially during emergencies like fires, natural disasters, or other unforeseen events requiring evacuation. Knowing what to do and what not to do can make all the difference in ensuring your safety and that of your neighbours. Even if not legally mandated, owners corporations, especially for multi-level buildings, should strongly consider implementing an emergency evacuation plan. Some research indicate that in emergencies, such as fire alarms, a significant portion of individuals may not react as expected; many may either remain in their apartments assuming it's a false alarm or panic and freeze, putting lives at risk by not evacuating the building promptly. In this article, we'll explore some essential tips to keep in mind for emergency evacuations in apartment buildings. Things to Do: Familiarise Yourself with Emergency Procedures: Take the time to review the emergency procedures provided by your building management. This may include knowing evacuation routes, assembly points, and locations of fire extinguishers and emergency exits. Usually, a series of beep... beep... beep... sounds indicate to stand by and get ready to evacuate. Meanwhile, a continuous whoop... whoop... whoop... sound, along with a voice message urging caution or indicating the need to evacuate the building, signals that it's time to leave immediately. Keep Important Items Handy: Store essential items like identification documents, medications, a flashlight, and a first aid kit in an easily accessible place near your exit door. These can be crucial during an evacuation. Stay Informed: Pay attention to weather alerts, fire alarms, or any other emergency notifications. Keep a battery-powered radio or download a reliable emergency alert app to stay informed about the situation. Assist Vulnerable Neighbours: If you are physically able, offer assistance to elderly residents, individuals with disabilities, or anyone who may need help evacuating. In emergencies, community support can save lives. Use Stairs, Not Elevators: In the event of a fire or power outage, elevators may become non-operational. Always use the stairs for evacuation to avoid getting trapped in the elevator shaft. Move quickly but do not run. Close Doors Behind You: As you evacuate, close doors behind you to help contain the spread of fire and smoke. This can buy valuable time for others to evacuate safely. Things Not to Do: Ignore Alarms or Warnings: Take every alarm seriously. Even if it seems like a false alarm, always evacuate as instructed. It's better to be safe than sorry. Return to Your Apartment: Once you've evacuated, do not return to your apartment for any reason until it's declared safe to do so by authorities or building management. Returning prematurely can put your life at risk. Block Exits or Pathways: Avoid blocking exits, stairwells, or pathways with personal belongings. In an emergency, these obstructions can impede evacuation efforts and endanger lives. Use Fire Escapes Incorrectly: Fire escapes are designed for emergency use only. Do not use them for storage, hanging laundry, or any other purpose that could compromise their functionality during an evacuation. Forget to Practice: Regularly review and practice your building's evacuation procedures with your household members. Familiarity with the process can help you respond quickly and calmly during a real emergency. Although not mandated by law, implementing an emergency evacuation plan is a proactive step that significantly boosts occupant safety. Successful evacuations in apartment buildings hinge on preparedness, awareness, and resident cooperation. By adhering to these guidelines and remaining vigilant, you play a crucial role in ensuring a secure evacuation for yourself, your neighbours, and the entire community. Remember, proactive measures and a clear understanding of emergency protocols are key to staying safe. Let's unite in prioritising safety and ensuring everyone is equipped to respond effectively during crises. Compass Strata is committed to partnering with you to safeguard your community. Stay safe, stay informed, and be prepared!

