Mission About Strata Community Australia (Vic) Inc. About the owners corporation or strata title industry in Victoria

Transcription

1 Missin The pre-eminent Victrian prfessinal industry assciatin prviding imprved standards and educatin fr the wners crpratin industry. T prvide: Representatin Prmtin Establishment f prfessinal practice guidelines & ethical standards Prfessinal develpment Left: Julie McLean President; Right: Rb Beck General Manager Abut Strata Cmmunity Australia (Vic) Inc. SCA (Vic) is the pre-eminent prfessinal assciatin f the wners crpratin industry, and was frmed in 1990 t prvide a frum fr imprved standards and educatin in the industry. Supprting mre than 80% f all wners crpratin managers it is the nly rganisatin slely fcused upn representing this increasingly significant industry, and reaches and represents 560 wners crpratin prfessinals wh manage apprximately 375,000 lts. It als represents industry suppliers and wners crpratins, making it the vice f all with an interest in the management f wners crpratins. Members benefit frm representatin, prmtin, establishment f prfessinal practice guidelines and ethical standards, and prfessinal develpment thrugh educatin seminars, cnferences and regularly publishing bulletins n items f prfessinal interest. SCA (Vic) is a Crprate Member f SCA, which represents practitiners thrughut Australia. The natinal and all state and territry strata industry bdies arund Australia have the same brand and names, and cntinue tward increasing natinal alignment, c-rdinatin, cllabratin and integratin. Mre infrmatin abut the Assciatins is available at and Abut the wners crpratin r strata title industry in Victria Changing lifestyle chices f Victrians and demgraphic shifts have led t rapid grwth in higher density dwellings and the wners crpratin industry. With 88,475 wners crpratins and 747,336 lts in Victria and abut 1,500,000 Victrians r 1 in 4 peple living in r affected by wners crpratins, it represents the management f prperty wrth $300 billin. Mre than $1 billin per year is cllected and spent. They cmprise residential prperties ranging frm 2 units in a suburban street t many hundreds f units in inner city apartment buildings. Owners crpratins als encmpass cmmercial, retail, lifestyle resrts, retirement villages, car parks, strage facilities, industrial and, increasingly, mixed develpments cmprising mre than ne frm f develpment. The prevalence and imprtance f the strata sectr is increasing. In 2014, the Vic Gvernment s Plan Melburne strategy says we need an extra 1.6 millin dwellings by 2051 and 66% f these wuld be apartments r twnhuses. That is, 66% is t be strata and nly 34% wuld be detached huses. 50% f all plans registered by Land Victria in were strata ie wners crpratins. Owners crpratin managers facilitate the management f: - Peple in a cmmunity living envirnment - Billins f dllars f ther peple s mney n an n-ging and nt a single transactin basis - Entire cmmunities and their current and future assets and facilities Abut the wners crpratin r strata title industry in Australia The industry cntinues t grw rapidly in Australia with arund 270,000 wners crpratins cmprising 2,000,000 lts Australia wide. It represents the management f prperty wrth $1.2 trillin*. There are apprximately 3,300 wners crpratin managers in Australia; with 3.5 millin peple living r wrking in wners crpratin schemes. Cnservatively, it is estimated 20,000 Australians wrk in and derive their incme frm the strata title industry. Urban planning plicies arund Australia are targeting annual grwth f mre than 10% fr the next years, s the prevalence and imprtance f this sectr is increasing. *In cmparisn, the ttal value f Australian superannuatin is $2t, and Australian listed stcks is $1.7t. Page 1 July 2016

