Resort News - February 2023

The legal stu ...

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singing buildings & horror stories

It’s only February and Resort News has already dived head-on into some big issues. Homelessness should worry us all. It’s a quagmire of an issue, complicated by the Australiawide shortage of long-termrental accommodations that has put renters in hot water and Brisbane reaching boiling point. Here, rapidly rising rents are very evident, and it’s a worry that it’s almost impossible to find a rental in some areas. I know a Brisbane resident of a small one bed apartment who was told (just this week) that their rent will increase by an extortionate $60 per week. Moreover, the attitude was ‘take it or leave it’ despite them being an excellent tenant. Similar stories echo across the city and the imminent return of Chinese students will add further pressure to the city’s rental pool.

I also worry about the beautiful historic homes in residential family suburbs like New Farm, being demolished and replaced with short stay units. I understand. It’s economics and great for investors but where will it end? I also worry about beach suburbs and towns like Noosa, where nurses, teachers and hospitality staff can no longer afford to rent.

On page 6 we look at the challenges, and how short-term gain can cause long term pain for residential communities. However, our article is only a conversation starter because there are no simple solutions. Decision makers please step up. Rental problems aside, let’s talk body corporate committees. If you own an apartment or you are an onsite manager, you deal with a BC and will either highly value the efforts of your excellent committee or have the total opposite view. I live in an apartment and happily our committee is fantastic but joining one is not on my agenda. Why? Because I suspect committees can attract a certain personality type, the corrupt bully, the incompetent narcissist, the ‘my way or the highway’ control freak, the passive aggressive martyr or all of the above.

I know… my bad. It’s a big assumption to make but I desire peace when I’m off the clock and wouldn’t roll the dice. I get the ‘ick’ at the fleeting thought of working with someone of that ilk in my home - my sanctuary. No thank you.

Let me add, I know there are many wonderful BC committee members, they communicate well, work as a team with the onsite manager and they can make a building ‘sing’. And if that’s your experience, thank your lucky stars because it doesn’t always work that way. Read some of the horror stories on page 18. Shudder. On that note, I sign off!

Declaration: I love all people and am a people person (mostly) Enjoy February’s Resort News Cheers, Mandy.

Mandy Clarke, Editor editor@accomnews.com.au

Short term problem is major housing headache

By Grantlee Kieza, Industry Reporter

There are more than a million empty homes in Australia and at least 250,000 of them are listed as short-term rentals with online platforms Airbnb or Stayz.

Meanwhile, across the country, there is a national housing crisis with people struggling to find somewhere to live.

Vacancy rates have fallen to record lows, and tenants face huge increases in rent, and greater competition to find a home.

Byron Bay recorded the highest rate of housing stress in NSW, coincidentally it had 15.4 percent of its homes listed as unoccupied on the night of the 2021 census.

During the pandemic, Byron Bay became the country’s favourite sea change destination with an influx of cashed-up migrants putting enormous pressure on local renters. Then the loss of so many houses through flooding in nearby areas made the rental crisis in Byron Bay even worse.

Byron Shire Council has accused the NSW Government of

surrendering to pressure from the short-stay accommodation sector after it went back on a decision to allow the council to cap the use of holiday rental properties at just 90 days a year.

The 90-day cap was designed as a disincentive to short-term rental investors so that more housing would be pushed into the local long-term rental market. Then the cap was blocked by the NSW Government. The proposal will instead go through the NSW Independent Planning Commission.

Byron Bay, two hours south of Brisbane, is divided over the issue.

Some say that the town’s economy is based on visitor dollars. Tourism Research Australia, a branch within Austrade, estimates that the 90-day cap could see a loss of $267 million per annum from Byron’s economy. It says it could also cost Byron 1448 jobs while making little positive impact on housing stock or affordability.

Byron Bay mayor Michael Lyon told The Australian newspaper he was “surprised and disappointed” by the last-minute decision after the NSW Government had indicated council would have the final say on the cap.

“We know there has been a very strong campaign by some

property owners, investors, and multinational companies such as Airbnb to bury this planning proposal,” he said.

The NSW Independent Planning Commission (IPC) will now hold a public hearing into the Byron Shire Short Term Rental Accommodation (STRA) Planning Proposal from February 21 to 23.

“Our desire to see STRA limited to 90 days in the majority of the Byron Shire is balanced and reasonable,” Mayor Lyon said.

“This is about finding a balance for our community, our businesses and the STRA sector where our community comes first, where visitors have somewhere to stay, and where workers, including those who service the tourism industry, have somewhere to live.”

A “Byron Deserves Balance” campaign gathered 1000 signatures in support of the 90-day cap, arguing that the community was facing an unprecedented homelessness crisis, with many locals pushed out by investors opting to lease homes for bigger returns on offer from short holiday stays.

A rival “Byron Deserves Better” campaign hit back with powerful statistics

The campaign said that on average, Byron Shire received 2.2 million visitors every year. Approximately there are one million day visitors, one million overnight visitors and 200,000 visitors from overseas.

“To compare the value of each visitor, it takes 38 individual day visitors to spend the same amount of money as one family will contribute by staying overnight in a holiday home,” the campaign declared.

“The vast majority of shortterm stay visitors are families, which are a high-yield, lowimpact category of visitor. They are not disruptive to local neighbourhoods.”

Lawyer Col Myers, from Small Myers Hughes, has spent more than 40 years focussing on

property law and says many accommodation businesses in Byron Bay are now “sitting in limbo” because of the cap dispute.

“Property owners and managers are unable to sell their businesses because they don’t know whether they’re going to be able to rent out their accommodation all year round or only on a basis of 90 days,” Mr Myers said.

“There is a lot of uncertainty.”

Mr Myers said the Byron Bay Council had been working out what areas to limit to 90 days, dividing the town with colour coded maps.

He had been navigating those maps for the last year on behalf of his clients.

“If the properties were in the right coloured area it meant

those owners could provide short-term rentals 365 days a year,” Mr Myers said, “but if they were in the 90-day zone it would kill their business overnight.

“In one case the chairman of a body corporate and the onsite manager rallied up the owners and came to us because they were just outside of the 365-day-a-year zone.

“We put our argument to council that the place has been up and running for 20-odd years and was always used for short-term letting, and that it had even paid council fees based on that.

“Council came back and redrew the map and put those people in the zone where they could provide shortterm rentals all year round.

“We gave ourselves high fives and thought it would all be approved, but then the NSW Government said they were taking the shortterm rental issue away from the Byron council and putting it to the planning commission. It seems no decision is going to be made until at least March.”

Yoav Tourel, the Temporary Board Chair of Directors at ASTRA, the Australian Short Term Rental Association, said his group had been “very much involved” with the council, community and accommodation operators in Byron Bay for the last six months. He said ASTRA was opposed to the proposed 90-day cap for “two main reasons”.

“First, the NSW Government decided 18 months ago that there would be a 180-day cap on STRs. But with Byron Bay proposing on a 90-day cap it would have a huge impact on the whole community. Property managers, room cleaners, and gardeners could only work for a quarter of the year. We say that Byron Bay should work within the 180-day cap that the government handed down and see how that goes, examine the impact first before any changes. P8

Byron Bay recorded the highest rate of housing stress in NSW, coincidentally it had 15.4 percent of its homes listed as unoccupied on the night of the 2021 census

“The second main argument is that we dispute the data being used by the Byron Shire Council. The council is talking about 3000 to 5000 properties being used for short-term rentals in the Byron Bay Shire but according to the number from the NSW Government we’re only talking from 1100 to 1200 properties. There is a huge discrepancy.

“ASTRA believes that there needs to be regulation in the short-term market, but we also say there has to be a balance between the needs of the council, the community and our industry.”

ASTRA claims to represent up to 50,000 short-term rental properties in Australia.

Board director Bart Sobies said it was necessary for states to implement short-term rental

legislation that applied to all regions to ensure consistency.

“The legislation had to be driven by data, too,” he said.

“At the moment a lot of the justification for policy is based on emotion rather than fact.

“The challenge is to do right by the community but also to create the jobs and the holiday experiences that visitors want to have.”

The University of Queensland urban geographer Thomas Sigler told the ABC there were now 251,000 short-term rental properties across Australia, representing about two percent of overall housing stock.

“In specific holiday areas such as Byron Bay, the Gold Coast or the Sunshine Coast, it gets much, much higher, up to 15 percent,” he said.

The housing problem is such in Western Australia that it has imposed a 60-day cap on short-stay rentals.

In February 2022, Noosa Council adopted a new local law for short-stay letting, to manage the impact on permanent residents and guest safety.

The council established a 24/7 complaints hotline and complaints register and promised to use security services to observe and record activity at properties where required. The new laws had seen hundreds of investors dropping out of the region’s short-term accommodation market according to Michael Harper, the director and founder of Airbnb property management company GrowHOST.

But Mr Harper told the Sunshine Coast News that there was still an opportunity for investors to make significant returns at double the rate of the property market while not upsetting local councils.

In Sydney, an eastern suburbs council wants to financially penalise owners of short-stay rentals, blaming them for driving up the soaring cost of housing.

In October, Randwick City Council voted to investigate rate variations “or other appropriate responses” for holiday rentals and look at the responses of other councils where “short-term letting is exacerbating housing shortages and affordability”.

Randwick Greens councillor Kym Chapple told The Sydney Morning Herald that Airbnb hosts were making “huge profits” by taking their properties out of the rental market, while long-term rents in the Randwick area had gone up 24 percent in the past 12 months.

Neighbours not Strangers spokesperson Trish Burt said Airbnb hosts should pay commercial rates and charges

and undergo annual inspections to ensure compliance with building and safety regulations.

“An increase in rates will amount to an increase in the nightly rental charged via online booking platforms,” she said. “It will not see homes returned to the rental market.”

Ms Burt said she had no problem with people renting out apartments for short terms but only if those buildings were designated specifically for holiday or hotel accommodation.

Trevor Rawnsley, the CEO of ARAMA, says in part Australia’s housing crisis has been caused by overseasowned Online Travel Agencies taking family houses out of the rental market and making them short-stay properties.

“Every house that goes into the short-term rental market is denying a family a place to live,” Mr Rawnsley said.

Brisbane City Council introduced a new rates category for shortterm accommodation properties, hiking their fees by 50 per cent.

Lord Mayor Adrian Schrinner said his city currently had a severe housing shortage because not enough homes were being built to meet demand.

On the Gold Coast, mother-oftwo Emily Wright told, ABC she faced homelessness as she searched for months to find a new home in one of Australia’s tightest rental markets.

Ms Wright was forced out of her rented home last year. After an exhaustive search, she finally found a new house, but with the cost of rent exploding, she had to go well beyond her budget. The 39-year-old university researcher said she had to rely on food parcels to survive and take a second job to pay the rent.

And her second job? It was cleaning Airbnbs.

Billabong Pool Service & Supply

Understanding the procedure for topping up process in NSW

executed by the building manager and the owners corporation.

Length of building management agreements

Building management agreements in NSW can no longer be for a term of more than 10 years.

PART ONE

By Col Myers, Small Myers Hughes

Building managers

Building managers (previously known in NSW as caretakers) are engaged by owners corporations to assist with:

• managing common property;

• providing access to common property, including for tradespersons and non-residents; and

• maintaining and repairing common property.

A building manager may be a person who is entitled to exclusive possession (whether or not jointly with any other person) of a lot or common property in the strata scheme, but this is no longer a prerequisite to qualify as a building manager.

Upfront disclosure by building managers

Before they are appointed, building managers must advise the owners corporation if they:

• are connected in any way with the original owner (developer); or

• have any existing financial interest in the strata scheme.

