Unit News Online September - October 2019

THE OFFICIAL MAGAZINE OF UNIT OWNERS ASSOCIATION QLD EDITION SEPTEMBER / OCTOBER 2019

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“Would our Committee have been able to achieve what we have over the past 12 months and cope with the work required to get us through? Were it not for the personal interest and dedication of UOAQ then the short answer to that question is ‌ absolutely not!I strongly urge all Queensland unit owners to ensure that their Body Corporate Committee subscribes to an annual membership with the UOAQ - an organisation with a strong voice supporting of all owners in Queensland.

Garry Deighton - Chairperson Ocotillo CTS 32327

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Published by Unit Owners Association Qld 6th Floor. 333 Adelaide St, Brisbane QLD 4000 help@uoaq.org.au (07) 3220 0959

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(07) 3220 0959 or uoaq.org.au and request to communicate to a particular person.

Bob Boundy, Bradley von Xanten, Philip Greenhill and Tony Entriken.

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To advertise in Unit News, please contact Jana Koutova on (07) 3220 0959 or editor@uoaq.org.au

Editor

Jana Koutova editor@uoaq.org.au

Gold Coast

Wayne Stevens Mike Murray Greg Melloy Roger Dearing

Help for Members

Members of the UOAQ are welcome to contact committee members of the association for any help on any body corporate matter.

Art Direction

Dan Hancock hi@danhancock.com.au

Disclaimer Articles contributed to this newsletter are published as a service to members and do not necessarily reflect the opinion or policy of this Association. To contact the committee of the UOAQ for assistance with a body corporate matter please email help@uoaq.org.au

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ear readers, The last week of September brought with it our annual general meeting. Thank you to all who supported us by participating in person or via mail. The UOAQ has elected a new Executive Committee and have been joined by three new committee members. You can find their profiles here.

Safer Buildings – The Queensland Government’s programme aimed to identify buildings with combustible cladding is in its ‘Part 3’. The 31 October 2019 is the deadline for registering details of a fire engineer who you must engage if your scheme is still affected following Part 2 completion.

The UOAQ highly recommends contacting the Board of Professional Engineers of Queensland to search for qualified registered

"The 31 October 2019 is the deadline for registering details of a fire engineer who you must engage if your scheme."

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engineers. See their details on page 4.

Our investor owner members may want to see the tips for maximising tax deductions available through their investment property.

See page 9 for more details.

We continue our Self managed and simple scheme series focussing on levies (see page 8). Statutory easements, enforcement of by-laws and how to manage records for lifts from design to demolition are other interesting topics.

Thank you all for your continued support and feedback – it helps us to keep helping you. Enjoy reading.

Jana Koutova - Editor

SPONSORED ARTICLES 4

5 7

8 9 11

Board of Professional Engineers of QLD Bugden Allen Lawyers Commissioner for Body Corporate and Community Management Tracsafe Gleeson Quantity Surveyors Lift Logic

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SAFER BUILDINGS

ARE YOU REQUIRED TO ENGAGE WITH A FIRE ENGINEER TO ASSESS YOUR BUILDING? The Queensland Government’s Safer Buildings program aims to identify buildings that may contain potentially combustible cladding.

If your building is still an affected building following the completion of Part 2, the online checklist will require you to complete Part 3. Part 3 requires you to engage with a fire engineer and register their details on the combustible cladding checklist by 31 October 2019.

Registered Professional Engineers of Queensland (RPEQs) registered in Fire or Fire Safety engineering can complete the building fire saftey risk assessment and prepare a fire engineer statement. Currently there are 147 Fire or Fire Safety RPEQs registered with The Board of Professional Engineers of Queensland.

To find a RPEQ in your area to complete the building fire saftey risk assessment and prepare a fire engineer statement, visit www.bpeq.qld.gov.au or for more information on Safer Buildings visit www.saferbuildings.qld.gov.au.

By-Law Enforcement

By Gary Bugden, Senior Partner, Bugden Allen Lawyers

By-Laws are the essential mechanism for guiding people towards appropriate and acceptable conduct. They set the standards by which everyone can live in peace and harmony. Like the laws of our country, they provide protection against conduct which affects the safety and common good of all community members.

