Resort News - November 2020 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 291 | November 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profile: Mon Reve & Shafston Towers management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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Dennis Clark

Founder

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The legal stuff... The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer

Inside our November issue FRONT DESK Editor’s Note: Borders not a barrier for MR recovery ........................05

INDUSTRY News In Brief .........................................................................06 Special Report: ARAMA – what have you done for us lately? ........................................................................................10

Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2020 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

Person of Interest – Michelle Scott: From the cane farm to the Commissioner’s Office ...............................14 ARAMA Report ......................................................................16

State Report ........................................................................... 17 BCCM Report .........................................................................18 SCA Report .............................................................................18

MANAGEMENT By All Acconts....................................................................... 20 Legal Ease................................................................................21 Motel Market ......................................................................... 22 Prison, fines for trust account misuse........................ 23 Thinking MR........................................................................... 24

Good Governance ............................................................... 26 Intonet ..................................................................................... 28 Building relationships with your investors ................ 29

TOURISM PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au EDITOR

Mandy Clarke editor@accomnews.com.au

STAFF WRITERS

Rosie Clarke Grantlee Kieza David Carroll

DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Richard McGill

Stewart Shimmin advertising@accomnews.com.au Gavin Bill subscriptions@accomnews.com.au

CONTRIBUTORS Grantlee Kieza, Deb Morrison, Trevor Rawnsley, Col Myers, Michelle Scott, James Nickless, Jonathan Hanaghan, John Mahoney, Andrew Morgan, Mike Phipps, Lynda Kypriadakis, Arvo Elias, Kelley Rigby

Tourism International ........................................................ 33

EVENTS & APPOINTMENTS Women In Management ................................................... 34 Appointments ....................................................................... 36

DEVELOPMENTS

Development News ............................................................ 37

PROPERTY AccomProperties Sales Report .....................................40

PROFILES

KEY Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

Tourism Report .....................................................................30

Smart, talented, and committed: Debbie’s fresh take on MR ............................................... 44

PREFERRED SUPPLIERS The Preferred Suppliers Directory ................................46 FRONT DESK

44 ResortNews | November 2020

The hit on global tourism has been nothing less than brutal.

will give Australians certainty regarding bookings for 2021.”

The latest data from the World Tourism Organization (UNWTO) shows the 2020 pandemic caused a 70 percent fall in international arrivals this year. A number of experts suggest that global tourism recovery could begin in the third quarter of 2021, but others argue that 2022 is more realistic.

Mandy Clarke, Editor editor@accomnews.com.au

Either way, this isn’t good news for those operators who rely on incoming international visitors. Tourism Accommodation Australia (TAA) CEO Michael Johnson suggests that some international travel will resume in 2021, specifying low risk countries such as New Zealand, Singapore, South Korea, Japan and some of the Pacific Islands. He says: “While we look

forward to the return of some international tourism in 2021, hotels will be very reliant on domestic tourism and the return of corporate travel interstate to drive our recovery. To do this, we need to have all borders opened by Christmas, which is currently the sentiment of the National Cabinet. This

Meanwhile, although the whole accommodation industry is hoping for open state borders especially in and out of Queensland and the promise of a New Zealand bubble, the Management Rights industry has revealed itself to be more bullet-proof than most. Many MR managers’ report solid signs of recovery and healthy bookings especially over weekend periods, and permanent MR businesses continue to sell. This month, we also witnessed the historic election success of Queensland Premier Annastacia Palaszczuk. I can’t help but think that this indicates most Queenslanders do welcome her unwavering stance on border control. Many Queenslanders are happy for the borders to

remain closed, keen to travel within their own state, confident they are COVID-19 free. There are also many tourism operators and MR managers, especially in regional areas and in North Queensland, who are enjoying a resurgence of visitors thanks to the closed borders.

EDITOR'S NOTE

Borders not a barrier for MR recovery In this issue of Resort News, you will find all your favourite contributors alongside a new voice - Kelley Rigby, Managing Director of Letts Rebuild, who offers some interesting suggestions on building relationships with investors. Oh, and do not miss this month’s resort manager profile - it is a cracking good story! Enjoy your copy of the magazine and please get in touch we love to hear from our readers. Cheers, Mandy

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ResortNews | November 2020

FRONT DESK

NEWS IN BREIF

A new Code of Conduct and regulations for short-term rentals The NSW Government’s decision to introduce strengthened regulations and registration systems for NSW rental accommodation has been congratulated by accommodation bodies, and accom operators consider the decision long overdue. Industry body, Accommodation Association (AA) welcomed the introduction of a Code of Conduct (CoC), and confirmation that a full short-term rental regulatory framework including a Premises Register and final SEPP will be in force by June 1, 2021. Over the last eight months the NSW accommodation sector has faced consecutive revenue decline - a drop of 70-80 percent. Unregulated short-term rental accommodation has been a contentious issue for the industry, and it is considered that tighter regulations have been a long time coming.

Accommodation Association CEO Dean Long said: “Until now, shortterm rental accommodation has operated without the measures, controls and regulations that the traditional accommodation sector is required to meet. The NSW Government is now moving to level out the playing field by addressing this significant regulatory imbalance. It is in the sector’s interests and in the interests of hosts and consumers and those living close to these properties that the appropriate frameworks for safe and appropriate operation are in place.” The new regulations follow changes to the Fair-Trading Act 1987 and Strata Schemes Management Act 2015 in April, which permits NSW strata properties, via by-laws, to prohibit short-term letting. By mid-2021, a strong Code of Conduct will be in place which outlines the rights and obligations of short-term rental accommodation industry participants plus strengthened planning regulations supported by a registration system for

oversight and the above changes to the Strata Schemes Management Act 2015. Tourism body, Tourism Accommodation Australia (TAA) agreed that the new mandatory CoC will help level the playing field for established accommodation hotels. TAA, NSW, CEO, Michael Johnson said the code includes obligations for hosts, guests, online booking platforms and letting agents, as well as a complaints process for anyone to complain about breaches. He said: “TAA thanks the NSW government for listening to our concerns and implementing these much-needed changes. With the new code of conduct and registration and planning laws in place we can hope to see a regulated short-term rental accommodation environment that complements the accommodation sector rather disrupting it.” Mr Johnson added that the Code of Conduct comes at a crucial time for the industry. The national body for the Australian short-term rental

accommodation industry (ASTRA) has also welcomed the release of the CoC in NSW. Rob Jeffress, Chairman of ASTRA said it will introduce professional standards across the industry. ASTRA represents the 70,00080,000 STRA mum and dad, families, and small business operators with a combined investment in excess of $35 billion. According to Jeffress “ASTRA recognises the use of ‘residential properties’ as having a legitimate position in the accommodation sector. Given that STRA comprises around 25 percent of all tourism accommodation in NSW and up to 50 percent in regional areas, where it is a key driver for local tourist economies and jobs, the CoC will give clarity, and a state-wide regulatory framework while allowing flexibility for local government controls. “The CoC will set professional standards; make sure properties are safe and compliant; target and address issues such as irresponsible owners, dodgy operators, party houses and bad guests.”

Dog versus strata? Dog wins! A landmark judgement made in NSW delivers a huge win for Angus and all apartment owners with pets! The highest court in New South Wales has delivered a decision that has struck down an attempt from one of Sydney’s most famous apartment buildings to ban animals. The Court of Appeal invalidated the apartment building ban on animals and the decision will have wider ramifications for owners corporations and apartment owners. Bartier Perry partner Sharon Levy explains a unanimous decision from three Court of Appeal

judges on The Horizon’s attempt to ban animals from the building was a breach of legislation. She said: “This decision effectively changes the way owners’ corporations can govern their strata schemes.” Ms Levy’s firm represented Jo Cooper, the owner of a 13-year-old miniature schnauzer named Angus, the court found that banning animals breaches strata scheme legislation which provides that by-laws can’t be “harsh, unconscionable or oppressive.” Ms Levy said the decision of Angus’ owner Ms Cooper to fight a lengthy legal battle to keep Angus in her apartment had not only been vindicated but was also set to impact thousands of apartment owners across the State.

Cookie is a proud resident of an apartment building in QLD and was very happy to hear the news. Image supplied

“This ruling may have far wider ramifications as to the by-laws owners corporations can impose on apartment owners. Every dog has its day but Angus’ win could mean some significant changes and legal challenges to by-laws for years to come,” said Ms Levy. Ms Cooper said she was overwhelmed by the court decision after a five year legal battle to keep Angus in her apartment.

INDUSTRY

“The emotional toll from pursuing this case has been incredibly hard. Yet throughout the last five years I’ve also lost count of the number of pet and apartment owners who have reached out and supported our stance. “Today is a win for Angus but it’s also a decision that will hopefully ensure owners corporations take a more balanced approach to the governing of apartment owners,” said Ms Cooper. ResortNews | November 2020

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6 tips for hotels, caravan parks & providers who want to accept pets By Deb Morrison, PetCloud

can pick out the right treats for your new furry guest.

One important decision operators will need to make is whether you want to allow pets.

Just bear in mind that different pets do have vastly different diets according to their needs. Switching their diets can cause upset tummies, Upset tummies can cause dogs to vomit or have diahorrea. Vomit can ruin your carpets, stain, and leave smells and be a cleaning expense.

While allowing pets will increase your vacation rental pool, it will also increase the wear and tear on your hotel rooms. If you are considering offering your hotel rooms, cabins, or caravans as a rental for people bringing their pets, you will likely want to do the five following things.

If you are then blamed for any illness for treats supplied, you may be up for expensive Vet Bills.

1. Take out the carpeting Dogs, cats, and other pets may tear up or otherwise damage your carpeting. To avoid having to repair or replace carpeting after a misbehaving animal destroys it, replace all, or at least most, of your carpeting in your property with laminate, tiling, or another flooring that is likely to better withstand your guests’ pets.

2. Create a pet-friendly outdoor space The amount of space that you dedicate to your guests’ pets will depend on your property’s outdoor area. At the very least, your guests who are bringing their pets along will likely appreciate a large fenced-in grassy area where they can play with their pets and allow them to go outside without worrying about them wandering away. When listing your property, you will want to make sure to highlight this outdoor space, even including a few pictures of it so potential guests can see why your property is a great place for them to stay with their pets.

3. Let your guest know about other local petfriendly locations If there are other great petfriendly areas around your property, it is also a good idea to leave your guests information about these places. You can create a short

Image courtesy of PetCloud

brochure that you leave on a table or counter where your guests can see it and determine any places they want to visit with their pets. Your brochure can even include basic maps to these locations as well as the approximate distance to the location. If there is a cost to visit these places, include that in the brochure as well.

4. Establish rules To ensure that your guests and their pets treat your property with respect, you will need to establish rules. These rules should be included in the contract and should be posted somewhere on the rental property. You can frame the rules and put them on a wall in the living room or in another area where your guests can see them. Your rules may include stipulations about how many pets your guests can bring, what types of pets are allowed in the rental, and any fines or fees you will charge, either for disobeying the rules or for any damage that their pets cause to the property. Some vacation rental owners choose to charge a deposit if a person brings along a pet. Then you can return all or a portion

of the deposit if the renter’s pet does not cause damage. It is also important to make it clear that this is a pet-friendly property. Those with pets, as well as those without pets, will appreciate this courtesy. Even though you will want to make sure that your rental is thoroughly cleaned after every guest, even just a few leftover dog hairs could cause a problem for someone with a pet allergy, or an outbreak of fleas. Pets absorb poison through their paws, so any cleaning and pesticides used on the property will need to be non-toxic for pets.

5. Liability with leaving treats If you’re considering allowing pets in your vacation rental property, you are likely an animal lover yourself. You may be thinking of leaving treats for the pets so they will feel like an appreciated guest. You could have a cookie jar full of dog treats or include a package of treats on the counter for your animal guests to enjoy. Let your guests know that these are complimentary. You may even want to ask your guests about their pet’s favourite treats or any dietary restrictions so you

INDUSTRY

Of course, these are just a few tips for vacation rental owners. The key really is to make your rental pet-friendly while also making it clear that you expect your guests, both humans and animals, to show respect toward your property.

6. Consider partnering with a dog walking or doggy day care service If your guests are wanting to go to theme parks for the day, or National Parks or some Beaches, Marine Park protected Beaches, National Parks, and Theme parks don’t allow pets. So, leaving fido locked up in-doors all day may cause an excess of built up energy which may result in excess barking or room destruction. Caravans and Cabins in particular will also need ventilation and heating or cooling to be running all day to avoid heatstroke over summer if pets are left behind, increasing running costs. This article was submitted by PetCloud, which is a national, Australia-owned and operated service to help operators costeffectively reduce wear and tear. Part owned by RSPCA Qld, PetCloud offers a “Dogcierge” with Pet Taxis, Doggy Day Care and Dog Walking (& more). All Doggy Day Carers and Dog Walkers are police checked and insured. National Customer support is provided by RSPCA Qld Staff.

ResortNews | November 2020

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SPECIAL REPORT

ARAMA – what have you done for us lately?

By Mandy Clarke, Editor

It is very rare to come across an industry so small in size, yet big of heart. Management rights (MR) sure is resilient! However, the continued success of MR businesses will always depend on the strength of its operators, members, ethical professionals, and the legislation the industry is built on. It has been a tough year, perhaps the toughest our industry has yet to experience but despite this, the managers who talk to Resort News and AccomNews rarely report doom and gloom. Instead, they are some of the most positive people you will find. Pockets of MR managers have tentatively reported good postCOVID recovery and some even say they are busier than ever! Others have reported they are experiencing a steady recovery, better than they had expected in such unusual circumstances. Of course, sadly, there are some resorts in trouble but far fewer resorts seem to be struggling than expected.

In an era where most companies hide behind email, it was such a pleasure to deal with a company that actually liked talking to its clients its members, especially during a crisis, has become much more apparent during COVID. Trevor Rawnsley is ARAMA’s CEO, and he has been an MR operator himself. He is a passionate industry professional who is very protective of management rights culture. In his role, over many years, he has battled behind the scenes, lobbying government and others to ensure the best outcomes for members, managers, stakeholders, and professionals.

Exactly how much more ARAMA does, and how important it is to

“My role is to advocate for a business model that’s not always popular, and so it is my priority to protect MR laws, with a deliberate strategy to keep the laws same, for the benefit of this business. “ARAMA members may not always recognise the extent of our work, because we cannot always reveal our strategies. However, I am very privileged to work with very clever lawyers to serve this industry and to protect a business model that has been consistently under attack from proposed legal changes.”

