[Michael Cherry]

After some feedback on Council policies/practices re using S548A (Aggregation of values of certain parcels subject to rates containing base/minimum amounts).

Does your Council allow aggregation of habitable units with carspaces and/or storage lots?

How many carspaces or storage lots may be aggregated?

Must the habitable unit be located within the same strata plan as the carspace/storage lot?

Thanks – appreciate your feedback.

Mick

[Amit Anand]

Hi Mick, City of Sydney allows aggregation of Car Spaces and Storge lots for Residential and Business Units based on certain conditions. Please click on the following link for City of Sydney website which provides more details related to aggregation of car spaces and storages.

http://www.cityofsydney.nsw.gov.au/live/residents/rates/rate-categories-and-status-checks

Hope it helps.

Amit

[Matthew Saunders]

Hi Michael,

Penrith Council has a minimum rate structure and we have one main strata complex where we use aggregation of strata lots. It is a retirement village where the carspaces are separate lots in the strata plan. For that complex the owners can choose whether they want or need a carspace. If a person wants to sell their unit and they own a carspace, they can either sell it to a new owner if the new owner wants it, or offer it to another owner that may want a carspace. This means we are always moving around unit entitlements for the units to aggregate the units with their carspaces, depending on which unit is associated to which carspace.

We are now getting numerous multi-storey apartment development where the trend is to have some storage spaces and carspaces as separate lots in the strata scheme, so I am predicting that this will become a new headache for us. These apartments are popping up near the railway where parking is tight, so we have no way of knowing if the carspaces are being used by the owner in conjunction with their unit or separately leased out by the owner.

The Revenue Raising Manual says that if a ratepayer approaches the council and asks for aggregation, it would be difficult for the council not to apply this provision. I take this as meaning if they ask for it they get it.

The Act says for two or more parcels of land so you can aggregate a unit/carspace and storage space if you choose (but not two habitable units).

I can’t see where it says they have to be in the same strata plan, but I think they should be adjacent to the habitable dwelling. For example an owner in a strata complex might buy a car-space in the next door strata complex.

Kind regards,

Matthew.

[Andrew Butcher]

Hi Mick

We recently obtained legal advice on a number of key points primarily this was regarding whether a car parking space be categorized residential. The answer – Yes if used in conjunction with a residential apartment.
We also discussed with our solicitors the terms of applying aggregation fairly and ‘could cause hardship’ as required by the act. The advice – Council needs a clear policy on what it deems to be fair and what could cause hardship. We have a policy that allows aggregation of one suite (i.e. residential or business) with one car parking space and one storage unit.

We did this as at a minimum a residential owner would conceivably require one of each anything above that was a commercial decision based on affordability.

I hope this is helpful.

Regards,

Andrew

[Ken Bakon]

Mick,
Our new Canterbury-Bankstown policy states:
• Council will, in accordance with Sections 548A and 531B of the Act allow the aggregation of the rateable values of separately titled car and/or storage lots to enable a single rate to be levied. Council will aggregate only where:
 >the lots are used in conjunction with the unit, by the occupier of the unit;
 >the ownership of each lot noted on the certificate of title is exactly the same for each;
 >all lots are within the same strata plan, or strata scheme, or the strata plan notes that the lots are used in conjunction with; and
 >the lots are not leased out separately.
We have applicants submit a statutory declaration verifying they meet the above conditions.

Ken

[James Bentley]

Hi Mick,
I agree with Andrew. Aggregation isn’t exactly a burning issue out here, but the references to unfair application and hardship in s548A(1) beg the question of what is reasonable. Many units are sold with parking and storage included. Is it reasonable for an owner to buy extra parking and storage? I think so, but some type of arbitrary limit has to apply to distinguish common circumstances from exceptional ones. That’s why personally I believe that one separate car space and/or storage lot is reasonable. The question of whether all lots must be in the same strata plan is an interesting one. Not all plans nowadays are discrete, identifiable buildings with clear separation. In some cases they can be interwoven and indistinguishable in physical terms. Not allowing aggregation may be illogical in such circumstances, but that’s an issue for greater minds than mine to ponder.
Cheers,
James

[nucleo]

Hi
Council has a few stratas where they developer created separate car spaces and storage untis that have their own unit entitlements. I have had a request from a developer to have some of the units aggregated. In my opinion I think this request should be rejected. If you can give me some advise I’d appreciate it.
thanks

[John Norris]

Hi Adele,
If Council doesn’t have an aggregation policy, you can only assess the application by following Section 548A (1).

When I was at North Sydney, the policy was for a maximum of one residential or business unit to be aggregated with one car space and one storage cage/room. Note that when you assess the application, it must qualify using both tests in s548A (1) (a) & (b). How you assess is a matter for Council but when discussing with your Finance Manager, if a developer is prepared to pay for multiple lots in the plan it’s hard to believe that separate rate assessments would cause them any hardship. There are some good discussions on this matter in the historic documents as well.

Hope this helps.

[nucleo]

Hi John
Thanks for your advise. Some very interesting reading in the archives!!!!! If you have a policy related to aggregation of strata units I’d be very interested in reading it.
Thanks

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