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Following the Annual Wage Review 2021, the Fair Work Commission has announced a 2.5% increase to minimum wages.

This rate is higher than the increase which was ordered last year of 1.75% and higher than the 1.1% CPI increase of last year (ensuring that wages are kept above the rate of inflation).

The 2.5% will also apply to all award wages, with the award increase happening in  3 different stages. For the Real Estate Industry Award and the Clerk (Private Sector) Award the increases will come into effect as of 1 July 2021.

What Should You Do?

For our Agent’s Help Desk subscribers, Apex HR will let you know when the Fair Work Commission have the new minimum wages available in the form of updated pay guides.

Employers paying above-award payments should also review such arrangements to ensure that they are high enough to accommodate the increases (provided they are also supported by the necessary individual flexibility or other agreements).

Further, as a minimum, from 1 July 2021 employers’ minimum superannuation contributions will be increased to 10% (calculated against Ordinary Time Earnings) to avoid liability to pay the Superannuation Guarantee Charge.

 

 

 

It was almost a decade ago when the Gillard government legislated an incremental increase of the superannuation guarantee charge up to 12%. After a deferral of superannuation increases by the Abbot government until July 2021 employers are prepping themselves for an increase of the superannuation guarantee charges to 10% from 1 July 2021 of an employee’s ordinary time earnings.

Further proposed superannuation increases include:

• 1 July 2021 to 30 June 2022 – 10.0%
• 1 July 2022 to 30 June 2023 – 10.5%
• 1 July 2023 to 30 June 2024 – 11.0%
• 1 July 2024 to 30 June 2025 – 11.5%
• 1 July 2025 to 30 June 2026 – 12.0%

Federal government response due to COVID-19

 In response to the difficult year experienced by Australian employers in 2020, it was anticipated that the current Liberal Government would once again defer the superannuation increase.

Prime Minister Scott Morrison stated, in late 2020, that the Federal Government would carefully consider further delays to the legislated increases to super.

More recently, Minister for Superannuation and Women’s Economic Security Jane Hume stated that the upcoming increase to 10% was still scheduled to occur. This indicates that the Liberal Government is unlikely to delay the increase at the eleventh hour however it remains open to the Liberal Government to make a decision up until the increase is legislated to take place on 1 July 2021.

Impact of superannuation increase

For employers, the effect of an increase to superannuation will increase employment costs in respect to employees paid by the hour, or salaried employees whose annual salaries are exclusive of superannuation.

Considerations for employers

Employers should budget for the upcoming year with the additional 0.5% superannuation contributions in mind. This will again be the case for each year leading to 2025, as the superannuation guarantee charge is set to increase.

We also need to highlight the Treasurer Josh Frydenberg announced in this federal budget that the $450-per-month threshold for entitlement to superannuation will be lifted before the next financial year. This will ultimately mean more employees will likely be eligible for superannuation payments and should be budgeted for.

 

Acting Victorian Premier James Merlino announced that Victoria will enter into a seven-day lockdown from 11.59pm Thursday 27 May 2021 and will run until 11.59pm Thursday 3 June 2021.

Under the Stage 4 restrictions Victorians will only be allowed to leave their homes for five reasons:

• Food and supplies
• Authorised work (previously referred to as essential work)
• Care and caregiving
• Exercise for up to two hours with one other person
• Getting vaccinated.

Masks must be worn everywhere, except in your own home or if you have a medical exemption.

Travel is restricted to 5kms from the primary residence for permitted reasons only.

As public gatherings are not permitted during this time, real estate will return to conducting online inspections and auctions only.

Employees are required to work from home during this period.

 

As a result of a new coronavirus cluster in Melbourne’s northern suburbs, new restrictions for Greater Metropolitan Melbourne came into effect at 6:00pm on Tuesday 25 May 2021.

Workplaces will remain open (subject to the current restrictions) however face masks will be compulsory at all times indoors for anyone aged 12 years and older (unless you have an exemption).

Public gatherings, including auctions and inspections, will be capped at 30 people.

Anyone from Greater Metropolitan Melbourne can travel to regional Victoria but the restrictions will apply during your travels.

The new restrictions will be in place until 4 June 2021 (or until further advice from the Victorian Government).

The Victorian Government QR Code Service for record keeping will be mandatory for inspections and auctions from 28 May 2021 for any offices who are yet to transition to the service from a Victorian Government Application Programming Interface (API) linked digital record keeping system.

Changes in Educational Requirements to Work in Real Estate

 

The Victorian Government announced changes in the educational requirements to work as an agent’s representative or estate agent. These changes require anyone wanting to:

• enter the real estate industry or
• become a licensed estate agent

to undertake substantially more study than previously required. We’ve broken down changes for you below.

Becoming an Agent’s Representative

Current requirements

Up until 30 September 2021 to become an agent’s representative in Victoria you will need to complete the following three units of competency:

• CPPDSM4007A – Identify legal & ethical requirements of property management to complete agency work
• CPPDSM4008A – Identify legal and ethical requirements of real estate sales to complete agency work
• CPPDSM4080A – Work in the real estate industry.

