Building Energy Efficiency Disclosure Bill: E-Alert March 2010

As part of COAG's commitment to introducing a comprehensive National Strategy for Energy
Efficiency, the Building Energy Efficiency Disclosure Bill 2010 (Bill) was introduced into parliament on 18 March 2010.

The Bill provides for the establishment of a new national scheme for the mandatory disclosure of
commercial office building efficiency.

In short, the scheme will require vendors, landlords and even sub-landlords of large commercial
office buildings to disclose information regarding the energy efficiency of the building to
purchasers, tenants and sub-tenants. The information to be disclosed will be contained in building
energy efficiency certificates (BEECs).

BEECs will be issued by a recognised issuing authority, and will set out: 
 

• the energy efficiency rating for the building;
• an assessment of the energy efficiency of the lighting for the building that might reasonably
• be expected to remain if the building is sold, let or sublet; and
• guidance on how energy efficiency might be improved.

BEECs will also be accessible to the public via an on-line registry.

Vendors, landlords and sub-landlords will also be required to disclose the building's energy
efficiency rating in any advertisement for the sale, lease or sub-lease of the building.

The Bill does not propose that purchasers, tenants or sub-tenants can terminate sale contracts,
leases or sub-leases if vendors, landlords or sub-landlords do not comply with the legislation.
However, fines in excess of $100,000 can be levied for any breach of the above obligations.

It is expected that similar disclosure requirements will be introduced for residential buildings by
May 2011.

Maddocks will continue to monitor the progress of the Bill, including the buildings which will be
affected by the Bill and the process for obtaining BEECs (should the Bill be enacted), and the
progress of the expected Bill for residential buildings, and will provide you with a further updates in
due course.

For further information please contact Andrew Chapman or Tom Dugdale.