Method of appointment

To be engaged as a building manager, a majority vote is required at the annual general meeting (AGM) or an extraordinary general meeting (EGM) of the owners corporation. The engagement cannot be approved at the strata committee level.

All building management agreements must be in writing and

Specifically, the Strata Schemes Management Act 2015 (Act) states that a building management agreement (including any additional term under any option to renew it) expires (if the term of the appointment does not end earlier or is not ended earlier for any other reason) when 10 years have expired after it commenced to authorise the building manager to act under it. This wording is significant for the reasons I refer to below.

Form of top-up

Unlike the situation in Queensland, NSW building management agreements cannot be “topped up” from time to time by a deed, varying the existing agreement, by adding a further option or options for the building manager to extend the term of the agreement. This is because the Act states (as mentioned above) that the agreement ends 10 years after it commenced.

So, adding options to the existing agreement makes no difference, as the agreement will still end 10 years after it initially commenced. Consequently, top-ups in NSW must be by way of a new building management agreement or the re-engagement of an existing agreement, for a new 10-year term.

Procedure for Topping-up

First, you need to find out from your strata manager the closing date for owners to submit motions for inclusion on the agenda of the next annual general meeting of the owners corporation.

Secondly, you should approach your strata committee with your top-up request. Obviously, if you have the support of your strata committee, the process will be much simpler and more likely to succeed.

Third, if the strata committee wants to make changes to the

current agreement (including duties), you should use your reasonable endeavours to work through those changes with the strata committee and hopefully agree on the proposed changes without lawyers becoming involved. (If you can’t reach agreement, refer to the process I suggest you adopt which will form part two of this article and will be included in next month’s magazine).

Finally, ensure that you advise your solicitor of your requirements for the new agreement, in sufficient time for them to be able to prepare the new building management agreement and motion and submit them to the strata manager, prior to the closing date for owners’ motions.

What if the building manager does not own a unit in the complex?

Only lot owners or the strata committee are entitled to submit motions to go on the agenda of an AGM of the owners corporation. consequently, if you don’t own a lot in the complex and the strata committee won’t agree to include your motion on the AGM agenda, you will need to find a friendly owner in the complex who is prepared to submit the motion for you.

What if you don’t want to wait for the next AGM to come around?

Any lot owner can requisition the calling of an EGM if they have the support of lot owners with unit entitlements with value of at least one-quarter of the total unit entitlement for the scheme. Consequently, you need to arrange for this number of owners to sign a form requisitioning an EGM to allow your motion to be voted on at the EGM.

This requisition form must then be sent to the secretary of the owners corporation or the strata manager, who must promptly call the EGM. The meeting cannot be held until all owners receive at least seven clear days’ notice (after postage time if the notices are mailed).

Use of proxies by building managers

The Act limits the use of proxies by building managers.

A vote by a proxy who is a building manager is invalid if it would allow the building manager to obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on the building manager.

“Material benefit” includes the following:

• an extension of the term or an additional term of appointment of the proxy as a building manager; and

• an increase in the remuneration of the proxy. Consequently, building managers cannot hold proxies for topping up the term of their agreements. However, there is nothing to stop building managers from lobbying owners to support their topup motion or for other owners to seek proxies to support the building manager (as long as they are not seen as “agents” for the building manager).

All proxies must be given to the secretary of the owners corporation (or the strata manager) at least 24 hours before the meeting to be effective.

Will voting be by way of a secret ballot?

Voting on a motion at a meeting may be carried out by a secret ballot if:

• the strata committee determines that the motion is to be so determined; or

• at least one-quarter of the persons entitled to vote on the motion agree that the motion or matter is to be so determined.

Note: Part 2 of this article (in next month’s edition) will look at how building managers should go about seeking a top-up of their building management agreements in circumstances where they have a strata committee who is opposing any such extension. Liability limited by a scheme approved under Professional Standards Legislation.

Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

2023: Maybe this will be our year

By Laura Bos, General Manager, SCA (Qld)

As the new year came in with all its standard bluster and excitement, before quickly dissipating into the grim or thrilling (depending on your worldview) reality of a new work year. San Francisco band, Train (of Drops of Jupiter fame) has another famous track called, This’ll Be My Year and as I listened to it on the loop in the early days of 2023, I couldn’t help but think of the Queensland strata sector.

It’s been said patience is a virtue, and in Queensland’s strata sector, we have needed decades of patience given the issues which have emerged over time. This coupled with a lack of responsiveness by successive governments of all stripes, has left us with 20th century legislation well into the 21st century. The past two years have seen significant consultation on a variety of strata issues across the Community Titles Legislation Working Group, Review into the Queensland Home Warranty Scheme, combustible cladding and other housing issues. Thus far, even with the impetus of a significant housing crisis in Queensland we have had some exciting, albeit limited changes with respect of the BUGTA, though it has not been harmonised with the BCCMA.

As I pondered our industry’s future and listened to Train over the break I was struck by the chorus of the song, This’ll Be My Year:

No more Countin’ down the hours

No more Wishin’ you were here I stopped believin’ Although Journey told me don’t Before I call it a day Maybe this’ll be my year. Quite an apt description of how the Queensland strata sector may be feeling after decades of waiting. Despite two years of hard work and submissions, there has been litt le substantive change to how the vast majority of strata communities are run, thus far. But we must not stop believing!

There is, however, cause for optimism that this will indeed be our year. The momentum we have generated and the relationships and respect we are building lead us to be very optimistic about seeing bills go through parliament this calendar year. We have been toiling hard to try and set the ground out for real, lasting, and meaningful reform.

The complexity of the strata sector has often been a big hurdle for lawmakers to jump. With so many competing interests, we can all too often be left in the ‘too-hard basket’. Pleasingly, the strata sector has reached such a critical mass that we simply can’t be ignored any longer. In addition, with the benefi ts of strata in helping to solve the housing crisis at the front of mind for government also, we believe finally lawmakers recognise that there is important work to be done to ensure that this huge (and growing) swathe of our population can live in relative peace and harmony, whilst trusting their interests are protected and their assets in safe hands.

So, what does this mean for us? Can we rest on our laurels and simply wait for government to do the right thing by our whole sector? Absolutely not. Whilst we have done plenty of work thus far, exposure draft legislation and movement on more complex issues is of course our next goal.

Gett ing good legislation passed as an industry body is a bit like a football team seeking to win a championship. You play preliminary rounds

(consultation) to get to the finals (exposure draft legislation) ultimately, what you get passed by the Parliament is your grand final.

SCA (Qld) can confidently say we have performed extremely well throughout the preliminary rounds. We have put together diligent, well drafted submissions, met with government, and put issues on the public agenda so that politicians broadly are aware and alert to these issues.

As we approach what we believe to be the business end of the reform process in so many areas, it is important we maintain our momentum and energy. We have worked so hard as an industry body for so long to chase reform, we must be diligent right to the end and let nothing slip through to the keeper, as legislation is (or isn’t) put to parliament this year.

So, with all the sports metaphors and musical musing I welcome all of you to 2023. This will be a year where we will really see the rubber hit the road in terms of significant changes to legislation aff ecting our sector. Just maybe, this’ll be our year.

“REI

“Manage

“I have the lifestyle I’m looking for, made possible by REI CLOUD!”

“REI CLOUD, helps run my business better!”

Guy Elliot

Debra Tapiolas

Adam Lill

Ban family homes from short-term rental market

homes are empty most of the time. Meanwhile, in Queensland alone, there are more than 50,000 people waiting on the social housing register, struggling to find a roof over their heads. Because of the short supply of properties, rents have gone through the roof, vacancy rates are at all-time lows and the competition for properties is fiercer than ever.

for families to live in, either as long-term residential tenants on a rental tenancy basis or by owner occupiers and their families.

By Trevor Rawnsley, CEO, ARAMA

Australia is gripped by an unprecedented housing crisis, and ARAMA is calling on local councils around the country to ban the use of detached homes for short-term rentals.

In a staggering statistic, 1,043,776 Australian dwellings were listed as empty on census night 2021. Some of these million-plus homes were vacant because they were being sold and awaiting new owners, but the latest data tells us that there were 251,000 short-term rental properties registered across Australia in September 2022. Most of these

ARAMA believes that the current housing crisis is largely caused by a combination of the sophistication of overseasowned Online Travel Agencies (OTAs) taking family homes out of the long-term rental and owner occupation mix, plus harsh new rental tenancy laws. These OTA platforms are very user and consumer-friendly, and we have nothing against them when used to provide traditional holiday letting. Some of our ARAMA members use these OTAs to market their holiday apartments. But it is a vastly different story when the ease of use of these portals are turning traditional suburban family homes into largely vacant short-term cash cows, designed to only benefit investors seeking a return from the short-term rental market. These detached houses were originally designed specifically

Most local government authorities refer to these detached multibedroom dwellings as a class 1 dwelling. The more we see these Class 1 properties being converted to short-term holiday letting, the more we see a dramatic reduction in long-term housing stock for Australian families.

In addition to the appetite created for investors to achieve big returns from short-term rentals by the OTAs, sadly governments have created an environment that drives the wrong behaviour from owners and investors through unbalanced, unfair and inappropriate tenancy laws. It is becoming increasingly harder for Australian owners and investors to rent out their properties to long-term residential tenants (like they have for decades) because of new laws in different states swinging all the power towards the tenant.

While this has been happening, sophisticated overseas-owned OTAs have created great incentives for property owners to enter the short-term rental market. They are spending millions of marketing dollars

to fill people’s heads about how much they can make from the short-term rental market, even as the housing crisis and homelessness escalates. With great frequency, detached houses that would otherwise be available for long-term residential rental are being turned into weekend party houses.

In my Gold Coast street alone there are four houses out of 25, occupied for only a couple of nights a week (mostly) and quite often only two people staying for a couple of nights in a 4-bedroom house. That’s four homes that could each house a large family, taken out of the equation. That’s four families who have to join the long queues for an increasingly short supply of homes. A pattern repeated around Australia.

One of the investor owners in my street told me he can make $5000 a week and that it is more profitable for him to have his house largely vacant for much of the year, than to have long-term tenants. Plus, he says the new residential tenancy laws make it harder to control tenant behaviour, collect the rent, end the tenancy and raise the rent if required.

While many Australian families can’t find a place to live, the levels

of multiple home ownership in this country has never been higher. More than 20 percent of Australia’s 11.4 million taxpayers own investment properties.

That means that around 2.22 million taxpayers in Australia are property investors, and together they own 3.25 million investment properties. 10 percent of investors hold three to five investment properties and almost one percent own six homes or more.

One of the OTAs is now advertising on television, actively pushing for people to turn their investment properties into short-term rentals and away from long-term residential rentals. At a time when so many families are desperate for a place to live. The marketing gurus of these platforms have convinced people, including governments, into believing that they are providing a modern social advantage with a ‘sharing’ economy.

Suburban long-term residential family homes are now being used as holiday letting and party houses because governments have been seduced into allowing it under the guise of the ‘sharing economy’. There is nothing ‘sharing’ about it at all. In fact, taking houses away from the long-term residential housing rental market at a time of a housing crisis, is extremely selfish.

ARAMA is calling on councils around Australia to ban the use of detached housing aka Class 1 dwellings – for short term rentals. Local councils might need the support of their respective state government to achieve legislative change or enforce existing legislative protections and we are calling on both tiers of government to work together to achieve that outcome.

That means, in my street alone those four houses would not be allowed to be used for shortterm rental at all (for less than 90 days). That restriction would immediately put those homes back on the long-term rental market or make it unappealing to invest, expecting a return from the short-term rental market.

Those current investors of party houses in the suburbs might then be incentivised to list the house for sale to owneroccupiers thereby further de-stressing the housing crisis.