Importance of By-Laws

Living in a home unit, townhouse or villa home community can have its challenges. Those challenges are usually associated with the behaviour of people (owners, tenants and visitors). By-Laws are the essential mechanism for guiding people towards appropriate and acceptable conduct.

They set the standards by which everyone can live in peace and harmony. Like the laws of our country, they provide protection against conduct which affects the safety and common good of all community members.

Importance of enforcement

Having good by-laws in place is not, in itself, sufficient to ensure a harmonious communal environment. The by-laws need to be communicated to all stakeholders and fairly but firmly enforced. Failure to enforce the by-laws, or make people aware of their content, will diminish their effectiveness. A by-law enforcement strategy is the way to go.

By-Law enforcement strategy

An effective by-law enforcement strategy for a body corporate involves the following steps: THE LATEST NEWS facebook.com/uoaq.inc

STEP 1 Communicating the by-laws to stakeholders

(i.e. owners, tenants and other occupiers).

Identification of breaches.

Initial warning to offender.

Monitoring for any ongoing breach.

Service of a Contravention Notice on the offender.

STEP 6 Prosecution for failure to comply with the Contravention Notice.

STEP 7 Application for an Adjudicator’s Order for compliance with the by-law.

STEP 8 Prosecution for breach of the Adjudicator’s Order.

STEP 2 STEP 3 STEP 4 STEP 5

Communicating the by-laws to stakeholders

This is a very important step. People cannot be expected to comply with by-laws if they are unaware of them.

If the by-laws have been newly adopted, a letter to all owners, tenants and occupiers (or as many as can be identified) enclosing a copy of the by-laws is recommended. In addition, a copy of the by-laws should be posted on the common property notice board, or other conspicuous place. If the by-laws have been in place for some time, a periodic letter to stakeholders reminding them of the by-laws and enclosing an up-to-date copy is recommended.

Permanent display of a copy of the by-laws on the common property notice board is also a good idea.

Identification of breaches

This is the effective start of the enforcement process. The by-law breach must be observed and documented. Documentation can involve factual >

"Living in a home unit, townhouse or villa home community can have its challenges. Those challenges are usually associated with the behaviour of people (owners, tenants and visitors)."

SEPTEMBER / OCTOBER 2019 UNIT NEWS

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> diary notes of what occurred with clear reference to date, times and potential witnesses. It can also involve the taking of photographs. This documentation will be essential if it becomes necessary to enforce the by-law being breached.

Responsibility for identifying breaches must be assigned to a person or persons. If there is an on-site manager, they are usually the person who monitors performance of the by-laws, documents and reports breaches to the committee of the body corporate. Alternatively, a member of the committee, or even all committee members, can be given responsibility for monitoring the by-laws.

Initial warning to offender

Once a by-law breach has been identified and documented it is reasonable to provide a warning to the offender before formal enforcement action is taken. In many cases offenders are not aware of the fact they are breaching a by-law, or they fail to appreciate the impact of the breach on their neighbours. Bringing the breach to their attention will often result in remedial action and the avoidance of further breaches.

The warning can take one of a number of approaches: • A friendly ‘chat’ with the person in breach.

• A preliminary letter.

• A ‘sticker” placed in an appropriate position (such as the windscreen of an illegally parked motor vehicle).

Monitoring for any ongoing breach

After the initial warning, the person or persons responsible for identifying breaches should monitor further compliance with the by-law to ensure that the previous offender has not re- offended. Again, this involves observing and (if necessary) documenting in the same way recommended in paragraph 5 above.

Service of a Contravention Notice on the offender There are 2 types of Contravention Notices:

• Continuing Contravention Notice where the 6

UNIT NEWS SEPTEMBER / OCTOBER 2019

circumstances of the contravention make it likely that the contravention will continue.

• Future Contravention Notice where the circumstances of the contravention make it likely that the contravention will be repeated.

Issue of the Contravention Notice must be authorised by a resolution of the committee and the notice must be properly served. If the Contravention Notice is served on a person who is not the owner of a lot in the Scheme, then a copy of the notice must be given to the owner of the lot when the first notice is given, or as soon thereafter as practicable.

Service on an owner may be: (a) personal (i.e. by handing it to the person to be served); (b) by post to the address for service on the Roll; or (c) if no such address is recorded, by post or delivery to the address of the lot.

