Owners Corporations Act 2006 (Vic)

Version No. 022

Owners Corporations Act 2006

No. 69 of 2006

Version incorporating amendments as at

25 November 2025

TABLE OF PROVISIONS

Section  Page

Part 1—Introductory

1Purposes

2Commencement

3Definitions

Part 2—Functions and powers of owners corporation

Division 1—Functions and powers of owners corporation

4Functions of owners corporation

5Owners corporation must act in good faith

6Powers of owners corporation

7The five tiers of owners corporations

7AOwners corporation for 2-lot subdivision (tier five owners corporations)

8Services only owners corporation (tier five owners corporations)

9Power to employ or engage persons

10Execution of documents by owners corporation

11Management of owners corporation and power to delegate

Division 2—Powers relating to services

12Provision of services to members and occupiers

13Owners corporation not to carry on business

Division 3—Powers relating to property

14Leasing or licensing of the common property

15Power to obtain lease or licence over land

16Power to acquire and dispose of personal property

17Owners corporation must not mortgage or charge common property

17AWater on common property

Division 4—Power to commence legal proceeding

18Power to commence legal proceeding

Division 5—The common seal

18AOwners corporation not required to have or use common seal

19The common seal

20When can the common seal be used?

21Who must witness the use of the common seal?

22Judicial notice of use of common seal

Part 3—Financial management

Division 1—Financial powers

23Owners corporation may levy annual fees

23AOwners corporation may levy fees in relation to insurance

24Extraordinary fees and charges

25Power to borrow money

26Power to invest

27Bank account

28Liability of lot owners

29Penalty interest on arrears

30Recovery of money owed

31Fee notice

32Final notice

Division 2—Accounts and audit

33Financial records

34Financial statements

35Audit of financial statements of owners corporations

35AExemption from requirement to audit financial statements

Division 3—Maintenance plan

36Maintenance plan

37What must a maintenance plan contain?

38When does a maintenance plan have effect?

39Report on approved maintenance plan

Division 4—Maintenance fund

40Establishment of maintenance fund

42Payments into maintenance fund

43Payments from maintenance fund

44Extraordinary payments from maintenance fund

45Extraordinary payments for urgent matters

Division 5—Asset management

46Owners corporation to repair and maintain common property

47Owners corporation must repair and maintain services

47ALot owners must not repair, alter or maintain common property or services

48Lots not properly maintained

49Cost of repairs, maintenance or other works

50When can an owners corporation authorise a person to enter a lot?

51What notice of entry must be given?

52Significant alteration to common property requires special resolution

53Upgrading of common property

Division 5A—Disposal of goods abandoned on common property

53AOwners corporation may dispose of goods abandoned on common property

53BNotice of intention to dispose of goods abandoned on common property

53CRemoval of goods to safe place

53DDisposal of goods

53EOwners corporation not liable in relation to disposed goods

Division 6—Insurance

54What is an insurable building?

55Members may take out insurance

56Owners corporation has insurable interest

57Amount payable under owners corporation insurance

58Insurance if lot mortgaged

59Reinstatement and replacement insurance

60Public liability insurance

61Insurance for lots in multi-level developments

61AInsurance for multiple single dwellings on a plan of subdivision

62Owners corporation may have additional insurance

63Insurance not required where there is no common property

64Insurance not required where another owners corporation has insured

65Valuation of buildings

Part 4—Meetings and decisions of owners corporation

Division 1—First meeting of owners corporation

66When must the first meeting be held?

67What documents must be provided at the first meeting?

67AWhat must be disclosed at the first meeting?

67BContract entered into by applicant for registration of the plan of subdivision prior to first meeting

67CMinutes of first meetings

68Obligations of initial owner

Division 2—Annual general meeting

69Annual general meeting

70Who may convene annual general meetings?

71Agenda for annual general meeting

72Notice of annual general meetings

Division 3—Special general meetings

73What is a special general meeting?

74Who can convene a special general meeting?

75Agenda for special general meeting

76Notice of special general meetings

Division 4—Procedure at general meetings

77Quorum for a general meeting

78Can a general meeting proceed even without a quorum?

79Who chairs the general meeting?

80Procedure at meeting

81Minutes of meetings

82Owners corporation may require certain matters to be dealt with at general meetings

Division 5—Ballots

83Who can arrange a ballot?

84How can a ballot be conducted?

85Notice of ballot

86Resolution by ballot

Division 6—Voting

87One vote for each lot

88Voting on a resolution of the owners corporation by ballot

89Voting on a resolution of the owners corporation at a meeting

89ADoes the chairperson have a casting vote?

89BCan a lot owner vote if fees are unpaid?

89CProxies

89DRestriction on number of lot owners on behalf of whom a proxy may vote on a resolution

89ERevocation of a proxy

89FVoting under power of attorney

89GPerson must not require or demand that a lot owner give authorisation to vote under power of attorney or proxy

89HTerm of contract of sale limiting voting rights void

Division 7—Decisions of owners corporation

90Resolutions by meeting or ballot

95What is a unanimous resolution?

96What is a special resolution?

97Interim special resolutions

Division 8—Office-holders

98Chairperson of owners corporation

99Secretary

Part 5—Committees

100Election of committee

101Functions and powers of committee

102Delegation by committee

103Membership of committees

104Casual vacancies on a committee

105Chairperson of committee

106Acting chairperson

107Secretary of committee

108How can a meeting of a committee be called?

109Notice of meetings

110Co-opted members

111Ballots

112Proceedings of committee

113Resolutions of committee to be resolutions of owners corporation

114Minutes

115Committee to report

116Sub-committees

117Duties of members of committees and sub‑committees

118Immunity of committee members

Part 6—Managers

119Appointment and removal of manager

119AContract of appointment of manager

120Functions of manager where there is a committee

121Functions of the manager where there is no committee

122Duties of manager

122AManager must disclose beneficial relationship with supplier

122BManager must disclose commission, payment or other benefit

123Immunity of volunteer manager

124Delegation

125VCAT may appoint manager

126Report

127Manager to return records

Part 7—Duties and rights of lot owners and occupiers

128Compliance with laws

129Care of lots

130Care of common property

131Overhanging eaves

132Right to decorate interior walls, floors and ceilings

133Notice of planning and building applications and plans of subdivision

134Address of new owners

135Address of absent owners

136Advice to occupiers

137Duties of occupiers of lots

Part 8—Rules of the owners corporation

138Power to make rules

138APower to make rules regarding proxies

138BPower to make rules regarding external alterations and other works affecting lot owners

139Model rules

140Rules to be of no effect if inconsistent with law

141Who is bound by the rules?

141AOccupier to ensure guests comply with rules

142Recording of rules

143Rules to be given to lot owners

Part 8A—Retirement villages

143AApplication

143BFees

143CMaintenance fees

143DObligation of initial owner of retirement village land

143EAppointment of the manager of an owners corporation

143FRules of owners corporation of retirement villages

Part 9—Records

Division 1—Keeping of records

144Keeping of records

145How long must records be kept?

146Availability of records

Division 2—Owners corporation register

147Owners corporation register

148What must be kept on the owners corporation register?

149In what form must the register be kept?

