I, Leah Sciacca, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.Date 23 September 2026Leah SciaccaContentsPart 1—Preliminary 41 Name of legislative instrument....................................42 Commencement...............................................43 Authority....................................................44 Schedule.....................................................45 Simplified outline of this instrument...............................46 Definitions...................................................5Part 2—Exemptions for strata schemes 87 Exemption for operators from requirement to register the scheme, hold an Australian financial services licence and the hawking provisions 88 General conditions on operators other than promoter developers........109 Breach reporting condition for operators other than promoter developers..1110 Exemption for a real estate (selling) agent from the requirement to hold an Australian financial services licence 1111 Exemption for other persons from the prohibition on hawking..........1212 Procedures for transferring management rights......................12Part 3—Declaration for strata schemes 1513 Strata scheme where all strata units acquired for at least $500,000.......15Part 4—Relief for registered strata schemes 1614 Valuation of property of registered strata schemes...................1615 Consequential modification of compliance plan requirements..........16Part 5—Exemptions for property rental schemes 1716 Exemption from scheme registration under Chapter 5C...............1717 Exemption from Australian financial services licensing requirement.....1718 Exemption from hawking prohibition.............................1719 Exemption from disclosure provisions.............................17Part 6—Transitional 1820 Schemes covered by ASIC Class Orders [CO 02/245], [CO 02/303] and [CO 02/304] 1821 Schemes covered by ASIC Class Order [CO 07/189].................1822 Schemes covered by ASIC Pro Forma 186.........................1823 Repeal......................................................19Part 7—Repeal 2024 Repeal......................................................20Schedule 1—Repeals 21ASIC Corporations (Serviced Apartment and Like Schemes) Instrument 2016/869 21ASIC Corporations (Property Rental Schemes) Instrument 2016/870.......21
This instrument commences on the day after it is registered on the Federal Register of Legislation.Note: The register may be accessed at www.legislation.gov.au.
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
This instrument contains exemptions in relation to strata schemes for:(a) operators of such schemes from the managed investment, financial services licensing and anti-hawking provisions in the Act; and(b) real estate agents who are licensed to sell real property from the requirement to hold an Australian financial services licence for the provision of certain financial services in relation to such schemes; and(c) persons offering to sell interests in strata schemes from the anti-hawking provisions.This instrument exempts responsible entities of registered strata schemes from the requirement in the Act to ensure that scheme property is valued at appropriate regular intervals and modifies the Act to make a consequential amendment to compliance plan requirements.This instrument also modifies the Corporations Regulations 2001 so in determining whether an investor in a strata scheme is a wholesale client, amounts paid or payable for the real property and any associated furniture, fittings and equipment will be taken into account.This instrument also contains exemptions in relation to property rental schemes:(a) for real estate agents who are licensed to manage real property and who operate a property rental scheme from the requirement to register the scheme as a registered managed investment scheme; and(b) for persons providing financial services in relation to interests in property rental schemes from the requirement to hold an Australian financial services licence; and(c) from the anti-hawking and financial product disclosure provisions for interests in a property rental scheme.The exemptions in this instrument apply in specific circumstances and are subject to various conditions.
In this instrument:Act means the Corporations Act 2001.FFE Fund means a fund established for an investor consisting of money paid by the investor and any interest accrued on that money, to be used from time to time in accordance with the agreement referred to in paragraph 8(2)(h) for the replacement, repair or refurbishment of furniture, fittings and equipment of the strata unit made available by the investor for use as part of a strata scheme.independent real estate agentmeans, in relation to a strata scheme, a person:(a) who is licensed under a law of a State or Territory in this jurisdiction to lease real property; and(b) who is not the operator of the scheme or an associate of the operator of the scheme.investormeans in relation to a strata scheme, a person who is the owner of a strata unit that is used in the scheme.management rights means, in relation to a strata scheme, all real or personal property (including contractual rights) held by the operator or any of its associates that facilitates the operation of the scheme.operates a strata scheme as a promoter developer: a person operates a strata scheme as a promoter developer if:(a) the person offers to issue or arrange for the issue of interests in the scheme, while also offering a strata unit to which the scheme relates; and(b) the scheme is to be managed by another operator.operator, in relation to a strata scheme,means a person who:(a) operates the strata scheme (including by operating the strata scheme as a promoter developer); and(b) is:(i) a real estate (managing) agent; or(ii) a financial services licensee; or(iii) if the person only operates the strata scheme as a promoter developer—licensed in relation to real property under the law of a State or Territory in this jurisdiction.property rental scheme means a managed investment scheme to which all of the following apply:(a) the scheme involves owners of interests in real property making their interests available for commercial or residential letting or rental purposes (including day to day management of any lease arrangement);(b) the owners have not acquired their interests in real property jointly as a result of participating in the scheme;(c) the scheme does not involve a serviced apartment, hotel, motel or resort complex.real estate (managing) agentmeans a person who is licensed to manage real property under the law of a State or Territory in this jurisdiction.real estate (selling) agenta person who is licensed to sell real property under the law of a State or Territory in this jurisdiction.registered strata schememean a registered scheme that involves persons making available real property for use as part of a serviced apartment, hotel, motel or resort complex where members of the scheme have no right to be paid an amount that is related to the value of scheme property on their withdrawal from the scheme.regulated personhas the same meaning as in section 1011B of the Act.scheme members means, in relation to a strata scheme, investors in the scheme other than the operator and its associates.strata scheme means a managed investment scheme that involves owners of strata units making their unit available for use as part of a serviced apartment, hotel, motel or resort complex.strata units means strata title units, community title interests or similar interests in real property.transfer means, in relation to management rights, to assign or transfer the management rights or to cause another person to become the holder of those rights or rights substantially the same as those rights.