Service on a tenant or occupier may be: (a) personal (i.e. by handing it to the person to be served); or (b) by post or delivery to the address of the lot.

A diary note should be prepared recording details of the service.

Prosecution for failure to comply with the Contravention Notice

Failure to comply with a Contravention Notice is an offence which carries a maximum penalty of 20 penalty units (currently $2,611.00). One option available if a person fails to comply with a Contravention Notice is for the body corporate to prosecute the person who failed to comply with the notice. The criminal standard of proof (i.e. beyond reasonable doubt) applies to any such prosecution.

If the likely cost of the prosecution is within the committee’s spending limit, then the prosecution can be authorised by a resolution of the committee. Because of the technical nature of these types of proceedings and the potential liability for costs if a prosecution is not successful, the body corporate should engage a lawyer to act for it in these proceedings.

Application for an Adjudicator’s Order for compliance with the by-law

The other option available if a person fails to comply with a Contravention Notice is for the body corporate to make an application to the Commissioner’s Office for an Adjudicator’s order requiring the offender to comply with the by-law. Service of a contravention notice is usually a required first step before such an application can be made. If an order is made and the offender refuses or fails to comply with the order, then they commit a further offence.

Prosecution for breach of the Adjudicator’s Order

Failure to comply with an Adjudicator’s order is an offence which carries a maximum penalty of 400 penalty units (currently $52,220.00). It is clearly a much more effective remedy than a failure to comply with a Contravention Notice. Again, the criminal standard of proof applies and because of the nature of these proceedings and the costs risk, the body corporate should engage a lawyer to act for it in these proceedings.

By-law enforcement by lot owners

If a lot owner is concerned about a by-law breach and the body corporate has refused or failed to take action to enforce the bylaw, then the lot owner or occupier can complete an approved Form 1 (Notice to body corporate of a contravention of a body corporate by-law) and serve it on the body corporate. The body corporate then has 14 days in which to give a Contravention Notice and advise the complainant that the notice has been given for the approved Form 1). Service of an approved Form 1 is usually a requirement before an owner or occupier can themselves make an application for an Adjudicator’s order.

This article contains general information which may assist the body corporate in dealing with by-law contraventions. It is no substitute for expert legal advice on the specific circumstances of a by-law breach. If you need such advice, please contact one of our experienced body corporate lawyers by telephoning 07 3905 9262.

Further Information

For more information visit bugdenallenlawyers.com.au BECOME A MEMBER TODAY uoaq.org.au

Then there are some situations where easements are in place according to the Land Title Act 1984 and these are what are known as statutory easements – i.e. the easement is provided for under a statute (piece of legislation).

For bodies corporate, the nature, number and location of statutory easements might be significant and have a big impact on the community titles scheme and its occupiers.

The easement may, for example, be part of an individual lot or on common property and may also give rights of entry to a lot or common property.

Statutory Easements

By Chris Irons, Commissioner for Body Corporate and Community Management

T

he subject of easements, particularly statutory easements, can be a significant issue for bodies corporate.

Sections 67-70 of the Body Corporate and Community Management Act 1997 provide for the exercise of rights under a statutory easement and, in particular, provide that the exercise of that right can only occur in a way that doesn’t unreasonably interfere with the use or enjoyment of a lot or common property.

The Act also provides for what are known as ancillary rights, which are the additional and related rights that support statutory easement rights. Both the ancillary rights and easement itself may be recorded in the community management statement.

In practical terms and from a body corporate’s perspective, a statutory easement may allow a body corporate to enter a lot to carry out work and this is different to the right of a body corporate under section 163 of the Act to enter a lot or exclusive use area to do an inspection or carry out work.

Well, an easement can be thought of as the right to enter or use a section of land for a particular purpose by someone who is not the land owner and so would not normally have that right of entry.

Equally, a statutory easement may allow a lot owner to enter another lot to carry out work. A practical example of this might be where there is a duplex (two-lot scheme) and the switchboard is located in the backyard of one lot but the safety switch for the second lot needs to be reset. The statutory easement would exist against the first lot and allowing the owner of the second lot to enter the first lot to reset the switch.