150Availability of register

Division 3—Owners corporation certificate

151Owners corporation certificate

Part 10—Dispute resolution

Division 1—Complaints and procedures

152Complaints

153Decision whether to take action in respect of alleged breach

154Notice of decision not to take action

155Notice to rectify breach

156What if the person does not rectify the breach?

157Final notice

158How may notice be given?

159Report to annual general meeting

Division 1A—Complaints and procedures— conduct of short-stay occupants

159AComplaints—conduct of short-stay occupant

159BDecision whether to take action in respect of alleged breach by a short-stay occupant

159CNotice of decision not to take action—complaint about conduct of short-stay occupant

159DNotice to rectify breach—complaint about conduct of short-stay occupant

159EWhat if the person does not rectify the breach?

159FReport to annual general meeting

Division 2—Powers of Director

160Making a complaint

161Conciliation and mediation

Part 11—Applications to VCAT

Division 1—Owners corporation disputes

162VCAT may hear and determine disputes

163Who may apply to VCAT in relation to a dispute?

164VCAT may dismiss application

165What orders can VCAT make?

166Penalty for breach of rules

167What must VCAT consider?

168Monetary orders

169Notice to Business Licensing Authority

Division 1A—Short-stay accommodation disputes—conduct of short stay occupants

169AVCAT may hear and determine short-stay accommodation disputes

169BWho may apply to VCAT in relation to a short-stay accommodation dispute?

169CWhat orders can VCAT make?

169DProhibition order

169ELoss of amenity compensation order

169FWhat must VCAT consider?

169GCivil penalty for breach by short-stay occupant

169HJoint and several liability of short-stay provider and short-stay occupant

Division 1B—Proceedings commenced, prosecuted, defended or discontinued by lot owner on behalf of owners corporation

169ILot owner may apply to VCAT to commence, prosecute, defend or discontinue any proceeding on behalf of owners corporation

169JVCAT may make order authorising lot owner to commence, prosecute, defend or discontinue proceeding

Division 2—Exemption orders

170Owners corporation may apply to VCAT for exemption

171VCAT may make exemption order

Division 3—Restriction of access to records

172Application to VCAT to restrict access to information

Division 4—Appointment of administrator

173Application for appointment of administrator

174Appointment of administrator

175Remuneration of administrator

176Powers and responsibilities of administrator

177Administrator to act in good faith

Part 12—Registration of managers

Division 1—Managers to be registered

178Offence to act as manager without being registered

179Eligibility for registration

180Application for registration

181Further information

182Registration

182APermission to be registered as manager despite criminal record

183Annual registration fee and statement

184Extension of time

185Failure to lodge annual statement

185AProfessional indemnity insurance

186Automatic cancellation of registration

186APermission to continue to be registered as manager despite criminal record

186BConditions on permission

187Death, disability etc. of registered manager

188If details given in application or annual statement change

189Offence to supply false or misleading information

190Cancellation of registration if false information is given

191Application for review

Division 2—Register of managers

192Register of managers

193Purposes of register of managers

194What must the register of managers contain?

195Inspection of register of managers

196Removal of information from register of managers

197Duty of Licensing Registrar

Division 3—General

198Provision of information for the purposes of this Act

Part 13—General

199Application of Australian Consumer Law and Fair Trading Act 2012

200Approved forms

200AManner in which documents may be given to or served on owners corporation

201Money to be paid to Victorian Property Fund

202Certain provisions of contracts void

203Who may commence a proceeding for offences?

203AInfringement notices

204Regulation-making powers

205Transitional and savings provisions

Part 14—Transitional and savings provisions—Owners Corporations and Other Acts Amendment Act 2021

206Definitions

207Requirement to have maintenance plan

208Term of contract of appointment void

209Financial statements

210Review of amendments made by 2021 Act

Part 15—Transitional and savings provisions—Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025

211Definitions

212Registration—courses or examinations

213Transitional regulations—Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025

Schedules

Schedule 1—Power to make rules of owners corporation

Schedule 2—Transitional and savings provisions

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Endnotes

1     General information

2     Table of Amendments

3     Explanatory details

Version No. 022

Owners Corporations Act 2006

No. 69 of 2006

Version incorporating amendments as at

25 November 2025

The Parliament of Victoria enacts as follows:

PART 1—INTRODUCTORY

1Purposes

The main purposes of this Act are—

(a)to provide for the management, powers and functions of owners corporations; and

(b)to provide for appropriate mechanisms for the resolution of disputes relating to owners corporations; and

(c)to amend the Subdivision Act 1988 in relation to the creation of owners corporations.

2Commencement

(1)Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2)If a provision of this Act does not come into operation before 31 December 2007, it comes into operation on that day.

3Definitions

In this Act—

agent provider means a person who, for a fee, arranges and manages short-stay accommodation on behalf of a lot owner, lessee or sub-lessee;

amend in relation to a rule, includes add to or replace;

approved form means form approved by the Director under section 200;

bank account means an account with an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth;

building includes—

(a)a structure and part of a building or a structure; and

(b)walls, out-buildings, service installations and other appurtenances of a building; and

(c)a boat or a pontoon which is permanently moored or fixed to land;

Building Code of Australia has the same meaning as it has in section 3(1) of the Building Act 1993;

business day means a day that is not—

(a)a Saturday or Sunday; or

(b)a public holiday appointed under the Public Holidays Act 1993;

Business Licensing Authority means the Business Licensing Authority established under the Business Licensing Authority Act 1998;

common property means land shown as common property on a plan of subdivision or a plan of strata or cluster subdivision;

Council means the Council of the municipal district in which the land in the plan is located;

CPA Australia means CPA Australia A.C.N. 008 392 452;

Director has the same meaning as it has in the Australian Consumer Law and Fair Trading Act 2012;

externally administered body corporate has the same meaning as it has in the Corporations Act;

function includes duty and authority;

guest does not include a contractor or a tradesperson engaged by the occupier of a lot;

hoteland resort management contract means, in relation to a hotel, resort or serviced apartment complex on land affected by an owners corporation—

(a)a letting agreement to provide an on‑site letting manager (being a manager who lives at the hotel, resort or serviced apartment complex who manages letting of accommodation at the hotel, resort or complex); or

(b)a common property agreement (including but not limited to a lease or a licence) to use common property for the purposes of—

(i)operating an on-site letting business at the hotel, resort or serviced apartment complex; or

Example

Office, storage area or reception area.

