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The timeline below summarises relevant legislative and industry changes affecting strata stakeholders in Victoria. It includes helpful links and further reading to help you understand Victori legislative changes.
August 2024
The government introduced the Victorian Energy Upgrades (VEU) program to offer households affordable opportunities to help reduce electricity costs and gas emissions.
Through this initiative, landlords, owners corporations, and renters are eligible to harness cost savings on energy-efficient upgrade opportunities to enhance the property’s appeal and value and reduce maintenance and utility costs.
Whether you’re contemplating renovations, upgrading, or dealing with unexpected replacements, the VEU program offers valuable discounts. These can help you discover significant energy and cost savings on various appliances and systems. These include heating, cooling, water appliances, and more.
Offers may only be available for a limited time, so it is best to keep an eye on their products page for the latest information. Some current discounts available through this program include:
On the Essential Services Commission website, applicants can view and choose eligible upgrades and products that are available to claim. The installation or upgrade can then be completed through either:
Furthermore, new incentives will soon be available for energy-efficient upgrades from gas to electric appliances. Stay tuned for further updates and learn more about this program through the Victorian government website below.
August 2024
In 2018, the Vacant Residential Land Tax (VRLT) was introduced to Melbourne’s inner and middle suburbs, targeting unoccupied houses. This initiative was designed to help free up unused homes by placing financial pressure on owners to occupy or rent their properties. However, this crackdown on vacant homes through the VRLT will soon expand in the coming years, impacting property owners across Victoria. Here’s what you need to know:
Starting 1 January 2025, the VRLT will expand state-wide. From this point forward, residential properties that remain vacant for more than six months in the prior calendar year will be subject to rates from 1% of the capital improved value. This tax could also increase depending on the number of consecutive tax years that a property is found liable for.
This means that property owners in Victoria who are not exempt and have had a vacant property for over six months in 2024 might have to pay the VRLT in 2025.
Properties used as a primary residence by an owner or vested beneficiary are generally excluded from the VRLT. In addition, there are further exemptions regarding holiday homes, properties changing ownership, and new residential premises. Click here to learn more about the specific exemptions for the VRLT here.
To prepare for these upcoming changes, owners should familiarise themselves with the factors that might make them liable and whether their property is exempt. Furthermore, properties that were vacant for over six months in 2024, regardless of exemption, should be notified to the State Revenue Office before 15 January 2025 using the online portal here. Failure to do so could result in penalty taxes.
Learn more about the VRLT below to prepare for these upcoming changes.
August 2024
Victoria is putting rental properties and rooming houses under a green spotlight. In June, discussions were underway to propose additional energy efficiency requirements for heating and cooling systems in rental properties. With results on whether these raised guidelines will proceed scheduled to be announced in October 2024, owners with tenancies should stay tuned and prepare their property for any required upgrades for compliance.
The regulations that are under discussion are focused on boosting energy efficiency and safety in the following key areas:
The final verdict on whether these proposed regulations will proceed will be released in October 2024. If these new standards are given the green light, the changes will be gradually rolled out in phases to allow rental providers ample time to adjust to the new requirements. Some landlords may need to invest time and money to meet these obligations. Although this may seem like a tedious task, reviewing your property to meet these guidelines is not only essential to prevent penalties, but it can also help improve its value over time.
Furthermore, landlords are responsible for creating a safe, comfortable living environment for our renters. Therefore, meeting these guidelines would help make your property attractive to potential renters, boosting occupancy rates and rental income.
Stay tuned for the results of these proposed reforms and learn more through the Victorian government website below.
August 2024
As the digital world grows and evolves, so does the threat of cybercrime. As strata residents, safeguarding our digital footprint is essential in maintaining the security and integrity of our shared online spaces.
With the Australian government unveiling its 2023-2030 Cyber Security Strategy, a new era of digital protection is on the horizon, aiming to place Australia at the forefront of global cyber security by 2030.
This initiative aims to enhance our nation’s cyber security, manage cyber risks, and better support citizens and businesses in navigating the complex cyber environment. However, within this broader narrative, the crucial role of multi-factor authentication (MFA) for strata residents comes into sharp focus.
MFA provides an effective tool to help protect against unwarranted access by implementing multiple verification methods, adding an essential layer to your digital defence.
MFA apps, such as Google Authenticator or Microsoft Authenticator, generate temporary codes, also known as tokens or one-time passwords (OTPs), that you use as the second step in the authentication process. When you log into an online account, you enter the code provided by the MFA app to verify your identity. It adds an extra layer of protection to your online accounts. Even if someone obtains your password, they still need a second form of identification to access your data.