A ban on short-term letting on detached houses would still give investor owners the chance to make good money from the long-term rental

market and would result in more opportunities for more families to find more places to live.

It may require a tweak to the legislation, but we believe it would go a long way to alleviating the national housing crisis, which is worsening, in part because of new long-term tenancy laws that put landlords at a severe disadvantage.

Many landlords simply no longer want to be in the long-term rental market because it’s become too difficult, highly stressful, and unrewarding for them even with weekly rents soaring.

New tenancy laws have created an environment for short-term online platforms to flourish because the laws deter investment in long-term rentals. Think unintended consequences. For many investor/owners it is becoming almost impossible to evict a tenant even if they don’t pay rent. In Victoria, for instance, the non-payment of rent is not sufficient reason to evict a tenant and this situation is close to being accepted in Queensland, too. Tenants can bring a pet, they can smoke, they can paint the walls without permission, and they can decide not to move out if the owner doesn’t have just cause or a defined date to exit a fixed-term lease. Then even if they do, the tenant can cry “housing crisis” and stay longer, again creating disincentives for the landlord.

If the rent becomes too high under the new legislation a tenant can say, “I can’t pay but you can’t evict me.”

In most states including Queensland a landlord on a periodical tenancy can’t ask a tenant to leave unless they’re going to move in there themself.

If you don’t move in, the new rental laws say you can’t offer the property for rent for a defined period, it’s like a sin bin.

In Queensland, a private members bill has been circulating that effectively says a landlord cannot increase the rent by more than two percent in any two-year period no matter the reason. Do they not understand CPI and interest rates have risen and will probably continue to do so at least in the short term?

So, these short-term rental platforms have encouraged people wanting to avoid those hassles to keep their houses vacant for much of the year and pick up high daily tariffs every

now and then. Short-term guests don’t give landlords headaches by refusing to pay the rent until maintenance is improved. They simply move on, give a bad rating and vow never to stay there again which is fair enough.

Long-term leases can immediately be broken if there’s a domestic violence issue and the victim can move out without penalty for breaking the lease or causing damage to the property. DV is a huge problem in our society but why should the landlord of the residential tenancy pick up the tab for costs associated with it?

If a short-term renter damages a property, the owner has their credit card details, or they can take them to court. Even more reasons why it is easier to manage a house on a short-term rental basis compared with a long-term rental basis. ARAMA believes that if government were to restrict the use of Class 1 houses so they were only used as long-term rentals, it would create much more housing stock and soften the high price of rents in the suburbs, which is where most families want to live.

During COVID many of our members converted their shortterm holiday apartments into

long-term residential tenancies and some have never converted back, which has helped alleviate the housing crisis to some extent in those areas. However, given the choice most young families prefer to live in a detached home in the suburbs, with multiple bedrooms and a backyard, instead of being forced into high rise apartments. Most high-rise apartments (which are defined as class 2 dwellings) are perfect for both short or long-term letting and can segway between the two, depending on market demands. Most families with children want to live in a house.

Taking Class 1 houses out of short-term rentals would not impact the tourism market or cost tourism jobs because our ARAMA members are perfectly placed to take up the slack. And we can host those holidaymakers in properties that were designed for a combination of short and long-term accommodation, if that is what the market is demanding. Many Australian families would be grateful to see those detached party houses available again to rent long-term. And it would certainly help to alleviate the housing crisis.

Installing water meters

By the Office of the Commissioner for Body Corporate and Community Management

Owners and committees often have questions about how water usage is charged and how water meters can be installed. There are a number of issues to consider if a body corporate is looking at installing individual water meters.

The following information answers some of the frequently asked questions about water usage and charges, installing individual water meters and maintenance of meters.

This article provides general advice only and lot owners or bodies corporate need to seek their own advice, as each case depends on its facts.

What are the rules for water meters in relation to bodies corporate established before January 1, 2008?

Before January 1, 2008, it was not mandatory to install water sub-meters within multi-unit premises.

Many schemes built before January 1, 2008, have no individual sub-meters installed. Instead, there is usually a single main water meter installed near the boundary of the property. A water utility service provider charges for water supplied to both the common property and the lots within the scheme. Each owner usually receives an individual water bill from the water utility service provider, based on the contribution schedule lot entitlements. Sometimes the body corporate takes on the liability for the whole water bill. In this case,

the body corporate pays the water provider and charges each owner according to contribution schedule lot entitlement or equally for their share of the total water bill.

How is water charged in my body corporate when there are no individual meters or only some lots have meters?

If a utility service provider (water company or local council) is billing the owners directly, and there is no practicable way for the utility service provider to measure water use, a lot owner is liable to pay a proportional share of the total water bill for the scheme based on the contribution schedule lot entitlements (Section 196, Act). For example, if there are 20 lots in a scheme, and each owner has equal lot entitlements, the proportion of the bill paid by each owner would be fi ve percent (ie.,1/20 of the total bill).

Section 196 also provides that the body corporate could vote by ordinary resolution to take on the liability for the total water bill by arrangement with the utility service provider. If this occurs, the body corporate pays the water bill to the utility service provider out of the contributions paid by owners. Where the body corporate has taken on the liability for the total water bill, the following can apply:

• If all the lots have individual sub-meters, the body corporate must bill each owner by measured usage.

• If there are only some lots with meters, the body corporate can levy the lot owners with meters by the measured usage. The lots without meters must be shared either equally or proportionately among the lot owners according to the contribution schedule lot entitlements for each lot.

How is water charged when there are individual meters on all the lots?

The body corporate is liable for a charge for water supplied to the common property, provided the supply is separately metered and separately charged to the body corporate.

Body corporate cannot force all owners to install sub-meters inside the boundaries of their lots

A lot owner is liable for a charge for water supplied to the owner’s lot, provided the supply is separately metered and separately charged to the lot owner (Section 195, Act). What if we have submeters but the water supplier does not read individual meters?

If there is no practicable way available to the water supplier to separately measure the water supplied to each lot or to the common property, the body corporate may, by arrangement with the water supplier, take on the liability for the lot owners. Under this arrangement, the body corporate may choose to levy the lot owners individually, if it has a way of measuring the supply. For example, the water supplier may choose to not enter the scheme land to read individual meters and instead issues the body corporate one bill based on total usage. The body corporate could decide to arrange to have the individual meters read to calculate each lot owner’s share of the total usage. The body corporate would then levy each owner accordingly, based on individual usage. This scenario could also apply if there is a separate common property water meter and in circumstances where not all the lots have meters. The body corporate could still take on the liability for the whole water bill and read those meters that have been installed. The owners’ lots with meters would be charged for usage and the owners’ lots that do not have meters would be charged either equally or proportionally by contribution schedule lot entitlements.

What if there are no individual meters and some lots within the body corporate scheme have several occupiers and other lots do not?

The number of occupiers in a lot does not aff ect how a body corporate must charge for each owner’s share of the water bill. There is no ability under the Act for a body corporate to charge for water based on the number of occupants (or tenants). This is also the case for lots that have gardens, pools, or spas requiring water.

Our scheme was established before January 1, 2008. Is it too late to install water sub-meters?

Installing individual water meters (or sub-meters) may not be financially or practically feasible for older bodies corporate.

Factors that owners or the body corporate may need to consider determining viability include:

• where the sub-meters would be located;

• accessibility of the pipes where the meters would need to be installed;

• whether installed meters could be read in that location;

• whether other owners have an interest; and

• cost of installation or upgrading or replacing old non-compliant meters. Owners are free to make their own enquiries about the feasibility and obtain quotes regarding the installation of individual water meters within the scheme.

Do lot owners pay for sub-meters to be installed or is that a body corporate expense?

To answer this question, you will need to establish whether the meters need to be installed on common property pipes or owners’ pipes. You can work out who owns the pipes by looking at the utility infrastructure maintenance page.

If meters are being installed on common property pipes, the body corporate is usually responsible for the cost of the improvement to common property. The body corporate will probably need a vote at a general meeting to authorise the expenditure and work.

The type of motion required, depends on the cost of the meter installation and is explained clearly in the table on the improvements to common property webpage (Section 186, Standard Module).

The body corporate will need to vote to install a meter for common property water usage if there is not already a separate common property

meter, regardless of whether the individual meters are being installed on common property pipes or owners’ pipes. If the meters are to be located on the owners’ pipes, the body corporate can off er to supply the service to install the meter.

If an owner agrees to use the service to have a meter installed, the body corporate can carry out the work and seek reimbursement of their individual cost from each owner that agrees to the service (Section 210, Standard Module).

A body corporate cannot force all owners to install sub-meters inside the boundaries of their lots. Refer to the first question in this article for how the body corporate would need to bill for water if not every lot gets a meter installed.

Who is responsible for the maintenance of water meters?

Water meters are a utility infrastructure. A body corporate is generally responsible for utility infrastructure located on common property (Section 20, Act).

An owner is only responsible

for utility infrastructure that meets all three of these points:

• supplies a utility service to only one lot; and

• is within the boundaries of the lot; and

• is not within a boundary structure for the lot.

However, if a utility infrastructure device has been installed on the common property by a lot owner and it services only their lot, they are usually responsible for the ongoing maintenance or replacement (Section 180 (4), Standard Module).

An exception to the above is that water meters installed in bodies corporate established after January 1, 2008 will not be part of common property. Meters that measure water supplied to a community titles scheme will usually remain the property of the provider supplying the water. You can read more on the website about utility infrastructure maintenance and about maintenance responsibilities by format plan to determine the boundaries of your lot.

Damian Quinn Isabella Mansell

By Grantlee Kieza, Industry Reporter

One of the biggest threats to the management rights industry is bullying by self-serving committees.

That’s the stark assessment from one of the most respected industry professionals, Paul Shih, who tells horror stories about committees serving their own interests, to the detriment of unit owners.

He says, he knows one resident manager who blames her breast cancer on the stress caused by her wayward committee, and in another case, a disgruntled committee chairman used a car to try and mow down the husband of a whistleblower at their building.

Mr Shih says the best way to prevent committees from abusing their power is long-term contracts for onsite managers.

“The Queensland management rights model actually protects the interests of the majority of owners and is a safeguard against self-serving committees with their own agendas,” Mr Shih said.

“A resident manager can act as a safeguard for all the lot owners, especially if they see a committee abusing its power and taking a self-serving course that is detrimental to the majority.”

Mr Shih wears multiple hats in the property industry, with a diverse portfolio of investment units across South-East Queensland.

He started in the property industry in 2004 and has served as a body corporate secretary, treasurer, and ordinary committee member for two bodies corporates since 2006.

He became a real estate trainer in 2010 and bought his first management rights business in 2018. He is now invested in seven.

“I frequently hear terrible cases of bodies corporate abusing their power,” he said.

“I was one of the investors who bought off the plan at Southport Central Residential in 2005. I paid $516,000 for a unit and sold it at a loss for $400,000 last year.

“The body corporate was such a mess and at one stage the levy was as high as $9000. I was glad to get out.”

In September last year, The Gold Coast Bulletin reported that residents at the complex (one of Australia’s biggest bodies corporate) were rebelling against its committee. It followed an extraordinary dispute when almost $1.5 million of the sinking fund was used for property investment!

The paper noted: “A damning judgment from the Office of the Commissioner for Body Corporate and Community Management (BCCM) found the committee had acted contrary to the Body Corporate Act in transferring $1,488,200 to a company that purchased units at the scheme.

“At its AGM in October 2020, the

body corporate passed a motion authorising the committee to invest funds in accordance with advice from a licenced financial adviser and the Trusts Act

“The BCCM judgment states a company, CTS 35751 Investments Pty Ltd, was subsequently established on April 1, 2021.”