(1) An operator of a strata scheme does not have to comply with any of:(a) subsection 601ED(5) of the Act in relation to the scheme;(b) subsection 911A(1) of the Act to the extent that it requires the operator to hold an Australian financial services licence covering the provision of general advice in relation to, and dealing in, interests in the strata scheme;Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.(c) sections 992A of the Act in relation to an offer for issue of interests in the strata scheme.(2) The exemption in subsection (1) applies where all of the following are satisfied:(a) either:(i) each strata unit to which the scheme relates can be lawfully used as a residence; or(ii) the operator has given to ASIC a written statement from an independent real estate agent that, in relation to each strata unit to which the scheme relates, the agent:(A) would be willing and able to offer the unit for letting at a reasonable rate having regard to the value of the unit; and(B) would expect that there would be a reasonable degree of occupancy of the unit at that rate;(b) each investor and the operator may withdraw from the scheme on no more than 90 days’ notice;(c) an investor who withdraws from the scheme will not be bound after their notice under paragraph (b) expires to allow use of their strata unit except for occupation of the unit:(i) by a person other than the operator or an associate of the operator; and(ii) under an agreement that the operator made with that person before the notice was given;(d) each investor may, if they withdraw from the scheme, appoint another person to manage their strata unit;(e) if the operator is managing the letting of the strata units, the operator has not agreed on or after 28 September 2016 to:(i) make payments to investors (whether by way of guarantee or otherwise); or(ii) cover or reimburse in whole or in part (whether under an indemnity or otherwise) payments that are made by any other person to investors,in relation to the use of the strata units of investors after the operator withdraws from the scheme;Note: ASIC Corporations (Serviced Apartment and Like Schemes) Instrument 2016/869 commenced on 28 September 2016.(f) an investor does not have to make payments to participate in the scheme other than:(i) payments to buy the strata unit; and(ii) payments to buy furniture, fittings and equipment for the strata unit where the maximum amount of the payments and the items of furniture, fittings and equipment to be acquired are set out in the agreement referred to in paragraph (h); and(iii) payments of the investor’s reasonable proportion of the operator’s fees and expenses with respect to the management of the scheme where:(A) in any 3 month period the total of such payments relates to a period of no more than 3 months and is reasonably commensurate with the work done or to be done, or the expenses incurred or likely to be incurred (as the case may be), by the operator during the period to which the payments relate; and(B) where a FFE Fund has been established for the investor—no payment is used for the replacement, repair or refurbishment of furniture, fittings and equipment of the strata unit in relation to the period to which the payment relates unless all money in the Fund has first been expended; and(iv) where a FFE Fund has been established for the investor—payments into the Fund where:(A) each payment is by way of a deduction from rental income of the scheme that would otherwise be paid to the investor in relation to a period set by the operator and does not exceed 3% of the gross rent attributable to the investor for the period; and(B) the balance of the Fund is no more than $10,000 for each strata unit made available by the investor for use as part of the scheme;(g) the purchase of the strata unit by the investor is not conditional on participation in the scheme whether by way of a term of the contract of sale, as a result of an interest (for example, a lease) that the strata unit is subject to immediately after the purchase or otherwise;(h) if the operator is managing the letting of the strata units, the operator has entered into a written agreement with each investor which includes provisions to the effect of those set out in section 12;(i) a majority of scheme members have agreed in writing that the operator may rely on this exemption or the exemption in section 5 of ASIC Corporations (Serviced Apartment and Like Schemes) Instrument 2016/869.(3) In working out if there is a majority of scheme members for the purposes of paragraph (2)(i):(a) the operator and its associates are not to be counted; and(b) a majority is based on the entitlement of scheme members to vote at body corporate meetings if there is a body corporate for the property to which the scheme relates, and otherwise is based on each member having one vote.
