SCA (WA) E-NEWS . FEBRUARY . APRIL . JUNE . AUGUST . OCTOBER . DECEMBER

2016 E-News Edition 2 2016

E-News Platinum Sponsors 2016

CHU is committed to Western Australia with over twenty staff across our Business Development, Underwriting, Customer Service and Claims departments.

With a strong local team of claims consultants, we pride ourselves on our fast, fair response, our excellent customer service when responding promptly and professionally to all claims.

Our WA team of professional, friendly staff are dedicated to servicing strata insurance customers and making life easier for you.

We deal only in strata - nothing else, so our customers have our undivided attention.

Our Specialist products include

CHU Underwriting Agencies Pty Ltd is a specialist strata insurance underwriting agency and is part of the Steadfast Group, Australia’s largest underwriting agency group. CHU is Australia’s

first and largest strata insurance specialist, operating in every major State and looking after over 100,000 schemes nationally. For more than three decades, CHU has relied on the

professionalism and dedication of its people and on the long standing support from many active partnerships fostered with managers, brokers, suppliers and organizations throughout Australia.

Strata Insurance SpecialistsCall us today 1300 361 263 or visit www.chu.com.au

Residential Strata Insurance

Commercial Strata Insurance

Community Association Insurance

Landlords SafetyNet Plus Insurance

E-News INDEX 2 CHU Strata Insurance

3 Index

4 Macquarie Bank

5 President’s Report

6 Antenna Masters

7-8 A Mutual Conundrum article - Park Legal Solutions

9 Perrott Painting

10-12 Strata Insurance article – SCI

13 External Works

14 BCB news and profile

15 Kleenheat Grows Natural Gas Market Share

16 StrataLoans Financing article

17-18 Central Institute

19 Member Update

20 Save the Date

21 Office News

22-23 Life Members Event

24 Event Wrap – STAR Overview

25 Event Wrap – Settlements on Strata Living

26-27 PD Calendar 2016

28 SCA (WA) Sponsors 2016

29 General Info

We have gotten to know strata management businesses well over the past 30 years

The strata industry’s bank of choice

Continuously innovating to help your business

Benchmarking, knowledge and insight s

Specialist Relationship Managers

Convenient and flexible trust account s

Payment solutions DEFT and Batch payment s

Voted best Non-Major Business Bank at the AB+F Corporateand Business Banking Awards 2015

For more information, call 1800 442 370 or visit macquarie.com.au/business

President’s Report – Rachel Cosentino

April 2016

Celebrating our Life Members

On 7 April 2016, Council hosted a high tea to page homage to SCA(WA) Inc’s life members and

past presidents. This was a highlight of my year as President so far. We were privileged to have all

of our Life Members Michael Powell, Ian Laird, Beverley Grigo, John Angus and Sheryal Griggs as

well as many of our past Presidents present. While the event was small and informal, the venue

and catering were suitably dignified. Life Members were presented with a certificate and name

badge but more importantly, current Council Members had the opportunity to hear some of the

stories about the people who have made this Association and indeed, the profession in Western

Australia what it is. The afternoon was enjoyable and valuable and I thank Suellen for her efforts in

organizing this event.

Strata title reform

With the likely Federal election only months away, and a state election to follow in less than 12

months, we are keenly awaiting news on progress of reforms and policies relevant to our industry.

These are likely to include not only planning and Strata Titles Act reforms but also developments in

transport, infrastructure, renewable energy and environment.

As for the reforms to the Strata Titles Act, Landgate has now released more detailed information as

to what the reforms may look like but we are yet to see the detail of any draft bill or regulations.

Landgate has reinforced its commitment to consult with us as a key stakeholder once parts of the

bill are available for comment. As an association which now comprises 36% of owner and strata

company members, we are well placed to advocate as representatives of that significant part of our

community that works or lives in strata. We expect that our voice will be one of many that speak

with a unified message that the reforms are needed to:

1. Instil public confidence in the professionals working in the industry;

2. Strengthen governance of strata companies; and

3. Enhance opportunities for diversity, flexibility and liveability in Western Australia’s housing.

While our association and others like the Property Council of Australia are unified in this message,

the path to reform in Western Australia should not be thick with hurdles nor impossibly steep.

Strata Snapshot March 2016

Mediation – a conversation of “mutual” conundrum

Many strata disputes are amenable to resolution through a mediation process. As many of us know, mediation can be either voluntary, because a Court or Tribunal has ordered it or because a contract obliges the parties to use such a process. My above reference to “contract” is given particular meaning in the strata context considering that Strata Company By-laws are statutory contracts between the Strata Company and the Proprietors and each of the Proprietors. Therefore, strata By-laws could compel Strata Companies and Proprietors to attempt to resolve their disputes by mediation before resorting to Court or Tribunal proceedings. So, what is mediation?