Part of the 23-page report on the investigation carried out into this investment scheme stated that “The director, secretary and sole shareholder at the time was Colin Buckley, the then body corporate chairperson, secretary and treasurer”.

Following the company’s establishment, it moved quickly to make purchases, scooping up four units within Southport Central in just over one month.

The adjudicator found that resolutions passed by the committee in May and June 2021, authorising the investment in the company, were “not valid”.

The Bulletin reported that: “The buying spree came to a halt when some scheme members objected and were granted an interim order by the BCCM adjudicator on June 28, 2021. The interim order prevented the body corporate from investing any further funds in the company.”

Paul Shih

Mr Shih said the present proposals by some committees to reduce the terms for an onsite manager from 25 years to three would only magnify the possibility of committees running their own race in opposition to the majority of owners.

“If onsite managers have their term shortened to three years, then who will be a whistle-blower and expose abuses of power?” he asked.

Mr Shih said resident managers with 25-year contracts created a “separation of power” as in a democratic government.

He said the fact that resident managers owned a unit in the complex as part of their contract ensured “skin in the game” and that they were always working to benefit the whole scheme because they have a financial interest in its success.

“If the action of a body corporate committee devalues the property, then the onsite manager loses out as well, so they are constantly watching out for anything that might harm their own investment. That includes committees abusing their power.”

Mr Shih said in his native Taiwan, body corporate committees have absolute power to terminate all contractors, and this led to much corruption.

“The Taiwan Institute of Property Management (the industry

peak body) sent delegates to Queensland to learn about our systems and they shared some of their stories…

“One committee in Taiwan wanted to use a business for a project that was owned by one of their relatives. was rejected by the building manager due to unreasonable pricing and lack of qualifications. So the committee terminated that building manager and changed to another one. This happened six times within one year until the committee got their way.”

One of the students in Mr Shih’s property classes took on a role as an onsite manager on the Gold Coast about eight years ago.

“She discovered that the previous onsite manager was forced to use an overpriced gardening service by the chairperson, which cost the body corporate much more money

than it should,” Mr Shih said.

“The body corporate manager kept silent about the whole arrangement but my student exposed what was happening. The owners voted the existing committee out but the chairperson was so angry he drove his car at my student’s husband while he was working at the complex.” At another complex, the body corporate chairperson turned some visitor parking into his own private parking, and authorised a ‘mate’ to carry out expensive pool repairs in excess of $100,000, ignoring the onsite manager’s quotes which were much cheaper.”

He adds that he knows another resident manager on the Gold Coast who blames the stress of dealing with her committee for giving her breast cancer.

“The secretary of her complex wanted to take over the management,” Mr Shih said.

“The chair, secretary and treasurer are now in full control of the committee by having their family members as ordinary committee members and blocking anyone else from getting a say. They called and harassed all the unit owners so that no one else would want to get involved with the body corporate.

“Self-serving committee members don’t like longterm managers who can expose their corruption.”

ARAMA CEO Trevor Rawnsley says a tiny vocal minority is making a lot of noise trying to persuade the Queensland Government to cut the term of management and letting rights agreements.

Mr Rawnsley said a major reason for their attacks was that it would give some unit owners a chance to push their “power agenda” and feed their appetite for control over others.

“Some of these people want to exert their power and influence over a scheme and they don’t care who they run over in the process,” he said.

“When they have a resident manager with a long-term agreement in the way they feel that their power is threatened.”

Almost $1.5 million of the sinking fund was used for property investment!

Keep an eye on the CPI

All groups CPI, quarterly and annual movement (%)

By Frank Higginson,

We are certainly living in interesting times. There is going to be strata law reform in the next 12 to 18 months which will absolutely have some management rights as part of it. We have no choice but to wait and see on that front.

In the meantime, the consequence of something new is appearing in our inboxes far more regularly than anything else… Inflation. Management rights agreements are contracts that will almost always have some form of indexation applied to them annually. The form of indexation varies from agreement to agreement but if I was asked to bet on it, it would be that the majority of agreements have a clause in which the remuneration increases annually by CPI but is prevented from being less than that paid for the previous year. If so, the remuneration can go up, but not down.

Some agreements have a fixed percentage increase, and some don’t have that downside collar (meaning the remuneration goes where CPI goes) either up or down.

At the peak of the COVID panic, just over two years ago

we were having conversations with clients about CPI being negative. The remuneration paid under some management rights agreements without that downside collar protection went backwards!

Now we are seeing the opposite. CPI is rattling along at near record rates and it is starting to create conversations of a different nature.

Like anyone, I tend to have a lot of anecdotes, but one of my very favourites in relation to management rights remuneration, relates to value for money.

Through the 2000s in the run-up to the GFC, the whole country seemed to be in an economic sweet spot. Everyone was doing well, making money was easy and in a sense, the costs didn’t seem to matter as much.

The GFC changed that. Ever since then (and it continues to this day) everyone is looking for value for money. Lawyers and other professional service providers are not immune from that.

Resident managers are under the same pressure.

The remuneration for any management rights business is likely to be somewhere from a quarter to a third of the budget for any body corporate, and ever since the GFC, when body corporate committees look at whether levies can be reduced, their eyes are inevitably drawn to that large budget line item. And they can’t change it. It is locked in. And the increases of it are also locked in via the contract itself, usually referenced to the CPI.

So, what we are starting to see is conversations between committees and resident managers about the automatic increases to the caretaking remuneration.

The starting point is that management rights contracts can only be changed if both parties agree. Neither party can force a change to a management rights contract without the other agreeing.

So, a committee can’t say to a resident manager, “You know what, we are only going to increase the remuneration by half of the CPI this year”, in the same way that a resident manager can’t say to a committee, “You

know what, we are going to increase our remuneration by $5,000 this year because labour costs have gone up”. Forced change is out. Negotiated change isn’t. The chance to negotiate change usually comes when a resident manager asks for a variation to their agreement. That will usually be a request to top-up. We are definitely seeing committees starting to agitate for some concessions on remuneration increases in exchange for supporting (or at least not opposing) top-ups.

There are a number of strategies to deal with these concerns, all of which are dependent on the circumstances.

This is something not to be frightened of, but simply aware of. Resident managers should continually focus on providing that value for money (and being seen to provide it) which is the first battle.

If a resident manager is providing value for money, and there is to be a conversation about remuneration increases, it starts from a much better place than one where the committee isn’t happy with what is going on caretaking wise.

Partner, Hynes Legal

Motel leases: The long and the short

issues. This being said, a threeyear plus three-year lease for these and other businesses is considered normal practice. Many industrial businesses require heavy tonnage cranes in their buildings. This is not easily replaced without hundreds of thousands of dollars to install a new crane or cranes elsewhere as per the requirements.

By Andrew Morgan,

Whether we are talking about a Lessee or Lessor, having a longterm lease in place is generally beneficial for all involved. Long term leases provide security and surety of occupation for one, and well, the same for the other.

What is a long-term lease, and why in addition to the above, is it beneficial to both parties?

In a commercial, retail or industrial property, a standard lease term may be a threeyear plus three-year lease or considered long-term if it’s a fi ve-year plus fi ve-year lease. The motel, hotel and caravan park industries, however, view a fi ve-year plus fi ve-year lease as a short-term lease.

One argument for this diff ering perception is that a motel business cannot be easily moved to another building or locality, or more accurately, is never moved from its original position. This is also the case for many retail, commercial or industrial businesses, for example, a service station or convenience store cannot be picked up and moved to another locality, well not without any degree of difficulty or other

Another argument is that one is buying a business (inclusive of the lease document) and has a capital outlay to buy the assets of the business. These assets diminish in value rather than appreciate once the lease reduces below a certain level of time remaining. It is often the case when a motel lease is being sold, a potential buyer will say for example “there are only 15 years left on the lease”. If run for fi ve years there will only be 10 years remaining. This may be the case but the return on investment of a lease is high and will increase the lower the term of the lease. Reduced tenure/security will reduce the value of the business but increase the return to the buyer. Ten or fi fteen years is a long time and is also a long time in terms of a lease. No one knows what they will be doing in ten or fi fteen years, or where they will be. People have goals in life and directions they would like to head in, and places they would like to be, but no one can guarantee where life will take them such a long time into the future. The tenure spoken about revolves around maintaining the value of the business and property for both Lessee and Lessor. Not having a short-term lease where a Lessee pulls everything they can from the business without investing back into it. Thereby aff ecting the value of the Lessor’s property.

It is generally in the Lessor’s interest to extend a lease for their security of tenure and to provide them with more options when refinancing, etc.

It is reasonable to believe that

the longer the term remaining on the lease, the stronger the position and security of both the Lessee and Lessor. This may not be the case when the land is situated in highly desired positions. The site may be ripe for redevelopment with higher or better use, or when the motel needs major refurbishment, it may be deemed more cost eff ective to demolish rather than renovate. This sounds good in theory but what happens when the lease is close to expiration and the development market is poor. Timing is all important in any case.

Due to most Lessors owning a motel property that is leased as a passive investment, it is often the case that the Lessor will not want the Lease to come to an end. The majority of the time the purpose of ownership is a passive investment, not the day-to-day operating of a business. Many motel investors have a background in the industry. Many may be retired business owners who simply want an asset they trust and will receive a regular rental income from. The day-to-day business operations are no longer for them, and asset security is

of the utmost importance. A long-term lease off ers this investor piece of mind.

Lease extensions are a saleable commodity in the marketplace and are a direct investment back into the business. Most Lessors whose lease term has run below 15 years, will have been asked, at some stage, by a Lessee to extend the lease. The result should be a mutually beneficial transaction for both parties. The diff ering needs of both Lessee and Lessor can be satisfied with one gaining funds and security and the other gaining an increased value or saleability of their business, and again security. It does not happen often but sometimes a Lessor (when asked) will not extend a lease. Often they ask, “why extend the lease when there is still 14 years to run, which is still a long-term lease?”

Fair point. However, a Lessee will argue if either party wants to sell their interest at some stage, a longer lease of say 20-plus years will be more att ractive to a potential buyer on both sides. This also has merit.

Motel Broker/Partner, Qld Tourism & Hospitality Brokers

It is generally in the Lessor’s interest to extend a lease for their security of tenure

© Adobe Stock, stock.adobe.com

New tax office ruling a gamechanger for hiring workers

By Lel Parnis, Principal, Holmans

The legislation governing the definition of employees and the obligations of employers hasn’t changed.

But in recent years the compliance focus by the ATO on potential misclassification of workers as contractors

Vs employees has increased resulting in confusion for business owners who haven’t changed how they operate but who have found themselves subject to ‘employer obligation audits’ and potentially liable for superannuation and withholding tax penalties in relation to workers they had understood were bona fide contractors.

In 2022 we saw two landmark High Court decisions which have significantly impacted ATO advice and guidance in relation to classifying workers. Previously the classification was very much a ‘substance over form’ approach reviewing a number of factors and essentially defined workers as employees if their services were for their labour which they could not delegate, regardless of if they also provided services to other businesses nor if a contract

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was in place stating they were a contractor and not an employee. The decisions in the recent court cases placed more credence on the nature of the contract (whether written, oral or hybrid) between the business owner and the worker than has been previously. Where both parties have agreed and understood the ramifications of the arrangement being of contract/contractor relationship rather than employer/ employee then the risk of misclassification is significantly less than it has been.

As of December 15, 2022, we now have some clarification from the ATO in the form of a ‘Draft Practical Compliance Guideline’ (PCG 2022/D5) for businesses engaging contract workers. Typically, a draft ruling is finalised within 6 to 12 months with limited amendment.

Employees work in and are part of your business. Contractors are running their own business. When a business engages

a worker, the arrangement will generally be one of:

• employment, where the worker is an employee and the engaging business is their employer, or

• independent contracting, where the worker performs the work in the course of carrying on their own business.