(1) The operator must ensure that:(a) any part of the property of the scheme that is cash is promptly deposited with an Australian ADI on trust for investors in a trust account; and(b) the account is subject to audit as to whether the money has been dealt with in accordance with the terms of the trust by a registered company auditor at least annually.(2) Where a FFE Fund has been established for an investor, the operator must ensure that:(a) the money comprising the Fund is held on trust for the investor in a trust account with an Australian ADI and subject to audit as to whether the money has been dealt with in accordance with the terms of the trust by a registered company auditor at least annually; and(b) the balance of the Fund is promptly returned to the investor at the termination of the scheme or upon the investor’s withdrawal from the scheme, whichever occurs first.(3) If the operator is managing the letting of the strata units, the operator must, as soon as practicable, and in any event within 6 months after, the end of a reporting period, give each investor who was issued an interest in the scheme as a retail client, a written statement for the reporting period which details any transactions in relation to the investor’s interest in the scheme.(4) If the operator is managing the letting of the strata units, the manager must operate the scheme in accordance with the agreement referred to in paragraph 7(2)(h).(5) In subsection (3), a reporting period is a period not exceeding 1 year, set by the operator in accordance with the following:(a) the first reporting period starts when the investor and the operator enter into the agreement referred to in paragraph 7(2)(h);(b) each subsequent reporting period starts at the end of the preceding reporting period;(c) if the investor withdraws from participation in the scheme, the period starting at the end of the preceding reporting period and ending when the investor withdraws from participation in the scheme is a reporting period.(6) This section does not apply to an operator who only operates the strata scheme as a promoter developer.
(1) An operator that becomes aware of matters that gives the operator reason to believe that the operator has failed in a material respect to comply with the conditions in section 8 must give full particulars of the failure to ASIC in writing within 15 business days after becoming so aware.(2) This section does not apply to an operator who only operates the strata scheme as a promoter developer.
(1) A real estate (selling) agent does not have to comply with subsection 911A(1) of the Act to the extent that it requires the agent to hold a financial services licence for the provision of the following financial services in relation to interests in a strata scheme that the agent reasonably believes is covered by section 7:(a) general advice;(b) arranging for the operator of the scheme to issue an interest in the scheme;(c) arranging for an investor in the scheme (other than the operator of the scheme) to sell an interest in the scheme.Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.(2) This exemption does not apply if the agent:(a) is a financial services licensee or a representative of a financial services licensee; or(b) is the operator of a strata scheme.
A person does not have to comply with section 992A of the Act for an offer to sell an interest in a strata scheme that appears to be covered by section 7.
(a) if a majority of scheme members advise the operator in writing that they wish to terminate the operator’s engagement, the operator must within 9 months transfer the management rights to a person:(i) who is chosen by the operator; and(ii) has not been involved in the operation (including promotion) of the scheme; and(iii) is not controlled by a person that has been involved in the operation (including promotion) of the scheme.(b) if the operator does not complete the transfer within the 9 month period, the operator must cause the transfer of the management rights to a replacement operator named in a written notice given by a majority of scheme members, at the price set out in the notice;(c) a transfer referred to in paragraphs (a) or (b) must be done as soon as practicable, but if there is a body corporate for the real property to which the scheme relates, there must be a reasonable time for members of the body corporate to consider whether to make a decision referred to in paragraph (f) unless the body corporate has consented to the transfer;
(e) if the operator receives a notice under paragraph (b), the operator must advise all body corporate members of the name of the person to whom the transfer is to be made;(f) unless the body corporate has consented to the transfer, an operator does not have to transfer the management rights to the person named in the notice given under paragraph (b) if a majority of body corporate members state in writing to the operator that the person should not be engaged by the body corporate to perform caretaking functions;(g) if a majority of body corporate members make a decision referred to in paragraph (f), a majority of scheme members may then at any time name a replacement operator by a written notice, to whom the operator must transfer the management rights at a price set out in the notice and the notice will be taken to be given in accordance with paragraph (b);(h) paragraphs (e) to (g) do not apply if the body corporate or a majority of body corporate members agree in writing to the transfer to the person named in a notice under paragraph (b) or (g) before that notice is given to the operator;
(i) the price specified by scheme members in a notice under paragraph (b) must be the average of two valuations of the management rights by independent qualified valuers nominated by the Australian Property Institute (or another relevant independent professional body approved by ASIC);
(j) in working out if there is a majority of scheme members or body corporate members, the operator and its associates and any person nominated as a replacement operator and associates of that person must not be counted;(k) for scheme members, a majority is based on their entitlement to vote at body corporate meetings if there is a body corporate for the property to which the scheme relates, and otherwise each member shall have one vote;(l) for body corporate members, a majority is based on their entitlement to vote at body corporate meetings;(m) a scheme member or a body corporate member makes a decision by signing a document that sets out the decision;
(n) any member may arrange a valuation of the management rights before or after the expiration of the 9 month period referred to in paragraph (a) for the purposes of setting a price to be specified in a notice under paragraph (b);(o) if a member incurs any reasonable valuation costs under paragraph (n) that member is entitled to be reimbursed out of the price payable by any person nominated by the members as transferee of the management rights when the price is paid to the operator;
(p) the operator must give reasonable assistance to enable the transferee to operate the resort, hotel, motel or serviced apartment complex, including making available information about any future bookings.