It has been said that:

“Mediation is a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner, identify the disputed issues, develop options, consider alternatives and endeavour to reach an agreement. The mediator has no advisory or determinative role in regard to the content of the dispute or the outcome of its resolution, but may advise on or determine the process of mediation whereby resolution is attempted.”

1

Halsbury’s Laws of Australia (Halsbury’s) summarises the purpose of mediation in dispute resolution at [325-8119] as:

“the purpose of a mediation is to encourage parties to reach a mutually acceptable settlement of their dispute. No sanctions attach to a failure to reach a decision but in some jurisdictions sanctions attach to failure to participate in the process”.

Of particular relevance to dispute resolution in the strata context, section 54 of the State Administrative Tribunal Act 2004 (WA) states in part:

“at any stage of a Tribunal proceeding the Tribunal can refer all

or any aspect of the proceeding to mediation”.

And:

“the purpose of a mediation is to achieve the resolution of the matters by a settlement between the parties”.

It is apparent that mediation is, therefore, a process requiring mutual participation by the parties in an endeavour to reach a mutually agreeable settlement. What then is “participation” in the mediation process?

In Western Australia there is no express legal duty on parties to participate in a “Tribunal mediation” in “good faith” despite the Tribunal’s power to compel parties to attend at the mediation. An example of such a provision is section 27 of the Civil Procedure Act 2005 (NSW) which states that:

“it is the duty of each party to proceedings that have been referred for mediation to participate, in good faith, in the mediation”.

And, in Western Australia the Practice Directions of the Supreme Court of Western Australia state:

“A representative of a party who attends a mediation must have authority to compromise the case. He or she must have flexibility in the approach they take to the mediation rather than being limited to making a single offer or a limited number of offers on behalf of the party without then having to obtain further instructions.”

These provisions each give some direction about expected behaviour at mediations. But, there is no similar provision in the State Administrative Tribunal despite its powers to compel parties to a mediation. It cannot compel mutual participation in the mediation by reference to an established norm of conduct.

2

However, the Strata Titles Act 1985 (WA) requires Applicants for Orders under that Act to first certify to the Tribunal whether the Scheme has a dispute resolution procedure and if so that the Applicant has, “so far as possible complied with them”? Therefore, if a Scheme By-laws include dispute resolution procedures and those procedures compel parties to act in a certain way, for example in good faith, or even in accordance with directions from a Mediator, then their participation in the mediation would be regulated. (However, the requirement to prove such compliance will likely be removed from the Strata Titles Act in the coming “reformed” Act.) Breaches of such “participation” provisions could also be the subject of Tribunal Proceedings for a breach of the By-law or of the common law requirement that both parties to a contract must do what is required of them to allow the other party the benefit of that contract. Accepting the above propositions that:

(a) mediators have no advisory or determinative roles in the mediation;

(b) the purpose of mediation is to encourage participating parties to reach a mutually acceptable settlement of their dispute; and

(c) no sanctions attach to a failure to reach a settlement or to actively participate in the mediation process in the Tribunal,

whilst mediation is a proven dispute resolution process and recommended to any party to a dispute, your participation in a mediation, apart from attending, is not formally regulated by the Tribunal. Should you in your role as a participant in the “strata industry”, therefore, agitate for changes to Strata By-laws or Tribunal Rules correcting the obvious imbalances (particularly if such By-laws will likely soon not need to be complied with). Or, should compulsory mediation in strata matters at the Tribunal be dispensed with. Or is the answer to allow for costs Orders to be made by the Tribunal against “non-participants” to mediation. As was said in relation to uncooperative parties by the WA Supreme Court in Capolingua v Phylum Pty Ltd (1991) 5 WAR 137 at 140:

“[where a party] adopts an obstructive, or unco-operative attitude in regard to attempts to narrow the issues, and where it is subsequently shown that, but for such conduct, the issues would probably have been reduced, the extent to which the trial is in consequence unnecessarily extended is a relevant factor when deciding upon an appropriate award of costs”.

If you require advice about mediation or dispute resolution or about any other Strata matter, please contact us at Park Legal Solutions on (08) 9221 6611 or at admin@parklegalsolutions.com.au

1 (Supreme Court of WA Registrar Sandra Boyle and WA Court of Appeal Registrar Pamela Eldred “Mediation in the

Supreme Court of Western Australia: Is this Therapeutic Justice in Action?” held 7 June 2009, page 5 citing the then

National Alternative Dispute Resolution Advisory Council (NADRAC) publication: “Dispute Resolution Terms”.)

Experience the Perrott difference

www.perrottpainting.com.au

Strata Managers have only a few months to prepare themselves for the impact of new laws that extend unfair con-tract terms protections to small businesses.

Upcoming changes to the Competition and Consumer Act 2010 (Cth) (CCA) and the Australian Securities and Invest-ments Commission Act 2001 (Cth) (ASIC Act) will have a significant practical impact on the way businesses contract with each other when one or more of them is a ‘small business’.

Strata management companies will be directly affected, as will their body corporate clients.

What are the rules?