Resort News caught up with the industry’s peak body... The Australian Resident Accommodation Manager’s Association (ARAMA) to ask how and why (for the most part) our industry appears to be “bullet proof”. I asked, what have they done for us lately? ARAMA has a long history with the MR industry (over 30 years) and represents over 2500 resident managers of holiday letting, permanent rental and mixed-use buildings. Its main job is to protect the MR legislation that ensures the success and viability of your business. It does a lot more, too…

“I work hard to make sure that the MR laws are not changed for the worst. The Government reviews all laws every seven years and the MR industry always seems to be under attack from attempts to water down the legislation in the interest of consumers but to the detriment of MR operators.

However, 2020 has been ARAMA’s biggest year of all. This has been the year that ARAMA has been able to show off its true colours and showcase true value to its members.

Trevor Rawnsley

You could call Trevor our “industry gatekeeper”. Trevor explains: “My biggest battles have been to do nothing and, by this, I mean to keep the very well written original MR legislation exactly the same!

When Trevor describes the moment he realised the extent of the pandemic and its consequences, March 13, it is clear how affected he was by the news. At the time, he described it as “a pivotal date

INDUSTRY

that changed everything”, but it was also the day that many of us in the industry turned to ARAMA for advice, help and support. Using hindsight, Trevor says that March 13, 2020 was the day ARAMA had been working towards for many years, without even knowing it! He suggests that many events leading up to this crisis were “synchronicity”, and explains the work ARAMA put into building relationships with other organisations and the decisions made in 2019 created “a perfect storm” for ARAMA members to access the best help, and this enabled them to ride the wave of COVID in better shape than most. Trevor says: “Of course, no one could have predicted this pandemic but the groundwork for a crisis had been done and a safety net was in place for our members.” He explains: “ARAMA is privileged to be relied upon by its members to provide them with information in timely and clear ways. However, ARAMA also relies on having good relationships with other industry organisations and experts, especially AccomNews and Resort News, to help ‘colour in’ the picture. “For instance, ARAMA may release a health directive but the publications always provide excellent expert commentary and context, and this helps members understand how the directives apply to them.” According to Trevor, ARAMA has received very positive feedback from its members, many report that throughout COVID they not only relied on the information, advice and support provided by ARAMA but they also depended on the inciteful information and commentary from Accom News and Resort News. Moreover, members also state that the AccomProperties (AP) ResortNews | November 2020

website provided an important safety net for their MR business when they needed it most. Trevor fiercely agrees and says that without ARAMA’s special relationship with AP, and without APs delivery model that helped members segue from holiday letting to permanent rentals during COVID restrictions, many “ARAMA members would have been stuck with empty beds”. He says: “AP delivers connectivity to members for platforms like realestate.com.au and others, alongside essential ancillary services and advertising portals, allowing members to take their rental accommodations and sales listings to market in the most cost-effective ways. “Members ask me, how is it so cost effective? I explain that it is only possible because of the close working relationship ARAMA has built with the AP organisation. In 2019, we formed a partnership and agreed special rates for ARAMA members who join AP, both organisations identified a need for this important cost-effective service because members were not receiving it from anyone else.”

As a result, AP is now a market leader. It provides a tailored, cost-effective service to members, it gives them exactly what they need and evolves with them. During the COVID crisis, this model provided managers with an easy way to convert their holiday beds to long stay beds, it provided flexibility, it was prompt and very cost-effective and helped the MR industry, managers and unit holders in a great time of need.

Patrick Clarke

Patrick Clarke, owner and manager of AP agrees: “Our portal was designed to specifically meet the needs of MR industry, we had the

insight to do this because of our longstanding relationship with ARAMA, our AccomNews website and especially our highly respected management rights publication, Resort News. Our experience and contacts mean that our team always has its finger on the industry pulse.” He explains: “AP was created in direct response to manager’s needs and is designed to be a comprehensive and easyto-use vehicle to sell and rent accommodation property. We are the only organisation that shows such strength of support for this industry and ARAMA members. Only this month we became one of the sponsors of the Women In Management rights (WIM) events for the next 12 months. Other organisations may claim to offer all sorts of ‘bells and whistles’ features in order to try and entice you to sign up to their service, however you will find that they do not have the desire or experience to support, protect or defend the MR industry and its members as AP does.” Patrick continues to welcome new members to AP: “Although we are the new guy on the block,

AP has experienced phenomenal growth in the short time it has been operating and it has grown well beyond our expectations. I am also very pleased to have received such fantastic feedback from managers who appreciate the intimate and personal service we offer. It has been a hard year for all of us in any business, but I am very proud that AP has provided a shining light for so many.” When faced with a pandemic ARAMA really “stepped up” says Eric van Meurs the former National President of ARAMA, a management rights owner/ manager and a member of AP. He said: “When crisis hits our industry, it brings out the best in all of us. Within days of the unfolding pandemic: The ARAMA Board of Directors, CEO, staff, and industry leaders stepped up to ensure members had access to vital information to protect their staff, guests, and businesses.” It is true, ARAMA immediately organised weekly webinars that replaced face to face meetings and offered a vital lifeline to many of us in the industry.

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ResortNews | November 2020

INDUSTRY

The sessions provided access to industry experts, wise advice, and plenty of reassurance. A 24/7 crisis phone support was also provided, from an industry leader who advocates for the management rights industry and is a former resident manager himself. ARAMA provided educational events and e-News Bulletins also protocols and they prepared best practices for resort managers. They were the main source of essential advice for its members and all MR professionals, in a period of vast uncertainty, when health guidance, advice and restrictions were changing every day!

listed and, if fully licensed, then those that come up for sale as well. The platform could be a revenue generator and means of managing the rental pool. AccomProperties is a wellrespected platform that has extensive industry knowledge and experience, and we are very happy to be able to partner with them in taking it to market.”

ARAMA made pandemic operational plans available to all members and managed crisis calls from distraught members. Clusters of members were able to reach out and support one another and face local challenges together.

One of many testimonials for AP from MR managers: Sophie Dillon, Resident Manager at Alexandria Apartments, states: “It was such a pleasure to deal with AccomProperties they actually liked talking to its clients! It was the first time we needed to use an online residential rental and sales listing marketing service – and the service we received from Patrick at AccomProperties was superb! Patrick was always available and incredibly helpful. He anticipated our needs and fixed our problems promptly and effortlessly.

it was clear that ARAMA was the only body dedicated to the growth and protection of the management rights industry. ARAMA membership is the single most important “investment” I have made into the success of my management rights business.”

listed with AccomProperties. All resident managers, and in particular ARAMA members, should be excited about this initiative. The ‘easy-to-navigate’ system allows managers to be more efficient in what we do - generating more revenue for owners and ourselves.

Talking about the value of ARAMA, Eric said: “Before I purchased management rights,

About AP, Eric said: “I would encourage all managers to get their rental properties

“I would encourage all managers to take up the opportunity to get their rental properties

“In an era where most companies hide behind email, it was such a pleasure to deal with a company that actually liked talking to its clients.”

WOULD YOU LIKE TO HAVE YOUR PROPERTY FEATURED IN RESORT NEWS? PROFILES ARE A FANTASTIC OPPORTUNITY TO: resortnew • Impress your unit owners s • Receive recognition for your hard work (and that of your staff) • Lift the awareness of your property within the industry • Help build relationships with other managers • Lift the profile of your property for when you are ready to sell

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INDUSTRY

ResortNews | November 2020

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PERSON OF INTEREST

Michelle Scott From the cane farm to the Commissioner’s Office

By Grantlee Kieza, Industry Reporter

“My first job was in a law firm in the Brisbane CBD for about four years and I also spent a year and a half in the mid-90s working in London as a corporate lawyer.

Michelle Scott grew up just outside Mackay on her parents’ cane farm watching them solve the many vagaries of life on the land.

“I came back to Brisbane in 1997 and I joined the public service for the first time at the Office of State Revenue. Since then I’ve had a variety of roles in the public and private sector.

She now brings vast experience in many fields to her new role as Queensland’s Commissioner for Body Corporate and Community Management.

“I’ve come to my new role from the Queensland Treasury where I was Director of Land Tax in the Office of State Revenue. Throughout my time in legal practice and at the Office of State Revenue working in the tax sphere, I have had a lot of involvement with the property industry.”

In a rural city, which was starting to celebrate the potential of its local hero Cathy Freeman, then a teenage athlete with golden potential, Ms Scott was off and running at the same time to meet her own lofty goals. Her parents are still working the cane farm and she tries to visit every year, but after doing her primary and secondary schooling in Mackay she left the sugar town in the late 80s to study at the University of Queensland in Brisbane. Her interests away from the office include skiing, the beach, bushwalking and reading and she tries to run twice a week to stay fit.

Michelle Scott

Her education was a real marathon “I completed my commerce degree and a law degree with honours at the University of Queensland and I’ve also

done a diploma of education. I have a graduate certificate in management from Flinders University, too,” Ms Scott said. “I’ve done a lot of study. I guess I’ve always just loved to learn. INDUSTRY

Ms Scott started in her new role in April 2020 at a time when COVID-19 was turning the world on its head including the community titles sector which she says “has grown over recent years and now represents 500,000 lots in Queensland”. Ms Scott said the COVID-19 environment was an especially challenging time with financial pressures, changes, and uncertainty “affecting people who are living, working and investing in community title schemes”. ResortNews | November 2020

“They are having to deal with issues that are new and that they could not have foreseen six or 12 months ago,” she said.

The whole premise of the Community Titles Scheme in Queensland is around self-management

“I’m fortunate to have a committed team that is providing information to people about their rights and obligations. We have a wealth of information on our website to try to support people and to help them resolve any issues they are having in their communities.” She said her office’s dispute resolution service had seen an increase in applications since COVID-19 started. “Some of the issues are coming about because of financial pressures and the fact that more people are working from home, so people are living in their properties in a different way to what they used to. “Common issues are around pets, noise, smoking and parking. “These can be highly emotive issues because people are very concerned about their homes and what may be the most significant investment in their life. “The other thing that sets these

more likely to promote harmony going forward,” she said.

disputes apart is that they are with someone who is potentially your neighbour and you need to live beside them going forward.” Ms Scott said, “the whole premise of the Community Titles Scheme in Queensland is around self-management”.

Buying (existing businesses and off the plan), selling, renewals, new agreements and dispute resolution

Bodies corporate are also unable to charge late payment penalties for overdue levies.

(07) 3226 3944 Matthew Russell,

Vanessa Sciortino,

mjr@nicholsons.com.au

vas@nicholsons.com.au

Partner

Special Counsel

www.nicholsons.com.au ResortNews | November 2020

“While those measures are there to help bodies corporate and committees to help navigate the financial challenges,” Ms Scott said, “the overriding consideration always needs to be that committees and bodies corporate are acting reasonably in the circumstances. “A priority for me is supporting my team and the Community Titles Schemes in Queensland as everyone tries to navigate the complexities that COVID-19 has caused.”

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Ms Scott said that in May 2020 the Queensland Government introduced a range of measures designed to alleviate the financial burden caused by the COVID-19 emergency on Community Title Schemes. They include body corporate committees being able to extend the date for payment of levies if they are satisfied that an owner is experiencing financial hardship because of the pandemic.

“The legislation gives communities a framework to self-manage and a key part of the success of that is that the parties in the scheme do their best to resolve issues themselves so that they can come to an understanding and mutual agreement that is

Management Rights Lawyers Management Rights

“Our office always encourages parties to do what they can to resolve disputes themselves.”

There is now also the provision for bodies corporate to double the maximum amount they can borrow and to adopt a smaller sinking fund budget, if approved by ordinary resolution.

& POSITIONS VACANT DIRECTORY RELIEF MANAGEMENT ROB & LYN KEEN Mb: 0406 884 343 E: roblynkeen@gmail.com • Relief Onsite Managers • Experience with managing both short term and permanent complexes • Gold Coast, Brisbane, Sunshine Coast preferred Area of Service

To advertise, call Gavin Bill on 07 5440 5322 or email service@resortpublishing.com.au GC Key: (GC) Gold Coast (BR) Brisbane (SC) Sunshine Coast (NQ) North Qld

(WQ) West Qld (CQ) Central Qld (VIC) Victoria (NSW) New South Wales

© 2020, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

INDUSTRY

ARAMA REPORT

The new era for accommodation providers With planes grounded, passengers reluctant to fly and international restrictions still in place, accommodation providers are directing their efforts towards the drive market to attract Australians looking to the open road for their next getaway. The June 2020 quarter revealed just how much COVID-19 impacted domestic tourism with Tourism Research Australia reporting overnight spend 80 percent down on last year while overnight trips fell 67 percent. However, in recent months we have seen a resurgence in people keen to pack up the car and splash some cash in their own

The convenience of electronic body corporate processes is expected to assist in encouraging greater participation Trevor Rawnsley, CEO, ARAMA

backyard - and it’s something they’ll be looking to do for some time - until people are confident with travelling overseas. As accommodation providers capitalise on this opportunity, there has never been a more important time to listen to customers.

The pandemic has not only changed the logistics of how we travel, but it has also shifted our priorities and approach to taking trips and where we choose to stay. As operators, we have to rethink what accommodation means in the context of social distancing and hygiene - and do everything we can to give guests confidence in booking with us. The once hidden task of cleaning has quickly become a key selling theme, with messages reaching every guest touchpoint from the website at time of booking to the confirmation email received to the native displays when they check in.

There are so many different moving parts to Management Rights ownership. Liam Kennedy Consultancy Services specialise in ensuring all of those moving parts are optimised and functioning correctly. Whether you are new to the industry, looking to set the business up for sale, or needing assistance in day-to-day operations, LKCS can help you.

In this regard, people are also looking for smarter accommodation options remote check-in and other services through mobile phones that limits the amount of contact needed. It is set a new standard for both customer experience and expectation.

