Finance advocates warn strata companies are leaving Canberrans with unpayable debts

ABC NEWS (Australia)

Financial counselling services warn strata companies seeking money from ACT unit owners are leaving a growing number of Canberrans with unpayable debts. The figures form part of submissions to an ongoing inquiry into strata management in the act which is considering the merits of appointing a commissioner to oversee the industry.

Transcript

00:00Strata issues aren't unique to Canberra, but new figures show they're becoming an alarming problem.

00:07In the last financial year, half of all bankruptcies in the ACT were initiated by strata companies

00:14chasing unpaid money from unit owners, while the national figure is just 12%.

00:19This is just leading to homelessness, mental health issues.

00:24An enquiry into the management of strata properties in the ACT today heard for many

00:29the issues begin when they can't afford increases to their quarterly payments.

00:34Often people go to their strata and ask to pay it off in instalments, and often the answer back is no.

00:42Once they fail to find money to pay their levies, the next thing they can be taken to court

00:51and they can end up losing their houses.

00:54The community organisation Care Financial Consulting argues the sector needs to follow other industries

01:00and offer a mandatory right to request payment plans.

01:03They also want a strata commissioner to be able to rule on disputes.

01:07If the strata management refuses a payment plan, we also want to see an external dispute resolution mechanism

01:17where people can go and make hardship requests.

01:22The enquiry also heard from the Electric Vehicle Association on issues faced by the growing number

01:27of Canberrans living in units who have an EV.

01:30We've heard of some examples of people being told, no, no, you're not allowed to use that powerpoint

01:35even though it's in your own allocated parking space.

01:38They're calling for the ACT to follow parts of Europe and North America in legislating a right to charge

01:44to pave the way for easier transition for apartment residents to zero emissions vehicles.

01:49The ATC is based on the amount of people being told by the even though the perpetrator is a bit

01:52of need to use that powerpoint.

01:57That's definitely the right to keep in mind.

01:59The ATC is based on the previous model of the UNRWA and the U.S.

02:02The new model of the UNRWA is a unique model that is all deployed in the US and the U.S.

Category

Transcript

Recommended