In strata communities, where shared network environments are common, the need for robust personal digital security mechanisms is more important than ever. Here’s how MFA can be used to protect the information of residents within an owners corporation:
The process and capability to set up MFA depends on the software or service provider the owners corporation uses. Read more about how to set up MFA and why the Australian Government endorses MFA as a secure measure to protect your online identity.
August 2024
In 2023, Australia experienced a noticeable rise in payment redirect scams, leading to unfortunate financial losses for many. To curb the incidence of such scams, the Australian Competition & Consumer Commission (ACCC) advised verifying payment requests before completing transactions.
In our continuous effort to protect against fraud, our team has a mandatory procedure to validate payment details over the phone. This process includes requests such as reimbursements or contractor registrations, serving as an integral security step before they complete the transaction for the owners corporation.
Phone validation is critical in confirming the authenticity of bank details and the legitimacy of requests. Taking a few extra moments to confirm payment information when our team issues a call can help add protection against potential fraud, especially for larger payments.
If you are an existing customer and have any questions, don’t hesitate to contact our support team for more information on this process.
May 2024
A group of Victorian residents has taken a stand to address a growing issue within owners corporations, requesting amendments to the Owners Corporations Act 2006. Firmly advocating for change, the petition circulating amongst residents calls to bring attention to the growing concern around short-term accommodations (STAs) offered through platforms like Airbnb, which is shaking up the status quo in Victoria.
These STAs are increasingly being misused as unofficial party venues, leading to disturbances and raising safety concerns for homeowners. Despite over 50 cases filed against STAs since 2019, the existing laws have proven ineffective, with no fines or suspensions on record. This has resulted in VCAT, local government, and Victoria Police having to step in to address persistent issues like regular parties, antisocial behaviour, and noise that disrupts residents’ peaceful living.
The petitioners advocate for the right to have a say over their buildings. The petition calls for modifications to specific sections of the Owners Corporation Act 2006, which currently lacks strength compared to the regulations set in place by other major tourist destinations with similar issues.
These proposed reforms will help provide homeowners the authority to democratically limit or ban short-term rentals within their building through a 75 per cent vote in favour. This change could minimise expensive legal fees and drawn-out proceedings homeowners currently face.
Please click the link below to learn more about the petition and proposed changes to the Owners Corporation Act 2006.
May 2024
In 2023, Consumer Affairs Victoria found that complaints about poorly maintained rentals ranked amongst the top five issues reported. This concerning trend prompted a stern response from the Victorian government.
Under the Residential Tenancies Regulations 2021 (Schedule 4), the minimum standards apply to any rental agreement that either began on or after 29 March 2021 or became a month-to-month (periodic) agreement on or after the same date.
To help protect tenants, the minimum requirements that landlords should abide by are set out across 14 specific categories:
Click here to learn more about the minimum standards for rental properties. For more specific details, reference the rental properties minimum standards checklist.
Under the Residential Tenancies Act 1997, any landlord not adhering to the set minimum standards can face severe financial and legal repercussions. Fines for individuals can escalate to over $11,000, while companies may be looking at penalties of over $57,000. The message to rental providers is clear: the provision of safe and habitable accommodation is a non-negotiable obligation.
If a rental property fails to meet the minimum standards, the renter has certain rights, including when the rental provider neglects to repair the property. The newly established regulations aim to protect renters’ rights in these instances, solidifying a commitment to maintaining safe and acceptable living conditions in rental properties.
February 2024
Introduced by Housing Victoria, the RentAssist initiative offers an interest-free bond loan designed to support private renters by helping lessen the burden of upfront security deposits. As a property owner in Victoria, you can offer valuable advice to prospective tenants about the financial support available, such as the RentAssist bond loan.
A bond is a security deposit that tenants pay before moving into a property. This deposit is held securely by the Residential Tenancies Bond Authority and returned in full at the end of the lease unless there are claims for damages or unpaid rent.
Remember, these loans cater exclusively to bonds. For support with moving costs or advance rent, prospective tenants may qualify for help from the Housing Establishment Fund.
Prospective tenants must satisfy the department’s eligibility criteria to be eligible for a bond loan. They would be considered suitable for a bond loan if they meet the income and asset eligibility limits, have a permanent Australian resident status, and their share of the rent is under 55% of their gross weekly income. They do not own or co-own a house, flat, or unit. Some exemptions to these rules may apply and can be clarified by the local housing office.
A bond loan or debt to the department from a previous or ongoing public housing tenancy will not affect RentAssist Bond Loan assistance eligibility.
Being informed and leveraging these resources can help equip renters and potential tenants to manage their financial obligations effectively.
Click the link to learn more about the eligibility, repayments, borrowing capacity, and application requirements for the RentAssit bond loan initiative.