2 Highlights Grwn membership by 6%. Nt-fr-prfit assciatin benchmark indicatrs f membership health include verall ttal membership, new members acquired, & membership renewals. It shws that SCA (Vic) cntinues t significantly utperfrm the sectr internatinally ver the lng term. Financial psitin strengthened t $490k ttal equity. A nt-fr-prfit assciatin benchmark indicatr f financial stability is the level f reserves. This is the percentage f accumulated surplus t perating expenditure. The level f reserves fr SCA (Vic) is 77%. It shws that SCA (Vic) cntinues t significantly utperfrm the sectr internatinally bth ver the last year & ver the lng term. Mre than 1,700 peple attended events such as seminars, rund tables, SIGs [including expanded range f SIG meetings catering fr Wmen, Yung, Principals, Supprt Rles] 334 delegates attended the 2015 Sympsium 44 industry leaders attended the exclusive 2015 Principals Retreat Published a new versin f the Cntract f Appintment [CA] Ethical standards Cmmunicatin advising abut early terminatin f a CA. Published a new Practice Guideline: Ballts. Published 2 new resurces Benefits f using a prfessinal SCA strata manager & Prmting a career in strata Partnered with IBM & City f Melburne in the Smarter Cities Initiative t help with emergency respnse & disaster relief effrts T prmte a career in strata, exhibited and presented at the 2016 Melburne Reinvent Yur Career Exp Australia s nly internatinal adult careers and emplyment exp Presented t 250 surveyrs abut strata issues Exhibited at High Life Exp re sustainability with 500 peple attending Engaged with anther new wners lbby grup called We Live Here. Thugh it wants t be the peak Vic wners grup, it began as a single issue lbby mvement, rallying arund anti AirBnb shrt-term letting. This Nt-fr-Prfit is being driven by peple cnnected with the Watergate OC, which has been in a lng running and still nging legal battle n the issue f shrt-stays. SCA (Vic) & the ther states have been funding an SCA natinal media campaign Australia wide. SCA (Vic) is als separately and in additin t the natinal media campaign, running a specific Vic media campaign. Raised the media prfile with a ttal f 75 media mentins [including articles, radi and TV] The ACCC has published further industry guidance n cmparatr websites. There are cmparatr websites fr strata management cntracts. The industry guidance is targeted at the peratrs f cmparatr websites and businesses whse prducts are listed n them. Page 2 July 2016

3 Raised the SCA (Vic) vice and prfile as the peak bdy thrugh advcacy and lbbying Intensive gvernment relatins campaign cnducted fr actin n strata law refrm, successfully resulting in the Minister fr Cnsumer Affairs annuncing at ur Sympsium a full pst implementatin review f strata laws Submissins made t all 3 Issues Papers: Cnduct [eg licensing], OCs, Sale f Land. SCA (Vic) was appinted t the shrt-stay serviced apartment s gvernment panel reviewing the regulatin f shrt-term letting; and culminated in the OC Amendment (Shrt-stay Accmmdatin] Bill 2015, including prhibitin rders [if there was 3 separate ccasins within last 2 years], lss f amenity cmpensatin rders [max cmpensatin is $2,000 per affected ccupier fr each breach], & rders fr a civil penalty [max $1,100] SCA (Vic) briefed BAC re Vic strata law review & defects / maintenance /disputes. Building Advisry Cuncil is a statutry bdy (DELWP) & cmprises f the Vic heads f the PCA, MBA, HIA, AIBS, BDA, RAIA, EA, CAV & VBA. It advises the Minister fr Planning Successfully influenced the VCAT (Fees) Regulatins 2016 such that definitins were changed and, apprpriately, is equitable fr OCs SCA (Vic) was selected as ne f the few frum participants t prgress Resilient Melburne. The City f Melburne is hsting a prject in partnership with metrplitan cuncils and develped a resilience strategy t equip ur city t effectively deal with the chrnic stresses and acute shcks that may emerge in cming decades. This prject is part f the 100 Resilient Cities initiative. Significant building law refrm the Building Legislatin Amendment (Cnsumer Prtectin) Act 2015 prvides fr strnger dmestic building prtectins t avid cstly disputes Submissin made t DELWP n Better Apartments re design, amenity & functinality [eg size, nise, car parking] SCA (Vic) value prpsitin: Prtect member interests & safeguard yur fees Build yur business Save yu $ Minimise yur risk Shape the legislative framewrk Increase yur knwledge Page 3 July 2016

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5 Membership Membership has cntinued t grw ver the past year with an increase in ttal members f 6%. This represents mainly new members, since the retentin rate f existing members is excellent. At 30 June 2016 there were 663 members. Nt-fr-prfit assciatin benchmark indicatrs f membership health include verall ttal membership, new members acquired, and membership renewals. It shws that SCA (Vic) cntinues t significantly utperfrm the sectr internatinally ver the lng term. Membership Type Ttal Number Sle Trader 121 Small Firm 100 Large Firm 32 Crprate Practicing 31 Practicing 61 Prvisinal 153 Persnal [Retired] 8 Hnrary 0 Assciate 79 Assciate Practicing 27 Affiliate 51 Ttal 663 Cmpanies N. f Different Cmpanies OCM 253 Assciate 79 Tp membership drivers The tp membership drivers include CPD events, netwrking, CA, best practice infrmatin, advcacy, and media. Benefits f Membership Membership ffers enrmus benefits fr strata managers, members f wners crpratins, & industry suppliers t the strata sectr. Vide testimnials are n the web site. Page 5 July 2016

