QLD: Q&A Individual Water Meters for Apartments

This QLD article is concerning individual water meters for apartments.

Table of Contents:

• QUESTION: The handle on my water valve has broken. As the villas are individually metered, my Body Corporate states that plumbing related issues to and including the black metre box are the owner/s expense. Is this correct?
• QUESTION: Our body corporate is encouraging lot owners to install separate water meters. Can they incentivise this by offering a loan?
• QUESTION: What type of Body Corporate resolution would be required in order to proceed – a Resolution without Dissent, or a Special Resolution?
• QUESTION: I live in an apartment in Queensland. Our complex shares a water meter with an aged care home. Can you please advise me how individual water meters for apartments work?

Question: The handle on my water valve has broken. As the villas are individually metered, my Body Corporate states that plumbing related issues to and including the black metre box are the owner/s expense. Is this correct?

I live in a townhouse that is under the Building Format Plan. The handle on my water valve has broken. This handle turns off water to my unit only and is situated within my boundary.

On review of the Building Format Plan and on the advice by two plumbers, the water pipe leading up to and including the meter services all the community and the Body Corp are responsible for the repairs to the handle. In order to undertake the repairs, the water to every unit will have to be turned off. My Body Corporate is telling me that as the villas are individually metered, plumbing related issues in the villa to and including the black metre box are the owner/s expense.

Answer: Utility infrastructure is considered to be common property except where three specific conditions are met at which point responsibility transfers to the lot owner.

Utility infrastructure is considered to be common property except where three specific conditions are met at which point responsibility transfers to the lot owner.

The conditions state that the owner is responsible for utility infrastructure that;

• supplies a utility service to only 1 lot;
• is within the boundaries of the lot; and
• is not within a boundary structure for the lot.

As the question acknowledges that the handle of the water valve that requires repair services is only one unit and is situated within the boundaries of the lot the first two of these conditions conferring responsibility on the owner seem to have been met. We don’t have enough information to definitely answer the third criteria, but if that were the case then it would seem that this issue is the lot owner’s responsibility.

Outside of this guideline you may want to consider if there are any by-laws that affect this issue.

And, you may need to check the scope of repairs. It depends on the extent of the works, but it is possible that it could be a shared cost if some of the common property infrastructures also needed repair.

For the water shut-off you should contact the body corporate and advise when you would like to undertake the works. It’s always inconvenient when the water has to be turned off, but sometimes it is necessary. If you work with the body corporate they can make sure to give other owners fair warning in advance. I find it best to book these shut-offs after nine and before three as that tends to be when the building is least occupied.

For more information on utility infrastructure, the government website has a detailed description: Queensland Government: Utility infrastructure maintenance

William Marquand
Tower Body Corporate
E: [email protected]
P: 07 5609 4924

This post appears in Strata News #531.

Question: Our body corporate is encouraging lot owners to install separate water meters. Can they incentivise this by offering a loan?

We have a situation where the Body Corporate committee wants to put water meters into each individual lot but some can’t pay for it upfront. To try to convince these owners to approve the installation (which is on each owner’s private lot) there have been rumours that they will be “helped” to pay presumably by the Body Corporate.

I am speculating that this will be some sort of loan from the Body Corporate. Is this legal? If so, what are the procedures and limitations? I can’t find anything in the laws or searching on the internet about this.

Answer: It is not uncommon for bodies corporate to want to encourage lot owners to buy and install their own water meters

Individual water meters are a great way to ensure that the ‘user pays’. It has however only relatively recently become standard development practice for individual meters to be installed.

Older schemes may have anything from 1 meter for both all lots and common property, though to almost (but not quite) complete coverage; i.e. 1 lot = 1 meter.

Where there is complete coverage, s195 of the Act provides that the lot owner is liable to pay for the water their lot consumes if it is separately measured, charged to the lot owner and charged other than based on the value of the lot; i.e. kilolitres consumed.

In schemes where there is less than complete coverage, s196 of the Act provides that each lot owner is liable to the utility provider (e.g. Unity Water), for water consumed in the community titles scheme, pro-rata their contribution schedule lot entitlement.

Lot owners with water tanks or who consume less water are often, understandably, dissatisfied with this arrangement. Fortunately, there is an alternative. Under s196(4) of the Act, the Body Corporate can take on liability for owners or occupiers. The Body Corporate then pays the utility provider and recoups the money from the owners or occupiers.

