Bills

Statutes Amendment (Community and Strata Titles) Bill

Second Reading

Debate resumed.

Ms THOMPSON (Davenport) (17:41): I, too, rise to support the Statutes Amendment (Community and Strata Titles) Bill, a bill that makes important reforms to the way that we regulate, govern and protect the interests of South Australians who live in community and strata title properties.

This bill represents another step in the Malinauskas Labor government's broader commitment to improving fairness and security in our housing system. Since coming to government we have pursued a program of generational reform in housing. We have introduced landmark changes to the Residential Tenancies Act, strengthening the rights and protections for renters. We have made significant investment in public housing, accelerating construction and maintenance to meet demand. We are tackling housing supply and affordability through planning reforms, land releases and targeted support for first-home buyers.

The bill before us today is part of that same story, ensuring that people who live in strata and community title homes have confidence in the governance of their communities, the transparency of their body corporate managers and the integrity of the processes that affect their daily lives.

The Community Titles Act 1996 and the Strata Titles Act 1988 govern tens of thousands of South Australian households. These are the rules that determine how apartments, townhouses and other shared developments operate: how fees are set, how decisions are made, how common areas are managed and how disputes are resolved.

But like all laws they need to keep pace with emerging challenges. That is why the Environment, Resources and Development Committee undertook its 81^st report on strata titles and why this bill implements many of its recommendations. It is also why we have listened carefully to the community, to residents, to advocacy groups and, importantly, people who have been let down in the past when the system has failed them.

One of the key issues this bill tackles is the need for greater transparency in the conduct of body corporate managers. An ABC Four Corners investigation exposed troubling practices in the industry: body corporate managers acting as insurance brokers, re-invoicing corporations with hidden mark-ups and failing to disclose commissions or related party dealings. These practices create conflicts of interest and erode trust.

This bill tightens disclosure obligations. It requires full and clear declarations of any commissions, related party transactions or benefits, not vague wording, but detail: what the interest is, who the related parties are, the dollar value of the services and how the arrangement is in the best interests of the community. Managers must also front up at AGMs to declare what they have received and what they expect to receive. If they do not disclose they will be liable to repay. This is about accountability, fairness and respect for people whose money they are entrusted with.

This bill also responds directly to recent painful lessons in my own community. Amendments in this bill address concerns about how inappropriate use of the Community Titles Act has left families exposed. The clearest example is the failed Felmeri Holmes development at O'Halloran Hill. There, land was divided for new housing developments under community title when an ordinary Torrens title division would have been more appropriate because the dwellings were all unattached and the only common property created was a shared access road and utility connections.

When Felmeri collapsed, the developer became insolvent before completing the road and utilities. Families who had invested everything into their dream homes were stranded. Builders could not even get onto the site to finish construction. Had the development been Torrens title, the local council would have been responsible for ensuring roads and infrastructure were completed to standard, backed by security or bonds, but under the Community Titles Act the safeguard was missing.

To address this, the bill inserts new clarity into the law that regard must always be given to the Planning, Development and Infrastructure Act when determining if community title is appropriate. Planning authorities will have sharper tools to prevent another Felmeri. Of course, reforming the law is one thing, but we also had to act quickly to help the families left in limbo.

The Malinauskas government stepped in. The Department for Infrastructure and Transport completed urgent works to make the site accessible, filling trenches, clearing debris and levelling roads so that builders could return and families could finish their homes. Fortunately, that nightmare is now over, with all families having moved into their new homes, but we are still pursuing options to recoup the costs from Felmeri.

As the local member, I saw firsthand the heartbreak that these families endured. What should have been a time of joy became a nightmare. I also saw the relief when the government delivered the first light at the end of the tunnel. This bill ensures no future family will face that same fate. The bill makes many other sensible, practical reforms:

insurance: lifting mandatory public liability cover from $10 million to $20 million, in line with other states;

sustainability: prohibiting unreasonable bans on solar panels or EV charging infrastructure;

health: allowing by-laws to control smoke and smoke drift in common areas;

governance: addressing meetings limiting proxy abuses and ensuring owners can put items on agendas;

consumer protection: mandating clearer contracts, information for prospective purchasers and extending sinking fund planning from five to 10 years; and

fairness: enabling courts to order repayment of undisclosed commissions, removing outdated requirements for corporate seals and ensuring fees caps apply equally whether charged by corporations or managers.

Each of these reforms might seem small in isolation but together they add up to a system that is clearer, fairer and more fit for the way that people live today.

Importantly, the bill also works to harmonise the Community Titles Act and Strata Titles Act. Although new developments since 2009 are governed by the Community Titles Act, many older properties remain under the Strata Titles Act. Creating consistency wherever possible helps owners and managers and regulators alike.

These reforms are part of a broader housing agenda. We are in a period of enormous reform and investment in housing in South Australia. Since coming to government, the Malinauskas Labor government has embarked on one of the most ambitious housing agendas our state has ever seen. We have launched the Build to Rent program to increase affordable rental supply, delivered stamp duty relief to help first-home buyers enter the market and fast-tracked land releases to improve housing supply in growth areas. We have boosted funding for public housing maintenance and construction. We have established the Office for Regional Housing and supported TAFE SA training pathways to address workforce shortages in construction and trades. Each of these initiatives relies on a robust, well-regulated industry that consumers can have confidence in.

We are not just making patchwork fixes, we are delivering generational reform to make housing fairer and more sustainable for the decades ahead. This bill is about learning from the past, fixing problems in the present, and preparing for our future. It addresses conflicts of interest and improves transparency, closes loopholes and prevents abuse, ensures families are not left stranded by developments that should never have been approved and strengthens protections for every South Australian who lives in community and strata titled housing. I commend this bill to the house.

Debate adjourned on motion of Mr Odenwalder.