who is responsible for NBN $300 New Development Charge

Discussion in 'Property Management' started by Frostmourn, 24th Apr, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Frostmourn

    Frostmourn Member

    Joined:
    7th Apr, 2017
    Posts:
    6
    Location:
    Melbourne
    Hi, my house is in a new estate enabled with NBN. The tenants are organising connection but there is a $300 New Development Charge mandated by NBN Co. Who should pay for this?
    Thanks.
     
  2. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,666
    Location:
    Sydney
    You. If you want to be connected to phone and data.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    21,370
    Location:
    Sydney or NSW or Australia
    Have the developer pay for it, they can then add on their % so you can pay even more for it.
     
  4. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,518
    Location:
    Melbourne, Australia
    I would of thought the tenant unless you advertise that NBN is connected.

    If the tenant wants it and you don't then they have a choice to pay for it themselves or not have NBN... However if you advertised it had it then I would assume you would unless the charge is their account setup fee and not physically connected the property to NBN.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    21,370
    Location:
    Sydney or NSW or Australia
    The alternative is to have a 2017 house with no internet connection. Is that an option for the next 20 years?
     
  6. Frostmourn

    Frostmourn Member

    Joined:
    7th Apr, 2017
    Posts:
    6
    Location:
    Melbourne
    Thats what i thought as well. I was curious why the previous tenant didn't connect to NBN, now i guess it's probably because of this charge that he doesn't want to pay.
    I am happy to pay but if it is something not my responsibility then I don't ready want to fork out unnecessarily
     
  7. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,518
    Location:
    Melbourne, Australia
    If he has a tenant there then they will likely put one in at their cost.

    If not when they move it would be something I would consider to put in when the tenant leaves as it would increase the demand.

    If my tenant came to me and said pay $300 for NBN I would tell them they have a phone line that they can get the internet and if they wanted NBN then they can pay for it themselves (same as foxtel).

    However if I advertised it as 'NBN ready' or something then I would need to cough up the money as the tenant could of rented on the presumption it was connected.
     
    SarahD likes this.
  8. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,518
    Location:
    Melbourne, Australia
    If it was the foxtel connection fee would you pay for it?

    My thought is if they want it they can pay for it and you will approve the connection. However if they want it you will not pay for it unless you increase their rent by $5 pw.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    21,370
    Location:
    Sydney or NSW or Australia
    @Big Will - this is a new estate, there is no copper network to connect phone/internet. The owner is responsible for the initial installation of cable/fibre to the premises in a new estate. If it weren't a new estate, the owner is responsible for cabling into the premises. Hmmm subtle difference.

    NBN is replacing copper, so to get internet, you will need to be connected to NBN which means the lead in cable needs to be provided by the owner.

    When the NBN is installed, the copper (in some circumstances will be redundant) and there is only an 18 month window between connection being made available on NBN and closing down of the copper infrastructure from the exchange.
     
  10. Frostmourn

    Frostmourn Member

    Joined:
    7th Apr, 2017
    Posts:
    6
    Location:
    Melbourne
    Thanks everyone for the reply. I decided to pay for the 300 as scott said it is a new house and the nbn is the only option for internet. If it's already has ADSL and they want NBN then its a different story i guess.
     
    Pumpkin and Perthguy like this.
  11. Frostmourn

    Frostmourn Member

    Joined:
    7th Apr, 2017
    Posts:
    6
    Location:
    Melbourne
    The tenant is also getting Foxtel, and they are paying for that. They did ask me if i will pay, I said no. And they said they did not expect me to pay, but doesn't hurt to give it a go.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    21,370
    Location:
    Sydney or NSW or Australia
    If they don't ask, they don't get. ;)
     
  13. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,870
    Location:
    Sydney
    NBN is compulsory. There is a grace period for cutover on sites being migrated from older technology, but for new developments it's the only thing available and you will have to provide a physical connection.

    It's basically the same as an old copper phone line ... it's the landlord's responsibility to make sure there is one physically available, but the tenant's responsibility to pay for the service once physically connected.

    So $300 fee would be yours to pay.

    Tenant's responsibility to choose a service provider and get them to supply service.
     
  14. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,293
    Location:
    Sid en e - olympic city
    Where did you see/read this Simon ?
     
  15. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    3,157
    Location:
    Sydney
    Could be classed as an essential service ?
    Like a phone line (to contact emergency services) if no other "fixed service" available
    Made available, but up to the resident to actually "connect"......
     
    Jennifer Burns likes this.
  16. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    21,370
    Location:
    Sydney or NSW or Australia
    There is no other option for wired connection of the premises
     
  17. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    8,922
    Location:
    Adelaide and Gold Coast
    Owner
     
  18. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,293
    Location:
    Sid en e - olympic city
    No, Electricity is essential service.

    Check laws in state, NSW, it does not say you must provide a phone line or internet line.
     
  19. Frostmourn

    Frostmourn Member

    Joined:
    7th Apr, 2017
    Posts:
    6
    Location:
    Melbourne
    Thats what i found as well. Electricity, gas and water are classified as essential. Television, telephone, internet are not. Which i thought should be (hence i installed TV antenna, don't really have to!!), but they are not.
    Morally, i'm happy to pay for the initial connection. But by law i don't really have to. Very interesting. Time to test my generosity .
     
  20. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,870
    Location:
    Sydney
    Actually, to be completely accurate - I believe it's not compulsory if you don't actually want a broadband connection - you could make do with mobile only.

    But if you want non-mobile broadband, you'll have to migrate to NBN within 18 months of it becoming available in your area.

    Moving to the NBN for consumers

    NBN Co will let you know by direct mail your region’s ‘ready for service’ date. Once NBN has announced your area is ready for service you will have 18 months to move your landline phone and internet services to the new NBN network by placing an order with your preferred service provider.

    Any services you do not cancel or move to the NBN will be disconnected soon after the end of the 18 month period.

    If you do not want to move to the NBN, consider asking you preferred service provider about other options such as mobile phone or mobile broadband that are available to you.

    Some homes and businesses get their internet and phone services from companies that use networks that compete with the NBN. If you’re with one of these companies you don’t have to move to the NBN and your services won’t be disconnected. Check with your provider if you need to move.​

    6 million Australians are about to get a rude shock when they find out the NBN is compulsory

    A survey has found more than one in three Australians have no plans to switch to the NBN or don't actually know what it is, apparently unaware that once the new network arrives their existing phone and internet connections will be switched off.​

    NBN Cut-Off Date: Everything You Need To Know


    Given that once NBN is available and the copper network is disconnected, there will generally be no other way to get a "landline" phone or broadband internet access - in my opinion it absolutely must be connected for any tenanted property in case they want a phone service available.