6 Prfessinal Develpment Seminars, Cert IV, Intr Curse, Rund Tables, SIGs & Majr Events Seminars Mre than 1,700 peple attended SCA (Vic) seminar events in the 2015 calendar year. The educatin seminars cater fr breakfast & afternn 2hr sessins, ½ day & 1 day seminars, member nly seminars, and SIG [Special Interest Grup] meetings. Seminars included: Managing a Crisis in a Strata Prperty Business Writing Excellence Strata Insurance & Claims Trends Update VCAT D s and Dn ts Repairs & Maintenance Building Resilience Wrkshp Cntract f Appintment OC Security & Privacy Pls As well as member and nn-member prices fr seminars, there is a discunted Grup Rate fr mre than 4 peple attending frm the same cmpany. The distance learning mdules, which are unedited recrdings and handuts f mst seminars, have prved cnvenient and becme increasingly ppular fr peple unable t attend n the day. The purchaser f a DVD gets CPD pints autmatically withut any assessment, but may cmplete ne if they chse t. Others that watch a DVD purchased by smene else can cmplete an assessment fr a fee and accrue CPD pints. Rund table discussins These free events are pen frums held at varius gegraphic lcatins where attendees can share experiences and learn frm each ther. Special Interest Grup [SIG] Chapter meetings SCA (Vic) has a number f grups with special interests that meet. These include: Rising Star [fr inexperienced members] Yung Prfessinals [fr yunger members] Intrductin t Multiple OCs Principals Niche Market Managements [Retirement Villages, Master Planned Estates, Chalets, Cmpany Share] Wmen in Strata Supprt Rles Suppliers Recrded self-paced intrductry training curse Althugh aimed at new entrants t the industry starting their wn business with n mentr r supprting emplyer, it is als relevant fr existing emplyers t incrprate int their wn internal inductin training. It is nt part f a frmal qualificatin. Intrductin t Strata [SCA A100] 2.5 day face-t-face Intr Curse fr thse peple new t the strata sectr [sn available nline, self-paced]. 100 questin exam. It is nt part f a frmal qualificatin. Certificate IV The Certificate IV Prperty Services [Operatins] is a strata specific qualificatin and is als a prerequisite fr strata managers t hld the SCA (Vic) Pst Nminal CPSM - Certified Practising Strata Manager. Dn t feel alne It feels great t get this srt f feedback. At its heart, it s why we exist. At ne f ur free rund table pen frums, this is what ne attendee sent t us after the event Thank yu fr anther wnderful event. It s such a great pprtunity t netwrk and t learn abut the issues thers face and deal with s I dn t feel s alne. We ve gt yur back, we understand the gig yu d. Page 6 July 2016

7 2015 CHU SCA (Vic) Sympsium Attended by 334 delegates, mainly strata managers, the 2015 CHU SCA (Vic) Sympsium was a ne day event n the practice f strata management. All abut Meetings, the Minister fr Cnsumer Affairs led an all-star cast that als included strata managers, strata lawyers, facilitatin, persnal develpment, gvernance, and technlgy Awards fr Excellence SCA (Vic) cngratulates the winners n stamping their prfessinal credibility. An ad was placed 23/08/2015 in The Sunday Age Dmain. Pictured [right]: Jhn Btha, winner f the Owners Crpratin Manager award categry. Fellw Strata Managers [FSM] Cngratulatins t the Fellw Strata Managers - Rb Pitcher, Stephen Raff, Ian Rss, Andy Dawsn, Julie McLean & Peter Sctt CHU SCA (Vic) Principals Retreat 44 strata industry thught leaders attended the exclusive Principals Retreat in Octber 2015 at Hamiltn Island fr facilitated discussins regarding strategies fr success. Page 7 July 2016