Under the existing regime only individual consumers are entitled to unfair contract term protections. If a court finds that a term in a ‘standard form contract’ is unfair, the term is void and unenforceable. This means that the term is of no effect and is treated as if it did not exist. Parties remain bound by the contract only to the extent it is still capable of operating without the unfair term. New laws recently passed by the Federal Parliament will extend these same protections to any small business that is a party to a standard form contract. This reform reflects a key policy promise made by the Federal Government in 2013 in response to concerns around the significant volume of complaints by small businesses in relation to unfair contract terms. 1 Where alleged by a contracting party, there is a rebuttable presumption that any contract is a standard form contract unless proven otherwise. While the term ‘standard form contract’ is not defined in the law, it generally refers to con-tracts that have been prepared by one party, where the other party has had little or no opportunity to negotiate terms – that is, they are offered on a ‘one-size-fits-all’ or ‘take it or leave it’ basis. A court may ultimately take into account any other relevant factors, but will generally consider whether the contract was: prepared by one party prior to discussions; negotiable; subject to any significant imbalance in bargaining power between the parties; and based on a generic template or pro-forma, as opposed to being tailored to the specific transaction or particular

characteristics of the party to whom it was offered. The new laws will apply to any standard form contract: entered into, varied or renewed after 12 November 2016; for the supply of goods or services, the sale or grant of an interest in land, a financial product or supply (or possi-

ble supply) of financial services; 2 where at least one of the parties is a small business (employing less than 20 people on a ‘headcount’ basis, includ-

ing casual employees employed on a regular or systemic basis); 3 and where the upfront price payable under the contract is no more than $300,000 – or $1 million if the contract is for

more than 12 months. The new laws will not apply to: insurance contracts (policies) covered under the Insurance Contracts Act 1984 (Cth) (IC Act) 4; the constitution of a company, managed investment scheme or other kind of body; a small business contract to which a prescribed law of the Commonwealth or a State or Territory applies (there are currently no prescribed laws); or terms that define the main subject matter of a contract, set the upfront price paya-ble, or that are required or permitted by law.

Contract terms that may be unfair

The law sets out a number of examples of potentially unfair terms, including those that:

permit only one party to terminate, limit performance of, vary, renew or avoid the contract;

permit only one party to interpret the contract’s meaning or determine whether it has been breached; or

limit a party's rights to sue another party, or otherwise commence any proceedings.

This list is not exhaustive. Generally speaking a term will be ‘unfair’ if it:

causes a significant imbalance in the parties’ rights and obligations;

is not reasonably necessary to protect the legitimate interests of the party benefitting from the term; and

would cause detriment (financial or otherwise) to a party if it were relied upon.

A court must also consider:

the context of the entire contract. This is important because a term that is apparently unfair when considered in isolation may be offset or counterbalanced by other terms; and

the transparency of the term – whether it is readily available, presented clearly and expressed in reasonably plain language. For example, a term might be considered unfair if it is ‘hidden’ in fine print, or is excessively legalistic, complex or technical.

What does this mean for Strata Managers? Strata management companies enter into a number of contractual arrangements as a normal part of business. Just some examples may include:

Management agreements with individual body corporate clients;

Financial services distribution or agency agreements with insurers, insurance brokers and underwriting agencies;

Contracts with suppliers such as for servicing of office equipment, IT services and advertising services;

Technology licences;

Leases (for real property or for goods);

Contracts with utilities providers;

Contracts for financial products such as business loans and credit cards;

Agreements with lawyers and other professional service providers.

Uniquely, strata management companies also (whether for a management fee or otherwise) typically manage by dele-gation a number of contracts on behalf of their body corporate clients. This may extend to helping negotiate contracts, sourcing providers, managing renewals and notifications, and more. Some examples might include:

Maintenance agreements with service providers (companies looking after elevators, remote control doors, pumps);

Other agreements providing for services such as security, gardening and repairs;

Leases such as with respect to pontoons, or renting out of roof-space or other common property;

Contracts with utilities providers;

Agreements with lawyers and other professional service providers.

declaring all or part of a contract to be void;

varying a contract;

refusing to enforce some or all of the terms of a contract or arrangement; or

directing a party to refund money or return property to the small business affected.

Also, if a court has already declared a term to be unfair and a party later seeks to apply it or rely on it, they may be subject to an injunction or order to provide redress (including compensation). What do Strata Managers need to do?

Strata management companies need to consider reviewing – ideally with the assistance of their preferred legal adviser

– any existing contract they are party to or that they manage on behalf of their body corporate clients. Any review

needs to consider whether contracts will remain enforceable and comply with the new laws after they take effect. If

potentially unfair terms are identified, an assessment of the risks and potential consequences of those terms being

challenged should be undertaken, to inform a decision on whether to amend or remove them.

Any strata management company maintaining their own suite of standard form agreements may also wish to consid-

er: creating a separate set of contracts for big businesses and small businesses; how best to structure contract length

and pricing – by reference to the ‘upfront price payable’ financial thresholds; and amending internal practices around

contract negotiation and supply (including due diligence and disclosure practices).

