The Building Energy Efficiency Disclosure Amendment Act 2015 (Amendment Act) commences on 1 July 2015, and seeks to reduce regulatory burden on building owners and landlords. The changes will affect building owners and landlords wishing to sell or let office space exceeding 2,000 square metres.
The Amendment Act creates changes to the Building Energy Efficiency Disclosure Act 2010 (BEED Act) which requires building owners or landlords wishing to sell or let a building, or an area of a building, where:
- the net lettable area of the building exceeds 2,000 square metres; and
- at least 75% of that net lettable area is used as office space,
to register a current building energy efficiency certificate (Certificate), and advertise the energy efficiency rating of the building (Disclosure Obligations).
Main changes created by the Amendment Act:
- Wholly-owned subsidiaries: Transactions between wholly-owned subsidiaries will be excluded from the Disclosure Obligations;
- New building owners: If a valid exemption from Disclosure Obligations already exists for a building, a new building owner or landlord will no longer be required to reapply or pay the application fee for a fresh exemption;
- Unsolicited offers for sale/lease: There will be an exemption for building owners or landlords who receive unsolicited offers for the sale or lease of their office space. The BEED Act as it currently stands potentially triggers Disclosure Obligations as soon as an unsolicited offer to enter negotiation is made; and
- Delayed certificate start date: A building owner or landlord can now apply for a Certificate with a 'start date' later than the 'issue date' so that the new Certificate can be issued in advance of the expiry of the current Certificate.
Building Energy Efficiency Certificate:
Under the Amendment Act, a Certificate will need to set out:
- an energy efficiency rating for the building or area of the building; and
- a lighting energy efficiency assessment for the building or area of the building.