8 Member Services There are many member benefits such as advertising yur membership using the member lg, members sticker, pst nminals, yur website address via the directry n the SCA (Vic) website, and an SCA (Vic) Member Prfile fr managers t display in their place f business. Benchmarking The SCA Strata Benchmarking Prjects prvide imprtant infrmatin fr the industry. By participating in this annual survey members have the pprtunity t benchmark their business against like businesses. This is an invaluable tl fr business wners. Thse that participate are privy t key metrics fr strata management firms. Prfessinal Indemnity Insurance Offering Whitbread Insurance Brkers have a specific market ffering fr SCA (Vic) members that saves members mney. The leveraging r aggregating f demand fr the best plicy packages in the industry was pssible because members are bund t abide by SCA (Vic) prfessinal practice guidelines and ethical standards, cntinuing prfessinal develpment, Cde f Prfessinal Cnduct, and use the SCA (Vic) endrsed Cntract f Appintment. 44% f members use this PI Insurance ffering. Lcum Service A lcum service prvides temprary, relief r cntract wners crpratin management service t members. SCA (Vic) recgnise the absence f staff is a difficult issue t address, and the benefits f having a temp wh culd bring with them industry experience and knwledge and create a seamless transitin is priceless! Mentr prgram This cmplimentary prgram is pen t members f SCA (Vic) and prvides a great develpment pprtunity. Cnsulting Anther ffering is a fee-fr-service cnsulting advice initiative. Supplier Members get 10% discunt n accreditatin SCA (Vic) has negtiated with Ebix Trades Mnitr fr a discunt f 10% fr accreditatin f thse cntractrs [cvering OH&S assessments and audits] wh are Assciate [supplier] SCA (Vic) members, delivering a valuable member benefit. Free Legal Services Htline with TressCx Lawyers TressCx Lawyers ffer members an wners crpratin Htline and nline frm t have yur queries answered. The wners crpratin htline and nline frm prvides members with an initial telephne cnsultatin r advice at n charge. web site. Advertising Business fr Sale, emplyment vacancies, tenders, e- newsletter, web site Business fr Sale Fr thse selling yur business r a prtfli, this service is ffered t reach the highly targeted niche demgraphic audience f wners crpratin managers. Emplyment Vacancies Anther ffering fr emplyer wners crpratin managers is t advertise emplyment vacancies n the Tenders An ffering fr wners crpratins t tender fr wners crpratin management services, and als ensuring members are well placed t be successful. e-newsletter & web site Assciate [supplier] members are als able t advertise. E-newsletter The e-newsletter, the mst imprtant methd f SCA (Vic) cmmunicatin regarding industry infrmatin and upcming events, is distributed frtnightly. The e-newsletter has a distributin f 1,100. The best practice industry benchmark f hw many subscribers read them is 36%, and ur statistics exceed this. An archive f the newsletters is available in the members sectin f the web site. Page 8 July 2016

9 Cnsumer publicatin Strata Life Strata Life is the quarterly cnsumer e-publicatin that yu can distribute t yur clients as an add n service. Yu can even brand this publicatin with yur wn cmpany lg and add infrmatin t it. It is als aimed t increase the prfile f SCA (Vic) and the sectr, the benefits f prfessinal management, and prmte a career in ur industry. Inside Strata magazine The Inside Strata magazine is the natinal publicatin fr members. It is published as bth a printed versin and an electrnic versin. Scial media SCA is active n scial media - Twitter, LinkedIn, Facebk and als has a YuTube channel. Member values SCA It s always wnderful t hear that peple value their SCA (Vic) membership. Here s what ne member recently tld us - Thank yu fr the supprt yu have given me, all the ther members, yur submissins t gvernment and the OC industry in general. I wuld nt have been able t d my jb as effectively withut the training and infrmatin prvided by SCA (Vic). Yu have prvided directin and cntinuity fr all members. Best Practice Resurces The best practice sectin in the members website includes frms, practice guidelines, cnsumer guidelines, papers, enewsletter articles and links t relevant web sites. Further Practice Guidelines and supprting dcumentatin available fr use by members were added t the library. New versin f Cntract f Appintment SCA (Vic) publishes an endrsed Cntract f Appintment - Owners Crpratin Manager [CA]. All SCA (Vic) members are entitled t use this at n cst as a benefit f membership and as a key differentiatr between members and nn-members. 93% f members use it. Thugh the prpsed regulatry changes in the 2014 Bill regarding strata managers were never enacted, nnetheless, SCA (Vic) has decided t adpt mst f the changes in rder t raise the bar with apprpriate prfessinal practice guidelines and ethical standards. A new versin f the SCA (Vic) CA has just been published. This up t date versin f the SCA (Vic) CA is versin 4. Als updated, there is a supprting Practice Guideline fr managers. Als updated, there is a Cnsumer Guide t be sent t all wners alng with the SCA (Vic) CA. And the Deed f Cvenant has als been updated [v6]. As well as the CA fr wners crpratins, there is a cmpany versin that has been updated. This cvers agreements fr Cmpany Share Basis Flat Scheme and Service Cmpany [stratum]. A share basis cmpany wns the whle building whereas a service cmpany nly wns the residual land. The ne CA accmmdates bth Stratum Estates and Cmpany Share Schemes. All these are in the members nly, Practice Guidelines, part f the web site. Yu shuld nw take immediate steps t implement this new versin f the SCA (Vic) CA. Practice Guidelines A brand new member nly resurce was added t the scres f Practice Guidelines Ballts Page 9 July 2016

