Clifford Gouldson Lawyers

New energy disclosures to apply from 1 July 2017

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19/06/2017

From 1 July, owners of commercial buildings who are:
 

  1. selling a building which contains total office space of 1000m2 or more; or
  2. advertising space for lease in a single building at the same time (even in separate tenancies) which totals 1000m2 or more;

will need to obtain a Building Energy Efficiency Certificate (a BEEC) prior to advertising the property for sale or lease.
 
While this requirement already exists for premises with net lettable areas greater than 2000m2, the reduction in the area threshold to 1000m2 will mean that a significantly higher number of buildings will now need to comply with the requirements.
 
BEEC’s are issued by the Department of the Environment and Energy and include a National Australia Built Environment Rating System (NABERS) Energy ‘Star Rating’ for the building, which must then be included on all forms of advertising material for the building.
 
To obtain a BEEC, you must engage an accredited assessor to undertake the relevant assessments and lodge the application for the BEEC on your behalf. Unfortunately a BEEC is only valid for 12 months, so a new BEEC will need to be obtained each time the property is leased or sold, unless it is in the same 12 month period.
 
Failure to comply with the above requirements can result in hefty penalties of up to $180,000 per day for each day the property remains advertised for sale or lease without including the NABERS rating.  If that is not enough motivation to comply, having a BEEC can also assist owners to attract Government or larger private corporatations as tenants, as many of these organisations have policies in place which require their workplaces to hold a minimum NABERS rating.
 
For more information as to whether or not you need to obtain a BEEC for your building, please contact our Commercial + Property Team.

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