{"id":"local-government-building-upgrade-agreements-regulations-2017","name":"Local Government (Building Upgrade Agreements) Regulations 2017","slug":"local-government-building-upgrade-agreements-regulations-2017","collection":"regulation","jurisdiction":"sa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":236099,"registerId":"sa-local-government-building-upgrade-agreements-regulations-2017-current","compilationNumber":null,"startDate":"2026-04-06","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Local Government (Building Upgrade Agreements) Regulations 2017","content":"South Australia\nLocal Government (Building Upgrade Agreements) Regulations 2017\nunder the Local Government Act 1999\n\nContents\n1\tShort title\n2\tCommencement\n3\tInterpretation\n4\tInterpretation—definition of upgrade works\n5\tPrescribed buildings\n6\tContents of agreement\n7\tSpecial provisions relating to building subject to strata or community scheme\n8\tSale of land for non-payment of building upgrade charge\n9\tRecovery of contribution towards building upgrade charge from lessee\n10\tRegister of building upgrade agreements\nLegislative history\n\n1—Short title\nThese regulations may be cited as the Local Government (Building Upgrade Agreements) Regulations 2017.\n2—Commencement\nThese regulations will come into operation on the day on which the Local Government (Building Upgrade Agreements) Amendment Act 2015 comes into operation.\n3—Interpretation\nIn these regulations—\nAct means the Local Government Act 1999.\n4—Interpretation—definition of upgrade works\n\t(1)\tFor the purposes of the definition of upgrade works in clause 1 of Schedule 1B of the Act, any of the following works in relation to a heritage building are prescribed:\n\t(a)\tworks for the purposes of maintaining, repairing, upgrading or reinstating the heritage significance of the building;\n\t(b)\tworks associated with compliance with requirements under the Building Rules (within the meaning of the Development Act 1993) or the Disability Discrimination Act 1992 of the Commonwealth;\n\t(c)\tworks for the purposes of facilitating the ongoing occupation of the building.\n\t(2)\tIn this regulation—\nheritage building means a building—\n\t(a)\tthat is, or forms part of, a State Heritage Place under the Heritage Places Act 1993; or\n\t(b)\tdesignated as a place of local heritage under the Development Act 1993.\n5—Prescribed buildings\nFor the purposes of clause 2(2) of Schedule 1B of the Act, a building that is used primarily for commercial, industrial or other non‑residential purposes is a building of a prescribed kind.\n6—Contents of agreement\n\t(1)\tFor the purposes of clause 5(1)(f) of Schedule 1B of the Act, the following matters are prescribed:\n\t(a)\tin the case of a building upgrade agreement involving environmental upgrade works—requirements designated by the Minister as mandatory requirements applying to the building owner relating to reporting to the parties to the building upgrade agreement on the environmental performance of the building within 15 months after practical completion of the environmental upgrade works, including—\n\t(i)\tany improvements in the environmental performance of the building relating to the efficiency or consumption of energy or water; and\n\t(ii)\tany other improvements in the environmental performance of the building resulting from the environmental upgrade works; and\n\t(iii)\tany cost savings resulting from the environmental upgrade works; and\n\t(iv)\tthe environmental performance rating (if any) given by an accredited body designated by the Minister for the purposes of this subparagraph relating to the building;\n\t(b)\tin all cases—requirements designated by the Minister as mandatory requirements applying to the parties to the building upgrade agreement relating to the use and disclosure of information provided in accordance with the agreement or in connection with Schedule 1B of the Act.\n\t(2)\tFor the purposes of clause 5(3) of Schedule 1B of the Act, requirements under subregulation (1) prevail against other matters provided for in a building upgrade agreement to the extent of any inconsistency.\n\t(3)\tThe Minister may vary or revoke a designation under subregulation (1).\n\t(4)\tA designation of a requirement by the Minister under subregulation (1), or the variation or revocation of such a designation, may be published in such manner as the Minister thinks fit.\n7—Special provisions relating to building subject to strata or community scheme\n\t(1)\tIf a building upgrade charge payable under a building upgrade agreement relates to a building that is the subject of a strata scheme or community scheme—\n\t(a)\tthe strata corporation or community corporation (as the case may be) may determine to pay the building upgrade charge—\n\t(i)\tin the case of strata scheme or community scheme that has an administrative or sinking fund and where the corporation has determined to pay the charge from the administrative or sinking fund—from the administrative or sinking fund; or\n\t(ii)\tin any other case—from the funds of the corporation; and\n\t(b)\tif the building upgrade charge in respect of a particular unit (in the case of a strata scheme) or community lot (in the case of a community scheme) has been paid, the building upgrade charge in relation to which the payments were made ceases to be a charge on that unit or lot; and\n\t(c)\tthe strata corporation or community corporation (as the case may be) must, on the request of a unit holder (in the case of a strata scheme) or lot owner (in the case of a community scheme), provide the unit holder or lot owner (as the case requires) with a copy of the building upgrade agreement.