A business’ tax and superannuation obligations, and a worker’s tax obligations and entitlement to an ABN, can vary greatly depending on how the worker is classified.

Correctly determining whether a worker is an employee or independent contractor is important to ensure that both the business and the worker get their tax, superannuation, ABN registration and reporting obligations right.

Key Differences between obligations for business owners engagement of employees v contractors:

Employee Contractor

Withhold amounts under the pay as you go (PAYG) withholding regime

Meet fringe benefits tax (FBT) obligations for benefits provided

Single Touch Reporting of payroll information to the ATO

Make superannuation contributions or be liable for the superannuation guarantee charge

Not entitled to claim input tax credits (GST) on wages paid

A valid ABN is required prior to payment for services (unless 47% ABN withholding tax is withheld and remitted to the ATO)

Valid Tax Invoices are required for services

Taxable Payment Annual Reporting (TPAR) is required to report payment to all contractors each year

If the worker satisfies the extended definition of employee, make superannuation contributions or be liable for the superannuation guarantee charge*

If the engaging entity and worker are both registered for GST, claim eligible input tax credits

© Adobe Stock, stock.adobe.com

*In certain circumstances bona fide contractors may be deemed to be employees under the extended definition of an employee and requires ‘employer’ superannuation to be paid on behalf of these workers. These circumstances include workers working under a contract that is solely, or principally for their labour. And here is where the issue has led to misclassification of workers from a superannuation perspective and has resulted in compliance issues for businesses to date.

Finally, however, we have some clarity and relief for business operators in the new draft tax ruling (PCG 2022/ D5) clarified how ATO will approach compliance reviews regarding potential worker misclassification. The ruling sets out a risk framework which categorises arrangements as follows for unpaid superannuation queries (see table below).

Ultimately, if you engage contractors for labour then you should be ensuring your arrangements would have a ‘very low’ risk profile should any review be undertaken regarding the classification of the contractor arrangement. This would mean you have taken all reasonable steps to correctly classify the worker and it is then very unlikely your business would be held liable for any unpaid superannuation. This is a new approach and a welcome one for businesses in the accommodation industry.

I strongly recommend business operators engaging contractors review all arrangements without delay and consider the following to mitigate risk of falling outside of the ATO’s deemed ‘low risk’ category:

Risk zone ATO Approach

Engage an employment specialist to review arrangements and assist with preparation of clear contracts setting out the terms of the arrangements which I would recommend are signed by both parties (note: A written contract isn’t required but certainly helps to mitigate risks inherent in only having verbal agreements).

Ensure agreements clearly stipulate the understanding that the arrangement is different to that of an employment arrangement, clarifying the contractor is responsible for their own superannuation and payment of tax liabilities

This welcome change in approach shouldn’t result in operators rushing to change their arrangements from employee to contract in nature, by any means, but should result in some peace of mind where existing and new contract arrangements can exist without fear of non-compliance provided terms are appropriate, clear, and agreed upon by all parties. As always, always reach out to your accountant and business advisors to assist before making any material changes in your employment arrangements to ensure you understand any potential tax, and other, implications.

IMPORTANT DISCLAIMER: This article is published as a guide to clients and for their private information. This article does not constitute advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.

Very low No further compliance resources will be applied

Low Compliance resources will be applied to test whether worker meets the extended definition in the employer superannuation legislation

Practising gratitude

By Kelley Rigby, Managing Director, Lett s Rebuild

Welcome February, where did Christmas and the festive season go?

I would also send thank you cards on their ‘investor anniversary’, send birthday cards, and Christmas gift s. I would know every special occasion, every football team they follow and where they are going for their family holiday. It’s information that I can use to show how important they are to me. This might take time, some tasks take only minutes others longer, but think about the benefi ts, not only financial but the emotional and mental ones that come with making others feel so appreciated.

Medium

High

Compliance resources will be applied to test the correct worker classification for the arrangement but will be given lower priority than arrangements that are rated high risk.

Compliance resources will be applied to test the correct worker classification for the arrangement and will be given the highest priority resourcing. Businesses may be subject to higher penalties if it is found they failed to correctly classify their workers.

If 2023 is anything like 2022 we will be wishing each other a happy new year before we know it, so I best not waste any time and jump straight into it. This article might look and feel like a ‘Kelley’s life lessons’ piece (and to be fair I will probably drift into that mode here and there) but I want to hone in on having gratitude for your community. Let’s start with the investors that entrust you with (what is probably) their biggest investment. I mean seriously think about what a privilege that is, to be given such responsibility and trust from another human being. No matter how difficult that client can be, it’s worth pausing to remember that you may be looking after their whole retirement plan! As a business owner, all the clients that choose YOU should be at the top of your gratitude list (in business, not in life). If I owned a management rights business, my plan would be to ensure that every investor client was never left in any doubt about how much I value their business. I would sign every email with, “Thank you for entrusting us with your investment, we appreciate your business and will strive to always do the best for you”.

I don’t know about you, but it is those times when I am helping people and making them feel good, that my cup is full as a bull. Show them gratitude and I promise they won’t leave you. To the unit owners that support you in every AGM and with every vote, to the ones that simply say “you are doing a great job” they ALL deserve your gratitude and appreciation. Extend a simple “thank you for all your support” as they walk to the pool or put a handwritten note on their door expressing how much their support means.

It will surprise you just how much litt le gestures can mean to those around you. Even show gratitude to those owners that question and query your decisions, thank them for helping you learn and grow as a business owner. I am not talking about people who are simply unkind and nasty, we show them empathy (but that is for another article). I am talking about the ones that keep you on your toes and genuinely want the best for the community.

In a world where negatives are easily consumed, choose the path of gratitude and empathy.

Something’s gotta give

I guess I should start this month’s missive with a welcome to 2023.

Doesn’t seem that long ago that we were stressing about the Y2K bug and now here we are, 23 years later. For those of you too young to remember, the bug was essentially a ‘sky is falling’ event, predicated on an expectation that computers worldwide would be unable to cope with the year 2000, due to recognition software that only identified the last two numbers in a year. The fear was that 2000 and 1900 would be indistinguishable to computer systems and all hell would break loose. The global spend to get ready for the catastrophe that never happened, is estimated at $600B. People panicked, food and water were stocked up and in some countries guns and ammo were in short supply (guess where).

Of course, the argument was that the problem got fixed before midnight on December 31, 1999, but here’s the thing, countries that did next to nothing to address the issue had no major dramas. If this is all sounding a bit familiar, then no surprise. The more things change, the more they stay the same.

Anyway, I trust you had a wonderful Christmas full of joyous moments and goodwill to your fellow man, woman, self-identifying other. Personally, I think Christmas is overrated.

When I share this thought with the ‘managing director’,

she tells me in no uncertain terms that I am a grumpy old bastard with a heart of coal. She may be right. I do like coal. No, that’s wrong. I like reliable electricity, but I digress.

Christmas to me has lost all meaning in the hurly burly of rampant consumerism and an expectation that no matter what, one must be happy over the festive season. For many the prospect of spending time with family members they would prefer to avoid while feigning delight is not an uplifting one. In fact, I’ve been surprised by the number of people who seem genuinely relieved when Christmas is behind them. Maybe we need a referendum for a ‘Christmas Voice’. First item on the agenda, let’s make it every five years.

Worst of all is the generic Christmas card. You know the one. It’s always from some semi distant relative or acquaintance who you haven’t heard from for a year. The card contains a folded A4 page typed in compressed font with all that has been going on in the sender’s life.

To no surprise they’ve had an amazing year, careers are on fire, they are more in love than

ever, and little Jeremy has just been awarded the Nobel Prize in pre-school physics. Excuse me but I just don’t care. Spare me the platitudes and maybe return a phone call once in a while. Even better, donate 50 bucks to the Salvos in my name and save the postage stamp.

Of course, Christmas is followed by (the no less regrettable) New Years Eve. Now, I need to tread lightly here. As a girl from Toowoomba, the ‘managing director’ is a big fan of sparkly things and loud explosions so I ‘diss’ the fireworks at my peril. But let’s face it, the process is getting a bit tiresome. In the lead up to the big night we plan an appropriate function, viewing point for said pyrotechnics and sufficient beverages to ensure the first day of the New Year is spent in interminable suffering. Then, sometime in the three days before the event we make ourselves some promises. These inevitably include cutting back on the booze (ironic hey), improving our diets, exercising a bit and being a more kind and beautiful human being.

It’s all so predictable and it never lasts. Hell, it’s day 20 of 2023 and already the veil of decency has

slipped and I’m back to being the cynical and at times vexatious person I’ve always been. Having said that, I’m also day 20 into a total alcohol ban combined with a serious ramp up in exercise. I should be feeling great but all I know is that I’ve discovered why New Years resolutions don’t last… They are no fun!

But, as luck would have it, I greet this day with a spring in my step and a song in my heart. What has uplifted me from the melancholy of the post-Christmas blues you ask? Well, dear readers, I haven’t had to wait for the end of 2023 to see one of my recent predictions come true. The queen is dead. No, not that Queen, I would never disrespect such an amazing woman. I’m talking about the queen of woke, the international princess of the virtue signal, the single-handed architect of the economic destruction of a wonderful country. With the electorate finally realising that far left politics and hand wringing are no substitute for sound economic management, Jacinda Arden has quit as NZ prime minister. She says she doesn’t have enough fuel in the tank to continue. Yeah right.

By Mike Phipps, Mike Phipps Finance

With the NZ economy on the brink of recession and no policy achievements of note the opinion polls had her gone for all money when the election comes up in October. So, rather than fight the good fight she quit. Nero would be proud. If you think I appear to be exhibiting a certain schadenfreude in relation to these events, nothing could be further from the truth. NZ is a magnificent country inhabited by people of genuine warmth and practicality. The mystery for me was how a politician with values so close to communism could claim power and then hold it. I always thought the outcomes of such a political abomination were worth following. How long could such an incompetent leader last before the electorate woke up, I wondered.

Anyway, we have our answer and I think we have lessons for the Australian political scene. While our new Labor government has had a pretty strong start, they now seem to be wandering more and more into policy areas that grease the squeaky wheel rather than address the concerns of the great unwashed. I suspect given time, and if this trend continues, our economy will be brought to its knees before the incumbents are kicked out. Let’s hope a focus on the basics happens, and soon.

By way of an example in respect of my concerns here’s a little story that I doubt will brighten your day. We want to hire another staff member. Terrible problem to have but we can’t seem to stop people borrowing money. Haha. Anyway, we place an advert on Seek and in come the applications. It soon becomes evident that 90 percent of them have absolutely no desire to be taken seriously. Those who appear genuine are contacted. Some simply don’t respond.

Some agree to interviews and don’t turn up. What the hell! Then the penny drops. These people are just using us to tick a box on a social security form. Why work when the poor old taxpayers will prop you up. Common sense would suggest that it might be worth pulling back on incentives not to work and encourage these people back into the workforce. But no, as recently as this week our government suggested that current payments to dole bludgers are not keeping up with cost of living and we need to think about giving them more. Something’s gotta give!

Let me finish on a happy note. The numbers coming out of some of our resort-based management rights clients over the Christmas and New Year period were staggering. Record occupancies in excess of 90 percent and ADRs over $1000. Some of these businesses have been hitting new records month in, month out and one might ask, has something gotta give? I think not.

I reckon the Australian tourism industry is a unicorn and will continue to defy global trends. Yes, we are a long way from anywhere (other than NZ of course) but I can’t see domestic tourism faltering and

exchange rates are making the Oz adventure pretty compelling for foreign travellers.