Our services include: - Caretaking agreement top ups/new agreements - Understanding caretaker responsibilities - Repairing and mediating Body Corporate relationships - Strengthening and maintaining owner relationships - Strategic planning to protect and grow your letting pool - Optimisation of marketing opportunities - Front and back of house advice

We may also start to see people taking longer trips, adding and extra week or two to their itinerary to stay and work remotely. This means they will be searching for places with high-speed wifi, an appropriate place to work and perhaps even pet-friendly options. And this extra flexibility may come with the need to change their plans. People are searching for more flexibility in their booking terms and conditions, which means being transparent about cancellation policies, refunds and amending booking dates. Even as flight activity returns to near pre-COVID levels, it is clear that some of these trends are here to stay – and leading operators are innovating change to future-proof their business. We have all had the opportunity at some stage this year to stop and think about what is really important in life – and COVID-19 certainly hasn’t dampened our innate human desire to travel.

QLD - NSW - VIC - WA

Please contact Liam Kennedy m 0412 365 251 | e liam@lkcs.com.au | w lkcs.com.au

INDUSTRY

ResortNews | November 2020

Preparing for mediation

Community living can be challenging at the best of times, but since COVID-19 started to impact our lives, I have seen an increase in disputes between building managers and strata committees in NSW. I have no doubt that this has come about because of the increase in the number of owners that have been unit bound and who seem to have nothing better to do with their time than to watch their building manager perform their daily duties. Things that might ordinarily be dismissed or not even noticed at all, are now under scrutiny on a daily basis. Managing these disputes can be tricky, as managers are usually balancing the benefit of doing everything they are asked to do to make the issue go away, versus the time and resources required to do so (which no doubt managers would rather be using elsewhere). Managers don’t want to find themselves in a situation where some small and previously insignificant issue results in the Owners Corporation serving a default notice for a breach of the building manager’s duties. Many disputes can be resolved quickly if they are discussed openly. This is the ideal approach and should be your first strategy to avoid matters escalating beyond a simple misunderstanding.

You should be fully prepared when you go into a mediation session and bring any relevant documents or photographs you might need.

Col Myers, Small Myers Hughes

of a neutral mediator who helps the parties come to an agreed settlement. The intention of mediation is to give both sides the opportunity to sort issues out in a way that works for everyone. Disputes between building managers and owners corporations are well suited to mediation. The NSW Office of Fair Trading provides a free mediation service that can be used by building managers. The mediator’s role is to: •

help identify the issues in dispute; and

•

assist the parties to raise and consider options and strategies by which the issues may be addressed.

Professional mediators are skilled facilitators who will assist in ensuring both sides are heard. The mediators’ job is to be impartial and their primary role is to encourage open communication that is both respectful and productive.

Before entering mediation you can also get your own legal or other advice, and this is recommended for complex matters or matters that relate to your rights and obligations under a contract.

You can appoint a solicitor to represent you at the tribunal, however, whether you win or lose, each party will generally have to bear their own legal costs as the tribunal, in most circumstances, does not have the ability to have the loser pay the winner’s costs.

The mediation

Things to remember

At a standard mediation, each party will have an opportunity to briefly describe the dispute and state what they are hoping to achieve from mediation. The mediator will then help the parties discuss and explore the issues, identify options, and negotiate possible settlements.

If you are a building manager and you find yourself in a situation where the owners corporation are looking closely at the performance of your caretaking duties, don’t ignore their emails and phone calls and instead, proactively address their concerns. If you take action sooner, rather than later, you will save yourself stress and money in the long run.

When an agreement is reached during the mediation, the mediator can help draft a written agreement that reflects what has been agreed. Agreements made during a mediation can also be made into an enforceable order if both parties consent. There is no fee charged by NSW Fair Trading for the mediation services they provide. Everyone is responsible for their own costs incurred in the lead up to, and during, mediation, unless it is agreed otherwise during the mediation.

Mediation

All the relevant people involved in a dispute should attend the mediation session. This includes the building manager’s representatives and the key strata committee members.

Mediation is an informal negotiation process which is aided by the presence

Solicitors are only present at a mediation if the other parties approve.

As with mediation, it is in your interest to attend the tribunal when your matter is being heard.

If this doesn’t work however (and before words like ‘see you in court’ or ‘I’m going to sue you for all you’ve got’ get thrown around), participating in a mediation should be your next step.

ResortNews | November 2020

Note, however, that all is not lost just because the owners corporation issue a termination notice. Remember that: •

The strata committee alone cannot terminate a building manager’s agreement.

•

The termination of a building manager’s agreement must first be authorised by a majority resolution of the owners corporation at a general meeting.

•

Any termination process set out in the building manager’s agreement (e.g. issuing a notice to remedy) must be followed exactly to be effective.

•

If the owners corporation fails to correctly follow the termination process set out in the agreement, it may, itself, be in breach of the agreement.

Where to if mediation doesn’t work? For a dispute between a building manager and an owners corporation, if the issue is not resolved by mediation, an application can be made to the NSW Civil and Administrative Tribunal. Most disputes between a building manager and an owners corporation will need to go through the mediation process before the matter will be looked at by the tribunal.

At mediation, issues can be considered, decided and actioned by both the owners corporation and the building manager.

If you are unable to attend in person, you can request a telephone hearing or present your case in written form.

INDUSTRY

STATE REPORT

Disputes with managers: side effect of COVID-19?

Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

BCCM REPORT

New regulations for community titles schemes September 29, 2020 was a momentous day for the community titles sector, as it saw the making of new Body Corporate and Community Management Act 1997 regulation modules that will modernise body corporate procedures, reduce body corporate costs and enhance protections for unit owners.

SCA REPORT

The new regulations represent the culmination of work by the Queensland University of Technology (QUT) to review current laws, and an extensive Queensland Government-led consultation process in relation to QUT’s recommendations and the new regulations. The new regulations will apply to all community titles schemes under the Body Corporate and Community Management Act

Michelle Scott Commissioner, Body Corporate & Community Management

1997 and will commence on March 1, 2021. This six-month timeframe will provide those living, working, and investing in community titles schemes with the time needed to understand how the new regulations will apply in their scheme and to prepare for any changes.

•

Electronic voting and attendance During the COVID-19 pandemic, individuals and organisations across all sectors have embraced

Voting and non-voting body corporate committee members, and in some cases owners and certain owner representatives, will be able to attend a committee meeting electronically if authorised by the committee. Committees will be able to authorise electronic attendance: for a particular committee meeting or any committee meetings; using a particular electronic means, or

•

A body corporate will also be able to decide, by ordinary resolution, that owners can: attend a general meeting by electronic means such a videoconferencing; vote electronically.

•

Documents or other information that may be given under the Act or regulations, such as documents given by owners to a committee or notices of general meetings, or copies of committee meeting minutes given to owners, may be given by email, or by other agreed electronic means such by posting to file-sharing sites.

A system for receiving electronic votes, and notices and instructions to owners about electronic voting, must meet certain requirements to ensure the integrity of electronic voting processes.

Committees There are several other changes for body corporate committees to be aware of in the lead up to March 2021. From March 1, 2021: •

Membership of new committees may look different. This is because eligibility of any two committee members cannot derive from ownership of the same

COVID-19 laws give clarity Right before the Queensland Government entered caretaker mode, we have received longexpected new regulations to assist the strata sector in better servicing the 1.2 million Queenslanders living or working in strata.

rights to common areas and body corporate assets during coronavirus. The new laws give clarity that committees can make decisions affecting these things where necessary to comply with public health directions, meaning better outcomes for each body corporate as well as residents and owners.

The government has also finally adopted vital changes for the management of bodies corporate to react to the coronavirus crisis as proposed by SCA (Qld) many months ago.

In March 2020, SCA (Qld) wrote to the Attorney-General regarding the difficulty of holding meetings in compliance with the BCCM Act while the pandemic was emerging.

Apartment, townhouse, and other community title residents

the benefits of electronic technologies to help them communicate and conduct business and other activities. One of the key objectives of the new regulations is to help modernise body corporate procedures by allowing for greater use of electronic technologies to attend and vote at meetings, and to give and receive documents. Under the new regulations, from March 1, 2021:

any electronic means.

James Nickless, President, SCA, Qld

and owners will know that there was much confusion around the authority of the committee to make decisions that may affect

In April, the initial COVID-19 Response Act was implemented

INDUSTRY

to further protect residents affected by the COVID-19 emergency. At that point in time, authority was given to the Department of Justice to implement temporary changes that would verify the industry’s practice of holding body corporate meetings (including general meetings) remotely. Unfortunately, we were surprised and disheartened by the lack of action until another six months on. SCA (Qld) continued to make submissions reinforcing that interim regulations must be enacted and should be retrospective to the start of ResortNews | November 2020

lot. Except in certain circumstances, an owner cannot be a voting member of a committee at the same time as a family member, co-owner, or a person who holds a power of attorney from the owner unless they own a separate lot. •

An owner who submits a motion to be considered by the committee can expect an outcome within specified timeframes. The new provisions set a timeframe of six weeks, which may be extended to 12 weeks if required.

•

Committees members have up to 21 days to respond to a vote outside a committee meeting, otherwise the motion is deemed not passed if not enough votes are received within this timeframe.

•

Committees will be able to approve insurance policies for their schemes, in most circumstances, to avoid unnecessary delays and risks.

•

A committee member who owes a body corporate debt, or who was nominated by an entity that owes a body corporate debt, is a debtor member and ineligible to vote at a committee meeting, or by a vote outside a committee meeting.

the pandemic, which were eventually responded to and implemented with the new regulations released in October. Since the temporary regulations also apply retrospectively, they validate all the remote meetings that were held by electronic means when the applicable legislation has some technical hurdles to holding meetings like that. It is a relief to see that we are better equipped to guide committees through any potential future lockdowns and that they have options how to handle common property facilities. SCA (Qld) welcomes the changes and we believe they are practical and reflected the ResortNews | November 2020

General meetings •

To prevent what has become known as ‘proxy farming’, except in certain circumstances, a person will only be able to vote on motions at a general meeting, under the authority of a power of attorney for one lot owner.

•

New ‘group of same-issue motions’ procedures will also apply, to facilitate fair and appropriate consideration of multiple motions about the same issues at general meetings.

•

More flexible quorum requirements for general meetings. A body corporate can reduce the number of voters required to be present at a meeting to achieve a quorum, within certain limits, and reduce the number of voters who must be personally present to one. Bodies corporate are also able to decide that a person is personally present if they can cast a vote electronically at the meeting (for example, by teleconference).

Improved lot owner protection To improve protections for owners, under the new regulations: body corporate managers and caretakers will be required to disclose the

The convenience of electronic body corporate processes is expected to assist in encouraging greater participation amount of monetary benefit they are entitled to receive if a body corporate enters into an insurance policy or other contract; and new schemes will be subject to defect assessment requirements. The new Standard Module restricts committee members from receiving direct or indirect benefits from caretaking service contractors and service contractors unless the body corporate has authorised the receipt of the benefit by ordinary resolution. The measure is intended to prevent inducements or rewards being given to committee members for preferential consideration of a contractor. Additional items have been added to the list of documents developers must hand over to the body corporate at the first annual general meeting, including a copy of the development approval if one was required and the schemes community management statement. The new regulations will be

industry position and SCA (Qld)’s ongoing advocacy efforts. These regulations draw heavily on the best practice guidelines put together by SCA (Qld) in the wake of the first wave of coronavirus and our advice to government at the start of the pandemic. The 50,000 schemes in Queensland can now function much more smoothly, managing their pools, gyms, and common property effectively and in compliance with health directions that may be issued in the future. Rather than being treated as commercial facilities, strata gyms and pools now have some options to manage opening times more efficiently – that is until December 31 unless extended.

Unsurprisingly, throughout the coronavirus crisis, SCA (Qld) has been relentless in advocating to government, regulators, and stakeholders on the need for reasonable flexibility for bodies corporate during this time. Additionally, we created comprehensive guides to help assist strata managers and lot owners navigate what has been an incredibly uncertain time. To one extent or another, our lives and our livelihoods are being carried out remotely, and body corporate meetings are no different. These laws extend the certainty to committee members, lot owners and strata managers that they need to get on and make decisions pragmatically. SCA (Qld)’s purpose is to

INDUSTRY

welcome news for many across the community titles sector, who have been seeking more flexible and contemporary body corporate procedures to support self-management of schemes and harmonious community living. In today’s busy world, the convenience of electronic body corporate processes is expected to assist in encouraging greater participation in body corporate decision-making. The new limitations on committee memberships, voting and use of powers of attorney are designed to ensure fair representation in these decisionmaking processes, and the new disclosure requirements to assist in ensuring owners have the information they need to make informed decisions. For further information about these and other changes in the new regulations and how they apply, contact our Information and Community Education Unit on 1800 060 119.

advocate for and educate the sector’s professionals, so naturally we held a free memberonly webinar discussing these new regulations, which was wellreceived. We wanted to make sure that our members were educated and informed about what these new regulations meant for their scheme and what actions they needed to take. After all, member education is a major part of our work at SCA (Qld) and we are dedicated to providing the best education possible covering topics that our members want to see. We engage industry professionals as presenters to ensure members are hearing from the best of the best, and people who know strata inside out.

BY ALL ACCOUNTS

JobKeeper extension and alternative tests The Treasurer has released the detailed rules governing eligibility for JobKeeper after September 28, 2020 (known as JobKeeper 2.0). The Tax Commissioner has also issued a legislative instrument outlining the alternative tests for satisfying the additional decline in turnover test. As a starting point, for an entity to be eligible for JobKeeper 2.0 it must satisfy the following conditions: •

It must have carried on a business in Australia on March 1, 2020 (different rules apply for non-profit entities);

•

It must pass the original decline in turnover test; and

•

It needs to pass an additional decline in turnover test.

The original decline in turnover test is the same test as was necessary to access

Jonathan Hanaghan, JohnathanGrant Accountants

JobKeeper originally, and involves comparing projected GST turnover for a particular month or quarter in 2020 with current GST turnover for the corresponding period in 2019 to determine if there is a decline in turnover of the relevant percentage (i.e. 15 percent, 30 percent or 50 percent depending on the entity). As part of the new rules, the periods in which entities can pass the original decline in turnover test have been expanded. The test will be satisfied if the entity can pass the test for any of the following periods:

•

Monthly test: April, May, June, July, August, September, October, November, December

•

Quarterly test: June quarter, September quarter or December quarter

amount compared with current GST turnover for the December 2019 quarter.

