Mandatory Disclosure

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Adelaide 24 September spilkington@propertyoz.com.au
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Darwin 17 September nt@propertyoz.com.au

Latest News Updates

July

The disclosure requirements under the Commercial Building Disclosure program (CBD program) will commence on 1 November 2010.

Download a factsheet on the program below.


March
The Minister Assisting the Minister for Climate Change and Energy Efficiency, Greg Combet on 18th of March introduced the Building Energy Efficiency Disclosure Bill 2010 into Parliament to legislate for mandatory disclosure.

Please see the links below for the relevant documents, including the Bill and Minister’s second reading speech.


Briefing Document

Internationally renowned legal firm Norton Rose has drafted a briefing document into the new bill which details the potential legal difficulties posed by the new legislation.

Click hereNorton Rose to view the briefing document.

 


Video: What you need to know

 

 

magnifying glass man question 100


Did you know?


 

From the second half of 2010, building owners will need to provide up-to-date energy efficiency information when they sell or lease office space that is greater than 2,000 square metres.

Read on for the latest information and tips on preparing your business for disclosure day.


Quick Links:

Top Ten Legal Tips

Mandatory Disclosure top ten legal tips graphic

Click here to download a copy of the top ten legal tips

 

FAQs

Who is covered?

Mandatory disclosure will apply to all office buildings, or parts of buildings, with a net lettable area (NLA) of more than 2,000 m2.

Initially the scheme will apply only to BCA Class 5 Buildings (office buildings used or designed for professional or commercial purposes), but other classes are likely to be introduced into the scheme over time.

What do I have to do?

Owners and managers will be required to provide a Building Energy Efficiency Certificate (BEEC) (valid for 12 months). which includes a NABERS Energy rating.

When does it start?

The commencement date for the scheme has not been announced.

The latest update from Environment Minister Peter Garrett indicates that the scheme is scheduled to start in the second half of 2010.

When will I have to disclose?

Disclosure will be required whenever space is offered for sale, lease or sublease.

Where will I have to disclose the information?

The information must be disclosed:

  • bullet point  in any advertising material;
  • bullet point  to all prospective buyers and tenants; and
  • bullet point  to a central registry.


What is a Building Energy Efficiency Certificate?

BEECs disclose the energy use information of the building. A BEEC is provided by the landlord or agent at the point of sale or lease.

See sample: Building Energy Efficiency Certificate

What information will be on a BEEC?

Core requirements for a valid BEEC will include:

  • bullet point  a certificate reference number, certification date and validity date (12 months from certification);
  • bullet point  the building name and address, including post code;
  • bullet point  key building data, including building size, year of construction, etc.;
  • bullet point  an appropriate base building star rating based on the metrics described above;
  • bullet point  appropriate tenancy lighting details;
  • bullet point  detailed energy consumption and greenhouse gas emissions data;
  • bullet point  building assessor details, including name, trading address, assessor number;
  • bullet point  where relevant, the presence of any co-generation or tri-generation facilities within the building; and
  • bullet point  energy efficiency guidance for the base building and fixed lighting of the tenancy space being offered for sale or lease.


Why is mandatory disclosure being implemented?

The federal government is implementing this scheme as part of its National Energy Efficiency Strategy.

The aim of this strategy is to encourage the use and deployment of more energy efficient measures in homes and offices, and in turn reduce Australia’s greenhouse gas emissions.

Will my building be affected?

The measure will initially cover only BCA Class 5 buildings. These are office buildings used for professional or commercial purposes.

This does not include buildings in retail, car park, storage, production and public building classifications of the BCA.

Are tenants required to do anything?

In most instances tenants will retain responsibility for their own light and power consumption.

Outside of the lease agreement, tenants are not obligated by law to maintain or contribute financially to improving the energy efficiency of their building.

Are there exemptions?

The scheme will provide a limited number of general exemptions, but these have not yet been determined.

In similar schemes, exemptions exist in relation to:

  • bullet point  places of worship;
  • bullet point  temporary buildings;
  • bullet point  buildings to be demolished;
  • bullet point  non-serious purchasers or lessees; and
  • bullet point  where a person made reasonable attempts to obtain a certificate but could not obtain one.


Other possible exemptions may be where 12 months of data is not available (for example, for a new building), or where inadequate metering or other factors prevent an accredited assessor from being able to achieve the required information quality standards of a NABERS Energy assessment

Can I get around the scheme?

No. Enforcement of the scheme will be based on Commonwealth legislation and will include a range of enforcement measures.

While there is no intention to apply specific criminal penalties for the breach of the disclosure obligation, criminal penalties may arise in some circumstances; for example, where intentional misconduct has occurred. 



Tools 

 



More Information

For further information on Mandatory Disclosure, submit your queries here.

 


 

Information on Mandatory Disclosure Webinar

Webinars combine the ease of a teleconference with visual presentations delivered direct to your PC.

The Property Council partnered with the Federal Department of the Environment, Water, Heritage and the Arts (DEWHA) and the NABERS team, delivered a series of seminars around Australia in November and December 2009 to bring the industry up to date on the impacts of Mandatory Disclosure regualtion.

The webinar is designed for those who missed out on the seminars. By participating in this webinar you will hear from leading government and industry figures on:

bullet point  How these regulations will work;
bullet point  What your obligations are; and
bullet point  The strategies you can start putting in place right now to make your disclosure process as painless as possible.

 

Platform:
Climate Change & Environment

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