Legislative Updates – July 2021

Posted on 24 August 2021

There are a number of legislation updates affecting the strata industry in 2021.

Cladding Safety Victoria ACT 2020 (VIC)

2 Year Extension to Cladding Building Action Limitation Period
Owners Corporations have extra time to make a claim against a builder or other liable party. Any claim by an Owners Corporation against a builder or other party previously had to be made within 10 years. The Cladding Safety Victoria Act 2020 extends that limitation period for two years. The 10 year limitation period to commence proceedings between 16 July 2019 and 1 December 2021 can now be commenced within 12 years from the date of issue of an occupancy permit or certificate of final inspection.

Section 53 of the CSV Act extends the limitation period to commence a building action from 10 to 12 years (section 134 (2) and 134 (3) of the Building Act 1993) from the date of issue of an occupancy permit in respect to the building work (whether or not the occupancy permit is subsequently cancelled or varied), or where an occupancy permit is not issued, from the date of issue of a certificate of final inspection. The extension relates to cladding building actions only.


From 1 December 2021 voting is clarified:
Any votes cast in a ballot shall be based on one vote for each lot for ordinary resolutions and one vote for each unit of lot entitlement for special and unanimous resolutions.

There shall be one vote for each lot based on a show of hands (or as otherwise resolved at the meeting) for voting at meetings. However, if at a meeting a lot owner before or after the vote is taken requires that a poll be taken, then the vote shall be based on one vote for each unit of lot entitlement. This only applies to ordinary resolutions and not special or unanimous resolution.


For Plans of Subdivision that contain separate multi-level buildings with separate owners corporations, each owners corporation can now separately insure their building under the proposed changes. The Act will allow owners corporations to levy fees to cover the costs of the premium for reinstatement and replacement insurance.

If any of the above requires clarifying, or if you would like to discuss your OC management requirements, contact Melcorp Strata today.

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