Once the original decline in turnover test has been met, it is necessary to confirm that an additional decline in turnover test is met to access JobKeeper for each of the two additional periods (September 28, 2020 to January 3, 2021, and January 2021 to March 27, 2021). For the first period (September 28, 2020 to January 3, 2021), the entity must be able to show that current GST turnover for the September 2020 quarter has dropped by the required amount compared with current GST turnover for the September 2019 quarter. For the second period (January 4, 2021 to March 28, 2021), the entity must be able to show that current GST turnover for the December 2020 quarter has dropped by the required

The way the rules are drafted means that an entity can potentially access JobKeeper for the extended periods between September 28, 2020 and January 3, 2021 and/or January 4, 2021 and March 28, 2021 even if it doesn’t qualify for JobKeeper in an earlier period. In relation to the new additional decline in turnover tests, it is important to note that these only use the concept of ‘current GST turnover’. This firstly means that entities will be using actual GST turnover figures rather than estimated or predicted figures. The ATO has also confirmed that when applying the new turnover reduction tests for the September 2020 quarter and December 2020 quarter, entities that are registered for GST must use the same method that is used for GST reporting purposes. That is, if the entity is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of these new tests. Entities that are not registered for GST can choose whether to calculate GST turnover using a cash or accruals basis but must use a consistent method.

As with the original JobKeeper rules, the ATO has the power to set out alternative tests where it is not appropriate to compare actual turnover for a quarter in 2020 with the corresponding quarter in 2019. The alternative tests for the additional decline in turnover test are broadly similar to the tests available for the original JobKeeper package. The tests cover for the following areas:

MANAGEMENT

•

Where a new business commenced before March 1, 2020 but after the start of the comparison period.

•

A business making an acquisition or disposal of part of its business ResortNews | November 2020

It would take pages to list all the things that managers should or should not do to fulfil their statutory obligations under the relevant legislation governing them. I thought I would list a few of the ones that I think are absolutely essential to ensure compliance. Do not let out any unit without a letting appointment, irrespective of how difficult it may be to get one. No external agent will, so why should you?

Don’t charge any more than the charges set out in your letting appointments John Mahoney, Partner, Mahoneys

owners of that. If you do offer a leaseback, make sure the tenancy agreement allows you to sublet and that the rent paid by the tenants/guests goes into your general account.

Do not compel a tenant to acquire services from you, whether cleaning, wifi or furniture hire.

Follow the process prescribed in the appointment, or have any increase accepted by your owners, before imposing any increases.

Don’t put in your trust account any funds that are not from the letting or sale of units, such as tour sales (unless part of the one payment that also includes what are clearly trust funds).

If the rental a tenant pays includes the provision of a service you provide (e.g. yard maintenance or furniture hire), make sure your letting appointment allows you to deduct the amount due to you from the rent.

Before you operate under a leaseback with an owner, or an arrangement where you offer a guaranteed return, advise all the other letting pool

If you do receive funds into your trust account that are not truly trust funds, take them out within 14 days of them being deposited in your trust account.

Do not take a fee, commission or other payment from contractors or others doing work for the body corporate or owners unless fully disclosed.

eligible for JobKeeper payments if they were employed by the entity on July 1, 2020 and can meet all of the other eligibility requirements (such as being a long-term casual if a casual employee, the age requirements, not being an excluded employee e.g., receiving parenting payments or workers compensation). Employees also need to have provided the employer with a nomination notice. If an employee has already passed all the relevant conditions at March 1, 2020, then they don’t need to be retested using the July 1, 2020 test date.

age, residency status etc.

Do not charge any more than the charges set out in your letting appointments.

that changed the entity’s current GST turnover. •

Where there has been a business restructure that changed the entity’s current GST turnover.

•

A business having a substantial increase in turnover.

•

A business affected by drought or natural disaster.

•

Businesses with irregular turnover.

•

Sole traders or small partnership with individuals affected by sickness, injury or leave.

Once it is confirmed the entity is eligible for JobKeeper 2.0, the next issue is determining the eligible employees and/ or business participant. Employees should generally be ResortNews | November 2020

LEGAL EASE

Some essential dos and don’ts

Eligible business participants need to be actively engaged in the business as at March 1, 2020 (the July 1 test date for employees does not apply), they must hold a specific position with the entity in question and must pass a number of other conditions relating to their

From September 28, 2020, the JobKeeper payment rate is split into two tiers. The payment rate will generally be based on the hours worked by the individual in the business in the relevant ‘reference periods’. For the period September 28 to January 3, 2021 the payment rates are: •

$1,200 per fortnight per employee or business participant who qualifies for the higher payment rate (in broad terms, if they worked at least 80 hours in the reference period); or

•

$750 per fortnight per employee or business participant who didn’t qualify for the higher payment rate.

For the period January

MANAGEMENT

Inform the body corporate if it is considering entering an arrangement for the supply of services from any person or company associated in any way with you. Display your licence details and a notice of the existence and availability of the code of conduct. Have in place a reasonable, simple, and easy to use procedure for handling complaints by clients or customers and information readily available to inform them of the procedure.

4, 2021 to March 28, 2021 the payment rates are: •

$1,000 per fortnight per employee or business participant qualifies for the higher payment rate; or

•

$650 per fortnight per employee or business participant who did not qualify for the higher payment rate.

The ‘reference period’ for employees is the 28-day period finishing on the last day of the last pay period that ended before either March 1, 2020 or July 1, 2020. For eligible business participants, it is the full month of February 2020. However, some alternative reference periods apply in some cases and some employees will automatically qualify for the higher rate (some employees on commissions and under certain awards).

MOTEL MARKET

Contract conditions:

due diligence Any genuine seller who has ever had a contract of sale collapse on them will tell you it is no fun, especially the closer to settlement it gets. Therefore, minimising the risk of a contract being terminated by the buyer is worth seeking professional advice on and doing whatever one can to protect themselves. Conditional contracts of sale should always proceed to settlement if there is a willing buyer and a willing seller. There is no reason that a contract should be terminated because of a due diligence clause not being satisfied. Responsibility for this falls on both parties. The seller in providing detailed and accurate information so as not to give a buyer reason to terminate, and the buyer to be genuine in their intent and not just use this clause as an excuse to terminate a contract if they get cold feet. In the past, on some occasions, buyers have utilised the benefit of a due diligence clause as a ‘get out’ clause, meaning they wanted out for a reason and used that as their method, not necessarily that the due diligence investigations found issues. Many years ago, residential contracts were altered slightly

must endeavour to protect themselves as much as possible from undue cost and personal disappointment by taking away the opportunity to opt out of contracts via due diligence without valid reason. The way to do this is by controlling what they can within the situation. Making sure all financial and other data supplied is watertight and accurate. All questions can be answered to a satisfactory resolution without holes, gaps or creating further questions.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

to try to avoid this situation via a due diligence clause not being all encompassing and creating some responsibility on the buyer’s behalf regarding building and pest inspections. These two items gained their own clause within the contract rather than within the special conditions and placed a responsibility on the buyer to ‘show cause’ as to why they wished to terminate the contract on those grounds. In other words, to provide some sort of evidence that there is an issue with the building worthy of termination of the contract. The tightening up of wording within special conditions can assist this also. Unfortunately, the ‘handshake’ arrangement seems to be a thing of the past for many, and the value of the contractual concept diminished. Therefore, sellers

We are witnessing more sellers today telling buyers to do their due diligence before signing a contract of sale. This is a highly effective strategy from a seller’s point of view. It retains competitive tension in the market and puts the responsibility back on to the buyer. Buyers, however, generally wish to ‘tie up’ a seller by locking them into a conditional contract, thereby improving their position to the detriment of the seller. The buyer holds all the cards in this position and the seller very few, leaving them stuck in a wait and see position, as opposed to being able to control proceedings. Other potential buyers are eliminated from competing and terms can be dictated to the seller forcing them to ask, ‘how high?’ when told to jump. Business and commercial

MANAGEMENT

contract special conditions can be exploited as a simple way to opt out of a contract if so desired. Another way to look at this is that if a buyer is not fully committed to the contract, they will use clauses such as due diligence to hedge their bets. Effectively entering the contract, taking the business or property off the market, and then deciding whether to proceed, most likely at the end of the conditions time frame. Again, sellers need to be aware of this and deal with it as best as possible, rather than leaving things to chance and hoping the buyer that they may have had question marks over, can get the business done. This is more about sellers controlling what they can control and not providing the opportunity for a buyer who gets cold feet to opt out for no good reason. It is about accountability and making sure that every financial and physical detail is in order. Risk management essentially is what needs to be assessed at the time an agreement is reached, well before a contract of sale is entered into. How strong is this prospective buyer? Are they proven enough to go to contract with, and ultimately will they be able to settle the matter to avoid wasted cost, lost time, and disappointment?

ResortNews | November 2020

Prison, fines for trust account misuse By Grantlee Kieza, Industry Reporter

expense occurs which an owner authorises to be paid from rent received, the letting agent is forced to `borrow’ further funds to cover the initial defalcation,” he said. “From there the losses can quickly escalate.

As the impact of COVID-19 continues to wreak havoc on the accommodation industry, Queensland’s Office of Fair Trading has given property operators another warning about the potential misuse of trust accounts.

“Any licensees who find themselves in financial stress should contact their financial institution to discuss what options are available to them. “They should also investigate government assistance packages.”

In a report from the OFT, its Executive Director, Brian Bauer, explained simply that trust accounts “exist to protect money being held on behalf of your clients”. There are severe penalties for their misuse including heavy fines and even imprisonment. “The overwhelming majority of licensees are well aware that trust account money does not belong to them and that they are simply protecting it for others,” Mr Bauer said. “For a small minority, this may not be front of mind. “The OFT advises that at no time should an agent view the trust account as a line of credit or loan facility and use the trust money to prop up a general business account or for ongoing business expenses. “The OFT has previously prosecuted licensees where agents incorrectly thought it wouldn’t hurt anyone to make an early withdrawal of commission to pay staff wages or other expenses before the commission or other fees were due to be paid to the agents.” In November last year, a Mango Hill property manager was ordered to pay more than $11,400 in fines and compensation in the Brisbane Magistrates Court after an Office of Fair Trading (OFT) investigation found he had been ripping off property owners by charging them for maintenance ResortNews | November 2020

work that never occurred. The property manager pleaded guilty to three counts of falsely accounting for trust money and dishonestly converting those amounts for his own use. He was ordered to pay $5,000 in fines, a further $6,367 in compensation to his former employer, and $99 in court costs. The court heard that between July and November 2018, the manager made up invoices for electrical, plumbing, and other maintenance work for units managed by the agency. As a result, rental money paid by the tenants was not disbursed to the owners, but instead was transferred by the manager into his own bank accounts to cover the fake maintenance costs. In August last year, a Port Douglas resident letting agent was ordered to pay $33,398.77 in fines and compensation by the Mossman Magistrates Court for making unauthorised transfers of trust account money, making a false representation and providing false information on an official document. He pleaded guilty to 39 charges brought by the OFT for breaches of the Agents Financial

Administration Act 2014 and Property Occupations Act 2014. He was fined $20,000 and a further $13,398.77 was awarded in compensation to two affected consumers. The court heard that between January 1, 2018 and June 1, 2018, the agent failed to bank cash into the agent’s trust account by the end of the following business day - a requirement of the law regulating the Queensland property industry. Between April 18, 2018 and September 12, 2018, he provided false information on an official Appointment to Act form and continued to act as a resident letting agent on behalf of numerous clients when he had not been properly appointed to do so. Mr Bauer said that the OFT’s experience was “that where things can really go wrong for letting agents is when the agent uses trust money with the expectation that they will be able to pay it back before end of the month reporting.” “When they can’t pay it back because a booking they expected to finalise falls through, or an additional unexpected

MANAGEMENT

He said if the OFT identified trust money abnormalities it could appoint a receiver over the trust account and take enforcement action against the agent. Penalties of up to $133,450- or five years’ imprisonment applied.” In July, this year, a Springfield Lakes real estate agent was given a suspended sentence in the Ipswich Magistrates Court after being investigated by the OFT for taking money from a trust account he was not entitled to. His company was fined $2,500 and the agent was ordered to serve four months’ imprisonment, wholly suspended for two years. Mr Bauer said the OFT had also recently frozen trust accounts for three Brisbane real estate agents. “Together these businesses usually disburse hundreds of thousands of dollars each month but now none of them can pay any funds from their trust account until their matters are resolved,” he cautioned. “Having your trust account frozen is a major issue. Don’t let it happen to your agency for things that can easily be avoided.” Mr Bauer asked anyone with concerns over trust accounts to visit the OFT’s website at www.qld.gov.au/fairtrading or phone 13 QGOV (13 74 68) or email directly at BrisbaneOFT@ justice.qld.gov.au.

THINKING MR

Finally,

some good news for borrowers! Those of you who follow this column (a sure indication of nothing better to do) may recall recent mention of the so-called Wagyu and Shiraz case. For those who do have better things to do here is a quick snapshot from that article: Following the banking royal commission living expense tests, which can have a significant impact on debt service capacity outcomes, have moved to a more individual level rather than a standard allowance as was previously the case. This has led to borrowers being compelled to detail living costs in great detail and lenders to trawl through bank statements in some bizarre attempt to establish the lifestyle costs of the punter. The premise being that borrowers have no capacity to adjust their lifestyles to meet their commitments. This whole laughable saga came to a head when ASIC had a crack at Westpac in respect of their responsible lending living expense testing.

Mike Phipps, Director, Mike Phipps Finance

I will leave you with what Justice Nye Perram had to say in his landmark, and entirely sensible, skewering of the ASIC case: “I may eat wagyu beef every day washed down with the finest shiraz but, if I really want my new home, I can make do on much more modest fare,” wrote Justice Perram as he carved up the argument that a consumer’s declared living expenses should be the key to assessing whether they could meet loan obligations. “The fact that the consumer spends $100 per month on caviar throws no light on whether a given loan will put the consumer into circumstances of substantial hardship.”