\n\t(2)\tFor the purposes of subregulation (1)(b), a reference to the building upgrade charge in respect of a particular unit or community lot includes a reference to any portion of a late payment fee attributable to the unit or lot.\n8—Sale of land for non-payment of building upgrade charge\nFor the purposes of clause 9(1) of Schedule 1B of the Act, the following provisions apply:\n\t(a)\tbefore a council sells the relevant land, the council must send a notice to the building owner stating—\n\t(i)\tthe amount for which the building owner is liable; and\n\t(ii)\tthe period for which that amount has remained unpaid; and\n\t(iii)\tthat if that amount is not paid in full within 1 month of service of the notice (or such longer time as the council may allow), the council intends to sell the land for non‑payment;\n\t(b)\tthe council must send a copy of a notice sent to the building owner under paragraph (a) to—\n\t(i)\tany ratepayer in respect of the relevant land (other than the building owner); and\n\t(ii)\tto any registered mortgagee of the land;\n\t(c)\tif a council considers that it is unlikely that a notice sent under paragraph (a) or (b) would come to the attention of the person to whom it is sent, the council may effect service of the notice by—\n\t(i)\tplacing a copy of the notice in a newspaper circulating throughout the State; and\n\t(ii)\tleaving a copy of the notice in a conspicuous place on the relevant land;\n\t(d)\tif the amount specified in a notice under paragraph (a) is not paid in full within the time allowed under that paragraph, the council may proceed to have the relevant land sold;\n\t(e)\tthe sale will be by public auction (and the council may set a reserve price for the purposes of the auction);\n\t(f)\tan auction under this regulation must be advertised on at least 2 separate occasions in a newspaper circulating throughout the State;\n\t(g)\tif, before the date of an auction, the amount specified in a notice under paragraph (a) and the costs incurred by the council in proceeding under this regulation are paid to the council, the council must cancel the auction;\n\t(h)\tif an auction fails, the council may sell the relevant land by private contract for the best price that it can reasonably obtain.\n9—Recovery of contribution towards building upgrade charge from lessee\n\t(1)\tSubject to subregulation (2), for the purposes of clause 12(3) of Schedule 1B of the Act, the following requirements apply to a lessor recovering a contribution from a lessee by virtue of an entitlement to recover contributions under clause 12(2)(b)(ii) of that Schedule:\n\t(a)\tthe lessor must provide the lessee with an annual report on the cost savings made by the lessee (calculated in accordance with the approved methodology) within 3 months of the end of the period to which the report relates;\n\t(b)\tif the contributions of a lessee for a period exceed the cost savings made by the lessee during the period (calculated in accordance with the approved methodology)—\n\t(i)\tthe lessor must—\n\t(A)\tif the lessee requests that the excess amount of the contributions be refunded—refund the excess amount; or\n\t(B)\tin any other case—adjust the next contribution payable so that the lessee receives a credit for the excess amount; and\n\t(ii)\tthe lessor must ensure that future contributions payable by the lessee are reduced to reflect the cost savings made by the lessee (and any payment made by a lessee in respect of a future contribution before the reduction must be refunded or credited to the lessee in accordance with subparagraph (i)); and\n\t(iii)\tthe lessor must not recover a contribution from a lessee until the upgrade works that give rise to the cost savings to which the contribution relates (or, if upgrade works involve 2 or more elements or stages, an element or stage of the upgrade works that gives rise to the cost savings to which the contribution relates) are completed;\n\t(c)\tto avoid doubt, if the contributions of a lessee for a period are less than the cost savings made by the lessee during the period (calculated in accordance with the approved methodology), the lessor is not entitled to require the lessee to pay an additional contribution in respect of the period.\n\t(2)\tThe lessor and lessee may agree that a requirement under subregulation (1)(a) or (b) does not apply, or applies with agreed modifications.\n\t(3)\tFor the purposes of clause 12(3) of Schedule 1B of the Act, if—\n\t(a)\ta building upgrade charge is paid in full; or\n\t(b)\ta building upgrade agreement is terminated,\na lessor recovering a contribution from a lessee under clause 12 of that Schedule must inform the lessee of the full payment of the charge or termination of the agreement (as the case requires).