VIC How to open a bank account for a self-managed Owners Corporation?

Hi all,

I'm about to complete the construction of 3 townhouses in Victoria which will be subdivided from 1 into 3 lots with the only common area being the driveway shared by the middle and rear townhouses. I will be retaining all 3 to rent out.

As I will be the one and only owner, I am looking to manage the Owners Corporation myself rather than employing a professional strata manager.

From reading the guide on operating an Owners Corporation on the Victoria Consumer Affairs website, it says that a bank account must be setup for the Owners Corporation.

Having contacted a couple of banks so far, it seems as though they require a strata management agreement as one of the key documents to open the account, something that I will not have since I am self-managing the Owners Corporation.

Could anyone shed some light on how I can open a bank account if I am self-managing the Owners Corporation, and recommendations on which financial institutions they have opened an account with for this purpose?

Kind regards,

Eug.

 

Macquarie have a lot of this business.

It is worth having the account non interest bearing (perhaps fee free in return ) as then you eliminate non mutual income and thus no tax return needed.

 

Have you considered paying a strata manager to set the scheme up for you?

If you get it wrong, or, not right now, later on if you want/need to sell some or all of them, it could hinder your sales.

 

This is tricky and varies between states and please take my reply only as general comment only, instead just contact a good lawyer and accountant in VIC and find out from them.
I run own Strata in QLD though (it was set up as a Small Strata Scheme by the seller as in our varied condition in the contracts), was told also to set up a separate bank account by accountant, but decided not to proceed with it. The main reason was that some IPs are owned by our SMSF and hence we are members and trustees and directors so paying Strata bills from our personal joint account may be seen as compliance issues within SMSF.
So it also depends under what entity name you plan to own those townhouses?
I still do Tax Returns each year, but between all family members (we do own more properties than you) we decided to split the cost between us proportionally rather than just pay certain amount upfront, hence we keep costs to minimum, yet have the paperwork for the future in case someone wished to sell.
A friend in NSW has 3 townhouses, all between 3 family members, and they too just pay certain amount each year just to cover the costs, one member just pays from their account. However, there was an issue with the sale as they had not had any tax returns, so if one wanted to sell it was a lot harder.
I would suggest you talk with your accountant and good Strata lawyer in VIC, as this will probably need to be setup as a Small Strata Scheme, and since you are the sole owner (unsure how all IPs will be owned individually or what?) it may have further impacts (e.g. if you are sued or bankrupt, etc....).
hence very hard to advise....!
However, I did see a bank manager and the process for you should be quite straight forward, wasn't for us since more IPs and all under different entities and owners, each needs to prove their identity....plus who is the chairperson or administrator so we produced Minutes too...
If you do set up I liked Suncorp as their monthly cost was low or minimal if certain $ in the account, as they are also in QLD, so if you go and ask they will produce you with the paperwork what you need to submit. CBA charges too much IMHO.
See attached what Suncorp requirement was...but that was in 2018, so just check the latest requirements!

 

Thank you all for your responses. I will enquire with some professional strata managers to activate the Owners Corporation.