Body corporate and strata title regulation itself is a state responsibility although this issue has attracated no interest during the state election camaign.There are nine recommendations from the committee with the first calling for stamp duty relief from the Queensland Guvmint:
Strata insurance is compulsory under state legislation for full replacement value. With insurance premiums increasing by hundreds of percent in most cases it could be perceived that the Queensland Guvmint has been on a nice little earner out of North Qld so perhaps a moratorium is not unreasonable? The stamp duty rate is 7.5%.The Committee recommends that the Australian Government liaise with the Queensland government and urge them to implement a 12 month moratorium on Stamp Duty charged on strata title insurance for properties north of the tropic of Capricorn. This moratorium should be implemented for the 2012-13 financial year, and extended for as long as strata insurance premiums continue to rise at a higher rate than the average for general insurance.
On the eve of an election I am not aware that there has been any response to this proposal from any party or candidate. I did email both my local major party candidates Kirsten Lesina (ALP) and the King Parrot (LNP) yesterday with no response from either. Perhaps with the election outcome all but determined they have both stopped caring already?
Beyond that recommendation to provide some short term relief the remainder of the recommendations essentially call for further investigation and review, including from APRA and the ACCC, to be completed by October. This culminates in the final recommendation for a plan of reform:
The Committee recommends that the Australian Government outline the plan of reforms it will undertake, in conjunction with relevant State and Territory governments where necessary, in order to establish a competitive and affordable insurance market for residential strata title insurance. The plan should be announced before 1 December 2012, be informed by the reviews and investigations recommended in this report, and have a particular focus on the north Queensland area.Mejia reports: Townsville Bulletin; Cairns Post