Gold Coast coronavirus divide: Surfers Paradise body corporate levies waived

Unemployed unit owners are paying thousands of dollars in body corporate levies for maintenance of closed swimming pools while neighbouring Gold Coast towers begin waiving fees.

OUT of work unit owners are having to pay thousands of dollars in body corporate levies at city towers for closed swimming pools and gyms they cannot use.

Coronavirus is causing the great divide between tens of thousands of unit owners on the Glitter Strip as some wealthy body corporate committees abandon quarterly levy payments for the first time.

The Oracle building in Broadbeach. Picture: Luke Mortimer.

Unit owners at The Oracle towers, where the first case of the virus was discovered in January, are furious about continuing to pay up to $14,000 in annual fees despite all shared areas including pools and gyms closing.

But payments have been waived at a luxury tower in Surfers Paradise this month after the body corporate committee held emergency meetings as early as February.

“A large number of committees are rescinding the next set of levies. At their next general meeting they will ratify to not have levies. The savings to owners can range from $500 a quarter to $2000,” a body corporate source said.

Body corporate law reform committee leader George Friend said levies had been waived at his building in Surfers Paradise because the committee had a strong history of sound financial management.

“There are some offering various levels of relief,” he said. “If you are carrying a surplus (in your budget) you can look at reducing that. Because we had a substantial sinking fund we were able to do it. You can offer discounts.”

Unit owners in Surfers Paradise divided about body corporate levies. Picture: Jerad Williams.

Some body corporate management companies are not charging fees as they offer up levy payment options for stressed clients.

“They all will have an administration fund which will run bills for a year,” a leading body corporate services manager said. “And they have a sinking fund for future improvements. Some of them are decreasing the amount of money in the sinking fund.”

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George Friend — these levies are causing angst. Picture: Jerad Williams.

All building owners have been warned that essential services and related expenses “cannot be turned off”.

“The electricity, the lifts, your insurance policy, fire equipment maintenance, roller doors, swimming pool maintenance need to continue,” owners were told.

After the Coast’s first case of coronavirus was discovered in January at the Oracle Towers,

all shared areas including pools and gyms have been closed.

But some residents say the body corporate has failed to drop fees, making them pay for perks they cannot use.

“All of the facilities have been shut down indefinitely, yet we are still expected to pay the fees each quarter,” a frustrated resident told the Bulletin. “That is $3100 for nothing.

“We have no say in the matter. All we need is for the committee to organise a meeting to address it but nothing is being done.”

A 44-year-old Chinese national visiting from Wuhan with his family was the city’s first virus case in late January. He was taken from his Oracle accommodation to Gold Coast University Hospital.

A Chinese national visiting from Wuhan was taken from his Oracle accommodation to Gold Coast University Hospital.

In responses to residents, Ernst Management, responsible for body corporate correspondence, told residents they were required to keep paying to cover insurance, utilities and contractors.

The body corporate was considering payment plans for those with financial difficulty and will release its minutes to residents in coming days, a spokeswoman for the committee said.

An extraordinary general meeting has not been called.

Chris Irons, a former body corporate commissioner and now Hynes Legal strata adviser, said the rift at Oracle tower was not uncommon.

“Body corporate levies are a huge deal for many people right now,” Mr Irons said, adding body corporate committees had to have a general meeting and reset budgets before discounts could be made.

Mr Irons advised committees to have the budget examined by an accountant.

“Don’t just guesstimate a figure,” he said. “Changes to the budget are also required to be backed up by a vote.”