As you’d expect from the above there are several types of easements and they might include things such as giving a rightof-way (people are allowed to pass through a property on a defined strip of land) or the provision of services (e.g. conveying gas, water or electricity).

The Act provides that an owner or body corporate must give reasonable written notice before they can enter a lot or common property to carry out work under a statutory easement. That said, the Act does not define what is “reasonable” and so therefore there isn’t a definition for how many days’ notice is appropriate or

So what do we mean by a ‘statutory easement’, exactly?

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what a “written notice” should include. Additionally, the Act goes on to provide that in an emergency situation – and “emergency” is also not defined – notice is not required.

I can appreciate that this lack of definition might be problematic.

I’d suggest that this might be overcome by applying a practical approach. For example, something isn’t an “emergency” simply because we’d wish things to happen more quickly – an emergency is usually something which happens with little or no warning and with very little time to react. In relation to the notice, consider putting in as much detail as you would like if you were the person receiving it. As you might gather from the above, statutory easements may have significant implications on both an individual and a body corporate’s legal rights and responsibilities, so seeking qualified legal advice might be advisable if there is a query about what statutory easements exist and also prior to exercising a right in relation to those easements.

Further Information

Please contact the Information and Community Engagement Unit of my office on 1800 060 119 or visit our website www.qld.gov.au/bodycorporate

You can contact the Titles Office – part of the Department of Natural Resources, Mines and Energy – for information about tiles issues generally.

Visit https://www.dnrme.qld.gov.au/titles-valuations for more information or call 1300 255 750.

We also have a module, as part of our free online training course, about maintenance which includes reference to statutory easements. The link to that is https://publications. qld.gov.au/dataset/body-corporate-management-trainingunit-4-maintenance/resource/f1f3fbc2-9ebb-44d2-9c3541391749ff45 – although I would, of course, recommend

you undertake the entire online training, available at

https://www.qld.gov.au/law/housing-and-neighbours/ body-corporate/legislation-and-bccm/services/training.

SEPTEMBER / OCTOBER 2019 UNIT NEWS

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SERIES

Self managed and simple schemes

Sinking fund budget.

In simple schemes, the top sinking fund expenditures are likely to be –

This is the fifth article in a series about simple schemes.

Most simple schemes can be characterised as being either a low height apartment complex or a collection of independent dwellings. Complexity increases with the number of lots and the variety and extent of infrastructure on the common property. There is no strict cut-off to our definition of simple.

Multiple quotes are essential for these big ticket items and recommendations are also important. The most common insurance claim that I encounter is for water damage. In many cases, this is due to roof penetrations where seals/tiles/sheets are broken/cracked/rusted. Do not overlook preventative maintenance particularly in the area of waterproofing. Water damage can be heartbreaking, paying a claim excess is expensive, and an increased premium due to recurrences is a real possibility.

5. Keeping a lid on your levies

By Ross Utting, Tracsafe

Maintenance.

The Body Corporate and Community Management Act 1997 (BCCM Act) requires that “The body corporate must maintain common property in good condition, including, to the extent that common property is structural in nature, in a structurally sound condition.”

Importantly, the BCCM Act does not say “fair condition” but “good condition”. When I drive around the suburbs of Brisbane, it is easy to see that owners of houses that are not in a body corporate are not held to any standard. On average, I estimate that these houses are on average somewhere between “fair” and “good”. Reminding body corporate lot owners of this higher standard might help committees explain to lot owners why levies are needed and why the associated maintenance is more they might personally have elected to expend.

Administrative fund budget.

Year on year, the balance in the administrative fund balance at the end of the financial year should not be changing after ignoring any levies received in advance. Cash flow requirements may dictate that the actual balance at that time be non-zero (for example - often an insurance premium is payable at this time).

In a simple scheme, your top administrative fund expenditures are likely to be some of these – • insurance premium • body corporate manager • grounds (mowing, hedging, gardening, …)

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UNIT NEWS SEPTEMBER / OCTOBER 2019

• termite inspection • gutter and/or house clean • community electricity The best way to ensure you are paying market price is to seek multiple quotes at regular intervals. For insurance, I recommend using an insurance broker provided they are sending you multiple quotes each year with advice to either switch or renew. I see many examples where an insurance broker simply sends renewals every year. The committee should focus on selecting the insurance policy options that are appropriate to the scheme’s requirements. One area that can have a big impact on the premium is the selection of ‘flood’. Another way to reduce the premium is to request a higher excess. This will have consequential impacts when claims are made.