That can be done in two ways. Firstly, through the normal (administrative fund) contributions. That may be appropriate where no lots have meters and all lots are similar.

The second method, however, is for the Body Corporate to raise a water levy:

1. for lots which have a meter – based on the water use; and
2. for lots that don’t have a meter – either in equal shares, or pro rate the contribution schedule lot entitlements of the lots who don’t have meters.

Given those advantages, it is not uncommon for bodies corporate to want to encourage lot owners to buy and install their own water meters. It is not for the Body Corporate to do this, in the normal course, because individual meters benefit individual lots, and not the Body Corporate.

Bodies Corporate may borrow funds (for example see s171 of the Standard Module) but there is no direct regulation of the Body Corporate loaning money. The Body Corporate must not be in the business of loaning money (s96 of the Act) but it may invest monies not immediately required for its purposes in the ways that a trustee may invest trust funds (s96(2) of the Act).

Accordingly a prudent, compliant Body Corporate could, after taking legal and financial advice, invest funds not immediately required, by offering loans, with appropriate interest and other terms, to lot owners for the specified purpose of installing a water meter for their lot.

Indeed, the Body Corporate could arrange for multiple installations, to secure a favourable rate, after obtaining the relevant lot owners agreement (see s210 of the Standard Module), including to pay for the installation by entering into the loan arrangement.

Michael Kleinschmidt
Stratum Legal
E: [email protected]
P: 07 5406 1282

This post appears in the November 2021 edition of The QLD Strata Magazine.

Question: What type of Body Corporate resolution would be required in order to proceed – a Resolution without Dissent, or a Special Resolution?

Our strata scheme is 26 years old. Hot water is individually metered downstream of the master meter, whereas cold water is not, with water charges being apportioned according to Lot Entitlements. The installation of individual water meters to each Unit is being investigated, with the intent that, as with other utilities (gas, hot water, electricity), Units will pay only for what they use, plus a share of the Common Property usage.

What type of Body Corporate resolution would be required in order to proceed – a Resolution without Dissent, or a Special Resolution?

Answer: Largely, this comes down to the quote you’ve gotten for individual installation.

Largely, this comes down to the quote you’ve gotten for individual installation. More than likely this will be an improvement to common property and where the improvement is more than $2,000 multiplied by the number of lots in your scheme, that will be a special resolution. My understanding is that the price of individual metering is such that it’s nearly always going to be more than $2,000 multiplied by the number of lots in the scheme.

You will need to bear in mind that the move to individual metering, while welcomed by some, may not be welcomed by others who may be financially worse off as a result. Care needs to be taken by the committee to ensure that the quotes for individual metering, together with the costs and benefits, are clearly presented at the general meeting.

Chris Irons
Hynes Legal
E: [email protected]
P: 07 3193 0500

This post appears in Strata News #514.

Question: I live in an apartment in Queensland. Our complex shares a water meter with an aged care home. Can you please advise me how individual water meters for apartments work?

There are about 26 villas in my complex and there is an aged care home next door. We share the water meter with the aged care home.

It’s so unfair because the aged care home uses water 24 hrs a day, they have a cafe, hairdressing salon, commercial laundry etc.

Is it possible to have individual water meters installed for our apartments?

Answer: A body corporate with a single water meter must apportion the costs for water usage between lots in accordance with the contribution schedule lot entitlements.

I assume that:

• your complex of 26 villas is a body corporate regulated by the Body Corporate and Community Management Act 1997; and
• the aged care home that adjoins your scheme is not part of your body corporate.

It is unlikely that a body corporate would share a water meter with a property next door to it that is completely separate without any formal arrangement. However, if this is the case, your body corporate should obtain further legal advice in relation to retrofitting the body corporate so that it has its own water meter.

A body corporate with a single water meter (that is solely for water supplied to its scheme) must apportion the costs for water usage between lots in accordance with the contribution schedule lot entitlements.

Where there is a single, shared water meter for a scheme, it is widely accepted that this practice will naturally result in lots who use a small amount of water paying more than they would if the lots were individually metered for water usage.

Hayley Gath
Mathews Hunt Legal
E: [email protected]
P: 07 5555 8000

This post appears in Strata News #303.

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