You do not have Javascript enabled Changes to the Commercial Building Disclosure (CBD) Program - Trinity Law
May 11, 2017

Changes to the Commercial Building Disclosure (CBD) Program

Contact:  Mark Poretti, John Irvine

The Commercial Building Disclosure (CBD) Program requires energy efficiency information to be disclosed whenever commercial buildings over 2000 square metres are being sold or leased.  As a result of changes announced by the Federal Government smaller commercial buildings of 1000 square metres or more will also be included as part of the CBD Program starting on  1 July 2017. The change means that many more building owners and landlords will now be required to comply with the CBD Program and ensure they are informed about the requirements mandated by the Building Energy Efficiency Disclosure Act 2010 (Cth).

New Threshold and Building Energy Efficiency Certificates (BEECS)

Building owners and lessors of office space of 1000 square metres or more will now be required to obtain a BEEC (Building Energy Efficiency Certificate) before selling or leasing a building.  The Certificate must be provided to potential buyers of the building or lessees of tenancies within the building (on request).  The Certificate also needs to be placed on the Building Energy Efficiency Register, to ensure that it is publicly accessible.  Further, any advertising material for the building must include its NABERS Energy star rating. Buildings with tenancies below 1,000 individually but above 1,000 in aggregate will need a certificate before being marketing for sale

A BEEC is current for 12 months from the date of issue and sets out the following information in relation to the building:

  • the energy efficiency rating for the building in which the area is located;
  • an assessment of the energy efficiency of the lighting for the relevant area of the building; and
  • general guidance about the way that energy efficiency might be improved.[1]

The information provided in a BEEC allows potential purchasers or lessees of commercial buildings to make more informed decisions about the commercial property market relating to energy efficient buildings, and to make commercial decisions that facilitate reduced emissions.  In addition, the information published on the Building Energy Efficiency Register provides credible and comparable energy efficiency and greenhouse emissions data for consumers.

Who is affected?

The new lowered threshold affects building owners selling property, tenants subleasing part of their tenancy and real estate agents advertising office space.

Responsibility for compliance with the Act

Final responsibility for complying with the Act rests with the building owner or lessor who is seeking to sell, lease or sublease the building, but agents are also at risk from breaching the Act.  The Act imposes significant penalties for failure to comply up to $180,000 for the first day of non-compliance, and then $18,000 per day for each day thereafter. It is important therefore that building owners are informed as to their obligations and seek appropriate advice, especially given the threshold has now been significantly lowered.

If you would like to discuss the requirements and your obligations for compliance, please get in contact with John Irvine or Mark Poretti at Trinity Law.

The information in this document represents general information, and should not be relied for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact Trinity Law. Subject to the limits of the law, Trinity Law disclaims any liability on persons relying on this document.

[1] Building Energy Efficiency Disclosure Act 2010, section 13.

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