Body corporate manager expenditure.

I often review budgets and financial statements that have been generated by body corporate managers. In many cases, the cost of administration by a body corporate manager has been spread over many different account descriptions. I regard that as a slight misrepresentation of the service being provided since the majority of the expense items are invoices in the name of the body corporate manager. When you compare body corporate managers, I do recommend that you compare apples with apples. You can find body corporate managers who will provide a yearly administration fee that does include all of these items (unless the year has an abnormal body corporate event).

Here are some account descriptions that usually relate to amounts being paid to the body corporate manager - postage, printing, stationery, disbursement charges, mobile, telephone, fax, email charges, levy arrears fee, bank fees, DEFT fees, levy processing fees, licence fees, tax preparation fee, admin fees, meeting fees, software fees, call out fees, GST. (Note the inclusion of bank and DEFT fees – different managers have different arrangements with their preferred banks).

• painting • roofing and guttering

• fencing and paving • tree lopping

Honorariums and voluntary workers.

The two most likely areas where voluntary workers can impact your levies downwards are – • self-management of the scheme • mowing and gardening In both cases, the motivation can be varied – reduce the levies, making a contribution, doing a better job than the incumbent contractor, physical and mental stimulation, and community engagement. The important component is to ensure the contributors are not taken for granted and do not feel overwhelmed. A yearly honorarium may be an appropriate way to recognise the contribution (10% of what a service provider would have charged is a rule of thumb I use). There are BCCM Act rules in regard to paying committee members and there are tax office rules about honorariums. Volunteer insurance may also be an appropriate insurance option to consider although it is usually a standard option offering in most strata insurance policies.

Further Information Website www.tracsafe.com.au Email contact@tracsafe.com.au Phone 07 31143198 BECOME A MEMBER TODAY uoaq.org.au

Tax Depreciati

n

by Zac Gleeson, Director, Gleeson Quantity Surveyors

W

ith another financial year recently coming to a close, it comes that time of year again where we are all starting to tidy up our tax affairs and of course hoping to reduce our tax payable or even increase our tax refund! If you own an investment property this will most likely be your largest tax deduction – if done correctly.

There are many misconceptions about tax depreciation so let’s run through some frequently asked questions and myths as they

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most likely will relate to you this tax time.

What is tax depreciation?

The Australian Taxation Office (ATO) allows investment property Owners to claim a tax deduction on the fair wear and tear on an investment property and its fittings. Tax depreciation is essentially a non-cash deduction.

You don’t necessarily have to directly incur the expense to be able to claim the deduction, you can inherit deductions upon acquisition of the

property (different rules apply for residential properties purchased post 9 May 2017, contact us for more information). Tax depreciation is split into two categories; Division 43 Capital Works Allowances (the building itself) and Division 40 Plant and Equipment (eg. carpets, blinds, A/C, ceiling fans etc.)

Is my property too old to depreciate?

Depreciation tax deductions are available to residential property Investors whose

investment property was built after 15 September 1987, commercial properties when built after 20 July 1982 and any refurbishments/renovations/improvements from 27 February 1992. You do not have to know when these works were done – leave this up to your tax depreciation provider.

Depreciation on plant and equipment is also available on all new buildings and all existing properties when purchased prior to 10 May 2017. In summary, 99.9% of investment > SEPTEMBER / OCTOBER 2019 UNIT NEWS

9

" At the very least it is worth contacting your tax depreciation specialists at Gleeson Quantity Surveyors to have a no obligation discussion regarding your investment property scenario." > properties will be entitled to some form of depreciation deduction.

I have held my property for years, so there's no point claiming depreciation now?

If you are thinking this, please remember that the structure of your investment property has an effective life of 40 years! If you have owned your investment property which was built post September 1987 then it is very likely you are missing out on thousands of dollars’ worth of possible tax deductions. Another tip which could save you thousands is that your Accountant can help you claim tax depreciation retrospectively, amending up to the past two financial year tax returns making the most of your depreciation deductions which you may have lost through not claiming. Completely legitimate and the ATO actually encourage you to do this.

