QLD: How does a lot owner in a layered scheme access financial records, and is there a fee?

Question: I would like regular access to our layered scheme’s financial records. Who do I request the information from, and is there a fee?

I live in a layered scheme, and I’m interested in the new QLD Legislation changes, effective 1 May 2024. I would like regular access to the layered scheme’s financial records. Is there a fee? Can I request these from the BC committee or BC manager, or can the records be uploaded to our subsidiary BC Portal so all owners have access?

Answer: If the person satisfies the definition of an ‘interested person’, they are entitled to access the body corporate’s records under section 205.

In short, a request for access to a body corporate’s financial records is made to the body corporate (ordinarily via its strata manager). Unless the person is a committee member of that body corporate, a fee will be attached to this request.

Scope of request

The financial records of a body corporate would constitute a body corporate ‘record’. However, the specific documents being requested would need to be identified.

Request to the subsidiary scheme

Section 205(2) of the Body Corporate and Community Management Act 1997 (Qld) (BCCMA) relevantly provides that a body corporate must, within 7 days of a written request and payment of the ‘prescribed fee’ from a ‘interested person:’

1. permit the person to inspect the body corporate’s records; or
2. give the person a copy of a record kept by the body corporate,

An ‘interested person’ is:

1. the owner, or a mortgagee, of a lot included in the scheme; or
2. the buyer of a lot included in the scheme; or
3. another person who satisfies the body corporate of a proper interest in the information sought; or
4. the agent of a person mentioned in paragraph (a), (b) or (c).

In a basic scheme, each lot owner is a member of the body corporate. In a layered scheme, each subsidiary body corporate (SBC) is a member of the principal body corporate (PBC). However, an individual lot owner in an SBC is not a member of the PBC. Accordingly, the individual would need to meet the requirements of an ‘interested person’ as above, such as having a ‘proper interest in the information sought’.

Request to the PBC

If the person satisfies the definition of an ‘interested person’, they are entitled to access the body corporate’s records under section 205.

In addition, new section 205AAB relevantly provides that where the ‘interested person’ is an owner or occupier of a lot included in another scheme that is included in the layered arrangement (i.e., a lot owner of a SBC within the PBC), the person is entitled to inspect or obtain a copy of the records.

Request to another subsidiary

The new section 205AAB also allows a lot owner to inspect records of another subsidiary scheme in the layered arrangement if the body corporate is satisfied:

1. a dispute about the operation of a by-law exists between the interested person and an owner or occupier of a lot (the accused person); and
2. the person’s request is only for the purpose of identifying the accused person in order for the interested person to—
   
   1. request the body corporate to issue a contravention notice to the accused person; or
   2. make an application under chapter 6 for resolution of the dispute.

Fee payable

Notwithstanding the above, a body corporate has no obligation to produce its financial records unless the prescribed fee is paid to the body corporate. Committee members, however, may access records without payment of a fee.

Section 233(1) of the Standard Module relevantly provides:

“For section 205(2) of the Act—

1. the prescribed fee for inspection of the body corporate’s records is—
   
   1. if the person inspecting the records is an owner of a lot—$18.25; or
   2. if the person inspecting the records is not an owner of a lot—$35.10; and

2. the prescribed fee for obtaining a copy of a record kept by the body corporate is 65c for each page supplied.”

Regular access

In terms of ‘regular access to financial records’, a new request and payment of the relevant fee will need to be made by the interested person each time they wish to access the records. There is no ongoing obligation to provide particular documents.

Portal

It is ultimately up to each body corporate whether they wish to upload their records to a portal and give access to certain individuals to review.

Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753