Mandatory Disclosure

The Building Energy Efficiency Disclosure Act 2010 (Cth) (the Act) commenced on 1 July 2010. Commercial property owners and managers must now prepare for new disclosure obligations.

The Act is implemented through the Commercial Building Disclosure (CBD) program, which requires owners and lessors of affected commercial premises to obtain and register a Building Energy Efficiency Certificate (BEEC) before initiating any sales or leases of a building or tenancy. Disclosure must be made in all advertising material and made available to all potential buyers, tenants and sub-tenants when requested.

The Act requires disclosure from:
• building owners who sell or lease an office with a Net Lettable Area (NLA) of 2,000 sqm or greater;
• building owners who sell a whole building with an NLA of 2,000 sqm or greater;
• tenants who sublease a space with a NLA of 2,000 sqm or greater; and
• building owners who sell an office area less than 2,000 sqm, though part of building with a NLA 2,000 sqm or greater.

During the first 12 months, transitional arrangements are in place which will mean only a NABERS rating will be required. From late 2011 full components of a BEEC will be required.

The requirements of a BEEC will include:

• A NABERS energy rating base building;
• Tenant lighting details; and
• Energy efficiency guidance for the building.

The Act prescribes exceptions and exemptions from the requirements of the CBD program. Initially, disclosure obligations do not apply in the case of:
• newly constructed office buildings where the certificate of occupancy is less than 2 years old;
• strata titled buildings; and
• short term leases of 12 months or less.

The Act provides for several circumstances of exemption, an application for an exemption from a CBD obligation can be made in writing (for a fee) to the Secretary of the Department of Climate Change and Energy Efficiency.

To learn more about your exposure to CBD, please call Green Pass and speak with our program specialist.

03 9428 9126
info@greenpass.com.au