But won't my accountant look after my tax depreciation?

Quantity Surveyors are recognised by the Australian Taxation Office (ATO) as the most suitably qualified profession to estimate the depreciable expenditure spent on the property prior to your purchase, as well as the value of the fittings and equipment within the property. In accordance with ATO Tax Ruling 97/25, if your residential investment property, for example, was constructed after September 1987 and/or construction costs are unknown, you must engage a registered and qualified Quantity Surveyor to produce a depreciation schedule. Unfortunately, your Accountant can’t do this for you.

Renovations were completed by the previous Owner so I can’t claim them, can I? This is where we as Quantity Surveyor’s come in to our own and can add serious value. It does not matter if the works were undertaken by a previous Owner, when you purchased the 10

UNIT NEWS SEPTEMBER / OCTOBER 2019

investment property you have also purchased the entitlement to claim depreciation on all of the property’s improvements.

We use a trained eye when inspecting the property, draw upon our extensive construction knowledge, utilise historic council records and building searches and we use historical photos of the property as the basis for our calculations. Our experience could save you thousands of dollars.

Most houses 10+ years old will have had works done. The most typical being: • Bathroom – commonly worth up to $25,000 • Kitchen – commonly worth up to $30,000 • Floor & Wall Tiles – commonly worth up to $10,000 On a 10-30 year old property there is $65,000 right there which you could be missing out on if you didn’t get a QS to do a depreciation schedule for your investment property.

If you are about to renovate your investment property it may be worth getting a QS to undertake a pre-renovation inspection.

This inspection allows a QS to identify what assets or capital works you are going to demolish or throw out. Did you know that you are entitled to assign a value to these assets and write them off as an immediate tax deduction? It is easy to get narrow minded when renovating as you are wanting to complete the renovation as quick as you can so that you can get a tenant back in paying rent, but a pre-renovation inspection and ‘scrapping report’ can save you thousands which can offset your loss made through the renovation period.

Tax Depreciation isn’t Worth it Due to Capital Gains Tax A common myth regarding tax depreciation is that Capital gains tax (CGT), which occurs at the disposal of your investment property, negates the savings made through claiming depreciation. The only instance where there is any truth to this statement is if you hold your investment property for less than

1 year as you are unable to claim the CGT 50% discount.

People get scared off by the fact that claiming tax depreciation does in fact decrease your cost base. Let’s just look at this on face value for a second, claiming tax depreciation INCREASES YOUR CAPITAL GAIN and enables a LARGER AFTER TAX PROFIT. If that is not enough, the increase in tax you pay at the capital gains event is less than half of the savings you have made through claiming tax depreciation over the life of your investment.

Another win is the fact that plant and equipment which equates on average to approximately $20,000 worth of tax deductions is not taken into account within the capital gains calculations.

If I could ask you to take away three key points regarding this myth: 1. The savings you have made through claiming tax depreciation is more than double the increase in tax you pay at the capital gains event 2. It is important to hold your investment property for longer than 1 year so that you are eligible for the CGT 50% discount 3. Claiming tax depreciation increases your capital gain and increases your after tax profit At the very least it is worth contacting your tax depreciation specialists at Gleeson Quantity Surveyors to have a no obligation discussion regarding your investment property scenario. We guarantee the value of our service and are more than willing to assist.

Further Information Zac Gleeeson, Director Email zac@gqs.com.au Phone 1300 290 235 BECOME A MEMBER TODAY uoaq.org.au

Lifts Records from Design to Demolition

By Tony Hazeldine, Lift Logic

T

he Qld Workplace Health and Safety Act and the Qld Workplace Health & Safety Regulations set out the responsibilities of persons and organisations from the initial design of a lift until it ends up at a scrap metal dealer. If the legislation was followed it would be possible to have an accurate picture of who did what, when and why from design to demolition.