You will need to complete your training by 30 September 2021 and will have to commence employment with a real estate office and have your name registered with the Business Licensing Authority within 5 years from the date of the Statement of Attainment.

New Requirements

From 1 October 2021 to become an agent’s representative in Victoria, you will need to complete the Certificate IV (CPP41419 Certificate IV in Real Estate Practice) and consists of completing 18 units of competency.

The qualification can be completed in classroom /group learning environments, blended learning or as a workplace traineeship program.

Becoming an Estate Agent

Current requirements

Often referred to as the “Licensing Course” up until 30 September 2021 the minimum educational requirements required to apply to the Business Licensing Authority to become a licensed estate agent is the completion of the CPP40307 Certificate IV in Property Services (Real Estate).

The qualification consists of completing 24 units of competency, of which include the 3 units of competency that make up the agent’s representative course.

For anyone already working in the real estate sector some recognition of experience or prior learning may be available.

The qualification can be completed in classroom /group learning environments, blended learning or as a workplace traineeship program.

You will need to complete your training by 30 September 2021 and apply with the Business Licensing Authority within 5 years from the date of the Statement of Attainment to become a licensed estate agent.

New Requirements

From 1 October 2021 to the minimum educational requirements required to apply to the Business Licensing Authority to become a licensed estate agent is the completion of:

• CPP41419 Certificate IV in Real Estate Practice – 18 units of competency (and the minimum requirement to become an agent’s representative from 1 October 2021)
• CPP51119 Diploma of Property – 12 units of competency.

For anyone already working in the real estate sector and wanting to complete the above courses, some recognition of experience or prior learning may be available.

The qualifications can be completed in classroom /group learning environments, blended learning or as a workplace traineeship program.

Upon completion of the training you will need to apply with the Business Licensing Authority to become a licensed estate agent.

Got any questions about entering the real estate industry, up-skilling or want to discuss any of the exemptions that apply to the above educational requirements? Contact us at ApexHR on (03) 8736 7119.

Snapshot of Changes to Residential Tenancy Laws – Part 3

Keys

With less than a month to go until the changes in residential tenancy laws coming into effect, our information series continues to help you hit the ground running.

Keys

From 29 March 2021, rental providers are required to provide every renter who has signed the rental agreement with a free set of keys, or other security devices (such key fobs for apartment buildings). The regulations state there where both a key and a device are required to enable the renter to enjoy the property, then both must be provided.

Where additional (or replacement) keys or devices are requested by the renter, the rental provider may charge the renter a reasonable fee before giving them the key or device.

At the end of the rental agreement, all sets of keys must be returned to the rental provider/managing agent.

Snapshot of Changes to Residential Tenancy Laws – Part 2

 

Statement of Information

With less than month to go until the changes in residential tenancy laws this is the next instalment of our snapshot to the upcoming changes.

Statement of Information

From 29 March 2021, all prospective renters must be provided with a copy of the prescribed “Statement of Information for Rental Applicants” form with their rental application form which is accessible from the Consumer Affairs Victoria website or by logging into the Agent’s Help Desk.

The Statement of Information provides every rental applicant with information that educates rental applicants about unlawful discrimination in property management transactions.

The “Statement of Information for Rental Applicants” must be provided to all rental applicants prior to then completing the rental application.

Real estate offices that use electronic rental applications, it is recommended that they are updated to ensure that the “Statement of Information for Rental Applicants” appears first in the online application process.

 

Snapshot of Changes to Residential Tenancy Laws Part 1- Mandatory Disclosures

With the changes in residential tenancy laws currently in place, property management departments are busily making changes to their internal processes to ensure that they are compliant.

Apex HR will be providing snapshots of the changes to help your estate agency office ensure that you are ready and well informed of the changes.

Mandatory Disclosures

From 29 March 2021, before entering into a rental agreement, the renter must be informed of whether the:

• property is on the market for sale, or in the process of being sold
• property is to be repossessed under a mortgage
• rental provider is not the owner of the property, and what rights they have in letting the property
• electricity is supplied to the property from an embedded electricity network, and the details of this network
• if the rented premises or common property is known to have been the location of a homicide in the last 5 years
• if the rented premises comply with the rental minimum standards
• from 31 December 2021, if the rental provider has received a repair notice, in the last 3 years, relating to mould or damp in the premises caused by or related to the building structure
• date of the most recent gas safety check, electrical safety check, and pool barrier compliance check
• any outstanding recommendations for work to be completed from a gas safety check and electrical safety check
• if the rented premises is Heritage listed
• if the rented premises is known by the residential rental provider to be:
• contaminated because of prior use of the rented premises for the trafficking or cultivation of a drug of dependence in the last 5 years
• to have friable or non-friable asbestos based on an inspection by a suitably qualified person
• to be affected by a building or planning application that has been lodged
• any notice, order, declaration, report or recommendation issued by a relevant building surveyor, public authority or government department relating to any building defects or safety concerns associated with the rented premises such as the presence of combustible cladding, water leaks or structural issues affecting the rented premises or common property
• if there is a current domestic building work dispute
• if there is a current dispute of the Owners Corporations Act
• a copy of any owners’ corporation rules applicable to the rented premises.