(ii)providing caretaking services at the hotel, resort or serviced apartment complex; or

(c)a building maintenance or facilities management agreement to provide caretaking services at the hotel, resort or serviced apartment complex; or

(d)any prescribed agreement or prescribed class of agreement relating to the management of a hotel, resort or serviced apartment complex by a third party;

inspector means an inspector appointed under the Australian Consumer Law and Fair Trading Act 2012;

land includes buildings and airspace;

land affected by an owners corporation means the lots the owners for the time being of which are members of the owners corporation together with the common property for which the owners corporation is responsible;

Licensing Registrar means the Registrar of the Business Licensing Authority appointed under the Business Licensing Authority Act 1998;

limited owners corporation has the same meaning as it has in the Subdivision Act 1988;

lot has the same meaning as it has in the Subdivision Act 1988;

lot affected by an owners corporation means a lot the owner for the time being of which is a member of the owners corporation;

lot entitlement in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot entitlement for that lot, expressing the extent of the lot owner's interest in any common property affected by the owners corporation;

lot liability in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot liability for that lot, expressing the proportion of the administrative and general expenses of the owners corporation which the lot owner is obliged to pay;

lot owner, in relation to an owners corporation, means an owner of a lot affected by the owners corporation;

non-occupiable lot means—

(a)a car park; or

(b)a storage locker; or

(c)a lot that is not ordinarily used for residential or business purposes;

occupiable lot means a lot that is ordinarily used for residential or business purposes;

ordinary resolution means a resolution other than a special resolution or a unanimous resolution;

owner has the same meaning as it has in the Subdivision Act 1988;

owners corporation means a body corporate which is incorporated by registration of a plan of subdivision or a plan of strata or cluster subdivision;

owners corporation register means the register kept by an owners corporation in accordance with section 147;

plan of subdivision has the same meaning as plan has in the Subdivision Act 1988;

police officer has the same meaning as in the Victoria Police Act 2013;

*                *                *                *                *

Register means the Register under the Transfer of Land Act 1958;

registered manager means a manager registered under Part 6;

Registrar has the same meaning as it has in the Transfer of Land Act 1958;

rules in relation to an owners corporation, means the rules of the owners corporation for the time being in force;

services only owners corporation means an owners corporation for a subdivision that has no land or building that is designated as the common property and either—

(a)the initial owner of the subdivision has arranged for a utility company to install common meters that are designated as the common property; or

(b)the subdivision has a common supply or common service that is unmetered;

short-stay accommodation means accommodation provided under a short-stay accommodation arrangement;

short-stay accommodation arrangement means a lease or licence for a continuous period of less than 28 days to occupy a lot or part of a lot affected by an owners corporation that is—

(a)in a building wholly classified as
a Class 2 building in Part A3.2 of Volume One of the Building Code
of Australia; or

(b)in the case of a building where only part of that building is classified as
a Class 2 building in Part A3.2 of Volume One of the Building Code of Australia—in that part of the building;

short-stay occupant means a person who occupies a lot or part of a lot under a short-stay accommodation arrangement;

short-stay provider means—

(a)the owner of a lot or part of a lot that is leased or licensed by the owner to a person under a short-stay accommodation arrangement; or

(b)a lessee or sub-lessee of the owner of

a lot or part of a lot that is leased or licensed by the lessee or sub-lessee to

a person under a short-stay accommodation arrangement; or

(c)an agent provider;

tier five owners corporation has the meaning given by section 7(6);

tier four owners corporation has the meaning given by section 7(5);

tier one owners corporation has the meaning given by section 7(2);

tier three owners corporation has the meaning given by section 7(4);

tier two owners corporation has the meaning given by section 7(3);

2-lot subdivision means an owners corporation comprising of 2 occupiable lots;

unlimited owners corporation has the same meaning as it has in the Subdivision Act 1988.

PART 2—FUNCTIONS AND POWERS OF OWNERS CORPORATION

Division 1—Functions and powers of owners corporation

4Functions of owners corporation

An owners corporation has the following functions—

(a)to manage and administer the common property;

(b)to repair and maintain—

(i)the common property;

(ii)the chattels, fixtures, fittings and services related to the common property or its enjoyment;

(iii)equipment and services for which an easement or right exists for the benefit of the land affected by the owners corporation or which are otherwise for the benefit of all or some of the land affected by the owners corporation;

(c)to take out, maintain and pay premiums on insurance required or permitted by any Act or by Part 3 and any other insurance the owners corporation considers appropriate;

(d)to keep an owners corporation register;

(e)to provide an owners corporation certificate in accordance with Division 3 of Part 9 when requested;

(f)to carry out any other functions conferred on the owners corporation by—

(i)this Act or the regulations under this Act; or

(ii)the Subdivision Act 1988 or the regulations under that Act;

(iii)any other law; or

(iv)the rules of the owners corporation.

Note

An owners corporation is a body corporate which is incorporated by registration of a plan of subdivision or a plan of strata or cluster subdivision. An owners corporation has perpetual succession and is capable of suing and being sued in its own name. See section 28 of the Subdivision Act 1988.

5Owners corporation must act in good faith

An owners corporation in carrying out its functions and powers—

(a)must act honestly and in good faith; and

(b)must exercise due care and diligence.

6Powers of owners corporation

An owners corporation has—

(a)all the powers conferred on the owners corporation by—

(i)this Act or the regulations; or

(ii)the Subdivision Act 1988 or the regulations under that Act; or

(iii)any other law; or

(iv)the rules of the owners corporation; and

(b)all other powers that are necessary to enable it to perform its functions.

7The five tiers of owners corporations

(1)For the purposes of this Act, an owners corporation falls within one of 5 tiers as specified in this section.

(2)A tier one owners corporation is an owners corporation that consists of more than 100 occupiable lots and is not a services only owners corporation.

(3)A tier two owners corporation is an owners corporation that consists of 51 to 100 occupiable lots and is not a services only owners corporation.

(4)A tier three owners corporation is an owners corporation that consists of 10 to 50 occupiable lots and is not a services only owners corporation.

(5)A tier four owners corporation is an owners corporation that consists of 3 to 9 occupiable lots and is not a services only owners corporation.

(6)A tier five owners corporation is—

(a)an owners corporation for a 2-lot subdivision; or

(b)a services only owners corporation.

(7)If an owners corporation consists of less than 10 occupiable lots and more than
50 non-occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) and (3) as if a reference in those subsections to an occupiable lot were a reference to a non‑occupiable lot.

(8)If an owners corporation consists solely of non‑occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) to (6) as if a reference in those subsections to an occupiable lot were a reference to a non‑occupiable lot.

7AOwners corporation for 2-lot subdivision (tier five owners corporations)

(1)An owners corporation for a 2-lot subdivision is exempt from compliance with—

(a)sections 18, 31, 32, 59, 60, 61, 61A, 62, 65, 89A, 89B, 95, 96 and 97; and

(b)Divisions 2, 3 and 4 of Part 3; and

(c)Divisions 1, 2, 3, 4 and 5 of Part 4; and

(d)Divisions 1 and 2 of Part 9; and

(e)Division 1 of Part 10.

(2)In any provision of this Act or any other Act as it applies in relation to an owners corporation for a 2-lot subdivision, a reference to—

(a)a unanimous resolution means a resolution passed by the total votes for those lots; and

(b)a special resolution means a unanimous resolution.

8Services only owners corporation (tier five owners corporations)

A services only owners corporation is exempt from compliance with—

(a)the provisions specified in section 7A(1); and

(b)the following provisions—

(i)sections 48, 49, 50, 51, 61A, 129, 133 and 135;

(ii)Division 8 of Part 4;

(iii)Division 3 of Part 9.

9Power to employ or engage persons

An owners corporation may appoint or employ persons to assist the owners corporation in carrying out its functions.

