New Regulations requires all building owners of certain classes of building to complete a checklist by 29 March 2019. Depending on the outcome of that checklist further steps may be required. Penalties apply if the initial checklist and any further required steps are not completed by the dates stated in the Regulation.
After 1 October 2018, sellers of buildings subject to the Regulation are required to disclose (using the approved form) whether the seller has complied with the relevant provisions of the Regulation and hand relevant documents to the buyer prior to settlement.
If you are a buyer of a class 2-9 building or a lot in a community titles scheme it will be important to check about any notices given to them and to strongly recommend searching Body Corporate records to ascertain if combustible cladding is present. There may be cost exposures for you in this case.
After 1 July 2018, buyers of new residential premises or potential residential land will be required to withhold an amount from the price of the supply for payment to the ATO.
The withholding amount is due on or before the day that consideration for the supply (other than a deposit) is first provided.
Sellers will be required to assist their buyers to comply by notifying them whether or not they have a withholding obligation on supplies of certain kinds of residential premises and potential residential land. Where there is a withholding obligation, the seller must notify the buyer of the amount they must withhold and when they must pay it to the ATO.
Some PPSRs about to expire
The regime for registration of security interests in relation to consumer property or property described by a serial number, such as vehicles and boats, that began when the Personal Property Securities Act 2009 (PPSA) commenced in 2012 may be expiring soon (if the property was registered for the 7 year minimum period).
If your registration expires, your personal property may no longer be valid security for your loan or other financial instrument.
By Steve Grant LLM, LLB, F FIN, CTA