For ‘small business’ strata management companies there is also, of course, the possibility of leveraging the new laws

as a bargaining tool in contract negotiations.

Where can I get more information?

Further information is available from the websites of the ACCC and ASIC:

ACCC: www.accc.gov.au/uct

ASIC: http://asic.gov.au/about-asic/what-we-do/laws-we-administer/unfair-contract-terms-law/unfair-contract-term-protections-for-small-businesses/

You may also contact your local State or Territory consumer protection agency. 6

This information has been prepared by Strata Community Insurance Agencies Pty Ltd for general information purposes only and does not constitute advice. You should obtain independent financial, legal and taxation advice relevant to your circumstances before making any decision regarding this information.

1 The Australian Competition & Consumer Commission (ACCC) received 1,375 such complaints from 1 January 2011 to December 2014: Ashurst Competition Law News, 21 September 2015: https://www.ashurst.com/doc.aspx?id_Content=12332. 2 Rules for financial products and the supply (or possible supply) of financial services are contained in the ASIC Act. All other cases are regulated by the Australian Consumer Law, contained in Schedule 2 of the CCA. 3 It is also important to note that the protections will cover contracts where the small business is the supplier of goods or services, as well as where the small business is the acquirer (i.e. the customer).

4 Such insurance contracts are excluded on the basis that remedies are provided by consumer protections in the IC Act. Contracts not regulated by the IC Act (e.g. marine insurance) will be caught unless otherwise exempt.

5 Bodies corporate for strata and community title schemes have not explicitly been included in the definition of ‘small business,’ but this does not mean they cannot be party to a standard form small business contract. 6 ACT Office of Fair Trading; NSW Fair Trading; NT Consumer Affairs; Office of Fair Trading Queensland; SA Office of Consumer and Business Services; Tasmanian Consumer Affairs & Fair Trading; Consumer Affairs Victoria; and WA Department of Commerce.

Depending on the particular circumstances of the strata management company and their body corporate clients, contracts such as those listed above may quali-fy as standard form small business contracts. 5 If there were found to be unfair terms in such agreements, there is a range of potential consequences for Strata Managers and their clients. Apart from a court’s ability to declare unfair terms void, a variety of other orders may be made, such as:

External Works can look after all of your Strata external property needs.

We understand Strata!

Improve BudgetingEW provides you with a fixed contract price for a 12 month period. This enables easier cost recovery and alleviates cost blowouts at various times of the year.

Save MoneyBy consolidating numerous service providers to one provider gives the client the benefit of “economies of scale”.

Let us do it all and save time and money!

Increase Efficiencies All maintenance works are performed at one time and at a set interval rather than at random or at conflicting times. The property is always presented at its best!

Improve PlanningEW will work with you to develop a 12 month program. The program is reviewed to ensure your requirements are being met. You don’t need to continually worry about things which may have been forgotten!

But most importantly we take care of everything which allows you to concentrate on your core business!!

ASK US NOW FOR A t: 9204 3700 e: reception@externalworks.com.au

By using External Works for your Strata Property external maintenance you can:

Unit 2 - 28 Collingwood Street, Osborne Park WA 6017

FREE APPRAISAL

Benefits of Partnering with a Specialist

Strata Insurance Broker

More Choice and Complexity Than Ever Before

The Insurance Market is changing rapidly for the Strata Industry with many new Insurers recently entering the market. The competition for market share is putting downward pressure on premiums. With more policy wordings on offer with new and different benefits and exclusions, there is more complexity and risk involved in selecting the most appropriate cover.

With predictions of still more Insurers looking to enter the market, how will Managers and Owners make informed decisions on issues like the scope of cover in the different policy wordings, the Insurers’ size and time in the market, their reputation for claims service and settlements ?

Specialist Brokers track these changes always seeking to obtain maximum benefits for Owners and Managers while seeking to minimise the risks. When considering the above issues it has never been more important to obtain independent advice from a Specialist Strata Insurance Broker.

The Role of the Specialist Strata Insurance Broker

Always act in the best interests of the Insured under strict Fiduciary obligations

Licensed to access and advise on a wide range of Insurance Companies and Underwriting Agencies’ products

Undertake Continuous Professional Development to keep up to date with changes with Providers, Products and Legislation relevant to the Strata Industry

Ensure the Strata Insurance meets the requirements of the Strata Titles Act 1985 Assist with comparisons on Insurers policy wordings, reputation and ease of making claims Provide ongoing education to demystify Strata Insurance issues like Flood Cover, Office Bearers

Cover and the Underinsurance Clause etc. Act as an advocate for the Owners and help with the claims process to ensure the full policy

benefits are paid by the Insurer or Underwriting Agency When required provide advice and recommendations on the suitability of a product for a property

including highlighting possible inadequacies in the current insurance program and recommending possible solutions

Able to assist with spreading the cost of the insurance over a number of months by offering Premium Funding

Must carry appropriate Professional Indemnity Insurance for Owners protection

As experienced specialists in the strata market since 1996 we fully understand that the risks and consequences for Owners who make decisions regarding their insurance purchase on price alone can be significant. They may face the prospect of jointly and severally funding any shortfall from an insurance claim settlement. The financial impact to individual Owners future livelihood can be disastrous if the Insurance program is not correctly structured.

