Tenant unsuccessfully sues landlord for flood damage
The tenant occupied the rental premises in a strata plan apartment block. On June 2 2011, the bathroom flooded and the water level rose up through the floor and shower waste. The tenant telephoned the landlord’s managing agent and was authorised to contact a plumber to deal with the emergency. The plumber arrived an hour later and made temporary repairs to stop the flooding, he returned the next morning and made some more repairs. At this stage the tenant believed that all the repairs were finished.
A week or so later the tenant went away for the weekend and was contacted by the managing agent who had been advised that water was leaking from the rental premises. The agent did not have a key and the tenant was on the way back from Queensland. When the tenant finally arrived home it was to a flooded apartment with water and sewerage throughout the premises. The furniture, clothing and other goods were ruined and the tenant had to find temporary accommodation immediately. At such short notice all that was available for the night was a hotel.
The tenant did not have contents insurance but the Owners Corporation agreed to pay $9000, the equivalent value of the damaged possessions. However, the tenant was still out of pocket for the cost of the hotel and so made a claim against the landlord for accommodation costs, distress and inconvenience caused by the events.
In order to establish the claim the tenant had to prove that the landlord had breached the residential tenancy agreement, in particular the obligation of the landlord to provide and maintain the premises in a reasonable state of repair. The tenant must also show that the landlord knew of the defect and failed to carry out the repairs in a timely manner. This was not the case, the tenant had contacted the emergency plumber immediately and had believed that the complaint had been rectified. It was found that the flooding which had caused the damage was actually caused by a defect in the common property drainage system and both the landlord and the tenant were under the assumption that the original defect had been fixed.
It was decided by members of the tribunal that the landlord was unaware of the underlying defect and could therefore not be in breach of the obligation to maintain the premises in a state of good repair. The tenant was therefore unable to claim for loss of accommodation costs, distress and inconvenience.
Understanding the GST component of property transactions
The Australian Taxation Office (ATO) has made it easier for property owner’s to understand the GST implications of property-related transactions. Their new internet-based GST property tool is designed to explain tax matters in a clear and concise way.
"The GST property tool helps people dealing with property to understand their taxation obligations and entitlements," Acting Tax Commissioner Jennie Granger said.
"This tool complements the recently created ATO property webpage. Together these initiatives are a great starting point for anyone who wants tax matters to be explained properly and simply."
It is easy to use and takes you through a series of interactive questions about: buying; selling; transferring; leasing or developing property; claiming GST credits; margin scheme eligibility; and GST-free supplies of real property.
"The GST property tool covers an extensive range of topics to give you the guidance and advice you are after.
"Topics include residential premises, commercial premises and vacant land. The tool also carries information on claiming GST credits, margin scheme eligibility, and GST-free supplies of real property.
"The interactive question and answer section allows you to model information for your own property circumstances.
"It takes about five minutes to complete and you will be provided with a summary of your situation and how GST applies to your property transaction.
"The internet tool is free, confidential and you remain anonymous when using it," Ms Granger said.
It is a great way to learn and teach yourself about the issues surrounding GST on property sales. For further information visit the ATO website at www.ato.gov.au
Government inquiry into strata insurance
An inquiry has been launched into residential strata insurance following the release of the Gillard Government’s new Terms of Reference.
The inquiry is headed by the House of Representatives Standing Committee on Social Policy and Legal Affairs. Assistant Treasurer Bill Shorten said "As I've looked more closely at insurance issues in Queensland, I've become aware the affordability of residential strata insurance has become an increasingly serious issue now that many people are renewing their strata title insurance policies."
"In particular I've been concerned about the news coming out of cities and towns like Cairns, Townsville, Port Douglas and others in the region, where anecdotal evidence suggests residential strata insurance is becoming an increasing issue."
The new terms of reference will be included in the Inquiry into the insurance industry’s response to the extreme weather conditions of 2010-2011.
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