10Execution of documents by owners corporation

(1)An owners corporation may, in its own name or on behalf of its members, execute any document or do anything necessary or convenient to enable it to carry out its functions, powers, rights and obligations.

(2)A document executed or any thing done under subsection (1) has effect as if the document was executed or the thing was done by the members of the owners corporation.

(3)An owners corporation may authorise a document to be executed by at least 2 lot owners of separate lots who—

(a)sign the document; and

(b)print on the document—

(i)each lot owner's full name and address; and

(ii)a statement that each lot owner is a lot owner or a director of a body corporate that is a lot owner.

11Management of owners corporation and power to delegate

(1)An owners corporation is to be managed by or under the direction of the lot owners.

(2)Subject to subsection (3), an owners corporation may, by instrument or by resolution at a general meeting, delegate any power or function of the owners corporation to—

(a)the committee of the owners corporation;

(b)the manager of the owners corporation;

(c)a lot owner;

(d)the chairperson of the owners corporation;

(e)the secretary of the owners corporation;

(f)an employee of the owners corporation.

(3)An owners corporation must not delegate any of the following powers or functions under subsection (2)—

(a)a power or function that requires a unanimous resolution, a special resolution or a resolution at a general meeting;

(b)the power of delegation under that subsection.

Note

See section 82.

(4)A resolution under subsection (2) is only effective if it is recorded in the minutes of the general meeting.

(5)If no delegation is in force under subsection (2)(a), the committee of the owners corporation is delegated all powers and functions that may be exercised by the owners corporation, except for—

(a)those powers and functions set out in subsection (3); and

(b)those matters which must be determined at a general meeting under section 82.

(6)Subsection (1) does not give rise to any fiduciary duties or directors' duties on the part of lot owners.

Note

See section 5 for duties of an owners corporation.

Division 2—Powers relating to services

12Provision of services to members and occupiers

(1)An owners corporation, by special resolution, may decide—

(a)to provide a service to lot owners or occupiers of lots or the public; or

(b)to enter into agreements for the provision of services to lot owners or occupiers of lots.

(2)An owners corporation may require a lot owner or occupier to whom a service has been provided to pay for the cost of providing the service to the lot owner or occupier.

13Owners corporation not to carry on business

(1)An owners corporation must not carry on a business.

(2)An owners corporation may participate in or be a member of another body that carries on a business.

Division 3—Powers relating to property

14Leasing or licensing of the common property

By special resolution, an owners corporation may lease or license the whole or any part of the common property to a lot owner or other person.

15Power to obtain lease or licence over land

By special resolution, an owners corporation may obtain a lease or licence over any land (including Crown land) whether or not in the plan.

16Power to acquire and dispose of personal property

(1)An owners corporation may acquire or hold personal property for the use of lot owners or other persons.

(2)An owners corporation may lease personal property to a lot owner or other person.

(3)An owners corporation may dispose of personal property.

(4)An owners corporation may obtain a licence for personal property for the use of lot owners or other persons.

17Owners corporation must not mortgage or charge common property

An owners corporation must not mortgage or otherwise charge common property.

17AWater on common property

(1)Any rainwater or other water that falls, occurs or flows on the common property (otherwise than in a waterway or a bore) is taken to be part of the common property.

(2)For the purposes of section 8(4)(c) of the Water Act 1989, an owners corporation is the occupier of land to the extent that the land is common property.

(3)In this section, waterway and bore have the same meanings as in section 3(1) of the Water Act 1989.

Division 4—Power to commence legal proceeding

18Power to commence legal proceeding

(1)Subject to subsection (2), an owners corporation must not commence any legal proceeding unless it is authorised by special resolution to do so.

(2)If a matter is within the civil jurisdictional limit of the Magistrates' Court and an owners corporation is authorised to do so by ordinary resolution, the owners corporation may commence any legal proceeding in—

(a)the Magistrates' Court; or

(b)VCAT or any other tribunal; or

(c)a court of another State or a Territory that corresponds to the Magistrates' Court.

Division 5—The common seal

18AOwners corporation not required to have or use common seal

(1)An owners corporation is not required to have or use a common seal.

Note

Section 10 provides for the execution of documents of an owners corporation by signature.

(2)Section 19 applies only to an owners corporation that has a common seal.

(3)Sections 20, 21 and 22 apply only to an owners corporation that has a common seal and uses the common seal on a document.

(4)An owners corporation that has a common seal under sections 19, 20, 21 and 22 may, by ordinary resolution, determine that the common seal is no longer required and can be destroyed.

19The common seal

(1)The common seal of an owners corporation must include the name of the owners corporation and the plan of subdivision number of the plan that created the owners corporation.

(2)The common seal must be kept as directed by the owners corporation.

(3)Despite subsection (1), a common seal that existed prior to the commencement of section 21 of the Consumer Affairs Legislation Amendment Act 2010 is not invalid solely because it does not include the subdivision plan number.

20When can the common seal be used?

(1)The common seal of an owners corporation must not be used on a document unless its use for that purpose has been authorised by this Act, regulations made under this Act or a resolution of the owners corporation.

(2)The resolution to authorise the use of the common seal must be recorded—

(a)in the minutes of the general meeting; and

(b)if the owners corporation keeps a common seal register, in that register.

21Who must witness the use of the common seal?

(1)The use of the common seal on a document must be witnessed by at least 2 persons who are owners of separate lots and are members of the owners corporation.

(2)Despite subsection (1), in the case of an owners corporation with only one lot owner, the use of the seal must be witnessed by the lot owner.

(2A)Despite subsection (1), the sealing of an owners corporation certificate may be witnessed by—

(a)the registered manager; or

(b)the chairperson of the owners corporation elected under section 98.

(3)If a lot owner is a corporation, a director of the corporation may witness the document on behalf of the corporation.

(4)Each lot owner or director who witnesses the use of the common seal must record next to the seal that he or she has witnessed the use of the seal by—

(a)signing his or her name; and

(b)printing in full his or her name and address; and

(c)stating that he or she is a lot owner or a director of the corporation that is a lot owner.

22Judicial notice of use of common seal

All courts must take judicial notice of the common seal of the owners corporation on a document and, until the contrary is proved, must presume that the seal was properly used.

PART 3—FINANCIAL MANAGEMENT

Division 1—Financial powers

23Owners corporation may levy annual fees

(1)An owners corporation may set annual fees to cover—

(a)general administration; and

(b)maintenance and repairs; and

(c)insurance; and

(d)other recurrent obligations of the owners corporation.

(2)If the owners corporation has an approved maintenance plan, the annual fees must include fees that are—

(a)designated for the purpose of the maintenance plan; and

(b)sufficient to allow the maintenance plan to be implemented.

(3)Subject to subsection (3A), the annual fees set must be based on lot liability.

(3A)The owners corporation may levy an additional annual fee on a lot owner if—

(a)the owners corporation has incurred additional costs arising from the particular use of the lot by the lot owner; and

(b)an annual fee set on the basis of the lot liability of the lot owner would not adequately take account of those additional costs.

(3B)Any additional annual fees under subsection (3A) must be levied on the basis that the lot owner of the lot that benefits more from the use of the lot pays more.