Body Corporate Brokers are your local Specialist Strata Insurance Broker and have partnered with Strata Managers since 1996, please ring Nicholas Swallow on 9274 8004 or 0434 687 557 for further information

Kleenheat grows natural gas market share

On 24 March 2013, Kleenheat broke the monopoly of the residential natural gas

market in Western Australia. Three years on, Kleenheat has captured a significant

share of both the residential and business gas markets, and that growth shows no

signs of slowing.

In just three years, more than 11 per cent of the residential and nearly 19 per cent of

the business gas markets have made the switch to Kleenheat and customers are

reaping the benefits of the market competition.

“Kleenheat retails natural gas to more than 80,000 households from Geraldton to

Bunbury. We are also the preferred natural gas supplier for 1,700 WA business

customers,” said Mark Gadsby, Kleenheat’s General Manager.

“Our residential customers alone have saved over $5 million by choosing Kleenheat

for their natural gas needs.”

Kleenheat has been a leading supplier of gas in Western Australia since it was

established in 1956. Prior to entering the natural gas market, Kleenheat was best

known for supplying liquefied petroleum gas (LPG) across WA.

When Kleenheat entered the natural gas market in 2013, it was the first time that

Western Australian homes could choose their gas retailer and business customers

could take advantage of greater competition.

“The monopoly was broken and West Australian residents were able to enjoy natural

gas prices below the regulated tariff,” Mr Gadsby said.

Customer numbers doubled

“Our growth has really accelerated in the past 12 months. In fact, since the start of

this financial year our residential customer numbers have doubled,” he said.

“This indicates that the word is spreading that it’s simple to switch, and that

Kleenheat is a reliable supplier offering exceptional customer service and great

value. We also like to think that supporting an Australian business based in Western

Australia, that’s been a household name for 60 years, has been a factor in the

decision-making.”

There are approximately 700,000 eligible households in WA, and with

Kleenheat passing 80,000 customers, the company has secured

approximately 11.5 per cent of the residential market.

The total number of business customers connected to the network is

approximately 9,000. Since launch, Kleenheat has captured nearly 19 per

cent of this market, or approximately 1,700 business customers.

The Kleenheat brand has also been launched into the business electricity space.

“We’ve been saving businesses money on gas bills and we were always being asked

what we could do to save customers money on their electricity bills,” Mr Gadsby said.

“We listened, and Kleenheat can now sell electricity to contestable businesses that

are connected to the Western Power network.”

He said that having an experienced team based at Kleenheat’s headquarters in

Murdoch and also area-based account managers in the regions has allowed

Kleenheat to do business over the phone or meet with businesses to explain how

they can save on their power spend too.

“Our intention was to bring competition, choice and great service to energy

consumers – and we’ve done that. Now we are looking to build on those solid

foundations and grow our market share, as a larger customer base will support our

ability to offer even better pricing in the future.”

Kleenheat can supply residential, small business, commercial and industrial natural

gas customers from Geraldton to Busselton connected to the Mid-West/South-West

gas distribution system that takes gas from the Dampier to Bunbury pipeline.

Businesses connected to the South West Interconnected System that extends north

to Kalbarri, east to Kalgoorlie, south to Albany and includes the Perth metropolitan

area, can choose Kleenheat for their electricity needs.

Residential and business customers can contact Kleenheat on 13 21 80 or at www.kleenheat.com.au to make the switch and save. Residential customers can also visit dedicated Kleenheat shopping centre kiosks.

Kleenheat is an energy solutions provider in Western Australia and the Northern Territory. Kleenheat produces, imports and distributes liquefied petroleum gas (LPG) to residential and commercial markets across Western Australia and the Northern Territory through a comprehensive network of distribution centres, and dealers; as well as retailing natural gas to residential and commercial markets, and electricity to businesses in Western Australia. Kleenheat is part of Wesfarmers Chemicals, Energy & Fertilisers.

Strata Finance - What is it? When an owners corporation or body corporate needs money for renovation or rectification works, emergency repairs, green initiatives, insurance premiums, litigation or other capital requirements there are essentially three options to choose from:

1. use money from a sinking fund 2. raise a special levy 3. take out a loan to cover the costs

All options are viable and should be considered depending on the circumstances but what if there is no money available in a sinking fund? Special levies are not often the favourite choice of owners as they are required to find the money to pay for this unplanned expense. By choosing strata finance however, funds are provided directly to the owners corporation or body corporate and the expense is paid through levies over time thereby taking away the burden of a lump sum. Strata financing provides the ability to commence work immediately without the need to raise unpopular special levies or wait for enough money to accumulate in a sinking fund.