10 Advcacy and Lbbying Minister annunces full review f Vic strata laws research t supprt the suggestins. After campaigning fr actin n Vic strata law refrm, that was successfully achieved when the Minister fr Cnsumer Affairs, Jane Garrett, annunced at the CHU SCA (Vic) Sympsium n 21 Aug 2015, a full review f the peratin f the Owners Crpratins Act This is a pst implementatin review, abut 8 years after it was cmpletely changed, and will be a full public review. Our full Plicy Psitin dcument cvers the SCA (Vic) psitin n all wners crpratin matters. These plicy psitins will practively infrm and assist this review with pssible areas f imprvement and There will be 3 separate pieces t the review. Each piece will invlve a prcess that includes, firstly, an Issues Paper, then secndly, an Optins Paper. These 3 pieces are: 1. Issues Paper 1, Dec 2015: Cnduct & institutinal arrangements fr estate agents, cnveyancers & OC managers Nte: this re-presents issues frm a previus review whse utcmes were cntained in the draft 2014 Bill regarding the review f the regulatin f strata managers. 2. Issues Paper 2, Feb 2016: Owners Crpratins [general] 3. Issues Paper 3, Mar 2016: Sale f land; this is relevant t us because it includes pre-cntractual and cntracts f sale issues eg OC Certificates, etc As nted, regarding the first piece, there was a previus review f the regulatin f strata managers, resulting in the Cnsumer Affairs Legislatin Further Amendment Bill 2014 [2014 Bill]. But the prpsed regulatry changes in the 2014 Bill regarding strata managers were never passed by Parliament and enacted. 72 submissins were made in ttal t the 1 st Issues Paper regarding cnduct & institutinal arrangements fr estate agents, cnveyancers & OC managers. 103 submissins were made in ttal t the 2 nd Issues Paper regarding OCs. 31 submissins were made in ttal t the 3 rd Issues Paper regarding sale f land. Shrt term letting law changes In keeping its electin cmmitment the Victrian Gvernment established an independent seven-member panel t examine the cnduct f shrt-stay ccupants f CBD apartment buildings. SCA (Vic) nminated strata manager Michael Nugent as ur expert panel member reviewing the regulatin f shrt-term letting. The shrt stay accmmdatin panel reprted back t the Ministers. In essence the recmmendatin was t empwer VCAT t prhibit the use f apartments fr shrt-stay accmmdatin. SCA (Vic) didn t think the panel recmmendatins went far enugh. In line with the gvernment expert panel s recmmendatins, the Gvernment cnsulted further n the reprt with the rganisatins represented n the panel [including SCA (Vic)]. This culminated in the OC Amendment (Shrt-stay Accmmdatin] Bill 2016, including prhibitin rders [if there was 3 separate ccasins within last 2 years], lss f amenity cmpensatin rders [max cmpensatin is $2,000 per affected ccupier fr each breach], & rders fr a civil penalty [max $1,100]. VCAT fees verhauled frm 1 July depending n capacity t pay SCA (Vic) prvided input t the VCAT (Fees) Regulatins A RIS [Regulatry Impact Statement] and draft regulatins were published, which thrughly verhauls the fee structure utilising mixed levels f cst recvery. Under the prpsed regulatins, 26% f VCAT s csts are recvered. The Victrian Gvernment has nw set the fees. SCA (Vic) successfully influenced the early stages f this prject, such that definitins were changed and nw, apprpriately, is equitable fr OCs. Better Apartments SCA (Vic) made a submissin t the DELWP s Better Apartments discussin paper, regarding design, amenity & functinality [eg size, nise, car parking]. SCA (Vic) supprts any imprvements t building and design standards, because many issues in strata can be traced back t this surce eg defects, dur, nise, car parking. Page 10 July 2016