(1) Parts 7.6 (other than Divisions 4 and 8), 7.7, 7.8 and 7.9 of the Act apply in relation to an interest in a strata scheme as if subregulation 7.1.18(3) of the Corporations Regulations 2001 were modified or varied by, after paragraph (a), inserting:“(aa) subject to paragraph (b) and subregulation (4), includes the higher of:(i) the total amount paid or payable for real property and any furniture, fittings and equipment acquired or purchased with the investment-based financial product; and(ii) the highest total amount paid or payable for that real property and any furniture, fittings and equipment acquired or purchased with that real property on a previous acquisition or purchase of the real property by a person who is not any of the following:(A) the issuer of the investment-based financial product;(B) a promoter of a managed investment scheme in which the investment-based financial product is an interest;(C) an associate of the issuer or promoter.Note: Subregulation 7.1.18(3) of the Corporations Regulations 2001 applies for the purposes of the definition of retail client in section 761G of the Act.”.(2) Subsection (1) applies in relation to a strata scheme where the price for the provision of each interest in the scheme is at least $500,000.(3) For subsection (2), the price for the provision of an interest in the scheme is the price that would be determined for the purposes of paragraph 761G(10)(a) of the Act if subregulation 7.1.18(3) of the Corporations Regulations 2001 were modified or varied in accordance with subsection (1).
(2) The exemption in subsection (1) applies to a responsible entity for so long as it ensures that an item of scheme property of the scheme is valued as soon as practicable after the responsible entity has reasonable grounds to believe that a valuation of the item is in the best interests of members or is needed for the scheme to operate in a manner that is fair to all members.
Chapter 5C of the Act applies to a responsible entity of a registered strata scheme as if paragraph 601HA(1)(c) were modified or varied by after “valued” inserting “in accordance with the conditions of any exemption under paragraph 601QA(1)(a) that exempts the responsible entity from paragraph 601FC(1)(j) or, if the responsible entity is not covered by such an exemption,”.
A real estate (managing) agent who operates a property rental scheme does not have to comply with subsection 601ED(5) of the Act in relation to the scheme.
A person who provides a financial service in relation to an interest in a property rental scheme does not have to comply with subsection 911A(1) of the Act to the extent that it requires the person to hold an Australian financial services licence covering the provision of the service.Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.
An interest in a property rental scheme is exempt from Divisions 2 to 4 of Part 7.9 of the Act.Note: The provision of the relief in sections 16 to 19 should not be taken to imply that the ordinary business of real estate (managing) agents in leasing or managing property generally or necessarily involves a managed investment scheme. The relief is provided for the avoidance of doubt and to provide legal certainty..
(1) This section applies in relation to a strata scheme that was operated or purportedly was operated in reliance on ASIC Class Order [CO 02/245] (the old class order), [CO 02/303] (the old class order) or ASIC Class Order [CO 02/304] (the old class order) (each as continued in force by ASIC Corporations (Serviced Apartment and Like Schemes) Instrument2016/869 (the old legislative instrument)) immediately before the repeal of the old legislative instrument.(2) The relevant old class order as continued in force immediately before the repeal of the old legislative instrument continues to apply in relation to the scheme.Note: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2026/115 provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.(3) Part 2 does not apply in relation to the scheme.
(1) This section applies in relation to a strata scheme that, immediately before the repeal of the old legislative instrument, was operated or purportedly was operated in reliance on ASIC Class Order [CO 07/189] (the old class order) (as continued in force by the old legislative instrument) and an instrument (the old pro forma) in substantially the same terms as ASIC Pro Forma 187 (as at the date the old pro forma was made).(2) The old class order as continued in force immediately before the repeal of the old legislative instrument continues to apply in relation to the scheme.(3) Part 2 does not apply in relation to the scheme.Note: The old class order continues to apply in accordance with its terms. If the operator of the scheme ceases to be able to rely on the instrument in substantially the same terms as ASIC Pro Forma 187, they will also cease to be able to rely on the old class order.
(1) This section applies in relation to a strata scheme that, immediately before the commencement of the old legislative instrument, was operated or purportedly was operated in reliance on an instrument (the old instrument) in substantially the same terms as ASIC Pro Forma 186 (as at the date the instrument was made).(2) A person operating the scheme does not have to comply with section 1017G of the Act where the person is exempt from section 601ED of the Act in relation to the operation of the scheme because of the old instrument.