Of course, there are unicorns and then there are the rarer beasts, That’s the unicorn with its single horn decorated with flowers and a stunning girl, bloke, finance broker on its back. Your best bet for spotting this elusive equine is Byron Bay, Hastings Steet Noosa, Port Douglas on the right day, Margaret River, Burleigh Heads and pretty much any day on Sydney Harbour. These, and others, are the places people will pay whatever it takes to be there.

For our premier tourism hot spots, nothing’s gonna give!

Website visibility: Understanding SEO and why it matters

By Sylvia Johnston, Senior Executive, HiRUM Soft ware Solutions

It’s second nature for most of us to use Google searches to access information, whether purchasing, searching suppliers, or staying up to date with the latest events.

We’ve become so adept at Googling, and Google so clever at responding, that we now ask specific questions to narrow down the results.

We’re less likely to Google “accommodation Gold Coast” and more likely to ask for “budget family accommodation on the beach at Burleigh”.

The flip side of this of course, is that you need to ensure that Google understands the audience that your website is trying to capture.

Search results generally present a plethora of choices. Generally, paid results appear first, but savvy searchers tend to look

past those to organic results. Analytics show that the first fi ve organic search results on Google generate more than 67 percent of the clicks, so your aim is to appear on the first page in the organic results.

Search engines use bots to crawl selected pages on the

web and index them according to their content. They then assess the page according to complex algorithms that consider a multitude of ranking factors, and index it. Think of it as Google creating a giant library. Crawling the pages adds them to the library. Indexing them helps Google understand the subject matter and decide where they should be filed within the library.

The visibility of your website really amounts to how easy it is to find that particular ‘book’ among the bazillions that Google has indexed, so that it is off ered up in the relevant search results. Your success in a search depends on whether Google deems that your ‘book’ matches the searcher’s intent. If it believes it is relevant it will be served up in the results. The more it is seen, the more potential visitors you have and the more opportunities to secure a sale.

Search Engine Optimisation (SEO) simply put, is the process of improving your site to increase its visibility in search results so that you have a better chance of att racting more visitors to your website.

Think of it as Google creating a giant library

On-page SEO refers to the practice of optimising elements within your website to rank higher and gain more traffic from search engines.

Create quality content, including blogs, descriptions, images and explanations, that relate to your property or the experience your guest can expect. Content should always be high quality and should be created with a focus on providing true value to your clients. It should be relevant, accurate and unique.

Research your keywords and create a list of the relevant topics and terms that you want to rank for. Use your keywords in this content, a maximum of two or three times per page and only where they make sense. ‘keyword stuffing’ for the sake of it has a negative impact on your ranking.

It is important that you think about how your target market will search for you. Understand the specifics that they might be looking for. The terms and language that your target market uses when searching, may be some of the keywords you should try to rank for. Don’t forget to target those long-tailed keywords that may be easier to rank for, like “accommodation on the beach at Burleigh”.

Help Google understand and classify your content by ensuring it’s accessible and easy for the bots to crawl. Optimise all the elements that appear on a page and make their relationship clear, including headlines, page titles and images. Your ‘H1’ (main heading), first paragraph and subheadings should reference keywords. Make sure images also have alt-tags to describe them so that search engines can understand the content of your images. Include eff ective meta-descriptions that describe your page’s content, relevant URLs to the topic and add a title tag. Have internal links to other appropriate pages on your website when they are relevant.

All of this may sound complex, however, using an on-page SEO checker will scan the pages you create, check

the SEO requirements and highlight any issues that need to be attended to.

2.

Google will see you that way too. Backlinks from reputable sites are very eff ective in increasing your ranking.

Google E-A-T stands for Expertise, Authority and Trustworthiness. When demonstrated in your content and in the recognition given to that content by others, these qualities add credibility to your site and Google subsequently ranks it higher. Likewise, your own social media accounts, while not impacting your ranking on their own, provide opportunities to share content that may then be onshared, and increase your reach.

Off-page SEO relates to actions taken off your website to increase your visibility. Creating a Google My Business listing and keeping it updated provides Google with another source of information about your business and creates a separate online identity for your business. As a verified listing, the details provided are authenticated and given credence.

If you create quality content, people will want to share it. The links to your content that are created from other sites (called backlinks) are very highly regarded by Google. If others recognise you as an authority in your field, chances are that

Technical SEO refers to making sure your website is easy to crawl and index. It doesn’t matter how good your content is, if your Google can’t find and index your pages because your website isn’t up to the task.

It is imperative that your website is fast to load, is optimised for mobile devices and is structured in a way that is easy to navigate. Links on your site need to work eff ectively. You also need to make sure that you don’t have duplicate or plagiarized content. Ideally, use structured data on your site. This means data is displayed in a fi xed format that is easy for search engines to find and understand.

Last, and by no means least, it is vital that your site is secure. Implement HTTPS on your site to ensure that no-one can intercept data sent between the browser and the site and hold a current SSL certificate. Secure websites rank much better than those without security precautions. Attending to these three main areas of SEO will boost the visibility of your website and encourage additional traffic which you can then convert to sales.

1. Focus on on-page SEO

Off-page SEO matters too

3. Technical SEO

© Adobe Stock, stock.adobe.com

Keeping elevators safe & efficient: A guide for resort and building managers

By Mark Finnan, General Manager, Oceania Elevators

Lift maintenance is like an elevator’s personal trainer, keeping them in tip-top shape and preventing unexpected breakdowns. A building manager is like a gym manager, responsible for ensuring the equipment (elevators in this case) are running smoothly. And just like how you choose the perfect personal trainer for yourself, choosing the right lift maintenance company is crucial to fulfilling this responsibility.

When it comes to lift maintenance companies, you’ve got the option of either engaging one of the big chains, or a niche, boutique, smaller, up-and-coming company.

Compare it to how a onesize-fi ts-all workout plan doesn’t work for everyone. The decision of whether to use a smaller or larger lift company for maintenance, can have a significant impact on the overall performance of the lift s.

One of the main benefi ts of using a smaller lift company is the level of customer service. Smaller companies often have a more personal approach to customer service and may place a higher value on individual customers. This results in a more customised service, which is especially important for resorts that rely on the smooth operation of their lift s to provide a positive experience for guests.

With smaller lift companies, customers can often form better relationships with the company and its employees, which can lead to more open communication and better problem-solving in the event of any issues.

Another benefi t of using a smaller lift company is the ability to have direct contact with decision makers. In a

larger company, it can be difficult to get in touch with the person responsible for making decisions about lift maintenance. With a smaller company, it is more likely that the owner or manager will be directly involved in the maintenance of the lift s, which can make it easier to communicate and resolve any issues that arise. This direct contact with the decision maker can lead to more efficient problem-solving and a more personal touch in the maintenance of the lift s.

In addition, smaller companies may be more agile in their operations. They may have a quicker turnaround time to resolve issues and may have specialised knowledge of certain types of lift s. This can be beneficial in certain buildings or applications, such as historic buildings or unique lift systems. However, there are some potential downsides to using a smaller lift company. One potential concern is the level of expertise and resources available. Larger companies may have more highly trained technicians, more advanced equipment, and a larger pool of resources to draw from in the event of a problem. This can be especially important for resorts with complex or high-traffic lift systems that require specialised

knowledge and advanced technology to maintain.

When choosing a lift company, it’s also important to consider experience and qualifications. This means looking for a company that has a proven track record of providing lift maintenance services, and has technicians who are properly trained and certified. Also make sure they have proper insurance.

Another important factor is the company’s maintenance plans, look at the contract and its terms, check the periodicity of the maintenance, and the obligations of the company in terms of emergency repairs or call outs. It is crucial to ask, how long the technician will spend maintaining your lift s. Because the elevator needs to be as quick as possible, but also safe.

The right lift maintenance company should also provide detailed reports on their inspections, including any repairs that are needed, and any potential problems that may need to be addressed in the future. Ideally this would be facilitated online, with a streamlined modern system, paper dockets are not efficient.

You should also check the company’s readiness to work with your schedule, especially if you have guests or business activities that require the

elevator to be operational during certain hours. Check the company team availability and how they handle emergencies. A good company will have a plan in place to minimise downtime and inconvenience to the building’s occupants.

On cost, it’s important to remember that the cheapest option may not always be the best. So, balance cost with the level of service and expertise you need. Sure, you could choose the cheapest option and risk sacrificing quality, but you don’t want to be like the person who buys the cheapest weightlift ing equipment and ends up hurting themselves. The same goes for choosing a lift maintenance company, it’s better to invest in a company that will keep your elevators running safely and smoothly, rather than cutt ing corners and risking accidents or breakdowns.

In conclusion, choosing the right lift maintenance company is essential to ensuring the safety and reliability of your building’s elevators. It’s important to consider factors such as the company’s experience and qualifications, maintenance plans, responsiveness, availability, and cost.

Finally, don’t be afraid to step out of your elevator and try something new.

© Adobe Stock, stock.adobe.com

Retaining wall repairs: Minor works or a structural problem?

and private certifier are not required for non-structural retaining walls under one metre in height, maintenance, repairs and upgrades or replacements should be well considered before starting.

of the building) it will always be a structural wall, even if it is less than one metre in height.

By Lynda Kypriadakis,

Whether your residential strata complex is Class 1a (townhouses) or Class 2 (apartments) you are likely to have retaining walls around the site.

When it comes to retaining walls, how do we know when to repair or replace?

Regardless of what material the retaining wall is constructed from, if the wall is higher than 1m (one metre) above ground level it is considered a structural retaining wall and any repairs or replacement must be engineered and have a building permit from a private certifier.

Where the retaining wall is under one metre in height, it is a non-structural retaining wall, and no engineering requirements usually apply.

Having a building inspector or specialist project manager involved, will assist in determining whether the retaining wall is structural in nature (or not), as well as coordination of the engineer and certifier when required, while scoping up repairs or replacement works before tendering.

Non-structural retaining walls

While a structural engineer

It is not unusual for timber sleeper retaining walls in gardens to be termite-affected or rotten over time and need replacement. Replacement of timber sleepers in garden walls would likely be considered a specialist contractor task for a landscape contractor or carpenter to complete. It is important that the interlocking connection arrangements supporting these walls are preserved during any repairs or upgrades to ensure the functional integrity and long-term performance of the retaining wall.

Loose laid blocks or interlocking block systems in garden walls often become dislodged or loose from their original moorings. Where loose blocks occur in small numbers either the caretaker or handyperson can remedy these as a minor works task. Ensure loose laid blocks are repaired and installed to the manufacturer’s installation guidelines, to manage the functional integrity and longterm performance over time. There may be a requirement for core filling or reinforcing of these types of inter-locking or loose blocks, so check the supplier’s installation manuals online before attempting repairs.

Boulder (rock) walls are likely to require the least amount of maintenance over time, as these are unlikely to move and are definitely not affected by rot or termites. Remember, a boulder retaining wall over one metre in height is structural in nature and engineering plus building permit applies.

Structural retaining walls

Where the retaining wall is an integral part of the building (eg., in the basement or lower levels

Landscape feature retaining walls (eg., planter boxes or garden walls) over one metre in height are structural. So are boulder retaining walls, timber sleeper walls, loose blocks or interlocking block retaining walls when they exceed one metre in height.

To build or significantly repair a structural retaining wall an engineer design must be obtained first. Also, a building permit is required. This includes rebuilding an existing retaining wall over one metre in height. The new work must have building approval from a private certifier prior to being done.

Note: Structural repairs (for more than 20 percent of the wall) or rebuilding of retaining walls is considered assessable building work under the Building Act and a building permit is required from the local council via a private certifier.

Cause of failure

Prior to undertaking any remedial works, it is important to ascertain the original cause of failure first. Sometimes drainage behind the defective retaining wall is insufficient and this is the cause of the defect, so the drainage issue should be taken into account in the remedial works. There is no point outlaying capital costs for replacement or significant upgrade works without the underlying issue understood and dealt with first.