(4)The owners corporation may determine the times for payment of annual fees.

23AOwners corporation may levy fees in relation to insurance

(1)In addition to the annual fees levied under section 23, an owners corporation may levy fees to cover the costs of the premium for reinstatement and replacement insurance taken out in accordance with Division 6 of Part 3.

(2)The fees levied under subsection (1) must be based on lot entitlement.

(3)An owners corporation may levy a lot owner a fee to cover the cost of any of the following—

(a)an excess amount or an increased premium resulting from or attributable to an insurance claim, if the claim is caused by a culpable or wilful act or the gross negligence of—

(i)a lot owner; or

(ii)a lot owner's lessee; or

(iii)a guest of a lot owner or a guest of a lot owner's lessee;

(b)damage to the common property that is caused by a lot owner or a lot owner's lessee where either—

(i)the damage is not covered by insurance; or

(ii)the cost of the damage is less than the excess amount that would have been payable on an insurance claim in relation to the damage;

(c)an excess amount on an insurance claim if the claim solely relates to a lot owner's lot.

(4)The owners corporation may determine the times for payment of fees levied under subsection (1) or (3).

24Extraordinary fees and charges

(1)An owners corporation may levy special fees and charges designed to cover extraordinary items of expenditure.

(2)Subject to subsection (2A), the fees and charges must be based on lot liability.

(2A)Fees and charges for extraordinary items of expenditure relating to repairs, maintenance or other works that are carried out wholly or substantially for the benefit of some or one, but not all, of the lots affected by the owners corporation must be levied on the basis that the lot owner of the lot that benefits more pays more.

(2B)The owners corporation may levy special fees and charges on a lot owner relating to repairs, maintenance and other works arising from the particular use of a lot by the lot owner.

(3)The owners corporation may determine the times for payment of the special fees and charges.

(4)A special resolution is required when exercising a power under subsection (1) if the amount involved is more than twice the total amount of the current annual fees set under section 23.

(5)Subsection (4) does not apply if the fees and charges are levied to pay for or recoup the cost of repairs or maintenance carried out to any part of the property for which the owners corporation is responsible where immediate expenditure is or was necessary to ensure safety or to prevent significant loss or damage to persons or property.

25Power to borrow money

(1)An owners corporation may borrow money—

(a)by ordinary resolution, if the amount borrowed does not exceed the amount of the current annual fees of the owners corporation set under section 23; or

(b)by special resolution in any other case.

(2)An owners corporation may repay money borrowed.

26Power to invest

An owners corporation may invest money.

27Bank account

(1)An owners corporation may establish and operate bank accounts.

(2)Each bank account must be established in the name of the owners corporation.

(3)All fees levied by an owners corporation under this Part must be paid into a bank account of the owners corporation or of the manager of the owners corporation.

28Liability of lot owners

(1)The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution or amount owing to the owners corporation in respect of that lot.

(2)Subjectto sections 24, 49 and 53, a lot owner is not liable to pay or contribute to the funds of the owners corporation a proportion of any amount required to discharge a liability of the owners corporation exceeding the lot owner's lot liability.

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29Penalty interest on arrears

(1)If authorised by a resolution at a general meeting, an owners corporation may charge interest on any amount payable by a lot owner to the owners corporation that is still outstanding after the due date for payment.

(2)The rate of interest charged must not exceed the maximum rate of interest payable under the Penalty Interest Rates Act 1983.

(3)The owners corporation may waive the payment of interest in a particular case.

(4)The owners corporation must report to the annual general meeting on any decision under subsection (3) to waive or not to waive the payment of interest in a particular case and the reasons for that decision.

30Recovery of money owed

(1)Subject to subsection (2), an owners corporation may recover any money owed to the owners corporation in any court of competent jurisdiction as a debt due to the owners corporation.

(2)Sections 31 and 32 and Division 1 of Part 11 apply to the recovery of money owed to the owners corporation by a lot owner.

31Fee notice

(1)The owners corporation must give notice to a lot owner in the approved form of any fees and charges due and payable by the lot owner to the owners corporation (the fee notice).

(2)The fee notice must—

(a)state that the lot owner has an obligation to pay the fees and charges within 28 days after the date of the notice; and

(b)(if applicable) state that interest at the rate specified in the notice will be payable in respect of any overdue fees and charges; and

(c)include details of the dispute resolution process that applies under the rules in respect of disputed fees and charges.

32Final notice

(1)If the money owing is not paid within 28 days after the date of the fee notice, the owners corporation may give a final notice in the approved form to the lot owner.

(2)The final notice must—

(a)state that the lot owner has an obligation to pay the overdue fees and charges and interest immediately; and

(b)(if applicable) state—

(i)the interest that is payable in respect of the overdue fees and charges at the date of the final notice; and

(ii)the amount of interest that will accrue daily until the payment of the overdue fees and charges; and

(c)state that the owners corporation intends to take action under Part 11 to recover the amount due if the overdue fees and charges and interest owing are not paid within 28 days after the date the final notice is given.

Note

Section 163(2) provides that an application to VCAT by the owners corporation for an order requiring a lot owner to pay an amount payable by the lot owner to the owners corporation can only be made if the amount is not paid within 28 days after the final notice is given under section 32.

Division 2—Accounts and audit

33Financial records

(1)An owners corporation must keep proper accounts that—

(a)cover all income and expenditure of the owners corporation and assets and liabilities of the owners corporation; and

(b)provide for the making of true and fair view reports of the financial situation of the owners corporation.

(2)An owners corporation that has an approved maintenance plan must keep separate accounts for its maintenance fund.

34Financial statements

(1)An owners corporation that is a tier one owners corporation, a tier two owners corporation or a tier three owners corporation must prepare annual financial statements for presentation at the general meeting of the owners corporation in accordance with the Australian Accounting Standards.

(2)A tier four owners corporation must prepare annual financial statements for any financial year in which it levies annual fees.

(3)In this section, Australian Accounting Standards has the same meaning as in the Associations Incorporation Reform Act 2012.

Note

Annual financial statements prepared under this section may be either General Purpose Financial Reports or Special Purpose Financial Reports as defined by the Australian Accounting Standards Board.

35Audit of financial statements of owners corporations

(1)A tier one owners corporation must, after the end of each financial year, cause its financial statements to be audited by—

(a)a registered company auditor; or

(b)a firm of registered company auditors; or

(c)a person who is—

(i)a member of CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand; and

(ii)authorised to conduct the audit by CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand.

(2)A tier two owners corporation must, after the end of each financial year, cause its financial statements to be reviewed by an independent person who is a member of, and holds a current practising certificate from—

(a)CPA Australia; or

(b)the Institute of Public Accountants; or

(c)Chartered Accountants Australia and New Zealand.

(3)Despite subsection (2), a tier two owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited after the end of the financial year in accordance with subsection (1).

(4)A tier three owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year.

(5)A tier four owners corporation, or a tier five owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year.

(6)A person who audits the financial statements of an owners corporation must provide the owners corporation with a written report of the audit.

(7)A person who conducts a review of the financial statements of an owners corporation must provide the owners corporation with a written report of the review.

