Proposed reform of Queensland body corporate laws

By Luke Hefferan

The Queensland government has announced plans to reform current body corporate laws as part of their commitment to address the state’s ongoing housing crisis. The government hopes the reforms, along with an upcoming review of the South-East Queensland Regional Plan, will assist in making more land available for development, unlocking the largest number of new lots and homes in the state’s history.

Current laws

Currently, a community titles scheme can only be terminated if a resolution without dissent is passed by the body corporate or the court orders it is just and equitable to terminate the scheme.

In announcing the proposal at an Urban Development Institute of Australia regional planning event on 16 February 2023, Deputy Premier Steven Miles said in some areas, like the Gold Coast, the only way to achieve new development is to demolish existing multi-unit dwellings. He went on to say “existing body corporate rules which require unanimous agreement of unit holders have allowed single owners to block developments. In some cases, the result has blocked or impeded development of whole city blocks”.

What do the proposed reforms mean?

The reforms, if passed, would mean only 75 percent of owners in a scheme would need to approve the termination in situations where it is not economically viable to maintain or repair the scheme’s buildings. This lower threshold will make it easier to sell or redevelop ageing and rundown complexes.

However, it could be a while before the proposed changes become law. Drafting the legislation addressing these changes and stakeholder consultation is expected throughout 2023.

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