When it comes to strata and community living, disputes can arise, whether it's over maintenance issues, by-law violations, or disagreements between residents. When these conflicts escalate and cannot be resolved informally, seeking resolution through legal channels becomes necessary. One such avenue in New South Wales (NSW) is the NSW Civil and Administrative Tribunal (NCAT), which plays a crucial role in adjudicating strata and community issues. In this article, we'll provide an introduction to NCAT, its functions, and how it can help resolve disputes within strata and community schemes. What is NCAT? NCAT, the NSW Civil and Administrative Tribunal, is a statutory body established under the NSW Civil and Administrative Tribunal Act 2013. It serves as a forum for resolving disputes across various areas, including strata and community schemes. NCAT operates independently of the court system and provides a streamlined, cost-effective alternative for resolving disputes outside of traditional court proceedings. Functions of NCAT NCAT has jurisdiction over a wide range of strata and community-related matters, including but not limited to: By-law disputes: NCAT can adjudicate disputes related to the interpretation, enforcement, or validity of by-laws within strata and community schemes. Breach of duties: NCAT can hear cases involving breaches of duties by strata committee members, owners, or occupants, such as failure to maintain common property or comply with scheme by-laws. Adjudication of disputes: NCAT can resolve disputes between owners, residents, and strata committees arising from issues like noise complaints, parking disputes, or alterations to common property. Mediation and conciliation: NCAT offers mediation and conciliation services to help parties reach mutually agreeable resolutions without the need for formal hearings. Orders and enforcement: NCAT has the authority to issue orders to resolve disputes and enforce compliance with its decisions, including orders for repairs, payment of damages, or compliance with scheme by-laws. 💡 Click on the links below for a guide of orders NCAT can make under: Strata Schemes Management Act 2015 Community Land Management Act 2021 How NCAT Works Before lodging an application with NCAT, it's essential to note that mediation is mandatory for the majority of strata scheme disputes. Fortunately, NSW Fair Trading offers a mediation service at no cost. However, it's crucial to remember that applications requiring mediation, if submitted without proof of attempted mediation, will be rejected. So, before taking your dispute further, ensure you've explored the mediation route provided by Fair Trading to increase your chances of resolution. If mediation fails or a party is unwilling to participate in mediation, parties can lodge an application with NCAT to initiate proceedings. NCAT will then assess the application and may offer mediation or conciliation to facilitate settlement. If mediation is unsuccessful or not appropriate, the matter will proceed to a formal hearing before a tribunal member, who will hear evidence from both parties and make a binding decision. Upon applying to NCAT, your case will be scheduled either for conciliation and hearing or for a directions hearing, depending on the orders you've requested. Both you and the other involved parties will receive a notice of hearing from NCAT, detailing the date, time, and location of the hearing, typically scheduled within 4-6 weeks from the initial application. The owners corporation will serve the application on all other lot owners, so avoid including any confidential information you wish to keep private. For matters listed for conciliation and hearing, they are grouped together with other cases for efficiency. Parties are encouraged to attempt conciliation before the actual hearing to potentially reach an agreement. Directions hearings are reserved for more intricate strata issues, aiming to define the disputes, establish a timeline for the final hearing, and arrange for evidence exchange. Parties are encouraged to present their own cases as NCAT Consumer and Commercial Division hearings are run as informally as possible. However, if you require representation, written request needs to be submitted at or before the first hearing. If resolution isn't achieved during the initial listing, the case proceeds to a contested hearing. NCAT will set a timetable for parties to exchange written evidence with each other and with the Tribunal. Remember, you don't need to submit all evidence with the initial application. Benefits of NCAT NCAT offers several advantages for resolving strata and community disputes, including: Accessibility: NCAT provides a user-friendly process accessible to individuals and corporations involved in strata and community schemes. Efficiency: NCAT aims to resolve disputes quickly and efficiently, saving time and resources compared to traditional court proceedings. Expertise: NCAT tribunal members have expertise in strata and community law, ensuring informed decision-making and fair outcomes. Flexibility: NCAT offers flexible dispute resolution options, including mediation, conciliation, and formal hearings, tailored to the needs of the parties involved. Applying to NCAT To apply to NCAT, you'll need to complete the Strata and Community Schemes Application Form and submit it along with the required fee. Make sure to specify the section of the Strata Schemes Management Act 2015 and the orders you're seeking from NCAT. You're allowed to request more than one order if needed. Additionally, if urgent circumstances require immediate action, you can lodge an interim order application. These applications are typically used to halt certain actions or maintain the current situation until the substantive application is resolved. However, NCAT can only grant interim orders if there are compelling reasons to do so. It's important to note that a separate but related substantive application must be either already lodged or submitted simultaneously with the interim order application. Keep in mind that there's a filing fee associated with the interim order application process. Expert Guidance Navigating strata and community disputes can indeed be challenging, but with the expert guidance and support from Compass Strata, the journey becomes much smoother. Whether you're facing complex issues or need assistance with NCAT proceedings, our team is here to provide comprehensive assistance every step of the way. With our expertise and commitment to client satisfaction, we ensure that you're equipped with the resources and guidance needed to effectively address and resolve any challenges that may arise. Trust Compass Strata to be your reliable partner in navigating the intricacies of strata and community disputes and effectively upholding community harmony.

