What are the changes occurring to the Commercial Building Disclosure Program in 2017?

On 1st July 2017, the mandatory disclosure threshold on commercial office space will be lowered. From this date, it will be required that all building and tenancies with net lettable area (NLA) of 1000 square metres or more disclose the building's energy efficiency when they sell or lease their property.

As a result, an additional 1000 commercial buildings will now be required to disclose this information.

Who does this apply to?

From the 1 July, you are likely to be affected by these changes if you are:

·     A building owner who is selling or leasing office space with a NLA of 1000 square metres or more

·     A tenant who is subleasing part of your tenancy with a NLA of 1000 square metres or more

·     A real estate agent who is advertising office space with NLA of 1000 square metres or more

What do you need to do?

Changes to the CBD program will help inform tenants and buyers of the building's energy costs at the point of sale or lease. After the 1st July 2017, disclosure effected buildings and tenancies of 1000 square metres or more will require a Building Energy Efficiency Certificate (BEEC) before it can be put to the market.

The BEEC includes:

• a National Australian Built Environment Rating System (NABERS) Energy star rating for the building; and
• a Tenancy Lighting Assessment for the relevant areas of the building

To acquire a BEEC you will need to engage with an accredited assessor to undertake the assessments and lodge the application on your behalf.

The NABERS Energy star rating must appear on all forms of advertising material for the building. Penalties may apply to those who do not comply with their obligations under the Act.

Why are these changes occurring?

By lowering the threshold, the Turnbull government believe this will significantly contribute to their target of increasing national energy productivity by 40 per cent by 2030.

The changes were decided after a comprehensive review of the Commercial Building Disclosure (CBD) Programme earlier this year. Public consultation also showed overwhelming support for the programme changes.

If your building or tenancy is disclosure affected and now requires a BEEC, contact Certified Energy on 1300 443 674 and speak to an accredited assessor.

Media Release: http://www.joshfrydenberg.com.au/guest/mediaReleasesDetails.aspx?id=231