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ARTICLE · 19 FEBRUARY 2024

Changes To The Strata Building Bond And Method Of Calculation

Vincent Young
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The Strata Building Bond & Inspections Scheme (SBBIS) was introduced in 2018 to provide some protection to owners' corporations in relation to defects. On 21 November 2023...

AustraliaCorporate/Commercial Law
Vincent Young
Vincent Young

The Building Legislation Amendment Act 2023 (NSW)

The Strata Building Bond & Inspections Scheme (SBBIS) was introduced in 2018 to provide some protection to owners' corporations in relation to defects. On 21 November 2023, the NSW Parliament passed the Building Legislation Amendment Act 2023 (NSW) (BLA) which makes 2 significant changes to the SBBIS. However, it can be difficult to calculate the bond value arising out of the contract price for a mixed use building. This article discusses the 2 legislative changes and the calculation of bonds for mixed use buildings.

Recap on what is a strata building bond

A strata building bond is a security paid by developers of new 4-storeys and higher residential strata buildings. Before applying for an occupation certificate, the developer must lodge the building bond with the NSW Fair Trading Secretary (Secretary) for approval.

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