What are the benefits of strata finance? There are many benefits of using strata finance including the following:

Peace of mind The loans are unsecured and offered directly to owners corporations or bodies corporate By taking out a loan a strata community is reducing the immediate cost burden for works Funds can be accessed quickly once approved and projects can be carried out with minimal delay Cash flow is freed up Loans can be used for funding of mechanical, aesthetic and structural repairs and improvements to

buildings

Improved lifestyle Strata financing can save time and expense plus provide complete certainty of funding It allows repairs and maintenance to be completed immediately without further deterioration Finance may offer greater flexibility and peace of mind that capital values and building standards are

being improved Instead of doing small jobs as money becomes available, multiple repairs, maintenance or

refurbishments can be bundled into one project, saving time and money whilst minimising disruption to owners

No large financial burdens Loan repayments are incorporated into quarterly levies/fees There is no mortgage or personal guarantee required to secure a loan

Increase the value of an owner’s asset Repairs and improvements will help maintain and improve the value of an asset For investors, rental and tenancy stability are enhanced

Who will benefit from strata financing? The owners’ corporation or body corporate will benefit as they will be able to make decisions quickly and not need to drag out the process to raise funds for essential works.

The owners will benefit as they will not be lumbered with the burden of having to pay a hefty special levy. They will also see that the value of their asset is maintained and often improved.

The building will benefit from having works completed quickly and not experiencing further deterioration or inconvenience to owners.

The decision of which funding option your strata title uses will depend on the circumstances but you do have choices and should consider them all. StrataLoans is the newest product in the market for strata financing so it may be worth just having a chat to explore the options for your strata community.

Certificate IV in Property Services (Operations)

The Certificate IV in property Services (Operations) has been designed for the Strata Industry to cover:

1. Qualification for the proposed licensing requirement:

There are 18 units that make up the course. Students complete the course at their own pace within a 24 month period.

2. Accreditation for your industry. This course is the pathway to level 2 accreditation with SCA WA

3. Traineeships for qualified Staff: New staff with less than 3 months service could qualify for an incentive to the company of $4,000.

How can Central help you? Have a consultant visit your office to

explain the benefits and procedure. Provide easy to follow assessment

material. Deliver all learning in your workplace with

no need to attend classes. Complete each assessment of subject

competency in your office. Arrange traineeship paperwork for

qualified staff

Who will assess the students?

Assessment of subject competency will be carried out by employees of the central Institute of Technology. Our assessors have worked in the property services industry for many years and hold a Certificate IV in Training & Assessment.

Testimonials “The course is thorough and represents a great learning opportunity, allowing for collaboration amongst attendees”. Warren Kiddle – Strata Administration Services. “The course work was informative and easy to complete with support from the assessor John Jasiak”. James Donnelly – Pro-Active Strata Management.

For more information contact

Kevin Atkins- Consultant Traineeships and Work Based Training Lecturer Real Estate (Certificate IV in Training & Assessment) Central Institute of Technology Mobile - 0417 314 141 Fax – 9427 1989 Email – kevin.atkins@central.wa.edu.au

Traineeships and Work Based Training

For Strata Management

Up to $4,000 incentive to employers

($1,500 after 6 months then $2,500 on completion)

CERTIFICATE IV IN PROPERTY SERVICES (OPERATIONS)

What is Traineeship Work Based Training? Practical on the job training mentored by an

employer;

Working through easy to follow instructions; and

Being assessed by a Central Institute of

Technology assessor in the workplace.

Benefits of a Traineeship The trainee must be new (up to three months

service) to the business to qualify for incentives;

The trainee may not already hold an equal or

higher qualification (exceptions do apply);

Employees who have been with the business for

more than three months may still qualify for a

traineeship. For these individuals there is no

incentive payment but they can complete the

course under traineeship conditions.;

If an employer is approved for incentives they also receive an exemption from payroll tax, for the duration of the traineeship (currently annual wages over $750,000 are taxed at 5.5%);

There are 18 subjects in the course and the

trainee has up to 24 months to complete the

course;

Cost of the Traineeship course is full fee

$1605.00 and Concession card holders $805.00

Work based training – No incentives If a person does not qualify for a traineeship

they can still benefit from training in the workplace;

The trainee has up to 24 months to complete

the course;

There are 18 subjects in the course.

The cost of the course is $2900.00.

Example of revenue gain

The business has 2 employees to complete the Certificate IV and they each earn $50,000 pa;

2 employees are new, commenced 2 months ago. They have no qualifications higher than a Certificate III;

Revenue to the business could be: New employees – 2 x $4,000 = $8,000 Payroll deduction – 2 x $50,000 x 5.5% = $5,500 Less course fees - $1,605 x 2 = ($3,210) Total revenue to business $10,290

For more information please contact:

John Jasiak

Lecturer and Employment Based Training

Consultant Real Estate & Strata Management

Central Institute of Technology Level 4,

25 Aberdeen Street, Perth WA 6000

mobile | 0423 295 190

fax | 9427 1989

email | Johjn.jasiak@central.wa.edu.au

Disclaimer: Every effort has been made to ensure the accuracy of the information at the time of printing. Fees are subject to change.