On December 11, 2023, significant changes to the strata and community title legislation in NSW came into effect. It's crucial for residents and stakeholders in strata or community title properties to stay informed about these legal amendments arising from the Strata Legislation Amendment Act 2023. The Bill introduces a number of amendments to the following Acts: The Strata Schemes Development Act 2015; Strata Schemes Management Act 2015; The Community Land Management Act 2021; and Community and Development Act 2021. In this article, we highlight some of the changes: Original Owner If a scheme comprises more than two lots, the amendments specify that the value of a vote cast by an original owner, typically a developer, may be reduced. The duration for the original owner to furnish specific documents before the initial annual general meeting has been extended to 14 days, as opposed to the previous 48-hour timeframe. Initial Appointment During the initial period, no individual, including a Building Management Committee (BMC) manager, strata manager or facilities manager aiding in the management, maintenance, or repair of common property, can be appointed beyond the First Annaul General Meeting (FAGM) without obtaining an order from NCAT. Strata Managers Strata managers must provide a 6-month notice to the owners corporation before the expiration of their agency agreement. Fair Trading can recommend appointing a compulsory agent to manage dysfunctional strata schemes. Strata Committees Committee member removal now requires only an ordinary resolution, and a removed member is ineligible to be on the committee for 12 months. Committee elections can occur at any general meeting, not just the AGM. Notices for committee nominations must be included in the general meeting notice. Members with a conflict of interest must abstain from voting and discussing the matter. Meetings The time period for General Meeting notices increases from 7 to 14 days. Extra days needed for service method requirements, such as by post, must still be considered in addition to the mentioned days. The existing restriction on the number of proxies that can be exercised at a general meeting will be extended to powers of attorney and company nominees. Voting Limits for Company Nominees and Persons Acting Under Power of Attorney Proxies concerning company nominees and persons acting under Power of Attorney has been bought in line with all other proxies where if the strata scheme has less than 20 lots, they can have a maxmium of 1 proxy. For schemes with more than 20 lots, no one can hold proxies for more than 5% of total number of lots e.g. for a building with 60 lots, a person can hold up to 3 proxies. Transfers between Administration & Capital Works Fund For internal funds transfers between the Administration and Capital Works Fund, the owners corporation must decide within three months, through a general meeting, whether the funds should be repaid (previously there was no discretion) and, if so, how – via a simple reverse transfer or by special levy. Works in Excess of $30,000 A minimum of two quotations for works exceeding $30,000 are now required for all schemes (previously applied to large schemes only). Comparative quotations should be from unrelated entities, and an explanation must be provided if this is not possible. Special Levies Concerning Emergency Repairs The time period for payment of a special levy for urgent repairs is reduced from 30 to 14 days. This amendment aims to expedite necessary building repairs addressing imminent threats to health and safety. By-Laws Owners corporations may consolidate by-laws for the scheme by special resolution even if there has not been any change. Two-lot strata schemes don't need a resolution to issue a 'Notice to Comply' for a by-law breach. Pets Restrictions on pets and the requirement of a bond for pet approvals are not permissible. Any by-law that contradicts the Act becomes ineffective. Additionally, clarification is provided on the acceptable proof that can be requested to verify an animal as an assistance animal. Books & Record Starting from 1 June 2024, designated records of the owners corporation, including the strata roll, must be maintained in electronic format. Rental Agent Obligations Property Managers are now obligated to notify the owners corporation when a lot has been leased or sub-leased. If they don't, the tenant can also be given notice. Copies of by-laws and any Strata Management Statement, and any subsequent updates, must be provided to the tenant. Strata Renewal The Land and Environment Court has gained authority to approve a strata renewal plan, even if process has not strictly followed, as long as it doesn't cause substantial injustice. The timeline for a strata renewal committee's role will extend to two years from the current 12 months. All owners must disclose any pecuniary interest in the renewal proposal, but will not be prevented from participated in and voting on the proposal. The Land and Environment Court is able to award costs against dissenting owners without valid reasons or with ulterior motives. Compulsory Management The Secretary of Fair Trading has the authority to make an application for the appointment of a compulsory strata manager. These changes are crafted to elevate the governance, transparency, and operational efficiency of strata and community living. Familiarising all stakeholders with these amendments is crucial for ensuring compliance and fostering harmonious community living. Staying informed about legislative changes can be a complex task, but with Compass Strata, you have a reliable partner dedicated to keeping you abreast of evolving regulations. Our commitment to proactive communication and expertise in strata management ensures that you are well-informed about any legislative shifts, empowering you to navigate the evolving landscape of strata and community living with confidence. A copy of the Strata Legislations Amendment Bill 2023 can be found here. Disclaimer: The information provided in this article is for general knowledge purposes only. It is not intended as professional advice. Readers should consult relevant experts or professionals to address their specific concerns or circumstances. The accuracy and applicability of the content may vary based on individual situations, and the information is subject to change.