We have a generational challenge to better educate borrowers to a point where they simply don’t need protecting This whole sorry saga has come into sharp focus over the last month, but we’ll get to that. First, a bit of history.... In 2009, Commonwealth legislation was introduced under the title of the National Consumer Credit Protection Act (NCCPA). The legislation formed the basis of what has come to be known as responsible lending and formed the basis of a premise that borrowers needed to be protected from the supposed predatory conduct of banks and other lenders. Over time, various regulations and accepted industry standards led to the farce we see outlined

MANAGEMENT

in the excerpt above. That is, an assumption that lenders see great benefit in lending to parties who cannot repay debt and that consumers are so unsophisticated that they need government legislation and regulations to protect them from themselves. Consumer protection groups and other vested interests hailed the progressive developments while others wondered at the intrusion of government in the guise of protection. And when I say protection... at last check the ASIC Responsible Lending Guide ran to almost 100 pages. ResortNews | November 2020

brokers will continue to be a favoured channel for borrowers.

I do not know about you but I’m a bit tired of being protected, know what I mean?

It is important to appreciate that the NCCP Act relates to personal borrowers and is mostly aimed at private parties borrowing to purchase a residential property. Having said that I think it is fair to say that much of the legislation’s content has crept into bank business and commercial finance credit policies.

Anyway, in September 2020 The Treasurer, Josh Frydenberg had a lightbulb moment. In a factsheet co-authored with the assistant treasurer Mr Frydenberg noted a growing disconnect between the good intentions of the regulations and legislation and the reality of the regulatory guidance over the past 10 years. No sh*t Sherlock! Put in place an ever-growing mountain of lending compliance, punitive punishment for lenders who fail to comply, wholly unrealistic debt servicing standards and watch loan approval times blow out and flow of credit grind to a halt. Add a system that automatically takes the side of the consumer and it’s a recipe for disaster. Anyway, the treasurer has seen the light. To quote Deloitte in a recent on line summary: “The Treasurer has noted that the regulatory burden on lenders has resulted in higher costs and higher levels of conservatism in credit-decision making, which has resulted in consumers bearing the burden of higher obstacles to access credit”. The plan is to simplify existing responsible lending laws with the existing laws to cease for almost all classes of lenders, including the usual banks we most often deal with. The Treasurer has noted that the changes will “restore balance to the system after 10 years of regulatory creep that has seen the pendulum swing too far away from borrower beware to lender beware”.

What does this mean for borrowers you ask? Most importantly, the Treasurer is signalling that provided lenders and finance brokers act in the best interests of their clients and make reasonable enquiries it will ultimately fall to the borrower to take responsibility for their actions. If the borrower has four kids in private school and a 100ft yacht but states that if need be, the kids can slum it at public school and the yacht will go, then it becomes the responsibility of the borrower to take those actions.

not enjoy a strong grasp of financial principals there will always be a place in our society for consumer protection. The sad fact is that our business spends more time on financial education and counselling than actual finance broking. We have a generational challenge to better educate borrowers to a point where they simply do not need protecting. In the interim the impartial, non-aligned position occupied by finance

Ground-breaking stuff to be sure. Imagine a legislative system where the individual takes responsibility for their actions with limited scope to cry foul when things don’t go to plan. Might be the new normal, although I hold limited hope.

In closing, a few observations...

Lastly, and to no great surprise consumer protection advocates have not exactly applauded the treasurer’s announcement. It seems they would prefer that we all be protected, whether we like it or not. This strikes me as akin to the premise that we should all walk as slow as our slowest person. Not exactly a recipe for excellence in challenging times. Here is a thought... frame the legislation and regulations with an opt out clause and let me be completely responsible for my decisions. Yep, you are right… would never happen in modern Oz.

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ResortNews | November 2020

MANAGEMENT

GOOD GOVERNANCE

New entrants & committees can better prepare for MR With over 4,000 sets of management rights in Australia changing hands (on average) every 3-4 years, a residential strata committee could expect to receive an application from the caretaker to assign management rights at least once every decade. It is estimated that approximately 1,000 applications for assignment occur annually across Australia. Engaging the right (body corporate and management rights) specialist lawyer is the first step for all parties. The respective legal team will make sure all the financial due diligence and compliance matters are taken care of for their client’s best interests, but what about the operational due diligence around the caretaking aspect?

Caretaking Agreement and duties delivery standards due diligence Management rights arrangements frequently include these two contracts: •

A Letting Agreement

•

A Caretaking Agreement

The letting arrangements are private affairs between the landlord and the letting agent, details of which outside parties are not privy to, so this side of the management rights assignment rarely comes into focus. It is the delivery of the caretaking duties that bodies corporate are most interested in. Beyond the fiduciary and statutory compliance aspects, the delivery of the duties within the caretaking agreement (to an acceptable standard) is where the interest lies for the Committee for the body corporate.

What is an acceptable standard for delivery of caretaking duties? Good question! Anyone who

notice for breach of contract in circumstances where the Committee are not happy with the work they are doing (or not doing, as the case may be). So how do both parties (i.e. the potential purchaser and the body corporate) exercise diligence at the assignment interview interface? How do both parties enter a new contractual arrangement on a sound footing?

Lynda Kypriadakis, Diverse FMX

Herein lies two questions:

has been associated with management rights and caretaking agreements in the past decade will agree with me when I say the difficulties arising between the parties to the caretaking agreement are well documented, with literally millions of dollars being spent every year on managing squabbles between bodies corporate and their caretakers (usually) over cleaning and gardening breaches. While the lawyers are managing the legal and financial compliance aspects of the management rights assignment and transfer, how do we take steps to ensure the caretaking duties will be delivered to the correct standard once assignment occurs? The ABMA Building Management Code is the Australia-wide, statespecific guide to caretaking and facilities management standards for the compliant maintenance and care of common property in residential and mixed-use strata, commercial properties, and aged care facilities. Measurable and justifiable standards for delivery of caretaking duties are found within the ABMA Code.

Assessment of competency to deliver caretaking duties The risk of failure to deliver the caretaking duties to the correct standard exposes all parties to the caretaking agreement. The body corporate holds the risk of potentially shelling out fees for caretaking, only to experience that the duties have not been delivered to the correct standard, and the caretaker holds the risk of receiving a remedial action

How does a potential purchaser gain the required skills to present itself in a positive light as the new caretaker? and How does the Committee for the body corporate reassure itself that the potential purchaser is the ‘right’ person for the caretaking job?

Pre-assignment competency assessment Both the committee for the body corporate and the potential purchaser can proactively take steps to assess whether the potential purchaser holds the skills, capability, and knowledge to deliver the caretaking duties to an acceptable standard. Engaging with a specialist consultant can assist in a myriad of ways to support the potential purchaser to be prepared for the assignment interview from the caretaking duties delivery perspective; and the committee for the body corporate in getting answers to the ‘tricky’ questions, such as: •

Is the potential purchaser going to “fit in” with the personality of the committee?

•

What staff is the potential purchaser intending to engage and how do we gain genuine verification of this?

•

How many hours of work should we expect for the remuneration being paid under the Agreement?

One of the big questions that needs to be asked at the

MANAGEMENT

Assignment Interview (and rarely is asked) concerns the view held by the committee around supporting future top-ups or extensions of the agreement(s). Increasingly, committees are becoming philosophically opposed to supporting applications for top-ups or extensions due to all sorts of reasons. Potential purchasers that rely on extensions to achieve financial goals really should ensure that this question is raised at the Assignment Interview. Anyone who has been successful in business for an extended length of time understands the importance of dealing with facts – even the inconvenient ones!

Potential purchasers of management rights are usually successful businesspeople It takes a significant amount of money to buy into management rights, so any potential purchaser is already a financially astute and successful person, but do they hold the unique skills required to keep a committee happy and deliver compliant duties on the common property while making a profit. Being successful in other fields of endeavour does not automatically prequalify you to be a successful caretaker. This job is harder than anyone thinks! A Pre-Assignment Competency Assessment is a form of protection. On one hand it will assist the potential purchaser to understand what the committee need to engage in a space of trust and cooperation. On the other hand, the process will reassure the committee that the potential purchaser is the ‘right fit’ for the job – or alternatively expose reasons why the application may be doomed… ResortNews | November 2020

INTONET

Intelligence quotient Who remembers the 1968 movie A Space Odyssey which introduced us to the computer called HAL? I certainly do and despite it being a gripping tale, it appeared farfetched. The name was an acronym, Heuristically Programmed ALgorithmic Computer, which in those days may as well have been gibberish for something that did not exist.

But what is the reality today? HAL has been left far behind. Today, we have the web, social media, artificial intelligence (AI), and trawling bots. We also have companies of fabled riches that acquired wealth by data mining and creating what we call big data.

But what is big data and what makes it so valuable? The answer lies with statisticians who love to count things and calculate the odds of certain things happening. It is also how the various reward programs work at your favourite shopping centre.

jam. Bingo! The more times they see that combination the higher the confidence factor becomes and if you turn this into a guessing game you will soon see that your bets are becoming very accurate with an increasingly smaller error count as your total number of samples increases. Ka-ching! Big data! Arvo Elias, Cybercons

We all understand what odds are: flip a coin and it will either land as heads or tails, the odds are half heads and half tails or 50 percent. A very untidy boy only has green and red socks jumbled in his drawer: how many socks does he have to take out when blindfolded to be sure that he has a pair to wear; obviously he has to take out three socks even though he won’t know whether he will be wearing red or green socks, so the odds are 33.3 percent. Your supermarket does much the same things because everything you buy is coded and then analysed. They may discover that everyone who buys iced vovos also buys Mrs, Murgatroid’s

And there you have your first algorithms! The data is our behaviour interpreted in a manner which gives someone a huge advantage over us. They can guess, nay, even predict how we behave or what we are most likely to do. This is the start of artificial intelligence. Today, we build machines that can process mountains of information, learn our various guessing games and generate the rules that point to a result the next time a similar single piece of information is seen by them. By analysing millions of chess games, a computer with superior processing speed does beat the world’s chess champion. Some of this type of intelligence application can be put to incredibly good use by us. A great example is the work

MANAGEMENT

that is now done with robots performing surgery. Not just the more common procedures but also high precision brain surgery, to me a terrifying concept. Now let me introduce you to, and quote from, a research article published by Google: “Modern mobile devices have access to a wealth of data suitable for learning models, which in turn can greatly improve the user experience on the device. For example, language models can improve speech recognition and text entry, and image models can automatically select good photos. However, this rich data is often privacy sensitive, large in quantity, or both, which may preclude logging to the data centre and training there using conventional approaches. “We advocate an alternative that leaves the training data distributed on the mobile devices and learns a shared model by aggregating locally computed updates. We term this decentralized approach Federated Learning.” Search engines have shown that they can interrogate your phone ResortNews | November 2020

Building relationships

with your investors How do you build a relationship with an investor? You do exactly that... build!

A manager has 101 different roles when running a complex. Sometimes it can feel like you have changed your professional hat a dozen times in one single day - from gardening to pool maintenance - to a professional real estate agent. Days turn into weeks and suddenly you have been running your business for 12 months and still not had a conversation with Betty who owns unit 14. I know 80 percent of you are nodding your head after reading this first paragraph, and that is ok because I am going to give you the nudge you need. The beautiful thing about relationships is that they can begin at any time, it is never too late.

For every (I do not want to say negative) constructive conversation you have, you will be one closer to a commendable one. This is what I want you to do - go to your calendar block out an afternoon, morning, or whatever time of the day you feel your best, and mark it ‘Business Building’ or ‘Relationship Making’ time, whatever resonates with you.

Kelley Rigby, Managing Director, Letts Rebuild

these days. I mean good oldfashioned human to human conversation. Pick up the phone.

Communication is key.

In a world where human interaction predominantly happens behind a keyboard, the power of face to face or voice to voice contact is even more affective. The thought of picking up the phone may make you feel a little uncomfortable, ‘what if my investor gives me negative feedback’ or ‘what if all they do is complain’.

When I say communication, I do not mean an email, or text, like, thumbs up or any of the non-human way we do things

My question is: would you rather they confide in you about their issues or Britney from Big Shot Real Estate?

and mine, fiddle with our data then snafu it to their mammoth computers, play the numbers game and sell all that information to the highest bidder. Not only that, but data manipulation, particularly since now it is big data mined from billions of phones, can produce answers in many different formats to suit many different uses by goodness only knows who.

NPR (National Public Radio) alerted me to something that really concerns me.

Besides the obvious data we all store on our phones we also store fingerprints, passwords, photographs and images of our ourselves. Face recognition has been bandied about for quite a while but today it is also one of the methods used to unlock and gain access to our phones. The image used for this is actually in true data format. Like all good story tellers, I have left the crunch to my story last. A report on Americas’ ResortNews | November 2020

It appears that a system called ‘predictive policing’ is in use in several states. The scheme used by these police forces relies on some AI software which uses big data to analyze criminal behaviour. That is not surprising nor alarming but what raised my concern is that the system goes quite a way further. Through data analysis, the police are provided with predictions that a certain person may or will commit a crime. Apparently, the police are empowered to restrain and interrogate that person without any notice, warrant or other identifiable reason. My understanding was that the American legal system upheld the same Westminster principles that we do: a person is presumed to be innocent

Then, repeat this appointment every three to six months so you are committed to making the phone calls. Always find a place you feel comfortable and confident, it could be your home, office or even the park. It is important for you to feel relaxed and confident as this will project from your voice. Take the time to communicate with your clients. A wise man once told me: prior preparation prevents poor performance!

Getting to know your client. During your scheduled non-negotiable 3-6-month conversations, ensure you are armed with a pen and paper ready to document

until proven guilty! Predictive policing appears to adopt the reverse of this by effectively demanding the suspect prove his innocence which then obviously raises questions of democratic governance. The underlying problem, however, is the internet and social media platforms. In combination, they provide the means by which every lamebrain or psychotic can communicate with every other one in the world thereby creating a data set which cannot in reality be simply recognised by our algorithmic devices; here is the start of misleading, if not totally false, information broadly called fake news! I do not think pictures are needed to detail the enormous and possibly irreparable damage this can and does do globally. However, we must not lose sight of the fact that the algorithm

MANAGEMENT

facts about your clients. Another wise man once told me: you have two ears and only 1 mouth for a reason. Listen and take notes. Think about this: Betty from unit 14 has a four-legged friend that is her pride and joy (let’s call him Fluffy) during your scheduled non-negotiable three to six-month conversation she mentions that Fluffy is having surgery on December 16. Armed with a pen and paper you document this fact and then on December 16 you call or email Betty (or if it was me , send flowers and a card) to wish Fluffy all the best for his surgery. We do this for many reasons, first and foremost we do it to make Betty feel good on a hard day, we also do it because next time Britney from Big Shot Real Estate calls and tries to win over Betty’s business, I promise you Betty will think twice about leaving the property manager that she now calls her friends. It is time to get comfortable with the uncomfortable and start building and nurturing some of the most financially beneficial relationships in your business. You are the expert in your field, be confident and know you are the best agent to service your investors.

that allows the chess champion to be defeated also analyses big data sets of CAT and MRI scans to allow that brain surgery to succeed. It provides the means by which physicians can obtain better treatment guidance and evaluate the prognosis of their patients. The same can be said for finding the ‘baddie’ in the crowd or predicting your future health thereby hopefully avoiding undesired outcomes for you. Google will find you volumes on these topics but you will have to rely on YI ( your intelligence) to solve these dilemmas which confront us. As to your mobile phones just be sure to check all the permission settings that your apps use. If they to use features which you think are unnecessary, please uninstall that app.

