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Owners Corporation update: VCAT fees set to rise

Feb 19, 2013

Get your claims in before 1 March 2013 to avoid the hike.

Fees in VCAT are set to skyrocket following the proposed Victorian Civil and Administrative Tribunal (Fees) Regulations 2013 (Proposed Regulations) which are likely to take effect in the coming months.

Owners corporations and their members will be hit particularly hard with fees set to rise from three to thirty seven times current rates over a three year period for those matters brought by or against them pursuant to the Owners Corporation Act 2006 (the Act), the Australian Consumer Law and the Fair Trading Act 2012.

Currently, a fee of $38.80 is payable where an application under the Act is made to VCAT and the amount sought is less than $10,000. Under the Proposed Regulations, this fee is set to increase five-fold to $116.50 this year and peak at $160.40 by 2015. Contrast this with those claims where the amount sought is $100,000 and $1,000,000. Currently, the VCAT fee is $38.80. Under the Proposed Regulations, this fee will increase to $731.80 in 2013 and peak at $1,007.40 by 2015, more than 25 times the current fee!

Similar fee increases are proposed for claims brought for or against owners corporations or their members under the Australian Consumer Law and Fair Trading Act 2012 with fees set to increase five to ten time times the current rates.

So if you are considering bringing a claim, be quick! The current fee schedule is due to sunset on 1 March 2013 with the proposed fee structure likely to take effect shortly thereafter.

More information

For more information, please contact Anton Block, Principal Lawyer and Head of Owners Corporation, on (03) 8600 8833 or ablock@kcllaw.com.au.

Note: This update is a guide only and is not intended to constitute legal advice.