11 Resilient Melburne SCA (Vic) was selected as ne f the few frum participants t prgress Resilient Melburne. As backgrund, City f Melburne is hsting a prject in partnership with metrplitan cuncils and develped a resilience strategy t equip ur city t effectively deal with the chrnic stresses and acute shcks that may emerge in cming decades. This prject is part f the 100 Resilient Cities initiative. Jane Garrett quits ministry ver firefighter dispute Emergency Services Minister Jane Garrett resigned frm cabinet ver the firefighter dispute. Marlene Kairuz has been appinted as the new Minister fr Cnsumer Affairs. Strata cmes under the Cnsumer Affairs prtfli. Marlene, 41, is the member fr Krrit. Prmting a career in strata We knw hw hard it is fr yu t recruit staff, s SCA (Vic) exhibited and presented at the 2016 Melburne Reinvent Yur Career Exp - Australia's nly internatinal adult careers and emplyment exp held n June We ve als published a brchure: Prmting a career in strata management. Surveyrs get the message SCA (Vic) recently presented t a cnference attended by 250 Surveyrs [Cnsulting Surveyrs & Land Develpment Engineers], talking abut strata issues and, particularly, unanimus reslutins. In this way, SCA (Vic) is trying t help achieve better utcmes fr all invlved in the strata sectr develpers, surveyrs, the wners crpratins, lt wners, and wners crpratin managers. SCA Vic partners with IBM & City f Melburne The Smarter Cities Initiative is IBM s glbal largest philanthrpic initiative. City f Melburne was ne f 16 cities [ut f 100] glbally that has been awarded a significant grant - where IBM deplys tp experts, t help with emergency respnse & disaster relief effrts. SCA (Vic) was asked and agreed t be a key partner and stakehlder in this prgram. Ethical standards Cmmunicatin advising that early terminatin f a CA is nt an excuse t claim a sum f mney that equals the remainder f the fees fr the term f yur initially agreed appintment. Yu shuld nly claim fr damages ie lss f prfit. Yu shuld nt take such damages, which yu believe yu are wed fr early terminatin, frm the funds f the OC withut authrity t d s. If in dispute, yu need t ldge a claim fr this at VCAT. Strata Research Hw Can Strata Prperty Ownership and Urban Renewal be Recnciled? Researchers Reprt Dnatin t charity Nvember 2015 saw the publicatin f Renewing the Cmpact City, the first large-scale study n the terminatin and renewal f strata prperty schemes. With imprtant strata prperty wnership refrms recently passing thrugh the NSW Parliament, this is a highly tpical subject. The research prvides the first cmprehensive evidence f the challenges and pprtunities faced by strata wners and residents in effectively, efficiently and inclusively redevelping privately wned multi-unit strata titled blcks. Try, L., Randlph, B., Crmmelin, L., Easthpe, H., & Pinnegar, S. (2015) Renewing the Cmpact City: Ecnmically viable and scially sustainable appraches t urban redevelpment. Sydney, Australia: City Futures Research Centre, UNSW Australia. At the recent Sympsium, Whitbread Insurance Brkers and TBS raised $415 in dnatins frm members at the cffee cart, which will nw be dnated by SCA (Vic) t the Victrian Hmeless Fund [VHF], which aims t relieve and prevent hmelessness in Victria. The VHF seeks prjects that supprts peple wh are hmeless r at risk f becming hmeless. The VHF has a particular interest in supprting prjects that encurage peple t mve frm a situatin f hmelessness t ne in which they can functin independently in the cmmunity. Page 11 July 2016

12 SCA (Vic) Spnsrs Thank yu t CHU, ur Platinum Spnsr, and t all f the valued SCA (Vic) spnsrs. All ur spnsrs are active in prviding much-needed assistance in bringing quality educatin and netwrking prgrammes t members each year. Please cntinue t supprt ur partners wh are supprting SCA (Vic) and the strata sectr. Page 12 July 2016

