[Ken Bakon]

Learned Friends,
In light of the amendments to Reg 125AA regarding the charging of Stormwater for business stratas, how are you charging for strata lots where some of the lots are residential and others business. For example, 3 lots in a strata, land area 550m2, unit entitlement of 25% for each of the 2 business lot and 50% for the residential lot.
The residential max will be $12.50, but what about the 2 business lots?
In this case I can’t see the link between 125AA(1)(d)(ii) and 125AA(1)(c)
Advice welcomed>

Ken

[Robert Hay]

Hi Ken

Wouldnt you treat the parent as a business to allow you to calc for the two business strata’s.

So 550m2 = $50.00 stormwater business charge if the parent parcel was business.

Then $50.00 x 25% = $12.50 for each business unit.

Reasoning is 125 D(ii) says if if were subject to part 125C so in other words if it was categorised as Business.

Rob

[John Towers]

Ken,

I take it to mean that you have the option to do something similar to what Rob says or charge $5 each. I guess it depends upon your Councils policy regarding SWMC for business properties.

We are introducing a SWMC this year & as usual taking the ‘soft’ option & charging $25 & $5 for business.

I don’t see the reasoning behind the difference between the two charging regimes but obviously someone with greater intelligence than me/us does.

From somewhere in my distant memory I recall that MDAF’s were ignored originally cause they were square pegs in round holes, so OLG said for the Council to choose the ‘preferred’ category & use that for the whole property.

JT

[Tracey Walker]

Ken,

Our policy states that we use the predominate percentage for Stormwater Charge, whether that is correct I am unsure I have yet to look into this.

Tracey

[Andrew Butcher]

Hi Ken

Following on from our conversations and having analysed the Regulation we are going to do the following:
Determine the SWM fee for the torrens title land (or DP) then apply the result to each business strata lot based on their unit entitlement.
If the amount calculated is less than $5 a minimum of $5 will apply (only to business strata units).
For mixed developments we intend to apply the unit entitlement calculation (above) and the residential part will be fixed at $10 (we don’t charge the maximum $12.50).

Hope this helps.

Regards, Andrew

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