(8)A person must not be engaged to audit or review the financial statements of an owners corporation under this section if the person has a direct or indirect personal or financial interest in the owners corporation.

35AExemption from requirement to audit financial statements

(1)A tier one owners corporation may apply in writing to the Director for an exemption from the requirement to audit its financial statements under section 35(1).

(2)The Director may grant an exemption under subsection (1) subject to any conditions the Director thinks fit.

(3)The Director, at any time, by notice in writing, may vary or revoke an exemption granted under subsection (2).

Division 3—Maintenance plan

36Maintenance plan

(1)A tier one owners corporation or a tier two owners corporation must prepare and approve a maintenance plan for the property for which it is responsible.

(2)A tier three owners corporation, a tier four owners corporation or a tier five owners corporation may prepare and approve a maintenance plan for the property for which it is responsible.

37What must a maintenance plan contain?

(1)The maintenance plan must set out—

(a)the major capital items anticipated to require repair and replacement within the next 10 years; and

(b)the present condition or state of repair of those items; and

(c)when those items or components of those items will need to be repaired or replaced; and

(d)the estimated cost of the repair and replacement of those items or components; and

(e)the expected life of those items or components once repaired or replaced; and

(f)any other prescribed information.

(1A)An owners corporation may, by ordinary resolution, amend an approved maintenance plan.

(2)In this section—

major capital item includes—

(a)a lift; or

(b)an air conditioning plant; or

(c)a heating plant; or

(d)an item of a prescribed class.

38When does a maintenance plan have effect?

(1)A maintenance plan does not have effect unless it is approved by the owners corporation.

(2)In approving a maintenance plan, an owners corporation may set conditions for the payment of money out of the maintenance fund.

39Report on approved maintenance plan

The owners corporation must report to the annual general meeting in relation to the implementation of its approved maintenance plan.

Division 4—Maintenance fund

40Establishment of maintenance fund

An owners corporation that has an approved maintenance plan must establish a maintenance fund in the name of the owners corporation.

*                *                *                *                *

42Payments into maintenance fund

(1)If an owners corporation has established a maintenance fund, the following must be paid into that fund—

(a)any part of the annual fees that is designated as being for the purpose of the approved maintenance plan;

(b)any amounts received under an insurance policy in respect of the damage or destruction of property covered by the approved maintenance plan;

(c)any interest earned on the investment of the money in the fund;

(d)any amounts of a prescribed kind;

(e)any amounts of a kind determined by the owners corporation.

(2)The owners corporation must, by ordinary resolution, determine the amount of the annual fees that under subsection (1)(a) must be paid into the fund.

(3)The amount determined under subsection (2) must be adequate to fund the approved maintenance plan.

43Payments from maintenance fund

Subject to any conditions specified in the regulations and an ordinary resolution of the owners corporation, money may be paid out of the maintenance fund at any time in accordance with the approved maintenance plan.

44Extraordinary payments from maintenance fund

Money may also be paid out of the maintenance fund otherthan in accordance with the approved maintenance plan if the owners corporation by special resolution approves the payment.

45Extraordinary payments for urgent matters

(1)Subject to this section, money may also be paid out of the maintenance fund for an urgent matter.

(2)For the purposes of subsection (1), an urgent matter includes where payments are required—

(a)to comply with an order of a court or VCAT;

(b)to repair or maintain any part of the property for which the owners corporation is responsible where there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage to persons or property;

(c)to repair any part of the property for which the owners corporation is responsible where the need for the repairs could not have been reasonably foreseen in preparing the approved maintenance plan;

(d)to enable the owners corporation to obtain adequate insurance for the property that the owners corporation is required to insure.

(3)Expenditure under this section must not exceed—

(a)the amount necessary for the purpose for which it is expended; or

(b)any limitation imposed by the owners corporation on expenditure under this section.

(4)Expenditure under this section must comply with any other restrictions or requirements imposed by the owners corporation.

(5)The owners corporation must report to the lot owners on any expenditure under this section as soon as possible after the expenditure is made.

Division 5—Asset management

46Owners corporation to repair and maintain common property

An owners corporation must repair and maintain—

(a)the common property; and

(b)the chattels, fixtures, fittings and services related to the common property or its enjoyment.

47Owners corporation must repair and maintain services

(1)An owners corporation must repair and maintain a service in or relating to a lot that is for the benefit of more than one lot and the common property.

(2)An owners corporation may, at the request and expense of a lot owner, repair and maintain a service in or relating to a lot if it is impracticable for the lot owner to repair or maintain that service.

(3)In this section—

service includes a service for which an easement or right is implied over the land affected by the owners corporation or for the benefit of each lot and any common property by section 12(2) of the Subdivision Act 1988.

Note

The easements or rights that may be implied under section 12(2) of the Subdivision Act 1988 are those necessary to provide—

·support, shelter or protection;

·passage or provision of water, sewerage, drainage, gas, electricity, garbage, air or any other service of whatever nature (including telephone, radio, television and data transmission);

·rights of way;

·full, free and uninterrupted access to and use of light for windows, doors or other openings;

·maintenance of overhanging eaves.

47ALot owners must not repair, alter or maintain common property or services

(1)This section is subject to section 56 of the Equal Opportunity Act 2010.

(2)A lot owner must not repair, alter or maintain—

(a)the common property of the owners corporation; or

(b)a service in or relating to a lot that is for the benefit of more than one lot or the common property.

(3)Subsection (2) does not apply if a lot owner has been expressly authorised by the owners corporation to carry out the repairs and maintenance in accordance with section 46 or 47 as an agent of the owners corporation.

48Lots not properly maintained

(1)If a lot owner has refused or failed to carry out repairs, maintenance or other works to the lot owner's lot that are required because—

(a)the outward appearance or outward state of repair of the lot is adversely affected; or

(b)the use and enjoyment of the lots or common property by other lot owners is adversely affected—

the owners corporation may serve a notice on the lot owner requiring the lot owner to carry out the necessary repairs, maintenance or other works.

(2)If a lot owner has been served with a notice under subsection (1), the lot owner must carry out the repairs, maintenance or other works required by the notice within 28 days of the service of the notice.

(3)If a lot owner has been served with a notice under subsection (1) and has not complied with the notice within the required time, the owners corporation may carry out the necessary repairs, maintenance or other works to the lot.

(4)An owners corporation may recover as a debt from a lot owner the cost of repairs, maintenance or other works carried out under subsection (3).

49Cost of repairs, maintenance or other works

(1)An owners corporation may recover as a debt the cost of repairs, maintenance or other works carried out wholly or substantially for the benefit of one or some, but not all, of the lots affected by the owners corporation from the lot owners.

(2)The amount payable by the lot owners is to be calculated on the basis that the lot owner of the lot that benefits more pays more.

(3)The works referred to in this section may be to the common property or a lot.

50When can an owners corporation authorise a person to enter a lot?

(1)An owners corporation may authorise a person to enter a lot or a building on a lot on its behalf to carry out repairs, maintenance or other works in accordance with section 47(1), 47(2) or 48(3).

(2)An owners corporation may authorise a person to enter a lot or a building on a lot where necessary to carry out repairs, maintenance or other works on its behalf on the common property.