TOURISM REPORT

Regional centres are on the move

Tourism Tropical North Queensland to encourage Aussies By Grantlee Kieza, Industry Reporter

There is no better time to see the Australian outback. Broken Hill, for instance, is recording great visitor numbers despite COVID. Recent rains have the Menindee Lakes bursting with life, the area is lush and green, and the mighty rivers are flowing. Advertising campaigns promoting local tourism are working, though regional centres around Australia are faring much better than the cities. Michael Johnson, the CEO of Tourism Accommodation Australia, said regional centres “in close proximity to the CBD, within that three-four hour radius – they’ve been doing extremely well”. “If you use Sydney as an example the areas such as Orange, Mudgee, Dubbo, the Blue Mountains – the Hunter Valley, Port Stephens are doing well.

such as Wagga and heavily serviced by Victoria – they’re not doing that well.” Mr Johnson said CBDs had been “doing good numbers on weekends” but very little business on weekdays. “Closed borders are having a huge impact,” he said. “The biggest driver for Sydney tourism is Victoria but it’s not happening now. Queensland needs to have its borders open before it takes off and it is also heavily dependent on international tourism.” Dean Long, the CEO of the Accommodation Association of Australia, said regional properties surrounded by good leisure experiences were having “an absolute renaissance probably across four days of the week, definitely two. “There has been very good movement on the weekend shoulders, Thursday, Friday and Monday, Tuesday. If you’re in driving distance from a capital city you’re doing well and the tourism campaigns are working.

“Somewhere like Byron Bay is also doing extremely well and forward bookings are very strong.

“The markets that are relying on international tourism are struggling, though – the capital cities, the Gold Coast, tropical Queensland.

“But an area such as Merimbula, which is normally fed by towns

“Without borders being open those markets are finding it very challenging.”

Tourism Tropical North Queensland (TTNQ) Chief Executive Officer Mark Olsen told Resort News that summer was traditionally when international visitors flocked to the Cairns and Great Barrier Reef destination to explore the world’s oldest rainforest and most diverse reef system. He said: “With international borders closed it is the perfect opportunity for Australians to discover what they have been missing out on. “The Great Barrier Reef is calm and visibility is great providing optimum conditions to see the marine life which becomes much more active after the November coral spawning with turtles arriving from around the world to nest.

“The early summer rains rejuvenate the Wet Tropics rainforest and top up the creeks and rivers so the waterfalls and swimming holes are spectacular. “This means activities like white water rafting, tubing and canyoning are at their peak. The wildlife is more active as they forage for rainforest fruits and look for a mate. “It is also the time when you can pluck luscious mangoes straight from the tree or try them in a cocktail. “So many Australians head overseas to experience summer in the tropics but this year they can find out why people – and turtles – from around the world visit Cairns and Great Barrier Reef in summer. “There are plenty of packages and deals being rolled out … to entice visitors to Summer Great and Leave Greater.”

Snorkelling on the Great Barrier Reef, Image: Tourism Tropical North Queensland

TOURISM

ResortNews | November 2020

Sunshine Coast’s natural authenticity showcased in new ‘For Real’ destination campaign Queensland’s Sunshine Coast is showcasing its renowned natural attributes in a new destination marketing campaign launched today called ‘For Real’. It is all about the real experiences, real culture, real people, and real nature that makes the Sunshine Coast unique. The campaign takes on a new relevance following the pandemic, with extensive research highlighting travellers’ desires for nature-based experiences – something the Sunshine Coast offers in spades. Phase one of the campaign showcases the Sunshine Coast in ‘Real Time’ and will be rolled out through social media advertising and digital billboards. Ten-second videos will show quintessential Sunshine Coast experiences and activities that can be enjoyed at the exact time the traveller sees them, giving them an excuse to dream for a few seconds and realise what they are missing out on by not being on the Sunshine Coast. Visit Sunshine Coast partnered with Brisbane-based agency, BCM, to develop the campaign. They have extensive experience developing media and creative ideas in the destination marketing and

Sunshine Coast accommodation providers and attractions. Mr Davidson said: “Importantly the campaign will include a number of ‘real deals’ – including mid-week specials – that will help bolster bookings as we move out of the school holiday period in to what is traditionally a quieter time for Sunshine Coast tourism.

Chris Milligan (Wotif), Craig Davidson (VSC), Dan Hart (Sunreef Mooloolaba) and David Taylor (TreeTop Challenge)

tourism category, working with clients such as Flight Centre, Emirates Airlines and Tourism and Events Queensland. Visit Sunshine Coast (VSC) Interim CEO Craig Davidson said the new campaign would share the unforgettable experiences visitors can have on the Sunshine Coast, while supporting the region’s tourism industry as it moves towards recovery. “Whether its swimming with humpback whales as they migrate their way up north with Sunreef Mooloolaba or taking on one of Australia’s highest ropes courses at the TreeTop Challenge, the Sunshine Coast offers tremendous authenticity. “It is where the natural environment meets innovative and respectful thinking – and our people are the crucial ingredient that makes the Sunshine

Coast such an attractive destination for all markets. “Undoubtedly the Sunshine Coast has had a reputation for its premium beach and naturebased environment, and today there is even greater desire for uncrowded beaches, wideopen spaces and a genuine respect for nature, which is reflected in this campaign. “We are not about mass tourism, but rather emphasising our incredibly diverse geography and range of attractions.” Phase one of the new For Real campaign will target Queensland’s drive market. VSC has partnered with booking agents Wotif.com and Experience Oz for the campaign to further drive bookings to

“Fortunately, we switched very early to targeting the local drive market – with considerable success – but the launch of this new campaign signals the start of a much wider promotional effort.” The campaign launch came days after VSC sent a message in the sand at Coolum Beach to travellers on board the soldout Qantas Great Southern Land scenic flight of Australia, encouraging them to start planning their next Sunshine Coast escape – For Real.

For Real message for Qantas Scenic Flight at Coolum Beach, Sunshine Coast

For Real Campaign Sunshine Coast

ResortNews | November 2020

“The campaign will evolve as Queensland opens up further to interstate travellers. Already we have seen outstanding results from the launch of new direct air services from Cairns and the resumption of flights from Adelaide, but clearly many of our operators have suffered as a result of the loss of key markets such as NSW, Victoria and New Zealand.

TOURISM

Destination Gold Coast pulls out all the stops to aid recovery

Popular Gold Coast tourist destinations have suffered more than most this year but with restrictions easing and new Destination Gold Coast marketing campaigns, alongside industry partnerships things are on the up... The Gold Coast is more than ready to welcome holidaymakers back and look forward to the economic boost that will bring. Destination Gold Coast Chairman, Paul Donovan told us that improvements have already been noted. He said: “Anecdotally, the September school holidays saw a spike in foot traffic to the Gold Coast and we are hopeful that visitation continues to grow as we dial-up our marketing presence interstate. “In October, Destination Gold Coast launched its first-ever $1 million local area marketing campaign, ‘Play Money for Gold Coasters’ in partnership with prominent booking platform Experience Oz.

Mackay tourism sector is a strong performer The strength of Mackay’s inter-regional travel is highlighted by data from the recent National Visitor Survey (NVS), which shows that despite COVID-19 restrictions, the Mackay Region remains a popular travel destination. During the 2019/2020 financial year, the Mackay Region welcomed one million domestic visitors who injected $438.6 million into the local economy and recorded threeyear trend increases of 6.1 per cent for visitation and 4.9 per cent for visitor expenditure.

“We saw Gold Coasters waste no time in snapping up discounted experiences to act as backyard tourists, and the allotted 10,000 digital promocodes sold out within 35 hours of being released. “The local initiative highlighted Gold Coast’s strong community appetite to stimulate bookings for ailing attractions and operators hardest hit as a result of COVID-19 setbacks and border closures.

Driving tourism’s growth throughout The Mackay Region has been corporate travel demonstrating the strength and resilience of the region’s economy.

“Destination Gold Coast is now set to launch a multi-million dollar tourism push ahead of summer to leverage proposed border reopenings and drive visitation from key domestic markets.

Mackay Tourism Chief Executive Officer Tas Webber said it was pleasing that the region managed to maintain visitation during the pandemic. He said: “Whilst COVID-19 has foreseen very tough economic conditions, most industries within the Mackay Region have continued to move forward and employ staff.

“Marketing activity will focus on converting demand and inspiration to offer a much-needed boost for Gold Coast tourism.” Gold Coast Mayor Tom Tate said the Gold Coast has never been so ready to welcome visitors to the city.

“COVID-19 has unquestionably been the most difficult challenge for tourism to overcome. Mackay’s tourism industry, and indeed the region’s economy, is very fortunate to continue to grow

He said: “We are open for business and as the country continues to open up, we hope our tourism operators enjoy a bumper summer.”

during this pandemic.” “As we recover from COVID-19, Mackay is well positioned to attract more visitors, generate greater investment, create local jobs and support livability for our community.” The Queensland Government also intends to deliver an investment of close to $1 million to deliver a major tourism attraction in Mackay as part of the state’s economic recovery strategy, it announced a partnership with Mackay-based cruise company Pure Escape to introduce a new full-day tour to nearby Cockermouth Island in the South Cumberland islands group. Tas Webber said Pure Escape represented an exciting opportunity to add to Mackay’s flourishing tourism industry: “The Mackay Region is continuing its rise as a tourism destination, with over a million visitors a year seeking out our unique nature based experiences. The Pure Escape tour will build upon Mackay’s tourism appeal and further strengthen the economic recovery of our industry. “Investing in the spectacular islands and reefs of the South Cumberland island group is a significant win our industry, our economy and the Mackay community. Tours and access to the islands off Mackay has long been missed by visitors and locals alike. It is very reassuring therefore, to see investment starting to be delivered.”

The sentiment in the Gladstone region is “relatively positive” Nicola Scurr, Tourism Manager, from Gladstone Area Promotion and Development told us: “Our operators on the Discovery Coast (Agnes Water/1770) have been seeing a great increase in visitation since the June/July school holidays. School holiday periods were nearly at capacity and they are still looking very strong over

the Christmas/New Year holiday period. “We are seeing a lot of first-time visitors to the region, which is fantastic, and overall, their comments and reviews have been very positive. Our islands are also seeing solid visitation. With Heron Island running at COVID capacity over the September school holidays and already nearly fully

booked over Christmas/New Year.” Wilson Island is also becoming very popular with great forward bookings over the next three months. In Gladstone the visitation is increasing, with a lot of operators noticing more leisure travellers (opposed to corporate) however, we are still working our

TOURISM

way back to pre COVID numbers, as the corporate travellers are now starting to return. “It is great to see so many travellers within Queensland, we just hope this endures so we can continue to showcase our patch of paradise on the Southern Great Barrier Reef!” ResortNews | November 2020

The COVID-19 pandemic has hit global tourism hard. Latest data shows a 70 percent decline in international arrivals for the first eight months of 2020. New data from the World Tourism Organization (UNWTO) reveals international arrivals plunged 81 percent in July and 79 percent in August, traditionally the two busiest months of the year and the peak of the Northern Hemisphere summer season. The drop translates into a loss of US$ 730 billion in export revenues from international tourism, and is more than eight times the loss experienced on the back of the 2009 global economic and financial crisis. UNWTO Secretary-General Zurab Pololikashvili said: “This unprecedented decline is having dramatic social and economic consequences and puts millions of jobs and businesses at risk. This underlines the urgent need to safely restart tourism, in a timely and coordinated manner”. According to the UNWTO World Tourism Barometer data, Asia and the Pacific was the “first region to suffer from the impact of COVID-19, and saw a 79 percent decrease

ResortNews | November 2020

in arrivals, followed by Africa and the Middle East (both – 69 percent), Europe (-68 percent) and the Americas (-65 percent). “Following its gradual reopening of international borders, Europe recorded comparatively smaller declines in July and August (-72 percent and -69 percent, respectively). The recovery was short-lived however, as travel restrictions and advisories were reintroduced amid an increase in contagions. On the other side of the spectrum, Asia and the Pacific recorded the largest declines with -96 percent in both months, reflecting the closure of borders in China and other major destinations in the region”. UNWTO states it expects an overall drop close to 70 percent for the whole of 2020 and rebound in international demand is expected by Q3 2021. Travel restrictions are the main barrier standing in the way of the recovery of international tourism, along with slow virus containment and low consumer confidence. The lack of coordinated response among countries to ensure harmonised protocols and coordinated restrictions, as well as the deteriorating economic environment were also identified by experts as important obstacles for recovery.

TOURISM

High-rise building cladding fire risk remains a worry for Kiwis A year after the Sky City Convention Centre fire, building scientists Oculus Architectural Engineering, are voicing concerns about the combustibility of cladding still being used on many New Zealand buildings, especially after proposed safety changes were scrapped. Co-director Shawn McIsaac says there are thousands of Kiwis living in multistorey buildings with combustible cladding and timber as part of the façade assembly and that proper testing is the only way to make sure buildings are safe, preventing disasters such as the Grenfell fire in London. Proposed changes to the building code that would have required much more rigorous fire testing of cladding on buildings between 10 and 25 metres tall, appear to have been indefinitely postponed by MBIE, despite submissions showing overwhelming support for them to go ahead, McIsaac said: “We need to ask the public whether they feel safe in an eight-story building with combustible materials on the outside. It appears that will be permitted.” Oculus co-director James Powers said the changes would have clarified that all materials in the wall ‘build up’, including items like timber studs and battens, would have to be tested. However, he says pressure from the timber industry has influenced the decision to hold off on implementing them.