\n10—Register of building upgrade agreements\n\t(1)\tFor the purposes of clause 13(2) of Schedule 1B of the Act, a register of building upgrade agreements kept by a council must include the following information in relation to each building upgrade agreement on the register:\n\t(a)\tthe address of the building;\n\t(b)\ta description of the upgrade works;\n\t(c)\tthe total value of the building upgrade charge;\n\t(d)\tthe duration of the agreement (including the date of execution and date on which the agreement expires).\n\t(2)\tA council must keep its register of building upgrade agreements up to date and, in particular, must ensure that—\n\t(a)\ta record (including the information required under this regulation) of a building upgrade agreement is entered on the register within 5 business days after execution of the agreement; and\n\t(b)\ta record of a building upgrade agreement is removed from the register within 5 business days after—\n\t(i)\tthe building upgrade charge is paid in full; or\n\t(ii)\tthe agreement is terminated,\n(whichever occurs first).\nLegislative history\nNotes\n\t•\tFor further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au.\nPrincipal regulations\nYear\nNo\nReference\nCommencement\n2017\n200\nGazette 25.7.2017 p2943 \n1.8.2017: r 2\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The regulations appear tightly scoped to their original purpose of operationalising Building Upgrade Agreements under Schedule 1B of the Local Government Act 1999. They cover the specific mechanics (definitions, agreement contents, enforcement, strata schemes, tenant protections, and registration) necessary to make the parent Act scheme functional without significant expansion beyond that framework."},"complexity_factors":["Heavy reliance on external legislation: The regulations constantly refer to 'Schedule 1B of the Act' (Local Government Act 1999) and other statutes (Development Act 1993, Heritage Places Act 1993, Disability Discrimination Act 1992), making them incomprehensible without cross-referencing","Nested conditional logic: Regulation 7(1)(a)(i) contains triple-nested conditions ('in the case of... that has... and where...')","Multiple defined terms across instruments: Terms like 'upgrade works', 'building upgrade charge', 'environmental upgrade works', and 'approved methodology' are defined in the parent Act or other regulations, not in this instrument","Ministerial discretion with limited procedural detail: Regulations 6(3)-(4) allow the Minister to vary requirements and publish 'in such manner as the Minister thinks fit', creating uncertainty","Complex recovery mechanics: Regulation 9 sets up an intricate system of annual reporting, refund calculations, credit adjustments, and completion triggers for tenant contributions"],"plain_english_summary":"**What this does:**\n\nThese regulations set out the practical rules for **Building Upgrade Agreements** in South Australia — a financing scheme where councils help building owners pay for improvements to heritage and commercial buildings, with the money repaid through a special charge on the land (similar to council rates).\n\n**Who it affects:**\n\n- **Building owners** of heritage buildings and commercial/industrial properties who want to fund upgrades\n- **Councils** that enter into these agreements and manage the charges\n- **Strata and community corporations** (bodies that manage apartment buildings or shared properties) who may pay charges on behalf of owners\n- **Tenants (lessees)** who may contribute to upgrade costs through their rent but must receive reports on their cost savings\n- **Mortgage holders** who get notified if a property might be sold for non-payment\n\n**Key things the rules cover:**\n\n- **What counts as \"upgrade works\":** Maintenance and repairs to heritage buildings, making buildings accessible for people with disabilities, and work needed to keep buildings occupied\n- **What must go in agreements:** Mandatory reporting on environmental benefits (energy/water savings, cost savings, performance ratings) and rules about keeping information confidential\n- **Special rules for apartments:** Strata corporations can pay charges from their funds, and individual unit owners can get copies of agreements\n- **What happens if someone doesn't pay:** Councils must give warnings, notify mortgagees, and can eventually sell the land at auction — but must cancel the sale if the debt is paid\n- **Protections for tenants:** Landlords must report actual cost savings to tenants, refund any overpayments, and can't charge tenants until the work is actually done\n- **Public register:** Councils must keep a public list of all agreements with details of the building, works, cost, and duration\n\n**Why it matters:**\n\nThese agreements are designed to make it easier to preserve heritage buildings and improve environmental performance without owners needing upfront cash. The regulations ensure there's proper transparency, protect people with financial interests in the property (like banks and tenants), and create clear processes if things go wrong."