If the cause of failure is not clear, the building inspector or structural engineer will be able to investigate and make a determination for you.

Repairs or replacement checklist

Non-structural retaining walls under one metre in height:

• Get a building inspection report confirming whether

the retaining wall is structural or not and outlining the defects. The building inspection report should outline scope of works for repairs or replacement.

• Use the building inspection report scope of works for tendering repairs or replacement works.

• Structural retaining walls over one metre in height:

• Get a structural engineer to inspect and report on findings. Engineer should comment on whether repairs or full replacement are necessary and should provide a scope of works for repairs.

• If full replacement (or more than 20 percent of the wall is to be replaced) the engineer will need to do a certified structural design.

• If full replacement (or more than 20 percent of the wall is to be replaced) a private certifier will need to be engaged to process the building permit application and final certification.

• If less than 20 percent is being replaced or only minor repairs are required the engineer should advise you (in writing) that this is not assessable building work and no building permit will be required.

Note: If in doubt always consult a private certifier for advice about assessable building work and any building permit or engineering requirements.

If a structural retaining wall is replaced (or more than 20 percent is replaced) and no building permit or engineering has been obtained, there may be repercussions for the body corporate on insurance and/or via the local consent authority, so advice upfront is highly recommended.

Diverse FMX

Queensland Tourism Industry Council update

up, our industry relies on the roll-out of impactful global marketing campaigns. In a saturated market, where virtually every country and city are competing for attention on the world stage, it is critical that Australia position itself as a go-to destination.

By Brett

As tourism operators across the nation rang in the new year, 2022 was capped off with an affirmation that the recovery of our visitor economy has been aided by domestic tourism. The enthusiastic demands of day-trippers and holidaymakers have kept hotel rooms occupied, restaurant kitchens open and guest experiences bustling over the past 12 months.

While a buoyant Australian market has kept our industry afloat, Queensland operators experienced varied levels

of success over the recent summer holiday period. Regions hugging the major cities did very well. Those destinations and experiences easily accessible by car were much sought-after getaways for many Queenslanders.

But the tourist hotspots that take a bit more dedication to reach, such as Tropical North Queensland, unfortunately saw high fuel prices and airline costs put a dampener on holiday success. As the rising cost of living appears to be catching up with the tourism sector, operators are beginning to feel the sting of tightening belts. With costs in front of mind, the peak Christmas and New Year period saw a rise in the popularity of budget holidays. While there has long been a market for lower-priced vacations and accommodation,

we are seeing a growing demand for inexpensive accommodation providers. The caravan park is no longer the domain of grey nomads, with increasing numbers of families taking advantage of the cost-eff ective facilities this summer.

While inter and intrastate travel have bolstered our tourism industry over the last few years, domestic tourism remains no substitute for the international market. The continuing success of the nation’s tourism industry hinges on the return of overseas travellers. A once booming sector of Queensland’s visitor economy, worth $6 billion annually, closed borders and travel restrictions have seen the value of international tourism shrink to $1 billion.

Now more than ever, as the world reopens and the appetite for international travel ramps

Leveraging off Australia’s status as a safe and vibrant holiday location is critical. And with several key events taking place across the country this year, such as WorldPride, the FIFA Women’s World Cup, and the Australian Tourism Exchange on the Gold Coast, there is much opportunity to att ract the world’s attention.

As Queensland’s peak industry body and tourism’s voice to government, a key priority for QTIC in 2023 will be securing funding for much-needed destination marketing. We will work hard in the new year to ensure that our sunshine state’s tourism industry is best placed to tackle rising cost of living pressures and to see the return of global visitors. Although 2023 already presents some unique challenges and uncertainties, I remain confident that our tourism industry will continue along its path of recovery and renewal.

Fraser, Chief Executive, Queensland Tourism Industry Council

The peak Christmas and New Year period saw

the popularity of budget holidays

Queensland kicks on with major events for 2023

By Grantlee Kieza, Industry Reporter

Brisbane will officially host the CommBank

Matildas during the group stage of the FIFA Women’s World Cup Australia as Queensland gears up for a range of massive tourism events in 2023.

As Queensland prepares for the Olympic Games next decade, eight matches of the FIFA Women’s World Cup will be played at the 52,000-seat Suncorp Stadium next year.

Tourism and Sport Minister Stirling Hinchliffe said the FIFA Women’s World Cup 2023 demonstrated Queensland’s major event credentials.

“The world’s biggest women’s sporting event is coming to Brisbane with a great line up of high-profile games in 2023,” Mr Hinchliffe said.

“FIFA’s decision to play eight Women’s World Cup matches in Brisbane is another opportunity to show the world Queensland’s major events capability.

“We know the FIFA Women’s World Cup will be a winner for Brisbane’s visitor economy,

attracting thousands of Australian and overseas football fans.”

Brisbane’s first match of the 64game international tournament is locked in for Suncorp Stadium on July 22, 2023.

Five Group Stage games will be played in Brisbane, plus a round-of-16 knock-out match, a quarter-final, and the third-

place play-off in FIFA’s showcase event on August 19. The final will take place at Sydney’s Accor Stadium on August 20.

The 2023 edition of the tournament will mark the first time that a Team Base Camp concept has been introduced for the FIFA Women’s World Cup.

A Team Base Camp is the

dedicated headquarters of a nation throughout the competition with a dedicated Team Base Camp Training Site paired with a partner hotel.

The Queensland Sport and Athletics Centre (QSAC) and Rydges South Bank Hotel Brisbane will become the CommBank Matildas’ official hosts as their training and accommodation base, following an extensive evaluation process by Football Australia’s National Teams Unit.

Mr Hinchliffe said: “The FIFA Women’s World Cup 2023 is a significant part of Queensland’s green and gold runway of elite international sport to the Brisbane 2032 Olympic and Paralympic Games.

“Having the Matildas based in Brisbane for the world’s biggest women’s festival of sport is a terrific win for Queensland football fans and Women’s World Cup legacy.

“With eight matches, and the Matildas confirming Brisbane as their official host during the tournament, the FIFA Women’s

Pedestrian bridge going to the Suncorp Stadium.

Credit: Alexander - stock.adobe.com

2022 International Friendly Australia Vs Sweden. Credit: FiledIMAGE - stock.adobe.com

World Cup 2023 is shaping up as a $30.5 million bonanza for the city’s world-class hospitality, accommodation and tourism experiences.”

Dr Jerry Schwartz, the Director of the Schwartz Family Company, which operates 14 hotels in cities including Sydney, Melbourne and Canberra, and regional centres such as the Hunter Valley, Blue Mountains and Gold Coast, said: “If 2022 is anything to go by, Australian hotels are going to be heavily reliant on major events to compensate for lower numbers of international visitors and corporate travellers.

“We saw the power of events in 2022, which created huge spikes in demand. In 2023, the FIFA Women’s World Cup is likely to be one of the most significant events for our industry and because it takes place over a month, during winter it will provide a major and extended boost for the industry. Even better, it will attract international visitors who otherwise wouldn’t have come here.”

Some of the other big events to draw thousands of visitors to Queensland in 2023 include:

• Magic Millions horse racing and sales (Gold Coast) Jan 10 to 16.

• Rockynats: ‘high-octane automotive awesomeness (Rockhampton) Apr 7 to 9.

• Outback Queensland Masters: Australia’s most remote and richest amateur golf series (Mount Isa)

June 17 to July 23.

• State of Origin Game 2, rugby league (Brisbane) June 21.

• FIFA Women’s World Cup (Brisbane) July 20 to Aug 20.

• Mount Isa Mines Rodeo (Mount Isa) Aug 10 to13.

• Royal Queensland Show (Brisbane) Aug 12 to 20.

• Toowoomba Carnival of Flowers (Toowoomba) Sep 1 to 30.

Queensland Tourism Industry Council CEO Brett Fraser said, 2023 was looking to be a great year for visitors and accommodation providers alike.

“After a challenging few years of border closures and restrictions, our tourism industry is seeing a resurgence in visitor activity and events,” Mr Fraser said.

“With the world reopening and Queensland playing host to exceptional events like the 2023 FIFA Women’s World Cup, the new year is set to be a busy one for the accommodation sector.

“The past year has shown our tourism industry that consumer demand for new experiences and events is high, with domestic visitor spending at record levels.

“With world-class festivals and events already filling our 2023 diaries, we look forward to seeing the accommodation sector reap the rewards as visitors open their wallets in Queensland.”

Tourism Tropical North Queensland Chief Executive Officer Mark Olsen said his region’s events calendar would start early in the New Year with Cairns Summer Sounds bringing six artists to Cairns in January and February.

The stellar line-up includes Jessica Mauboy (Feb 18), Eric Bibb (Feb 24), and Stella Donnelly (Mar 4).

“Our sporting events kick off in May with Crankworx Cairns, the world’s most watched mountain biking event, and Ironman AsiaPacific in June,” Mr Olsen said.

“Another highlight is the Cairns Indigenous Art Fair (CIAF) in July, bringing Indigenous artists from across Queensland to the city to showcase their work.

“Visitation peaks during events such as CIAF which brought more than 36,000 visitor nights to Cairns last year and a $7.5 million boost to the economy.”

Other major events in Far North

Queensland include the Great Barrier Reef Masters Games on May 25 to 28, the Cairns Airport Adventure Festival (Ironman) June 15 to 18, and the Savannah in the Round music festival at Mareeba on October 6 to 8.

Major events on the Sunshine Coast in 2023 include the week-long Noosa Festival of Surfing from March 5, and a concert by American legend Don McLean, best known for his song, American Pie, on April 2 at The Events Centre in Caloundra.

The Rabbitohs and Broncos match is expected to draw thousands of visitors to the Sunshine Coast Stadium on July 21.

The Noosa Alive festival from July 22 to 30 will combine more than 25 events celebrating 10 days of unique performing arts excitement.

The 2023 Sunshine Coast Expo at the Sunshine Coast Stadium on September 22 to 24 will be a showcase of the latest in outdoor adventure vehicles, including caravans, camper trailers, boats, and 4x4s, while the Golden Oldies World Netball Festival is planned as a week-long extravaganza at Maroochydore from October 22.

Meanwhile, the Gold Coast will host Australia’s premier tourism conference, the Australian Tourism Exchange (ATE) this year.

Mr Hinchliffe said the 43rd ATE would be at the Gold Coast Convention and Exhibition Centre from April 30 to May 4 2023.

“This event will support local jobs and contribute $9 million to the Gold Coast’s Economic Recovery Plan with potential longer-term economic benefits running into the billions.

“ATE brings together tourism operators and international travel buyers in the nation’s favourite holiday destination.

“Up to 1500 tourism professionals from Australia and the world will be on the Gold Coast for ATE, the main trade familiarisation event

for inbound overseas tourism.

“As we rebuild the State’s $6 billion-a-year international tourism industry, events like ATE on the Gold Coast are critical to bringing overseas visitors back to Queensland.”

The Gold Coast has gone through a significant transformation over the past few years with more than $1 billion in tourism investment in new attractions and experiences that visitors have never seen before and 3000 hotel rooms under way or completed. Dr Jerry Schwartz said what hotels really needed for their post-COVID recovery was support from state governments on a more local basis after three years of disruption.

“City hotels need a constant stream of festivals and events that provide reasons for visitors to return to these cities,” Dr Schwartz said.

“That’s why my hotels are involved in creating so many smaller seasonal events because we identify quieter periods and introduce festivals to boost interest in the destination in these off-peak times.