51What notice of entry must be given?

(1)The owners corporation must give at least 7 days' notice in writing to the occupier of a lot of its intention to enter the lot unless—

(a)the occupier agrees to a lesser time; or

(b)there is an emergency.

(2)Despite subsection (1), if the lot is occupied under a residential rental agreement within the meaning of the Residential Tenancies Act 1997, the owners corporation must give the same notice to the occupier as that required to be given by a residential rental provider under section 85 of that Act.

(2A)On receiving notice given in accordance with this section, the occupier of the lot must grant entry to the lot or a building on the lot to a person authorised by the owners corporation under section 50.

(3)In this section—

emergency includes—

(a)an interruption to gas, water, electricity, telephone, drainage, sewerage or a similar service; and

(b)a leak or a similar problem requiring prompt attention; and

(c)cracking or a similar structural problem likely to affect the immediate safety of a building or any person.

52Significant alteration to common property requires special resolution

An owners corporation must not make a significant alteration to the use or appearance of the common property unless—

(a)the alteration is—

(i)first approved by a special resolution of the owners corporation; or

(ii)permitted by the maintenance plan; or

(iii)agreed to under section 53; or

(b)there are reasonable grounds to believe that an immediate alteration is necessary to ensure safety or to prevent significant loss or damage.

53Upgrading of common property

(1)An owners corporation may by special resolution approve the carrying out of upgrading works for the common property and the levying of fees on lot owners for that purpose.

(1A)Subject to subsection (1B), the fees must be based on lot liability.

(1B)Fees for upgrading works carried out wholly or substantially for the benefit of some or one, but not all, of the lots affected by the owners corporation must be levied on the basis that the lot owner of the lot that benefits more pays more.

(2)In this section upgrading works means building works for the upgrading, renovation or improvement of the common property where—

(a)the total cost of the works is estimated to be more than twice the total amount of the current annual fees; or

(b)the works require a planning permit or a building permit before they can be carried out—

but does not include works that are provided for in an approved maintenance plan or works referred to in section 4(b).

Division 5A—Disposal of goods abandoned on common property

53AOwners corporation may dispose of goods abandoned on common property

(1)An owners corporation may dispose of the goods abandoned on the common property in accordance with this Division.

(2)Sections 60 to 65 and 73 to 76 of the Australian Consumer Law and Fair Trading Act 2012 apply to the disposal of abandoned goods by an owners corporation as if—

(a)a reference to uncollected goods were a reference to the abandoned goods; and

(b)a reference to the receiver were a reference to the owners corporation; and

(c)a reference to the provider were a reference to the person who abandoned the goods.

53BNotice of intention to dispose of goods abandoned on common property

(1)A notice of the owners corporation's intention to dispose of abandoned goods must be in writing and include—

(a)the plan number and address of the owners corporation; and

(b)a description of the goods; and

(c)an address at which the goods may be collected; and

(d)a statement that on or after a specified date the goods will be disposed of by the owners corporation unless the goods are collected; and

(e)a statement that the owners corporation will retain from the proceeds of sale of the goods an amount not exceeding the cost to dispose of the goods.

(2)A notice of intention may be given to the person who abandoned the goods personally or left at, or sent by post to, the person's last known address.

(3)A notice to a person with a publicly registered interest in the abandoned goods is taken to have been given if it has been sent by post to the person's address in the register in which the interest is registered.

(4)In this section, publicly registered interest has the same meaning as in the Australian Consumer Law and Fair Trading Act 2012.

53CRemoval of goods to safe place

Before disposing of the goods, an owners corporation may move the goods to a safe place, if—

(a)the goods block reasonable access to a lot or the common property; and

(b)the owners corporation has made a reasonable attempt to locate or communicate with the person who abandoned the goods in order to give the person a notice of intention to dispose of abandoned goods.

53DDisposal of goods

An owners corporation must not dispose of the goods if—

(a)a dispute exists between the person who abandoned the goods and the owners corporation in relation to the goods; and

(b)an application has been made to VCAT by the owners corporation in relation to the dispute.

53EOwners corporation not liable in relation to disposed goods

An owners corporation that disposes of goods under this Division is not liable in relation to the goods by reason of the disposal.

Division 6—Insurance

54What is an insurable building?

In this Division—

building includes any building on the plan of subdivision and—

(a)any improvements and fixtures forming part of the building; and

(ab)any shared services; and

(b)anything prescribed as forming part of a building—

but does not include—

(c)carpet and temporary floor, wall and ceiling coverings; or

(d)fixtures removable by a lessee at the end of a lease; or

(e)anything prescribed as not forming part of a building;

shared services includes any pipes or cables used to provide services including water, electricity, gas and telecommunications to the building that are shared with a person other than the owners corporation or any of its members.

55Members may take out insurance

Nothing in this Act or the regulations limits the right of a lot owner to effect a policy of insurance in respect of destruction of or damage to the lot owner's lot or the lot owner's interest in the common property.

56Owners corporation has insurable interest

An owners corporation must be taken to have an insurable interest in the land affected by the owners corporation.

57Amount payable under owners corporation insurance

In calculating any amount payable under an insurance policy taken out by an owners corporation, any amount payable under an insurance policy taken out by a lot owner over that lot or the lot owner's interest in the common property must be disregarded.

58Insurance if lot mortgaged

(1)If an owners corporation has taken out an insurance policy over the land affected by the owners corporation, a mortgagee of a lot affected by the owners corporation must not require the lot owner to take out an insurance policy over the lot and the lot owner's interest in the common property unless—

(a)the mortgagee's interest is noted on the owners corporation's policy; and

(b)the sum insured in respect of the lot and interest in the common property under the owners corporation's policy is less than the sum owing under the mortgage and the extra insurance is for the amount of the difference.

(2)A requirement that contravenes subsection (1) is void.

(3)The following provisions apply where an owner's corporation has taken out an insurance policy and the lot owner has mortgaged the lot owner's lot and interest in the common property and the mortgagee's interest is noted on the policy—

(a)if the lot owner's property is damaged or destroyed and is not to be reinstated, the insurer must pay to the mortgagee the amount owing under the mortgage (up to the sum insured in respect of the lot and interest in the common property) and, if there is a surplus, pay the balance to the lot owner;

(b)if the owner's property is damaged or destroyed and is to be reinstated, the insurer must pay for the reinstatement up to the sum insured in respect of the lot and interest in the common property.

59Reinstatement and replacement insurance

(1)An owners corporation must take out reinstatement and replacement insurance for all buildings on the common property in accordance with this Division.

(2)The insurance required under subsection (1) is insurance for damage to property under which the owners corporation insures for—

(a)the cost necessary to replace, repair or rebuild the property to a condition substantially the same, but not better or more extensive than its condition when new; and

(b)the payment of expenses necessarily and reasonably incurred in the removal of debris and the remuneration of architects and other persons whose services are necessary, being incidental to the replacement, repair or rebuilding of the damaged property.

(2A)The insurance required under subsection (1) includes reinstatement and replacement insurance for the owners corporation's portion of any shared services.

