Strata News
Tower Body Corporate
May Edition

This month, we cover the following:

What does Flood Insurance cover? Find out in this article by Whitbread Insurance Brokers. We look at the implications for strata investors after the Federal Budget. Our Q&A this month covers 10 year sinking fund forecasts and we also explore the difficulties around the termination of Management Rights Agreements.

This complimentary newsletter forms part of the comprehensive service provided to you - by keeping you informed and up to date with important news, including any changes that are happening in the Strata Industry. It contains news and articles relating to apartment living in the South East Queensland region.

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The Team at Tower Body Corporate

Strata Investment Owners Hit Hard by Budget Changes

Kaylene Arkcoll,
Leary & Partners
Purchasers of second-hand residential investment units have lost their ability to claim depreciation on plant and equipment which is part of the property at the time of purchase.

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Is it possible to terminate a management rights agreement?

Frank Higginson,
Hynes Legal
The termination of management rights agreement is very difficult and the judicial system is filled (in a relative sense) with failed attempts of bodies corporate to do so.

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Q&A Implementing the 10 year sinking fund forecast

Frank Higginson, Hynes Legal
Question: For the last two years the Body Corporate has significantly underspent against the current year expense forecast and then rolled the surplus into the next 10 year Sinking Fund forecast.

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Flood Insurance Cover in Residential Strata properties

Ann Farrugia,
Whitbread Insurance Brokers
In the aftermath of a flood, many depend on their insurance to help recoup their losses, however more often than not, people are distressed to find their Strata Insurance policy does not cover damage as a result of flood.

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