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"These regulations implement and operationalise the mechanics of the building upgrade agreement regime created by Schedule 1B of the Local Government Act 1999. They do not expand the statutory scope of that regime but prescribe eligible works for heritage buildings, which buildings are a ‘prescribed kind’, the content and mandatory elements of agreements, notification and sale procedures for non‑payment, lessee recovery mechanics, and register requirements. Those prescriptions narrow or clarify how the Act is to be applied rather than materially enlarging the types of works or parties covered beyond the Act’s framework."},"complexity_factors":["Multiple cross‑references to Schedule 1B of the Local Government Act 1999 (clauses 1,2,5,9,12,13 referenced across regs 4–10)","Ministerial discretion to designate, vary or revoke mandatory requirements (Reg 6(3)–(4))","Definitions and limited technical terms: ‘heritage building’ defined in Reg 4 with cross‑legislation references (Heritage Places Act 1993, Development Act 1993)","Conditional rules for strata and community schemes with alternative funding routes and document disclosure duties (Reg 7)","Detailed procedural steps and timelines for sale for non‑payment, including notice content, service alternatives, auction advertising minima and reserve pricing (Reg 8)","Lessee recovery regime includes an ‘approved methodology’ for calculating cost savings, annual reporting deadlines, refund/credit mechanics and an ability to vary by agreement (Reg 9)","Register obligations with precise data fields and short timeframes (enter/remove within 5 business days) (Reg 10)","Multiple temporal requirements: 15 months reporting after practical completion (Reg 6(1)(a)), 1 month notice before sale (Reg 8(a)(iii)), 3 months for lessee reports (Reg 9(1)(a)), 5 business days for register updates (Reg 10(2)"],"plain_english_summary":"**What these regulations do (mechanically)**\n\n- Define what kinds of works count as “upgrade works” for heritage buildings (maintenance, works to meet building or disability standards, and works to allow continued occupation) (Reg 4).\n- Say which buildings are treated as a “prescribed kind” for the building‑upgrade regime — in practice, buildings used mainly for commercial, industrial or other non‑residential purposes (Reg 5).\n- Specify mandatory contents that a council can require in a building upgrade agreement, including: reporting requirements for environmental upgrade works (what must be reported within 15 months after practical completion) and rules about the use and disclosure of information collected under the agreement (Reg 6(1)). The Minister may designate, vary or revoke those mandatory requirements and publish the designation as the Minister thinks fit (Reg 6(3)–(4)).\n- Set special rules where the building sits under a strata or community title scheme: the strata/community corporation can pay the building upgrade charge from its funds (including administrative or sinking funds where available), payment of the charge for a particular unit or lot removes the charge on that unit/lot, and unit holders/lot owners may request a copy of the agreement (Reg 7).\n- Lay down the procedural steps a council must follow before selling land because a building upgrade charge is unpaid: a one‑month (or longer at council’s discretion) notice to the owner stating the amount and period unpaid; copies to other ratepayers and registered mortgagees; alternative service by newspaper and physical notice if people are unlikely to see the letter; auction sale with public advertising (at least twice), ability to set a reserve price, cancellation if the debt and costs are paid before auction, and power to sell by private contract if auction fails (Reg 8).\n- Prescribe how a lessor (building owner) may recover a contribution from a lessee (tenant): provide an annual report to the lessee on the cost savings the lessee obtained (calculated under the approved methodology) within three months of the period’s end; if a lessee’s contributions exceed cost savings the excess must be refunded or credited and future contributions reduced accordingly; a lessor cannot recover contributions until the upgrade works (or the relevant stage) that generated the cost savings are completed. The parties may agree to modify or waive some of these requirements (Reg 9).\n- Require councils to keep a register of building upgrade agreements with prescribed fields (address, description of works, total charge, duration including execution and expiry dates) and to enter or remove records within five business days of agreement execution, payment in full, or termination (Reg 10).\n\n**Who this affects**\n\n- Building owners who enter into building upgrade agreements (primary payer of the building upgrade charge) and their lenders (mortgagees), because notices are copied to registered mortgagees (Regs 8(b) & 10).\n- Strata corporations, community corporations, unit holders and lot owners where the building is in a strata or community scheme (Reg 7).\n- Lessees (tenants) where the lessor seeks to recover contributions from tenants — they get rights to annual reporting, refunds/credits and notification on full payment or termination (Reg 9(1), (3)).