February 2024
Recent findings in a study by Infrastructure Victoria encourage a shift towards adopting a compact and connected design for urban cities. Infrastructure Victoria’s latest research, ‘Choosing Victoria’s future: 5 urban development scenarios’, advocates that Victorians benefit more from closer living in the capital and regional cities, providing easier access to existing jobs, services, and infrastructure.
Infrastructure Victoria has proposed a comprehensive overhaul of housing and infrastructure strategies, including setting housing targets in established suburbs, revising developers’ infrastructure payments, eliminating the first home buyers grant and stamp duty, and improving resilient electricity infrastructure.
Dr. Jonathan Spear, the Chief Executive Officer at Infrastructure Victoria, raises concerns about the potential adverse effects if we don’t take decisive steps towards reshaping our urban environments. Presently, city growth is inclined towards the creation of new suburbs on the city outskirts, which could result in a decrease in Victorians’ living standards. However, the report indicates it’s not too late to reroute this course.
The advantages of denser cities extend beyond individuals and communities, offering added environmental benefits and preserving more space for farming and wildlife habitats. In contrast, a sprawling city could consume 30,000 hectares of land.
To achieve a compact and connected Victoria, five key recommendations were proposed around:
1. Implementing housing targets
2. Creating long-term infrastructure plans
3. Reforming infrastructure contributions
4. Planning for local infrastructure in regional centres
5. Promoting low-carbon materials in construction.
Read on to learn more about the shift to encourage diverse housing options in prime locations to prepare for growth through strategic land use and infrastructure plans.
November 2023
The future of affordable housing in Melbourne could be taking a compact turn with apartments less than 25 square metres, community spaces replacing private balconies, and no parking facilities.
A proposed residential project in Brunswick hopes to bring the tiny living concept, popular in cities like New York and Hong Kong, to Melbourne. The proposal has divided the Merri-bek City Council, with supporters seeing it as a solution to the housing crisis and sceptics fearing it may set lower living standards for future housing.
Despite initial refusal, the developers of the proposed Cysur building on Albert Street have now been granted a planning permit. This development brings to the forefront a pressing debate on the balance between affordability and quality of life in Melbourne’s housing market.
Read more to delve into the discussions surrounding micro-apartment viability as a solution to affordable housing in Melbourne.
November 2023
Starting in 2025, the Victorian Government will implement a 7.5% levy on revenues generated by short-stay accommodation providers, such as Airbnb and Stayz.
This state-wide initiative, the first of its kind across Australia, is designed to raise funds to aid Homes Victoria in constructing more social and affordable housing.
The burgeoning popularity of short-stay rental platforms has led to a decrease in the availability of properties for long-term use. With this levy, the government aims to balance the thriving short-term rental market and the increasing demand for affordable, long-term housing solutions.
While this levy might seem like a significant change, it’s worth noting that the revenue collected from this levy will be used to support the construction of social and affordable housing across the state.
While the policy has been welcomed as a boost for housing construction, Airbnb and the Victoria Tourism Industry Council have raised concerns. They fear that the 7.5% rate could negatively impact Victoria’s appeal as a tourism destination and discourage overnight stays in regional areas.
Tax experts warn that the levy might make operating short-term rentals more expensive for landlords. The increased costs may be passed onto consumers without necessarily alleviating the rental crisis. These concerns should be noted by owners corporations, who should closely monitor these trends and be ready to adapt their strategies if necessary. as they could potentially affect the demand and pricing for short-stay rentals.
In conclusion, while the new levy introduces a new layer of financial consideration for owners corporations, it is a step towards a balanced housing market. The key will be to stay informed, plan, and communicate effectively with all stakeholders for a smooth transition when the new rules occur.
For more information on the new short-term rental levy and its impact on the rental landscape, click the link to delve deeper into the story.
November 2023
Householders from up to 5,000 apartments across Victoria can soon look forward to reaping the benefits of solar energy. This development comes from a new $16 million partnership between the Victorian and Commonwealth Governments, aimed at improving access to solar for apartment buildings.
This groundbreaking partnership, scheduled for implementation later this year, will be executed by Solar Victoria to help eliminate hurdles associated with installing solar panels on apartment buildings. Grants, explicitly targeted at owners’ corporations, will be made available, with up to $2,800 per apartment and coverage for up to 50 apartments per building.
This initiative aims to simplify the process. By making funding available to owners’ corporations, the program will significantly increase the number of renters and lower-income Victorians who can reap the benefits of affordable solar energy. Installation of solar panels can help residents save on their energy bills, particularly heating costs, which are among the most significant energy expenses in most homes.
The program is currently in its design phase, in consultation with key stakeholders. It is expected to open to applications in late 2023, when information about eligibility criteria, application process, and program requirements will be communicated.
Click the link below to learn more about this program and register for updates