“MBIE had proposed changes to take effect in June 2020 that would have expanded the types of testing that could be used, clarified the definition of an external wall material, and further clarified that all materials in the wall need to meet test requirements. This proposed change was suddenly reversed in October 2020 and they are now proposing that timber is exempt from testing for buildings up to 25 metres.”

TOURISM INTERNATIONAL

International tourism plummets 70 percent

He said this would mean New Zealand’s regulations would be getting more relaxed, which was the opposite to global safety trends, and that MBIE had cited concerns on the impact the changes would have had on the timber sector, as well as the need for more evidence, as reasons. “Supporting the timber industry in providing sufficient evidence that the timber in building facades could be protected in the event of a fire would have been a positive move,” he said. “Like any other material that is combustible there needs to be testing to show that it can be protected in the event of a fire. The proposed changes, that fire testing was required where timber was present, was a responsible solution and follows global precedence.” “NZ is different from other developed countries in that timber is used in façade assemblies for tall buildings. This potential weakness means that we cannot use a lot of fire testing data from overseas. We need to bridge the gap.”

EVENTS Keeping up with the Women in Management â&#x20AC;&#x153;One of the best lunches to dateâ&#x20AC;? was the feedback from those who attended the October Women in Management Rights Lunch held at The Island Roof Top Bar, there certainly was a great vibe. It was wonderful to see lots of new faces at this event joining our stalwarts from all aspects of our industry. Women In Management Rights launched its own website www. womenin.com.au and it is a great platform - sharing information on future lunches, job positions and a general go to page with lots of useful information. Be sure to check it out. A big shout out to event sponsors: Accom Properties, Hirum, L&M Electrical, Starcorp, Emergency Trade Services & Freedom Internet. And of course, Yasmina Despot for providing some great entertainment on the day. A reminder to everyone: do not forget to book your event tickets on the website and secure a place for one or more of the November luncheons. Gold Coast Women In Management Rights sit down luncheon will be held on Wednesday 18th November 2020 at 12 noon - Moana Restaurant & Bar Isle of Capri. The Brisbane Buffet Luncheon is on Friday, November 20, 2020, at 12:00 at Ivory Tusk, Fortitude Valley. The Sunshine Coast Women In Management sit down Luncheon will be held on Friday 27th November in the Boatshed, Cotton Tree. The Women in Management lunches are held on the third Wednesday of the month. For more details, please email marisa@womenin.com.au

EVENTS & APPOINTMENTS

ResortNews | October 2020

EVENTS & APPOINTMENTS

APPOINTMENTS

being promoted to General Manager, Bailey, a Crystalbrook Collection Hotel and Residence, in 2019, leading the hotel’s successful opening and first year of operation.

Matt Stoeckel

He will take over from Craig Davidson, who has been Interim CEO of Visit Sunshine Coast since June 2020. Amy and Nicole with John Mahoney

Mahoneys announces senior appointments As a long-term supporter of the Australian management rights industry, Mahoneys remains committed to helping the industry through the challenges of this year. Amy O’Donnell has been promoted to Partner. Amy is a property lawyer, with over 20 years’ experience, who specialises in management rights, motels and commercial property. Nicole Cleary has been promoted to Special Counsel. Nicole is an experienced property lawyer who specialises in management rights, property development and commercial property transactions. Amy and Nicole are highly respected lawyers who have made, and will continue to make, an outstanding contribution to our clients’ success. The appointments reinforce Mahoneys’ longterm strategic commitment to the management rights and consolidates

Mahoneys’ position as a leading management rights law firm in Australia.

Crystalbrook Collection announces new leadership appointments

Carl Taranto

One of Australia’s leading sustainable hospitality companies has announced new managerial appointments heading up the opening of a new luxury Newcastle accom offering. Carl Taranto has been appointed the new general manager of Kingsley, a Crystalbrook Collection Hotel which is set to open in the second quarter of 2021 and it will be Newcastle’s first five-star hotel. Lisa Brown will replace Carl at Bailey who joined Crystalbrook Collection in November 2019 as executive assistant manager for Flynn, a Crystalbrook Collection Hotel. Carl brings to the role a passion for the Crystalbrook brand, having started with the company in 2018, then

QLD - NSW - VIC - WA

Lisa Brown

Replacing Carl at Bailey will be Lisa Brown. Lisa joined Crystalbrook Collection in November 2019 as Executive Assistant Manager for Flynn, a Crystalbrook Collection Hotel. Lisa’s 15 years of experience across the Mantra and Accor group in Kingscliff and most recently in Port Douglas sets her in good shape to take on the role, managing 255 rooms and residences alongside signature restaurant CC’s Bar and Grill.

Matt Stoeckel to say ‘Bula’ to Queensland’s Sunshine Coast as Tourism Fiji chief appointed CEO of Visit Sunshine Coast Current Chief Executive Officer of Tourism Fiji, Matt Stoeckel, will swap one idyllic destination for another at the end of the year following his appointment as Chief Executive Officer of Visit Sunshine Coast. Mr Stoeckel, who has been in the CEO role at Tourism Fiji since 2016, will start his new tourism role at the beginning of 2021.

EVENTS & APPOINTMENTS

Prior to taking up his role at Tourism Fiji, Mr Stoeckel had spent two years with Destination NSW, following several years working for the Swire Group and in tourism consultancy roles with TRC Tourism and Hyder Consulting. In his consultancy role he worked with Fiji’s Ministry of Industry, Trade & Tourism to develop the Fiji Tourism Development Plan 2014-2020, which he was then able to put into action as CEO of Tourism Fiji, including rolling out a new brand marketing campaign in 2019, which aimed to diversify the country’s tourism assets beyond its reputation for relaxation and family holidays. As a keen sailor, Mr Stoeckel said he was looking forward to moving to the Sunshine Coast with his wife and three young children and enjoying the renowned marine environment and climate. Chair of Visit Sunshine Coast, David Ryan welcomed Matt and thanked Interim CEO, Craig Davidson, for his role in guiding Visit Sunshine Coast through the challenges imposed by COVID-19, saying that the organisation had performed very strongly despite the loss of traditional interstate and international markets. He said: “Craig has provided tremendous support for Sunshine Coast tourism during his six months with VSC. Not only has the Sunshine Coast been one of the best-performing regions in Queensland, he has been instrumental in building a strong platform for the region’s future tourism prospects as markets progressively re-open.” ResortNews | October 2020

DEVELOPMENT NEWS

Queensland shines at national property awards

Novotel Southbank

Four exceptional Queensland projects and a Brisbane-based project manager took out some of the nation’s top property awards.

Ken Morrison explained the decision: “The judges chose the Novotel Brisbane South Bank for delivering a new accommodation asset that has enhanced South Bank’s reputation as Brisbane’s foremost tourism precinct.”

The 2020 Property Council of Australia / Rider Levett Bucknall Innovation and Excellence Awards were announced in a virtual ceremony in October. Winner Novotel Brisbane South Bank received the award for best tourism and leisure development.

All the Queensland winners came from a pool of 127 national finalists across 19 categories, they included two Queensland residential developments that showcased both luxury living and affordable housing. Oxley+Stirling, perched on the Brisbane River, won the Avenor Award for Best Residential Development. Ingenia Lifestyles Chamber Pines in Logan collected the Growthbuilt Award for Best Affordable Housing Development. The Procore Award for Development Innovation went to Lendlease’s 25 King, Queensland’s first engineered timber commercial building and the tallest and largest (by gross floor area) in Australia.

Accor’s Novotel Brisbane South Bank was presented with the Pure Projects Award for Best Tourism & Leisure Development. The opening of this hotel in May 2018 signalled a ‘next generation’ era for the brand. The Novotel achieves energy efficiency as a cornerstone of its operations – and is 27 percent more efficient than a benchmark building. Property Council Chief Executive

Oxley+Stirling

Daniel Burke, Project Manager with Turner & Townsend, wowed the judges with his commitment to delivering better health, education and employment infrastructure for rural and regional communities, he won the NS Group Award for Future Leader of the Year. Property Council Queensland Executive Director Chris

Mountford said: “Queensland is delivering world-class developments that shape the future of our state, and this national recognition is justly deserved. We have the fundamentals right to attract investment from around the world – now we need the right settings to capitalise on our strengths.”

Largest and only sport, health destination approved Situated on Victoria’s Surf Coast, CORA will hero a $350 million development on Cape Oway Road Australia. It will include a sporting facility, accommodation, and a carefully curated retail village. ResortNews | October 2020

Situated as the front door to the region, CORA will combine the best of what Victoria’s Surf Coast has to offer, representing the future of wellness tourism and elite sport in Australia. Cape Otway will become an alternate journey to or from the Great Ocean Road with proposed accommodation, encouraging visitation and greater tourism

spend in the region. CORA will welcome up to 350,000 visitors per year and create over 1,000 jobs at the height of construction. In operation, it will add $103 million per year to the local G21 region economy, attracting increased international and interstate visitors to the region. The proposed development will also include 4- and 5-star

DEVELOPMENTS

accommodation (128 hotel rooms, 37 eco lodges, and 24 retreat homestead) for local and international tourists and sporting teams alike. The property will also house an arts precinct with world class art galleries, showcasing Indigenous and contemporary Australian and International art.

Proposed investment for golf club in one of Australia’s premier holiday destinations Paul Chiodo founder and director of Chiodo Corporation, has announced plans to transform the Coolangatta & Tweed Heads Golf Course (C&THGC) into a $700 million, mixed-use development set to nourish the existing landscape and provide a much needed economic boost to the golf club and surrounding community. Paul is proposing an impressive upgrade to the clubhouse and bolstering the club’s income with various mid-level residential buildings and later, the construction of high-end luxury triple-storey townhouses. Like most golf clubs, traditional golf club membership is declining, and the current model is not sustainable, a trajectory that Paul looks forward to changing. He said: “The Coolangatta & Tweed Heads Golf Course is due to celebrate its 100th anniversary in 2026, however as it stands, there is a chance the club may struggle towards this milestone.

CORA

“Our proposal ensures the club is around for another 100 years, maintaining its 36-hole status and is financially positioned in years to come as one of the best golf clubs in Australia. Our proposal will also provide the C&THGC with a new world-class, state-of-the-art golf club and facilities, a much-need upgrade from the club’s current facilities which we do not believe to be up to compliance standard. “We propose to prepare a masterplan, working closely with the C&THGC board and

members for the most desirable outcome, complementing the current landscape and beauty the area has to offer. The project would also look to generate 100 jobs in the region, through construction and the opportunity for longer-term employment as part of the proposed developments,” he said. Via his five-crown-rated development fund, Chiodo Diversified Property Development Fund, Paul has worked in a diverse range of large and complex projects, with a proven track

DEVELOPMENTS

record in low and high-density residential, commercial office, retail and industrial projects, expertise in complex stakeholder management and specific project strategies that deliver a greater return on investment. Most recently, Chiodo Corporation announced its plans to deliver a $300 million luxury resort in Port Douglas, in partnership with Accor. The Fairmont Port Douglas is due to commence construction in Q1 of next year.

ResortNews | October 2020

LOCAL SPECIALIST OF MANAGEMENT RIGHTS & RESORTS SALES NEXT 团队懂得客户对我们的期望，一个具备丰富本地知识和经验，并且诚实而可靠地致力于取得客户利益的生意专家。凭借着团队１０多年丰富行业经验，我们向您承诺我们会努力达到您的期望。无论您准备买，卖生意，我们都可以帮助您实现您的目标。 The team at NEXT knows that our clients want to deal with consultants that have local knowledge, expertise, honesty, integrity, and are committed to achieving the best possible result for them. With many years of combined industry knowledge, you can be assured that our focus will exceed your expectations.

SOUTH BRISBANE

GREAT VALUE AND HUGE UPSIDE POTENTIAL

SPRING HILL

• Prime location, walk to South Bank Parkland & CBD, close to all the necessary amenities, Permanent & short term mix letting pool. • Just topped up in July 2020, 24 years left on agreements • Large 2 beds, 2 baths, 2 carparks manager residence • Brisbane State High catchment, but no requirement on residing onsite

• • • • •

NETT: $295,386 (Pre-Covid19)

NETT: $173,803

TOTAL: $1,700,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

FORTITUDE VALLEY

• • • • •

LARGE REMUNERATION & 3% INCREASE!

Boutique building in Brisbane Inner City, close to everything Great remuneration $93K with 3% adjustment annually Very long 24 years left on BC agreements Very healthy relationship with BC committee Modern 2 beds/2 baths/2 carparks manager residence

NETT: $136,000

TOTAL: $1,195,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

SOLD INCOME AND LARGE RESIDENCE

Inner City area, walks to CBD, close to everything Common area refurbished, all BC’s hard work done Fantastic manager salary $84,455 with annual increase of CPI Great 2 beds/two baths/2 carparks, large open plan living unit Spacious separate office, no set office hours

TOTAL: $1,503,800

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

ASCOT

• • • • •

TIME TO RETIRE - OWNER SAYS SELL!

Established modern, inner city permanent complex Handy location, close to shops, transport and M1 Only 35 units with good BC salary of $59,383 Exclusive detached office, no set office hours 2 beds/2 baths/2 carparks manager unit with large yard

NETT: $110,845

TOTAL: $950,000

David Janett, 0404 204 672, davidjanett@nextrealty.com.au

NEXT 不仅专业销售管理权和酒店生意，也向客人提供专业咨询，如管理权市场和生意分析，生意合作合伙计划以及代班经理服务。如您想了解更多的生意机会和市场发展，欢迎致电我们的专业团队。 If you are considering buying or selling, please contact NEXT, we work harder and more professionally to serve our clients for their best interest and trust!

www.nextrealty.com.au

PO Box 288, Cleveland, QLD 4163

Sales Report The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.

