Tuesday, October 20, 2020

Prescribed Owners Corporations | What are they? | VIC

Prescribed owners corporations (Regulation 5) are defined as an owners corporation that;

  • levies annual fees in excess of $200 000 in a financial year*; OR
  • consists of more than 100 lots**

* This fee total includes fees collected from separate owners corporations for storage lots, car parking lots and accessory lots and for general administration and maintenance and contributions to maintenance plans.

**Lots including storage lots, car parking lots, and accessory or ancillary lots are included

Annual budgets for owners corporations do change year on year and an owners corporation may dip in and out of the prescribed owners corporations category.

Duties of prescribed owners corporations

There are extra legal requirements for prescribed owners corporations, in addition to those that apply to all owners corporations.

Prescribed owners corporations must also:

  • prepare and maintain a 10-year maintenance plan for major capital items that are its responsibility (Section 36)
  • establish a maintenance fund to implement the maintenance plan (Section 40)
  • report on the implementation of the maintenance plan at every general meeting (Section 39)
  • prepare a financial statement in accordance with prescribed standards. (The standards are not currently prescribed.) (Section 34)
  • have financial statements audited at the end of every financial year (Section 35)
  • obtain a valuation of all buildings it is required to insure every five years for insurance purposes. Once received, the valuer’s report must be tabled at the next general meeting. (Section 65)
Strataville Editorial
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