“For instance, we have the Canberra Craft Beer and Cider Festival in Canberra in March, the Hunter Valley Wine & Craft Beer Festival in June, and the newly introduced Gold Coast Craft Beer Festival in October. These are all shoulder periods, and if you give people an incentive to visit, they may stay for an extended period.

“Even at an individual hotel level, you can introduce initiatives to make the property more of a destination, families and couples are now looking for something special. That will be the secret ingredient for successful hotels in Australia in 2023, they’ve got to make themselves the main event.”

1500 tourism professionals from Australia and the world will be on the Gold Coast for ATE

© Adobe Stock, stock.adobe.com

ResortBrokers Annual Christmas Bash

ResortBrokers turned South Brisbane’s Lina Roof-top into Studio 54 for its annual Christmas bash.

Over 70 staff and guests raised the roof and tore up the dancefloor on a breezy evening in mid-December and into the wee hours of the next day. Pants were flared, chains dangled, and hairs feathered. Blame it on the boogie!

What about Women In Management?

The first luncheon event of 2023 will be held in Brisbane on February 24, 12.00 to 3.30 pm, Moda, The Barricks, $65.00Hosted by Altogether Group

Sunshine Coast

Luncheon

Venue to be advised, Thursday March 16 at 12.00 noon, this event will be hosted by Resly.

Luncheons 2023

Brisbane: Friday Feb 10

Brisbane: Fri May 12

Brisbane: Fri Nov 10

Gold Coast: Wed March 8

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OUTSTANDING HIGH NET PROFIT HOLIDAY COMPLEX

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STUNNING PERMANENT MANAGEMENT RIGHTS IN BENOWA

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JOANNE APARTMENTS MANAGEMENT RIGHTS FOR SALE

Contact: Chris Cameron, 0477 271 875 chris@o markethotels.com.au OFF

OFF THE PLAN DEVELOPMENT - 45 APARTMENTS OVER 5 LEVELS

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Gold Coast Border Drive North Ross Thorley Currumbin Waters RB

Brisbane

37 on Norman Jimmy Fahham Chermside RB

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Sunshine Coast / Wide Bay / Fraser Coast

Affina, Aquiv, Essen & Lux at Brightwater Colin Gray Mountain Creek MRS First Light Mooloolaba Chris & Olivia Taylor Mooloolaba MRS

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Central Queensland

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Northern Queensland

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MOTELS & OTHER

Note: Agent/Broker involved in the sale is listed last.

MR Sales

Broadbeach QLD

ID: 9076

Exclusive: Central Broadbeach Resort

Price: $1,915,000

Nett: $217,377

Contact Phil Trimble 0418 478 966 phil@mrsales.com.au

Elanora QLD

ID: 8244

Exclusive: In Demand Permanent

Price: $1,270,000

Nett: $118,780

Contact Lyn Pearsall 0425 168 244 lynpearsall@mrsales.com.au

Airlie Beach QLD

Price: $3,600,000

Nett: $650,000

Contact Antonio Curulli 0488 030 853 tony@mrsales.com.au

ID: 8607

Manly West QLD

ID: 8328

Boutique Bayside Caretaking Business

Price: $893,500

Nett: $63,030

Contact Peter Ross 0447 710 891 peter@mrsales.com.au

Charleville motel is flying high

By Grantlee Kieza, Industry Reporter

The western Queensland town of Charleville was once a major stopover in the aerial link from Australia to England. The first ever Qantas service in 1922 was a two-day flight linking Charleville with Cloncurry, and the town became an important base when international routes to and from Australia opened a decade later.

A century on and Charleville remains an important transport hub with a lucrative accommodation market.

Jim Beard, from Premier Business Sales, is marketing Charleville’s 20room Rocks Motel which is turning over close to $900,000 a year, with a net return of more than $350,000.

The lease is on off er for $995,000.

“It’s a great property that is trading its head off,” Mr Beard said. “It’s just seven years old and in great condition with terrific occupancy levels.

“The Rocks is a 4-star motel so it gets a lot of government clientele with terrific tariff s – a lot of doctors, nurses and other government employees stay there on a regular basis.

“The property also has a good restaurant that has already been leased. It’s in a great location and close to the many att ractions in the town which has a strong economy.

“It’s a great property to put under management.”

Mr Beard said the motel was built with exceptional inclusions and fi t outs in all of the rooms.

The manager’s residence has four large bedrooms, separate to the motel.

Charleville is 750km west of Brisbane, and the terminus for the Warrego Highway.

The Mitchell Highway also connects the town with places such as Cunnamulla, Bourke, Dubbo and Sydney. And there are regular rail services.

The stagecoach company Cobb & Co established a coach building business in Charleville in 1886 but the railway arrived in 1888 and soon made the coaches relics of another age.

A half century later the Charleville airport was playing host to Australia-London flights.

The Charleville Historic House Museum preserves much of the town’s past but there are futuristic att ractions as well. Powerful telescopes give visitors to Charleville’s Cosmos Centre and Observatory stunning views of the Milky Way and other wonders of the outback night sky.

The Charleville Bilby Experience is a must-see att raction that highlights The Save the Bilby Fund which is preserving these extraordinary and endangered nocturnal animals.

Charleville has bred more than 50 Bilby babies in the last couple of years, helping build up the bilby populations across Australia to prevent extinction.

At Charleville’s WWII Secret Base visitors can discover why 3500 United States Army Air Force personnel were stationed there in the early 1940s. Visitors learn about aviation history, wartime romances, and top secret missions.

Charleville is also a base for Travel West Outback Tours, which specialises in nature-based experiences and Australian history, especially the travels of the ill-fated explorers Burke and Wills.

“Charleville is at the centre of so many transport routes,” Mr Beard said, “and quality accommodation is in big demand.

“That’s what makes The Rocks Motel so inviting and such a good business.”

For more information please contact Jim Beard, Premier Business Sales on 0429 444 066

Managers take occupancy from 56% to 78% in their first year

By Grantlee Kieza, Industry Reporter

Michael and Linda Pavich took over the beautiful Burleigh Palms apartments in March 2019 and immediately brought a new lustre to their jewel on the Gold Coast. Michael spoke to Grantlee Kieza.

You made a huge difference at your property in a very short time?

When we bought the property four years ago it was performing at 56 percent occupancy, and we’ve been running it at over 90 percent occupancy for nearly a year now.

That is incredible!

By the end of the first year, we went from 56 percent to 78 percent occupancy and the following year we reached 90 percent. When COVID hit, we dropped to 70 percent, but we’re now back up to the high end of 90 percent again.

I’m sure a lot of people in the business would have liked 70 percent occupancy during COVID. That’s right. We didn’t even lose 30 percent of our business which was a good result during those times. We changed the business model slightly, and made some of the apartments semi-permanent, threemonths by three-months. That got us through that three or four month hump where everything stopped.

info@kudosfurniture.com.au

Linda & Michael Pavich

Burleigh Palms Holiday Apartments

In Queensland, we were lucky with the COVID response. The fact that our business still traded well during this time proved to us that the decision to buy in Burleigh Heads was the right one. Brisbane kept us alive during COVID. We used our guest database, to attract the local ‘drive market’. Even with border closures, our visitors from Brisbane kept us going. Our resort has 30 ground, first and second floor apartments. We have 20 apartments in the letting pool and the rest are owners.

What’s your background in management rights and how did you come to take over Burleigh Palms?

My wife Linda spotted it. Initially we had been looking at apartments to renovate on the Burleigh Esplanade. We had a big two-acre property at Currumbin Waters on the hill, but when the family had all grown, we decided it was time for a change. It was all about location for us. I looked at it from the point of view that if anything went wrong would people still

want to come and stay here. I decided yes because Burleigh has such a strong following and it’s the perfect place to create lots of family memories.

We’ve been on the coast for over 22 years and Burleigh has always been a hot spot for locals. It has a great precinct but hasn’t been over-developed, and it has real culture with a unique feel, like Byron Bay.

Mike Phipps organised your finance?

Yes. Mike was instrumental in securing the finance for us and structuring it very well. Mike and his team were great to work

with and did a fantastic job of financing the whole deal for us. What work were you involved in before moving into Burleigh Palms?

I was a Google advertising consultant for 12 years, and in the information technology industry for 35 years. I was a senior vice president of a very large American corporate hotel and resort company. We started that in 1999 and when I left after 10 years, I saw an opportunity consulting Google Ads for companies. Linda was a researcher and research analyst. P48

for Burleigh Palms Holiday Apartments.

All Images courtesy of Burleigh Palms Holiday Apartments

P47

Linda is very strategic and I am very tactical, so we have a great partnership.

What was it about Burleigh Palms that you really liked?

We simply saw a property that we could improve. Our broker, Todd Warner from Resort Brokers, said this one had just come on the market, and it was a great location.

It was an ideal property for us. We saw that the bones were good here.

It was a little run down, it needed good management and

some repairs. So, we pushed forward and with the help of the committee we breathed new life back into the pretty lady.

We get 10 out of 10 for location when we get reviews. Our staff rating is always 10 out of 10 too, and that’s great because our customer service is always paramount.

What changes did you make to the business to reach over 90 percent occupancy?

Advertising made a big difference. My advertising experience with Google Ads certainly helped. We also employ a resort management

consultant, who has been in the industry for 20 years, their depth of knowledge and expertise helps us run the business so well.

When we changed our online presence and made our website more user-friendly with more information, it just took off. We got our pricing right, and the advertising and promotions right. It made a big difference because marketing had been pretty much hit and miss for the previous owners. We put ourselves out in front of people with promotions and within a year we went from a 7.8 to a 8.7 rating on Booking.com.

Guest’s love that the resort has such a great ‘vibe’, we call it ‘a feel of Bali in Burleigh’. We don’t have the ocean view, but we have that pool and garden villa feel you have in tropical Bali.

can only really do that once you’ve got some visibility.

People say management rights is a wonderful business model?

If you can get your letting pool pumping and get your occupancy up, it is a fantastic business.

Yes. You go through pain for about a year until you finally figure it out, but once you get the presence and the visibility in the search engine right on Booking.com you are able to build in their commission to your rates. Once you get it right you can be very heavy with your promotions, but you

Finding good cleaners has been our biggest struggle. We lost a large cleaning company, simply because they couldn’t get staff. When COVID first hit they lost almost all their clients and when the borders closed they couldn’t find staff because there were no backpackers. But when you find good cleaners, generally you can take care of the rest. Good cleaners do help ease the load enormously, but another struggle can be answering to multiple owners. You have your committee, you have your owners, you’ve got your guests, and then of course you have legislation and body corporate to answer to. You have these four different groups that must be appeased as well as the Office of Fair Trading for trust accounting and licencing.

That’s why it’s important to join ARAMA to be educated in the business and receive an abundance of real word experience from the group.

Some managers are critical of OTAs, but you’ve learned to embrace them?

What advice would you give someone coming into the industry?

Make sure you have a strong proactive committee, the members are on your side and you’re all working together.

Ask if there are any disputes with management and make sure there’s enough in the sinking fund to make repairs.

Analyse the sinking fund for 10-to-15-year forecasts, make sure there are significant funds and match it with what is actually happening at the property - look at the windows, look at the drainage - all of those things. It really is about making

sure that the business and the property is sound.

We had to push forward and get some repairs done that had been neglected for a long time, like the drains and electrical wiring. Thankfully, the committee was on our side, and we pushed hard to get these things fixed.

Finally, and most importantly, make sure the owners know you are working with them. Once the occupancy levels go up, you can start to push the rates up. When the owners see a real boost to their income, it is the perfect time to talk to them about upgrading all appliances, putting furniture packs in, and improving the beds, bathrooms, and kitchens.

Alex McCowan 0417 405 115 or Alison Sun 0416 181 285 admin@accomvaluers.com.au

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