SCA (WA) Member Update

Welcome to our new Members

Management Business Member

O’Farrell Property Group Kay Shephard

Summit Realty Waikiki Tamara Verzini

Management Member Mandy Pickering Pro-Active Strata Management

Luke Brown Exclusive Strata Management

Gonzalo Maldonado Exclusive Strata Management

Lich Perera Platinum Strata Management

Manuela Mobilia Strata Administration Services

Holly Davidson i.fresh strata

Kevin Rose Lebar Investments Pty Ltd

Elna Wright i.fresh strata

Laura Chapman Strata Alliance

Maduka Ukandu Eme Exclusive Strata Management

Ravindran Karuppan Exclusive Strata Management

Business Member Tony Dunn Horizon Building Management

Robin Spear Laundry Equipment Sales & Hire

Geoffrey Parnell A & O Facility Management

Strata Company Member Peter Fitzgerald, St James Owners 61 Burt Street, North Perth Owners St James Villas, St James Owners of the Butterfly House, Bicton Owners of Colebrook, Carine Owners of Strata Plan 7873, Donnybrook

Owner Member Trevor Harris Subiaco

Patrick Owen Bentley

Nicola King Subiaco

Amanda Drylie Nollamara

Nicolina Keremestevski Osborne Park

Carmel Vallelonga Wanneroo

Leanne Burgmann-Hodgetts Warwick

Julie Hooper Dianella

Chelsea McGovern Balcatta

Louise Wilson Mt Hawthorn

Kimberley Clifton Como

Anette Fennell South Lake

Carol Henderson Canning Bridge

Office News

Landgate - Strata Titles Act Reform UPDATE:-

Strata Managers are urged to keep checking the Landgate website for updates on strata reform.

http://www0.landgate.wa.gov.au/titles-and-surveys/strata-reform

http://www0.landgate.wa.gov.au/__data/assets/pdf_file/0010/11521/STAR-Proposal-statement.pdf

LAW WEEK FREE SEMINAR BY SCA (WA)

Register now for this free seminar on the basics of law in strata. Listen as two Lawyers and two strata managers explain the fundamentals of your legal responsibilities as a strata owner/buyer or interested parties.

Look at events on SCA (WA) website www.wa.stratacommunity.org.au

Or click on the link at the front of this e-bulletin email.

CERTIFICATE III, CERTIFICATE IV, DIPLOMA IN STRATA MANAGEMENT

AISC Board have approved the new Strata Education Qualifications .

The details of the approvals are posted on the commonwealth govt website www.education.gov.au/training-packages-0 CPPv5Property S is the reference. Further details will be advised as soon as known.

THE WEST AUSTRALIAN NEWSPAPER

SCA (WA) Accredited Strata Community Managers

Did you catch SCA (WA)’s advertisement in The

West Property Section on Wednesday 20th & 27th

and Saturday 30th April 2016?

SMOKE DRIFT IN STRATA HOUSING

Access a $1,000 grant for your strata company before 4th May 2016 funded by:-

ACOSH - Advocacy in Action - Tobacco Control Small Community Incentive Scheme.

Use the grant to implement smoking by-laws or to buy signage for your strata complex. Click the link at the front of this e-bulletin for more information on how to apply. And come to SCA (WA) workshops 19.5.16 Smoking in Strata for strata managers; or

13.7.16 Smoke Drift in Strata Living workshop available for Lot Owners/general public.

Life Members High Tea

Left to Right:

John Angus 2015

Sheryal Griggs 2011

Michael Powell 1998

SCA (WA) Office Manager,

Suellen Bottecchia

Beverley Grigo 2015

Ian Laird 2007

Certificates and Badges were

presented by SCA (WA) Presi-

dent, Rachel Cosentino

The Pagoda Restaurant

7th April 2016

It was a pleasure to see colleagues/

friends re-unite to share a few drinks

and stories.

It didn’t take long before they let me

know that a cup of tea wouldn’t

suffice. So it was a merry gathering

after all. Thanks to everyone for an

enjoyable afternoon.

Past Presidents:-

Paul Smith 1989-1991

Sheryal Griggs 1991-1994

and

Alistair Millar 1994-1997

Current President:-

Rachel Cosentino since

2014

Strata Titles Act Reform (STAR) Overview

Workshop - 22 April 2016, Matilda Bay Restaurant

Presented by Lawyers :

Sean Macfarlane, Landgate and Mark Atkinson, Atkinson Legal

Well attended and informative workshop on

how the new strata reform will impact the

industry, giving SCA (WA) Strata Managers a

head start on the expected new processes

required for strata management. PDFs of the

presentation will be sent to attendees.

