Terrorism Insurance Amendment (Cyclone and Related Flood Damage Reinsurance Pool) Regulations 2022 (F2022L00510)

Schedule 1   Amendments

Terrorism Insurance Regulations 2003

11   After regulation 4

Insert:

4A Definitions of strata or community title development and related terms

(1) For the purposes of the definition of strata or community title development in section 3 of the Act, a strata or community title development is an arrangement covered by subregulation (2), (3) or (4).

(2) This subregulation covers an arrangement:

(a) under which:

(i) the title (whether freehold or leasehold) to a portion of land is subdivided into separate freehold or leasehold titles relating to smaller portions of land within the first-mentioned portion; and

(ii) property that is common between the owners or occupiers of the smaller portions is owned or managed by a single body corporate (however described); and

Example: An "owners corporation".

(b) that exists under a law, of the State or Territory in which the land is located, relating to "strata titles", "community titles", "unit titles", "cluster titles" or something referred to by another term reflecting the features referred to in paragraph (a).

(3) This subregulation covers an arrangement under which:

(a) a body corporate owns an interest (whether freehold or leasehold) in land; and

(b) under the constitution of the body corporate, a holder of shares in the body has, or may be granted, a right to occupy or use some or all of the land, whether the right is by way of a lease or licence or otherwise.

Note: This kind of arrangement is commonly referred to as "company title", and the body corporate is typically a company registered under the Corporations Act 2001.

(4) This subregulation covers an arrangement if:

(a) under the arrangement, an interest (whether freehold or leasehold) in land is held on trust; and

(b) under the terms of the trust, a holder of an interest in the trust has, or may be granted, a right to occupy or use part of the land, whether the right is by way of a lease or licence or otherwise; and

(c) the trustee of the trust is a body corporate; and

(d) there are at least 2 distinct parts of the land for which paragraph (b) is satisfied.

(5) For the purposes of the definition of body corporate in section 3 of the Act, the body corporate for a strata or community title development is the body corporate referred to subregulation (2), (3) or (4), as the case requires.

(6) For the purposes of the definition of unit in section 3 of the Act, a unit in a strata or community title development consists of:

(a) one of the smaller portions of land referred to in subparagraph (2)(a)(i) of this regulation; or

(b) so much of the land referred to in paragraph (3)(a) of this regulation as may be occupied or used by the holder of particular shares in the body corporate; or

(c) so much of the land referred to in paragraph (4)(a) of this regulation as may be occupied or used by the holder of a particular interest in the trust;

as the case requires.