CBD Legislation Update – Exclusion for Mixed Use Buildings


Today the Australian government announced that mixed use buildings will be excluded from the CBD legislation for a period of twelve months and major new refurbishments will have a two year exclusion from date of refurbishment.

Following industry consultation the Australian Government Department of Energy Efficiency  and Climate Change set up an industry forum to review the implementation of the Commercial Building Disclosure legislation (mandatory rating legislation).

This group includes Roger Walker, Head of Sustainability at Napier &  Blakeley. We are pleased to advise that Roger’s advice that the legislation should exclude buildings which do not have a minimum of 75% office use has been accepted by the Hon Minister Combet.

The legislation which looks to enable comparison of energy performance of office space will now exclude mixed use buildings, this releases most industrial and retail premises which have an office component over 2,000sqm from the requirements of the legislation for a period of twelve months.

The Department announced today:

” The Government has worked with industry stakeholders to address these complex issues and decided as an interim approach that buildings with less than 75 per cent office space (of the net lettable area 1), will not be required to disclose a NABERS Energy rating. This approach to mixed use buildings is an interim measure during the transition year of the program and will be subject to review by a panel of industry experts. This panel will report back to the Government before the end of July 2011 on their recommendations. Industry will be given clear advice and an appropriate time frame to adapt to any changes, recognising the possible need for metering changes and collection of 12 months data for a NABERS Energy rating.” 

This is a positive move and ensures that the intent of the legislation, to provide comparative ratings for office space, is delivered, with the buildings which are impacted by other uses being excluded.

Whilst parts of the industry would like to see the exclusion as permanent the transition period provides mixed use building owners with a period to review the impact and assess costs to implement metering and other changes to ensure that their office areas can be comparatively assessed against predominately office buildings. Owners in this mixed use category will still need to review their strategy quickly as changes to metering and other areas will take twelve months from implementation to be fully accounted for in a NABERS Energy rating.

Importantly transactions underway and in the pipeline will now be able to move forward without the risk of non compliance or further delay of the transaction for the completion of compliance under the Act. This will alleviate some legal costs and risk reviews for these impacted transactions where the details to obtain a NABERS Rating are not easily met.

To read more information on the legislation and to find out what is needed for NABERS rating please click here to review our earlier update http://napierblakeley.info/sustainability/commercial-building-disclosure-cbd/

Further information on the CBD program, including the amended Determination, is available at www.cbd.gov.au or e-mail Napier & Blakeley for a copy.

Roger Walker, Head of Sustainability at Napier & Blakeley is a representative on the Commercial Building Disclosure Implementation Forum, a representative on the NABERS Stakeholder Advisory Committee, Chairs the ADPIA Sustainability Committee, is a member of the APREA Sustainability Committee, is a registered Valuer and Associate of the Australian Property Institute and works with other industry organisations, business groups and client strategy groups.

Napier & Blakeley can provide you with strategic portfolio planning advice, applications for funding and complete your NABERS ratings for you.

For more info please contact your local office.

NSW / ACT / WA / NZ  -  Alastair Walker -  02 9299 1899
VIC /  SA  / TAS  -  Peter Frith, Rob Howells -  03 9915 6300


Comments are closed.