13 Radar VCAT up 4% t 3,068 In the year there were 3,068 applicatins, a 4% increase ver the previus year [ ,944]. Almst all applicatins were fr fee recvery. 88% f all applicatins are fr claims less than $10,000. The OC list is whlly funded by a trust, the Victrian Prperty Fund, and was $1.76 millin in , a decrease f 3% frm the previus year. 66% f applicatins t VCAT are nw being made nline. Size f strata sectr v superannuatin and shares The strata title industry in Australia represents the management f prperty wrth $1.2 trillin. In cmparisn, the ttal value f Australian superannuatin is $2 trillin, and Australian listed stcks is $1.7 trillin. Sinking fund reserves As a prprtin f ttal administratin fund levies raised, hw much sinking fund levies are raised by prfessinally managed strata schemes? Ie (sinking fund levies) / (administratin fund levies). Frm the 2015 SCA benchmarking reprt f strata managers, the answer is Vic 27%, NSW 35%, AUS 37%. Hw big is yur regin? Hw big is the strata sectr relative t each state? It s rughly crrelated t ppulatin levels in each state [as a prxy fr strata]. The rule f thumb is pretty clse, viz: Victria s strata sectr is 25% f the ttal Australian strata sectr. When calculated by ppulatin, Victria makes up 25% f the Australian ppulatin. Cmparatr websites The ACCC previusly published a reprt n cmparatr websites, and has nw published further industry guidance. There are cmparatr websites fr strata management cntracts. The industry guidance is targeted at the peratrs f cmparatr websites and businesses whse prducts are listed n them. This guidance sets ut hw industry can cmply with cmpetitin and cnsumer prtectin laws, including setting ut three guiding principles f: Facilitating hnest, like fr like cmparisns Being transparent abut cmmercial relatinships Clearly disclsing wh and what is being cmpared. Vic in Future 2015 The 2015 reprt f the Victrian Ppulatin and Husehld Prjectins, t 2051, prjects that Victria's ppulatin will reach 10 millin by % 5.34% is the natinal average f levies in arrears greater than 30 days, as reprted frm the 2015 SCA Strata Benchmarking Prject. Thugh Victria lags behind, with a figure f 8.74%. Inspectin f recrds < 2 81% f Vic strata managers have less than tw inspectins f OC recrds per year, recent academic research has fund in a survey respnded t by 83 strata managers. It is much higher in sme ther interstate jurisdictins. Crime in strata 50% Just 5% f strata buildings accunt fr ver 50% f crime in all strata buildings. S, which type f buildings accunts fr mst crimes? Shrt-term and mixed tenure strata buildings. This was ne key finding f recent academic research f Gld Cast strata buildings. Tw key things that can be dne t influence the level f crime guardianship and place management [eg physical, CCTV]. Infinity cables recall As we urged at the time, strata managers shuld cnsider taking apprpriate steps t ensure the safety f the buildings they manage in light f this recall. This faulty electrical cabling pses a serius danger and nly 0.5% f all the cable installed in Vic has been remediated. Page 13 July 2016

14 Cuncil & Sub-Cmmittees Much f the wrk f SCA (Vic) as nted in this reprt wuld nt be pssible withut the dedicatin f vlunteers cmmitted t the industry. Thus it is imperative t acknwledge their cntributin. Cuncil meetings alne have demanded significant time and effrt frm Cuncil members. Cuncil cmprised: Julie McLean [President] Esin Ibrahim [Vice-President] Brett Earle Gerge Martin Mark Bensn Stuart Mellingtn [Secretary] Stephen Raff Peter Sctt [Immediate Past President] Persnal and prfessinal demands meant that Alan Ferre has, with sadness and regret, had t resign his Cuncil psitin. SCA (Vic) thanks Alan fr his sage cntributins f the past few years. Anther Cuncil member, Brett Earle has mved frm being a strata manager member t being a supplier member, thus he nw fills the rle f being that ne supplier member allwed n Cuncil. Given there was a casual vacancy, Cuncil decided t fill this by c-pting Mark Bensn. Page 14 July 2016