SETTLEMENTS ON STRATA LIVING - Crown Perth - 27.4.16

This panel workshop covered the disclosure require-

ments for the settlement process , the relevant forms

and the responsibilities of settlement agents and strata

managers. The panel consisted of :-

Nathan Evans - MGB Legal

Steve Britten - CPC Governing Committee

Susan Clark - CPC Governing Committee

Andrew Chambers - Chambers Franklyn Strata Mgmt

James Donnelly - Pro-Active Strata Management

Leonie Milonas - Strata Community Insurance

Facilitated by: Janine Chapman - Strata Alliance

Education - Professional Development & Training Calendar 2016 B – Breakfast W – Workshop O – Owners C – Conference TBC – to be confirmed

PD EVENT CALENDAR 2016 Date Event Topic Proposed

Venue TBC CPD Points

19 Jan O Lot Owners AIC, Vic Pk -

29 Jan B National Accreditation 2016 Mat Bay

2 Feb O Role of the Council SP Library 2

25 Feb B Strata Outlook 2016 Crown Astral 1 2

15 Mar O Lot Owners AIC, Vic Pk -

23 Mar W Working in Harmony REIWA Crown Astral 3 2.5

12 Apr O Role of the Council SP Library 2

22 Apr B Strata Titles Act Reform – Overview Matilda Bay 1

27 Apr B Settlements on Strata Living Crown Botanical

1.5

4-6 May Course A100 Macquarie Bank 0

10 May O Lot Owners AIC, Vic Pk -

19 May B ACOSH - Smoking in Strata Crown Studio 1.5

19 May O Owners Free Seminar – LAW WEEK CHU -

25-27 May C SCA CONVENTION Alice Springs 4 TBC

15 Jun B Handing over and taking on new management - Best Practice

Crown 1.5

21 Jun O Role of the Council SP Library 2

13 July O Owners – Smoke Drift in Strata Housing ACOSH

-

19 Jul O Lot Owners Forum AIC, Vic Pk -

Education - Professional Development & Training Calendar 2016 B – Breakfast W – Workshop O – Owners C – Conference TBC – to be confirmed

PD EVENT CALENDAR 2016 continued… Date Event Topic Proposed

Venue TBC CPD Points

27 Jul W Getting your Finances Right Tech Pk, Bentley

2.5

16 Aug O Role of the Council SP Library 2

24 Aug W By Laws in the Spotlight Tech Pk, Bentley

2.5

13 Sep O Lot Owners AIC, Vic Pk -

28 Sep W Managing your Building Fire Safety - Best Practice

Tech Pk, Bentley

2.5

4 Oct O Role of the Council SP Library 2

TBC SCA (WA) AGM REIWA LC -

25 Oct B Motivation Life Coaching Yourself Crown Studio 1.5

2 Nov W SAT Tech Pk, Bentley

2

8 Nov O Lot Owners Forum AIC, Vic Pk -

11 Nov C 2016 Symposium PCEC 4 TBC

23-25 Nov Course A100

6 Dec O Role of the Council SP Library 2

25 May 2016 – SCA National

Convention in Alice Springs

Bucket List Item - Uluru

11 November 2016 – SCA (WA) 2016

Symposium at Perth Convention &

Exhibition Centre

10 May O Lot Owners AIC, Vic Pk -

19 May B ACOSH - smoking in Strata Crown Studio 1.5

19 May W Law Week – owner seminar The Perron Centre

25-27 May C SCA CONVENTION Alice Springs 4 TBC

TBC June A100

15 Jun B Handing over and taking on new management - Best Practice

Crown 1.5

21 Jun O Role of the Council SP Library 2

13 July W Owners – Smoking in Strata ACOSH

19 Jul O Lot Owners Forum AIC, Vic Pk -

27 Jul W Getting your Finances Right Tech Pk, Bent-ley

2.5

SAVE THE DATE:

SCA WA Sponsors 2016

Gold Partners

Silver Partners

SCA (WA) Platinum Partners

E-News 2016 Schedule:

February April June August October December

E-News Advertising Rates (sponsors only)

A4 full page Portait $250.00

Half Page $180.00

Please Note: contributions are accepted in PDF format or MS Word

Additional Sponsorship Opportunities Event Partner CPD workshop

Event Partner Lot Owner workshops

2016 Symposium sponsorships available to Management Business Members

Enquiries to:- suellen@stratacommunity.org.au

Contact us:

Strata Community Australia (WA)

Office Manager - Suellen Bottecchia suellen@stratacommunity.org.au

Administration Assistant - Jo Wallington admin.wa@stratacommunity.org.au

Accounts - Sue Gamble accounts@stratacommunity.org.au

Address: Ground Floor, 215 Hay Street, Subiaco East 6008

PO Box 8105, Subiaco East WA 6008

Phone: (08) 9381 7084

Fax: 6315 2649

Email: admin.wa@stratacommunity.org.au

www.wa.stratacommunity.org.au