MANAGEMENT RIGHTS

MOTELS & OTHER

Gold Coast Costa Dora Allure, Chevron Island Sun Village

Gary Fox Canwealth Group Pty Ltd Kerry Walker & Neil Godwin

Surfers Paradise Chevron Island Southport

Stephanie Hooton Billett Developments Pty Ltd

Toowoong The Gap

MRS RB MRS

Brisbane Harvest and Mirra Hive

RB RB

Sunshine Coast / Wide Bay / Fraser Coast Kings Bay Elysee Saffire Nova Pinnacle

Mark Knight Ashley Kemp Ashley Kemp Ashley Kemp Ashley Kemp

Caloundra Alexandra Headland Mooloolaba Mooloolaba Maroochydore

RMS MRS MRS MRS MRS

Jim Humphries & Sally Wheeler

Yeppoon

MRS

Terry & Lisa Smith

Tweed Heads

MRS

North Queensland Pandanus Park

Wondai Colonial Motel Motel 98

M & S Fahey K&T Holdings Pty Ltd

Wondai Rockhampton

TB TB

Ben Hall Motor Inn David, Caroline & Bailey Smith City Sider Motor Inn Winn & Harris Gunnedah Lodge Motel G & A Way Day Dream Motel S. Maynard The Tumbarumba Motel (Lease) David and Pamela Dear The Tumbarumba Motel (Investment)Makavi P/L

Forbes Tamworth Gunnedah Broken Hill Tumbarumba Tumbarumba

TB TB TB TB RB RB

Sundowner Caravan Park

Ken & Sally Lao

Kempsey

Vertua Opportunities Property P/L Michael Ji N & D Clark

Warrnambool Donald Nhill

RB TB TB

New South Wales

Victoria

New South Wales Oasis Views

Queensland

Central Court Donald Riverside Motel Zero Inn Motel

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.

Stratacorp flexes its muscle with appointment of industry expert Industry leaders, Stratacorp are thrilled to announce that industry stalwart, Larry Seburn joined the company and team of management rights property professionals on February 1. Having worked as a partner in management rights since 2013, Larry brings with him more than 20 years of experience in the tourism and management rights industries, both in Canada and Australia. He also has extensive experience with trust accounting / resort software. “Thanks to my own diverse background, I understand the management rights industry thoroughly and know how to communicate effectively with those looking to become involved. The experience I’ve had throughout the years have taught me motivation

and discipline, and I am genuinely excited about representing Stratacorp and helping more people enter this industry. Charles Nurse, director of Stratacorp said: “Stratacorp understands that having the right agent is critical to our client’s success. Our stringent processes ensure that we attract the right buyer and can successfully navigate the due diligence period, through to settlement. “We’re very excited to have Larry on board. His depth of experience, knowledge and management capabilities will complement our growing team of seasoned brokers.” Larry Seburn can be contacted on 0403 756 755 or email larry@stratacorp.com

PROPERTY

ResortNews | October 2020

NEW MANAGEMENT RIGHTS OPPORTUNITIES

EX C AG LUSI EN VE CY

ID 8026 ONE FOR THE FAMILY – REEDY CREEK

• Permanent management rights • Well maintained • 8 in the letting pool

NET PROFIT:

• Huge 4 bedroom residence • No set office hours • High demand rental area

• Permanent management rights • No set office hours • All contact is by phone

• Gardens can be done after hours • 26 in the letting pool • Option of additional rent roll

NET PROFIT:

$87,783

EXCLUSIVE BROKER: Warren Oliver – 0416 216 625

LISTING BROKER:

Gerard Dixon – 0433 617 515

ID 8312 SERVICING HEALTH PRECINCT - CAIRNS

ID 8517 MUST BE SOLD - BROADBEACH

$101,000

• Short term letting • 7 in the letting pool • Great scope to improve

ASKING PRICE:

ID 7970 NO NEED TO LIVE ONSITE – CHEVRON ISLAND

$1,100,000

• Servicing hospital & government clients • No requirement to live onsite • Make your escape to the North

NET PROFIT:

$115,000

ASKING PRICE:

LISTING BROKER:

Antonio Curulli – 0488 030 853

$595,000

• Perfect Gold Coast location • Long agreements • Excellent Body Corporate

ASKING PRICE:

• 21 apartments in the letting pool • 2 bed, 2 bath residence • Motivated vendor – call today

NET PROFIT:

$209,000

LISTING BROKER:

Phil Trimble – 0418 478 966

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

$800,000

ASKING PRICE:

$1,349,000

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • October 20 • Eleventh Series

Market Snapshot - October 2020

Data provided by The On-Site Manager website.

STOCK LEVELS…Total number of Businesses on the market is the LOWEST on record October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

October 2020

$864m $835m $932m $1,040m $969m $914m $1,010m $985m $863m $717m 673 Properties 604 Properties 677 Properties 728 Properties 697 Properties 697 Properties 739 Properties 716 Properties 641 Properties 518 Properties on the market on the market on the market on the market on the market on the market on the market on the market on the market on the market          

Stock Levels continue to fall further in the holiday space and have also had considerable drop in the permanent space October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

October 2020

Holiday 337  Permanent 260 

Holiday 328  Permanent 250 

Holiday 346  Permanent 307 

Holiday 355  Permanent 338 

Holiday 358  Permanent 309 

Holiday 330  Permanent 336 

Holiday 343  Permanent 336 

Holiday 335  Permanent 328 

Holiday 283  Permanent 311 

Holiday 239  Permanent 245 

4.25x 

4.46x 

and Multipliers…are SLIGHTLY HIGHER BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price 5.1x 

5x 

4.9x 

4.4x 

4.3x 

4.2x 

4.1x 

4.3x 

and the listing period for stock on the market has fallen on average by 7 days DAYS LISTED October 2017

DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED August 2018

DAYS LISTED January 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

DAYS LISTED January 2020

DAYS LISTED June 2020

DAYS LISTED October 2020

Has reduced by 4 days to 80 days 

Has reduced by 4 days to 76 days 

Has increased by 10 days to 86 days 

Has decreased by 16 days to 71 days* 

71 Days 

72 Days 

74 Days 

105 Days 

65 Days

58 Days 

Market Movers

This is the first COVID impacted set of data and points to a reduction in Holiday/Resort stock on the market to the lowest level we have recorded. The listing period for Permanents has halved indicating a focus on buyers on this part of the market. The Brisbane market appears to be largely unaffected at this point however and predicably the Gold Coast market has been deeply impacted with stock levels falling in all categories. *Remained 79 days for Holiday and Permanent

P E

(07) 5689 4657

Josh.Luca@finexia.com.au

finexia.com.au company/finexia-securities

Management and Letting Rights Quarterly Pulse • October 20 • Eleventh Series

Management Rights For Sale - Market Analysis - October 20 Letting Pool Coverage – proportion of the total units to those within the Pool. Agreement Coverage – refers to % of total agreement term available upon purchase. Total stock

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$388,964,752

239

$1,627,468

4.41

55%

60%

115%

Permanent

$294,174,699

245

$1,200,713

4.50

53%

50%

82%

Corporate

$8,694,000

$1,449,000

4.80

59%

63%

89%

Off The Plan

$8,148,800

$1,018,600

6.62

50%

38%

100%

Caretaking

$11,718,500

$837,036

3.69

59%

67%

Retirement

$5,501,535

$916,923

3.45

36%

75%

74%

Grand Total or Average

$717,202,286

518

$1,346,675

4.46

54%

98%

641

630

600

604

550

518 500

Number on the Market

NO. OF BUILDINGS ON THE MARKET BY TYPE (Holiday & Permanent) 380 360

359

358

355 346

340 320

338

328

300

260

240

335

336

330

307

328

309

280

278 260

343

336

337

311 283 245

250

239

220

Resort/Holiday

Permanent

Oct 20

Aug 20

Apr 20

Jun 20

Feb 20

Oct 19

Dec 19

Aug 19

Apr 19

200 Jun 19

$149m in Properties for Sale ($187m in Jun20) 113 Properties for sale (137 in Jun20) 24 Permanent (26 in Jun20) 81 Holiday (102 in Jun20) 70 Days on Average Listed 4.48 Ave Multiplier (4.37 in Jun20)

650

716

697

677

Feb 19

Brisbane

$235m in Properties for Sale ($211m in Jun20) 175 Properties for sale (155 in Jun20) 98 Permanent (66 in Jun20) 81 Holiday (87 in Jun20) 51 Days on Average Listed (104 Days in Jun20) 4.47 Ave Multiplier (4.41 in Jun20)

Sunshine Coast

$152m in Properties for Sale ($175m in Jun20) 112 Properties for sale 93 Permanent 5 Corporate 6 Holiday 70 Days on Average Listed (71 Days in Jun20) 4.7 Ave Multiplier (4.1 in Jun)

Gold Coast

Standard Agreements multpliers have fallen from an average of 4.22 to 3.71x Accommodation Agreements have fallen from an average of 4.7 to 4.42x

673

Oct 18

$1.31m

739

Dec 18

4.42x

Aug 18

Accommodation Agreements

700

728

Apr 18

$1.43m

Jun 18

3.71x

750

Feb 18

Standard Agreements

NUMBER ON THE MARKET

Oct 17

Ave Purchase Price

Dec 17

BUSINESS MULTIPLIERS (ave)

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sept 20 Oct 20

Purchase Price

Total Properties on the market has hit a new record high.

Jun 17

Comparison by Agreement Type - October 20

Historical Comparison of the Market

Aug 17

‘On the Market Analysis’ - Market Pulse

Smart, talented, and committed:

Debbie’s fresh take on MR By Mandy Clarke, Editor

This is the remarkable story of how Debbie Slater, without any management rights experience, became the manager of two large permanent properties in the middle of a pandemic. “It was instinct,” says new resort manager, Debbie when asked why she decided on the spot to buy the management rights for two of Brisbane’s more sought-after permanent resort properties. Shafston Towers and Mon Reve

are the two adjoining complexes in Kangaroo Point. Debbie viewed them both in the same day and immediately made an offer to purchase the management rights. Unbelievably, this was the first MR business she’d even looked at! Debbie reveals: “The decision I made on that day probably isn’t the ideal way to buy a business or to make such a huge lifestyle change, but I have to say it’s been the best decision I ever made!” She says: “My career was in sales and retail for most of my working life but when I downsized from a large house to apartment living on the water in Woody Point,

Redcliffe, I loved it! I was inspired by the fantastic manager of my building and thought that management rights seemed like a pretty good job. I am a very practical and technically minded person, so I felt that this role would be a natural fit for me. “In 2019, I researched the industry, I studied, I completed a management rights introductory day on the Gold Coast with ARAMA and, of course, I got my Real Estate licence. Then, as I consulted a finance broker to find out how much I could borrow, a great business opportunity came on the market. I made an appointment with Lyn Pearsall at

PROFILES

MR Sales to view Shafston Towers and Mon Reve and I immediately knew that I had to make an offer, so I signed a contract that same day. The support from Lyn Pearsall was outstanding, she went above and beyond to help me achieve my goal. “I began my new career on June 5, 2020, and I haven’t looked back!” Debbie lives onsite in Shafston Towers, it has 33 residential apartments that are all large, bright, and airy and the complex offers all the facilities you would expect of an inner city resort with a large in-ground swimming pool, spa, tennis court, picturesque BBQ and family area.

ResortNews | October 2020

Debbie Slater with Cameron Farrell Strata Development Consultant, BC Systems, Shafston Towers

The location is very accessible, just a short walk from the Mowbray Park City Cat Stop, only minutes to Brisbane CBD and a short walk to the restaurant culture that is Kangaroo Point and East Brisbane.The adjoining property is the modern, luxurious, and highly sought-after Mon Reve. This outstanding complex offers 50 large residences with huge balconies that capture spectacular views of both the city and river. This property is stunning with beautiful, landscaped gardens and a marina, it offers luxury river front living with pool, spa, and gym.”

she has help from commercial cleaners on Monday and Friday for Mon Reve’s communal areas. She is very proud of how much cleaning and repairs she has completed herself.

There are 11 apartments in total that Debbie looks after in the rental pool, she works with two body corporate committees and is so busy that sometimes there is “not enough hours in the day”! Luckily, I was able to interview Debbie between tasks, as she fixed a pool pump and showed an apartment to new renters.

Before Debbie purchased the MR, external renovations of Shafston Towers had been completed and the property was re-tiled and painted. Podium work and the re-tile of the common areas in Mon Reve had been planned for 2020 but have been postponed for 12 months due to COVID.

The hard working and very enthusiastic Debbie fills her day with relationship building, ongoing maintenance, cleaning, organising, renovations, helping people move in and out and, of course, paperwork. Debbie also finds time to plant and landscape and has beautified the plants on the deck around the pool at Mon Reve. “People ask me how I do all of this by myself, and I answer that I work 12-hour days, but I love what I do,” she says. “What continues to motivate me is the amazing feedback I have been getting from many of the unit owners and both of the body corporate committees. There has been plenty of praise for the work I have done in the last five months and that recognition makes me feel very appreciated.” Debbie only uses contractors for landscape maintenance, and ResortNews | October 2020

She says: “Improving the standard of cleaning across both buildings and getting on top of outstanding repairs has been a huge achievement. In the five months I have been here, I have ensured that both buildings have had a thorough spring clean, all essential repairs and maintenance have been completed and the landscape has been tidied.

Debbie is a member of ARAMA and AccomProperties and appreciates the industry support she has received; she also uses REI Cloud and has also found them to be very supportive and helpful. As a woman in industry, she reveals that she has had nothing but good experiences with tradies, contractors, and body corporate committee members. Debbie’s advice to anyone thinking of purchasing a management rights business is: “Do your research, give it your all and don’t look back. I did know what I was getting myself into but there was still so much more to learn, and I think more ongoing training or even mentorship would have been really helpful in the first few weeks.” “I made a quick decision to buy but I don’t regret it. My biggest advice is if you love it and want it – just do it! PROFILES

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ResortNews | October 2020 ResortNews | November

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ResortNews | October 2020 November 2020

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email info@pret.com.au visit www.pret.com.au

RTO Number 31303

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Leading Sunshine Coast Law Firm

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admin@accomvaluers.com.au

www.accomvaluers.com.au

1800 080 349 www.propertytraining.edu.au

Look for the sign of an Industry Specialist

PREFERRED SUPPLIER DIRECTORY

, r e t r a m S k r Wo rder… Not Haess out of your role Take the str Manager… as a Building

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Australian Based Support

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reicloud.com.au

Resort News - November 2020

Articles inside

PROFILES

DEVELOPMENTS

Appointments

Tourism Report

Tourism International

Building relationships with your investors

Women In Management

Good Governance

Intonet

Thinking MR

Prison, fi nes for trust account misuse

Motel Market

Legal Ease

By All Acconts

State Report

farm to the Commissioner’s Offi ce

News In Brief

ARAMA Report

FRONT DESK