To comply with this requirements property management departments are required to:

1. collect any information regarding any mandatory disclosures from their rental providers and
2. disclose this to the renter prior to them signing the rental agreement.

If the disclosure requirements are not complied with, the renter may make a general application to VCAT who may make a compensation order or another order as it sees fit.

 

 

Is a career in Real Estate right for me?

 

Are you wondering if a career in real estate is right for you? If you’re a great communicator who likes to work in a fast-paced, and exciting industry, then the chances are, you’ll love it. To get you thinking about whether real estate is a good career option for you, we’ve put together a short blog on the topic.

Which personality traits suit a career in real estate?

 

• Real Estate agents need to be excellent communicators. They need to convey information in a clear and simple way, so that the meaning is understood and goals are achieved. Real Estate agents are engaging speakers and are capable of establishing credibility in order to present themselves and their properties to the highest possible standard.

 

• Real Estate agents are skilled in building relationships and enjoy networking with a diverse range of people. They are committed to customer service and have the ability to create real connections with the people they work for. They are able to inspire, with an optimistic, confident personality that builds trust.

 

• Time management is essential for a career in Real Estate. Throughout the buying, selling and renting processes, Real Estate agents engage in a variety of different tasks, which must be prioritised for completion with the utmost efficiency.

 

• Real Estate agents have a passion for helping others achieve their home ownership goals. They are caring and interested in others. The best real estate agents are focused on their clients, identifying their needs and wants to assist them in working towards the best possible outcomes.

 

 

Which career path would suit your Real Estate career?

 

• The Sales Agent is often the first role that people consider when thinking about a career in Real Estate. Sales Agents must know how to negotiate with owners and buyers. They learn how to appraise, market and sell properties, arrange and manage inspections. They also find buyers, obtain listings of properties for sale and negotiate sales.

 

• Property Management is a rewarding and flexible role within the Real Estate sector. A Property Manager is the person who oversees leases and manages industrial, residential, retail or commercial real estate properties. They will negotiate leases, find tenants, represent the property owner, market the property, collect rent and arrange repairs.

 

• A career in real estate can also provide the opportunity to work in a corporate environment, in customer service, administration or marketing. The support team is often the first point of contact for clients, and they are responsible for the smooth running of the agency. They have skills in word processing, database management, preparing documents and correspondence, accounting and advertising.

 

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What are rewards of a career in real estate?

 

• Real estate is a dynamic industry, as selling and buying property is an exciting time for those involved. A real estate career is diverse, moving between office work, meetings with clients and consistently changing property locations.

 

• A career in real estate is fast-paced – not for the faint hearted. Real Estate agents must be self-motivated, energetic and able to think on their feet to deliver results promptly and efficiently.

 

• Real estate suits people who like to be challenged in their daily lives. Real Estate agents are dedicated to customer service and hard work, and view competition as part of a rewarding career. There is great satisfaction in helping clients find their dream home or sell their property to provide for a better future.

 

Find out more

If you’re thinking about a career in real estate, talk to us about our Agent’s Representative Course!

Pool and Spa Deadlines

Upcoming Pool Registration Deadlines

On 1 December 2019, new Victorian laws to improve swimming pool and spa safety came into effect in Victoria. It is now mandatory for owners of land where a swimming pool or spa is located to register their pool or spa with the relevant council.

These laws apply to swimming pools and spas that are capable of holding more than 300mm (30cm) of water. This includes permanent pools, above ground pools, indoor pools, hot tubs, bathing or wading pools and some relocatable pools.

Upcoming Deadlines for Registration

Victorian backyard pool and spa owners have until 1 November 2020 to register their pool or spa with their local council.

Pools and spas constructed after 1 November 2021 must be registered within 30 days after issue of occupancy permit or certificate of final inspection.

If the relocatable pool or spa was erected before 1 November 2020 and remains erected for at least 3 consecutive days immediately before 1 November 2020 the pool or spa owner has until 4 November 2020 to register their pool.

For relocatable pools or spas erected after 1 November 2020 pool or spa owners have until the fourth day after the pool is erected to register the pool.

Fines apply for pool and spa owners who do not register their pool or spa.

Certificates of Barrier of Compliance for Pools and Spas

For pools and spas constructed on or after 1 November 2020, a certificate of barrier compliance is due within 30 days of occupancy permit or certificate of final inspection. This certificate must accompany an application for registration. The next certificate of compliance is due four years after registration.

Pools or spas with construction dates before 1 November 2020 must comply with the following dates to lodge their certificates of barrier of compliance:

• For pools and spas constructed on or before 30 June 1994, a certificate of barrier compliance must be lodged by 1 November 2021
• For pools and spas constructed between 1 July 1994 and 1 May 2010, a certificate of barrier compliance must be lodged by 1 November 2022
• For pools and spas constructed between 1 May 2010 and 31 May 2020, a certificate of barrier compliance must be lodged by 1 November 2023.

Property managers should ensure that evidence of compliance with these requirements are maintained in the landlord’s file.