PROP T3 A1 Rates balance enquiry video transcript QLD 2022_12_01.docx
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Rates balance enquiry demo
Let's have a look at the Brisbane City Council rates balance inquiry.
Now, first of all, I just want to say that the details on this bill may not be relevant to
your fact scenario, but the concepts we were talking about will be applicable to your
Starting with the REIQ contract and at cl 2.6, the contract identifies that the seller is
liable up to and including settlement for adjustments. So keep that in the back of your
mind and we'll then go hunting through the rates balance inquiry.
So, starting off with the billing period (so where my cursor is) the billing period is 1 July
to 30 September. You'll see that (once again, where my cursor is) the balance
outstanding as of 30 September, which is the end of the billing period, is $791.15.
also should take note of the settlement date, which in this fact scenario is 2
September. Now, I'm just going to scroll down and explain these different net amounts.
So, it's $776.15. You
ll see above that a discount if payment received by 7 August.
Now, the bill is unpaid and will only be paid at settlement, so we know that settlement
is 2 September. So that means then, as the discount is only applicable if the bill is paid
by 7 August, that that discounted amount is not the relevant amount, and we work off
the balance outstanding of $791.15. With respect to the application of the discount,
and or its lack thereof, you might want to have a look at cl 2.6(2)(b) of the contract.
Now, like I said, the bill
s unpaid, but for the purposes of our settlement statement, we
are going to treat it as having been paid by the seller. This means that we need to
work out the amount for which the buyer is liable and this amount will then be a plus
adjustment, as it will be added on to the purchase price.
So, just going back to the settlement date being 2 September, and you may remember
that cl 2.6(1), that says the seller is liable up to and including the settlement date for
adjustments. So if we're working out the buyer's liability, that means we need to work
out what the buyer is liable from 3 September, being the day after the settlement to the
end of the billing period, being 30 September.