15 Gvernance The AGM elects ½ f the Cuncil members and the Cuncil then elects frm within their number the ffice bearer psitins f President, Vice President and Hnrary Secretary. The Cuncil member term is fr 2 years, staggered t assist cntinuity with ½ f the Cuncil standing fr electin by rtatin at each AGM. The ffice bearer psitin f President has a term limit f 3 cnsecutive years t ensure turnver f leadership. A Rle Descriptin further utlines expectatins. AGM electins use a Resume f Cuncil Candidates frm - designed t assist members cast an infrmed vte, this infrmatin is circulated t members as a means f intrducing nminees and their reasns fr seeking electin as a Cuncil member f SCA (Vic). Cuncil cntinues t encurage the practice f c-pting f additinal Members fr sub-cmmittees. As well as prject specific sub-cmmittees, extensive input is prvided frm nging Cuncil Sub- Cmmittees, which included: Membership & Accreditatin Media & Public Relatins Cntract f Appintment Educatin Prfessinal Standards Finance & Audit Spnsrship Gvernance [eg Cuncil Assessment, Remuneratin, KPIs] P. Sctt, R. Perera, P. Wd, B. Earle & R. Beck S. Raff, A. Ferré, B. Earle, G. Martin & R. Beck I. Rss, C. Andersn, R. Eastwd, R. Perera, G. Evans & R. Beck S. Raff, M. Jeans, J. McLean, G. Martin. T. Graham, C. Andersn, K. O Neill, A. Villani & R. Beck S. Raff, P. Sctt, E. Ibrahim, B. Earle & R. Beck S. Raff, S. Mellingtn, M. Bensn, M. Nugent & R. Beck S. Raff, C. Andersn, A. Ferré, E. Ibrahim & R. Beck B. Earle, E. Ibrahim, M. Bensn, S. Raff & S. Mellingtn Plicy & Legislatin P. Sctt, S. Raff, J. McLean, E. Ibrahim, R. Eastwd, A. Ferré, G. Evans, I. Rss, B. Earle, G Thebald & R. Beck Events Supplier / Industry Partners Chapter S. Raff, P. Berney, E. Ibrahim, D. Free, G. Evans & R. Beck A. Ferré [Chairpersn], T. Mackenzie, A. Whitelaw, T. O Dnghue, F. Crelli, D. Free & R. Beck SCA (Vic) representatives n natinal SCA Bard Advisry Grups: Membership & Accreditatin Plicy & Legislatin Prfessinal Standards Educatin Events Disciplinary S. Raff, B. Earle R. Beck S. Raff, B. Earle J. McLean, C. Andersn S. Raff P. Sctt Page 15 July 2016

16 Financial Reprt The financial reprt fr the perid ended 30 June 2016 shws an excellent result in the stewardship f financial resurces and the efficient delivery f services. The ttal incme f $659k cmprised f membership fee incme f $268k, spnsrship incme f $288k, and educatin & training incme f $67k. The net incme fr the perid was $20k [budget was fr a lss f -$22k]; whilst ttal equity as f 30 June 2016 strengthened t $490k. Due t legislative changes, the financial accunts are nly required t be reviewed but it has been reslved t cntinue t have them audited. Funding: Surces f Revenue Breakdwn f expenses Reserves: A nt-fr-prfit assciatin benchmark indicatr f financial stability is the level f reserves. This is the percentage f accumulated surplus t perating expenditure. The level f reserves fr SCA (Vic) is 77%. It shws that SCA (Vic) cntinues t significantly utperfrm the sectr internatinally bth ver the last year & ver the lng term. The year ahead: budget In the year, ttal incme is budgeted fr $598k and net incme fr a lss f -$107k. Page 16 July 2016

17 The perfrmance f the Secretariat has placed SCA (Vic) in gd stead. Fr their valuable cntributin, l extend my heartfelt thanks. Julie McLean President Rb Beck General Manager SCA (Vic) Past Presidents Peter Sctt years Stephen Raff years Andrew Dawsn years Rb Pitcher years Margaret Gugh years Marin Binks years Brian McGrath years APPENDIX SCA (Vic) Timeline 1990 IBCMV created 1996 NCTI natinal federatin started 2003 Develpment f first Strategic Plan First paid staff 2004 Pst nminal accreditatin system intrduced Supplier members given vting rights & representatin n gverning Cuncil OCs enabled t jin as members 2005 Annual benchmarking prjects begin 2006 Gvernance Cuncil cmpsitin & tenure changed 2007 New regulatry landscape after 4 year review, inc. registratin f managers Change f name t OCV 2008 VPF gvernment grant t run 16 infrmatin frums acrss Vic Inaugural industry Awards 2009 Awarding f first FSMs First paid staff f NCTI 2010 Natinal mdern award fr strata management - Real Estate Industry Award 2010 VCAT s separate OC List created Plicy Psitins launched 2011 Change f name t SCA (Vic) New self-service web site slutin launched. This fllwed n frm initial 2008 implementatin f ASI s imis membership database sftware package 2012 Membership passes 500 a 5 fld increase ver 10 years SCA awarded $1m energy efficiency grant Established SCA (Tas) 2013 Fire services prperty levy began 2014 Significant changes t regulatry landscape, such as benefit principle changes, and changes t a vendr s disclsure in s32 re OC Certificates 2015 Financial psitin strength level f reserves reaches mre than 85% [ie accumulated surplus t perating expenditure] 2016 Full pst implementatin review f strata regulatry landscape, including the regulatin f managers Shrt term letting law changes Page 17 July 2016