Lifts, escalators and moving walks are “Plant” that requires Design Registration and Plant Registration prior to use. Design registration applies to a class or type of lift from a specific lift manufacturer. As an example, one design registration number could cover all lifts manufactured by the XYZ Lift Company with a 20 passenger capacity suitable for installation in buildings of up to 20 levels. The Plant Registration number is a unique number issued after installation when the owner registers the lift. The process starts with the designer (Act Sec 22), followed by the manufacturer (Act Sec 23), then to the importer (Act Sec 24 & 25) and finally to the organisation installing and commissioning the lift (Act Sec 26). Along the way the lift will have acquired a “Plant Design Registration Number”. After the lift is installed the lift contractor will commission the lift by making final adjustments and carrying out tests to ensure that the lift has been installed as designed and complies with Australian legislation.

After completion of this commissioning process the first owner, usually the Builder, will be given a statement of compliance to the WH&S Act, Qld Electricity Safety Act and ACMA requirements by the lift contractor. This statement, usually referred to as a “Safe To Operate Certificate” will include the Plant Design Registration Number. The lift contractor is also required to provide instructions on the safe use of the lift, maintenance requirements and commissioning documentation.

Before the lift is used for the first time, the owner or person defined in the legislation as “a person with management or control of the lift” THE LATEST NEWS facebook.com/uoaq.inc

must apply for Plant Registration using the information provided in the “Safe To Operate Certificate” and pay the registration fees.

It is an offence to use a lift that is not plant registered. The owner or person with management or control of the lift is then required to display the “Plant Registration Number” on the lift. When a body corporate is established, the owner, usually the builder should transfer ownership of the lift to the body corporate along with all records including any maintenance and breakdown records since first use of the lift. The concept is that the records remain with the lift from day one until the lift ceases to exist irrespective of who owns the lift. It is uncommon to find lifts in use that aren’t Plant Registered but it does happen. However it is common to find lifts without any supporting documentation.

Relevant extracts

How can this be? The answer is “Industry Self Regulation”.

The process relies on everyone following the legislation which doesn’t happen. In a lowest price gets the job environment and a focus on time is money, corners are cut. A lot of the original lift commissioning information probably ends up in an archive box before it is thrown out during a clean up or a Builder insolvency.

Some lifts are in use for several years without ever being “Plant Registered”. Next time you ride in your lift look for the Plant Registration Number. In fact look for the Plant Registration number in any lift and there will be more lifts that do not display the Plant Registration number than lifts that do display this number.

273 Plant registration number (1) This section applies if the regulator registers an item of plant.

(3) The registration holder must give the plant registration number to the person with management or control of the plant at a workplace.

(4) The person with management or control of the plant at a workplace must ensure that the plant registration number is marked on the item of plant.

It is an offence under the WH&S Regs Sec 273 not to display the plant registration number. The penalty for an individual is 121/2 penalty units ($1,668) or for a body corporate it is 60 penalty units ($8,007). If our State Government ever decides to enforce WH&S legislation they could probably clear the state debt inside of 12 months. There are very few requirements of WH&S legislation that do not include a penalty fee for non compliance.

The owner or person with management or control of the lift is also required to maintain maintenance records. Who does what in a body corporate situation is not clear cut. The body corporate is the owner but the person or organisation with the building management rights has control of the lift on a day to day basis.

What is clear cut is that records are required and remain with the lift irrespective of who owns or controls the lift.

237 Records of plant (1) This section applies in relation to plant that is required to be registered under part 5.3.

(2) The person with management or control of the plant at a workplace must keep a record of all tests, inspections, maintenance, commissioning, decommissioning, dismantling and alterations of the plant for the period set out in subsection (3).

(3) The record must be kept for the period that the plant is used or until the person relinquishes control of the plant.

(4) The person must keep the record available for inspection under the Act.

The Qld Workplace Health & Safety Act and the Qld Workplace Health & Safety Regulations along with Codes of Practice are available for free download from https://www.worksafe.qld.gov. au/laws-and-compliance/workplace-health-and-safety-laws/ laws-and-legislation. Some key parts to read are

WH&S Act Division 3 Section 21 Duty of persons involving management or control of plant WH&S Act Division 4 Section 27 Duty of officers, workers and other persons WH&S Regulations Part 5.2 Additional duties relating to registered plant and plant designs Sections 227 to Section 275

Further Information For more information visit liftlogic.net.au

SEPTEMBER / OCTOBER 2019 UNIT NEWS

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