\n- Councils, which must administer, publish and maintain the register, carry out prescribed sale procedures for non‑payment and follow notice and advertising rules (Regs 8 & 10).\n- The Minister, who may designate mandatory reporting and information‑use rules and may vary or revoke those designations (Reg 6).\n\n**Why it matters (stated purpose and practical effects)**\n\nThe regulations implement and operationalise the building‑upgrade charge framework in Schedule 1B of the Local Government Act 1999: they translate broad statutory powers into concrete procedures and obligations for councils, owners, lessees and strata bodies. The stated policy objective (in the Act and the regulations’ structure) is to allow building owners to finance and repay upgrade works via a charge on land while protecting affected parties through notification, reporting and registry rules.\n\nTesting that stated purpose against mechanics and trade‑offs:\n\n- Who pays and who decides: the building owner is the primary payer of the charge; councils enforce collection and can sell land for non‑payment (Reg 8); strata/community corporations may elect to pay charges from their funds (Reg 7). The Minister decides mandatory reporting and information‑use requirements (Reg 6), introducing central administrative discretion.\n- Compliance and administrative costs: councils must maintain a register and follow notice/auction procedures (Reg 8 & Reg 10), which creates operational workload and advertising costs. Owners and lessors face reporting obligations and potential refund/crediting mechanics for lessees (Reg 6 & Reg 9). The need to calculate cost savings under an “approved methodology” (Reg 9) can create accounting or certification costs and requires clarity about what the approved methodology is (cross‑referenced to the Act).\n- Incentives and substitution effects: reporting and environmental performance disclosure (Reg 6) create incentives for environmental upgrades to be measurable and reported, which may favour upgrades that produce easily quantified savings (energy/water) over less quantifiable heritage or amenity improvements (Reg 4). Allowing strata/community corporations to pay charges centralises repayment in those bodies where they choose to do so (Reg 7), which changes who directly bears the cashflow cost.\n- Risk and discretion: the Minister’s power to designate mandatory requirements and publish them in any manner (Reg 6(3)–(4)) concentrates rule‑making discretion, which can affect compliance costs and legal certainty. The sale process for non‑payment includes safeguards (notice, copies to mortgagees, auction advertising), but also permits councils to proceed to sale after one month if unpaid (Reg 8).\n\nPractical behaviour changes: owners may use the building‑upgrade mechanism to finance eligible works; tenants may receive financial benefit from energy/water savings and have reporting protections; councils will need systems to register and track agreements and to follow sale procedures if charges are unpaid.\n\nKey statutory references: Reg 4 (heritage works definition), Reg 5 (prescribed buildings), Reg 6 (agreement contents and Minister’s role), Reg 7 (strata/community rules), Reg 8 (sale for non‑payment process), Reg 9 (lessee contribution recovery), Reg 10 (register obligations)."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Insufficient data to assess whether scope changed from original intent — the legislative text was not retrievable. Based on title alone, the regulations appear to remain within the expected scope of implementing Building Upgrade Agreement mechanics under South Australian local government law."},"complexity_factors":["Actual legislative text was unavailable — full complexity cannot be assessed","Building Upgrade Agreement frameworks typically involve tripartite arrangements (property owner, council, lender) which add moderate structural complexity","Regulations of this type usually cross-reference a parent Act, requiring readers to consult multiple documents","Financial and contractual obligations on councils may involve technical requirements","As a 2017 regulation, amendments may have been made that further layer the complexity"],"plain_english_summary":"These regulations implement the Building Upgrade Agreement framework in South Australia, setting the technical rules for voluntary financing of energy, water, or environmental upgrades to commercial buildings where loans are repaid via council rates. They govern how councils act as billing agents, the repayment mechanics, disclosure and contract requirements, and thus affect commercial property owners, local councils and participating lenders."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-building-upgrade-agreements-regulations-2017","history":"/api/acts/local-government-building-upgrade-agreements-regulations-2017/history","analysis":"/api/acts/local-government-building-upgrade-agreements-regulations-2017/analysis","conflicts":"/api/acts/local-government-building-upgrade-agreements-regulations-2017/conflicts","importantCases":"/api/acts/local-government-building-upgrade-agreements-regulations-2017/important-cases","documents":"/api/acts/local-government-building-upgrade-agreements-regulations-2017/documents"}}