Strata communities offer numerous benefits, including shared amenities and communal living spaces. However, the close proximity of residents and common areas can also attract unwanted guests in the form of pests. From cockroaches and rodents to ants and termites, pests pose a threat to both the comfort and safety of residents. In this blog post, we'll explore the importance of regular pest control in strata communities and highlight key considerations for strata committees, including notification requirements. The Importance of Regular Pest Control Safeguarding Health and Hygiene: Pests like cockroaches, rodents, and mosquitoes carry diseases and bacteria, posing health risks to residents. Regular pest control treatments prevent infestations and reduce the spread of illnesses, ensuring a clean and hygienic living environment. Preserving Property Integrity: Termites and rodents can cause extensive damage to buildings and infrastructure in strata communities. Regular pest control measures prevent structural compromise and costly repairs, preserving property values and overall condition. Improving Resident Comfort: Pest infestations disrupt daily life and diminish resident comfort, causing stress and anxiety. Regular pest control treatments eliminate pests, creating a comfortable living environment free from nuisances and unpleasant odours. Fostering Sustainability: Effective pest control practices reduce reliance on harmful pesticides and promote integrated pest management (IPM) strategies. By emphasising preventive measures such as sealing entry points and maintaining cleanliness, strata communities minimise chemical treatments and contribute to environmental sustainability. Key Considerations for Strata Committees Notification Requirements: Strata committees must be aware of notification requirements for pest control treatments in common areas. Severe penalties may be imposed if you fail to demonstrate evidence of providing prior notification before pesticide application, as mandated by the Pesticides Regulation 2017 (Regulation). Corporations may face on-the-spot fines of $1,000, while individuals may be fined $500. Moreover, more serious offenses could lead to court-imposed fines of up to $44,000. Common areas includes, but are not limited to, foyers, hallways, stairwells, shared car parks, roof, building exterior, gardens, pathways and fences. Under the Regulation, before carrying out pest treatments in common area, residents must be given at least 5 working days notice. The notice can be emailed, placed in the resident's letterbox, under the resident's door or placed on the community notice board or displayed at the main entrance/exit of the building. The notification must include: The pesticide's name The reason for applying the pesticide (e.g., targeted pests) Areas within and around the complex where the pesticide will be applied The date or range of dates for pesticide application Any re-entry requirements specified on the pesticide label or permit Contact details for the individual or office administering the pesticide. When initiating a baiting program, such as for termites or rodents, the pest management technician should furnish details regarding the program's duration and the locations where baits will be placed. Emergency Situations: The 5 working days notice requirement is waived in emergency situations. Emergencies include infestations of biting or dangerous pests like wasps, bees, venomous spiders, rodents, or bird mites, which present immediate health or safety risks to residents. In such cases, the pest management technician must inform residents immediately before applying the pesticide and document the emergency circumstances. A record of this notification should be maintained. Selection of Qualified Pest Control Providers: When selecting pest control providers, strata committees should prioritise companies with experience in servicing multi-unit residential buildings. Qualified providers should be licensed, insured, and knowledgeable about the specific pest challenges faced by strata communities. Additionally, providers should offer environmentally friendly treatment options and adhere to safety protocols to protect residents and pets. Regular Inspections and Monitoring: In addition to scheduled treatments, strata committees should implement regular inspections and monitoring programs to detect pest issues early. Routine inspections allow for the timely identification of potential pest hotspots and vulnerabilities, enabling proactive measures to prevent infestations. Strata committees can work closely with pest control providers to develop customised inspection schedules tailored to the needs of the community. Maintaining Harmony and Hygiene Regular pest control is essential for maintaining harmony, hygiene, and safety within strata communities. By prioritising pest management initiatives and adhering to notification requirements, strata committees can create a pest-free environment that enhances the quality of life for all residents. With proactive planning and collaboration, Compass Strata is committed to working closely with strata committees to effectively address pest and other community challenges to ensure a comfortable and enjoyable living experience for everyone.