(3)The owners corporation must ensure that the insurance required under subsection (1) includes—

(a)a provision that the interests of mortgagees are noted; and

(b)a provision that a mortgagee whose interest is noted shall be given the notices that are required under section 59 of the Insurance Contracts Act 1984 of the Commonwealth at the same time that those notices are given to the insured; and

(c)a provision that the insurer cannot avoid the whole contract for breach of a condition of the contract unless the breach is by the owners corporation or all lot owners, but the insurer has a right of indemnity against those lot owners who breach the contract.

60Public liability insurance

(1)An owners corporation must take out public liability insurance for the common property in accordance with this section.

(2)The public liability insurance required under subsection (1) is insurance for any liability of the owners corporation to pay compensation in respect of—

(a)any bodily injury to or death or illness of a person; and

(b)any damage to or loss of property—

which is sustained as a result of an occurrence or happening in connection with the common property.

(3)The owners corporation must ensure that, in the insurance which the owners corporation has under subsection (2), the limit of liability is a minimum of $20 000 000, or if another amount is prescribed, that other amount, in any one claim and in the aggregate during any one period of insurance.

61Insurance for lots in multi-level developments

(1)If a building on a plan of subdivision is located above or below common property, a reserve or a lot, the owners corporation must take out the following insurance in respect of all lots in the plan—

(a)reinstatement and replacement insurance for all buildings on each lot in accordance with section 59; and

(b)public liability insurance in accordance with section 60—

as if any reference in those sections to common property were a reference to those lots.

(2)Subsection (1) does not apply to—

(a)a single-storey building; or

(b)a plan of subdivision that was registered under the Cluster Titles Act 1974 or the Strata Titles Act 1967 unless one or more lots in the plan is located above another lot in the plan.

(3)If a plan of subdivision has separate buildings and either—

(a)one or more of those buildings is a multi-level development and each multi-level development has its own owners corporation (including a tier one owners corporation); or

(b)one of those buildings is a multi-level development with its own owners corporation (including a tier one owners corporation)—

the owners corporation of the multi-level development must only take out reinstatement and replacement insurance and public liability insurance in respect of the multi-level development on the plan of subdivision for which that owners corporation is liable.

Note

See also section 64.

61AInsurance for multiple single dwellings on a plan of subdivision

An owners corporation on a plan of subdivision for multiple single dwellings with common property may, by unanimous resolution, resolve that the lot owner of each single dwelling is responsible to insure their lot.

62Owners corporation may have additional insurance

An owners corporation may, by ordinary resolution, resolve to insure any additional insurable interest—

(a)in the land affected by the owners corporation; and

(b)relating to the performance of its functions.

63Insurance not required where there is no common property

By unanimous resolution, an owners corporation may resolve that, if there is no common property, each lot owner must arrange for the lot owner's own insurance.

64Insurance not required where another owners corporation has insured

This Division does not apply to an owners corporation if the land affected by the owners corporation is affected by another owners corporation which has the insurance required by this Division.

65Valuation of buildings

(1)An owners corporation must obtain a valuation of all buildings that it is liable to insure.

Note

A tier five owners corporation is exempt from compliance with this section. See sections 7A and 8.

(1A)An owners corporation of a multi-level development referred to in section 61(3) must only obtain a valuation of the multi‑level development on the plan of subdivision for which it is liable to insure.

(2)The valuation must be obtained every 5 years or earlier as determined by the owners corporation.

(3)The owners corporation must present the valuer's report at the next general meeting after it is received.

PART 4—MEETINGS AND DECISIONS OF OWNERS CORPORATION

Division 1—First meeting of owners corporation

66When must the first meeting be held?

The applicant for registration of a plan of subdivision which provides for the creation of an owners corporation must convene the first meeting of the owners corporation within 6 months of the registration of the plan.

67What documents must be provided at the first meeting?

(1)At the first meeting of the owners corporation the applicant for registration of the plan of subdivision must provide all of the following for the purposes of the owners corporation—

(a)the owners corporation register;

(b)any accounts or records made on behalf of the owners corporation;

(c)books to enable the owners corporation to keep the necessary minutes, accounts and other records;

(d)a maintenance plan;

(da)a building manual approved by a relevant building surveyor under section 41B(1) of the Building Act 1993;

(e)a copy of the plan of subdivision and all related building plans, planning documents and other similar documents;

(f)a copy of this Act and the regulations and the Subdivision Act 1988 and the regulations under that Act;

(g)any contracts, leases and licences binding on or benefiting the owners corporation;

(h)any insurance policies in force in relation to the property, including any insurance policy taken out under section 9AAA of the Sale of Land Act 1962;

(i)the names of the companies, tradespeople or suppliers who provided a warranty or other guarantee on any matter for which the owners corporation is responsible and copies of those warranties and guarantees;

(j)the building maintenance manual;

(k)an asset register;

(l)copies of any warranties or, if copies are not able to be provided, details of any warranties;

(m)copies of any specifications, reports, certificates, permits, notices or orders in relation to the plan of subdivision.

(2)For the purposes of section 67(1)(l), a warranty must be assigned to the owners corporation if—

(a)the warranty holder is the sole beneficiary of the terms of the warranty; and

(b)the warranty is capable of being assigned to the owners corporation.

67AWhat must be disclosed at the first meeting?

At the first meeting of the owners corporation the applicant for registration of the plan of subdivision must disclose—

(a)any relationship with the manager of the owners corporation; and

(b)any immediate or future financial transactions that will, or will foreseeably, arise out of the relationship with the manager of the owners corporation and any specific benefits which flow to the applicant for registration as a result of that relationship.

67BContract entered into by applicant for registration of the plan of subdivision prior to first meeting

(1)If the applicant for registration of the plan of subdivision appoints a third party manager prior to the first meeting of the owners corporation, the contract of appointment of the third party manager expires at that first meeting.

(2)If the applicant for registration of the plan of subdivision enters into any other contract (other than a contract of appointment) that relates to the owners corporation and benefits the applicant for registration, any term of that contract must not exceed 3 years in duration, unless the term is in a contract that is a hotel and resort management contract that complies with the prescribed requirements (if any).

(3)In this section—

third party manager means a person appointed as the manager who is neither an initial owner or a lot owner of the owners corporation.

67CMinutes of first meetings

(1)The owners corporation must arrange for minutes to be kept of the first meeting of the owners corporation.

(2)The minimum information to be recorded in the minutes for the first meeting is the information referred to in section 81(2).

(3)Any disclosure made under section 67A must be recorded in the minutes of the first meeting.

68Obligations of initial owner

(1)Subject to subsection (3), the initial owner of land affected by an owners corporation must act honestly and in good faith and with due care and diligence in the interests of the owners corporation in exercising any rights under this Act.

(2)Subject to subsections (3) and (4), the initial owner of land affected by an owners corporation must take all reasonable steps to enforce any domestic building contract (within the meaning of the Domestic Building Contracts Act 1995) entered into by the initial owner in respect of land in the plan of subdivision providing for the creation of the owners corporation.

(3)Subsections (1) and (2) apply to an initial owner only while the initial owner is the owner of a lot to which is, or the lots to which are, attached the majority of the lot entitlements of the lots affected by the owners corporation and only until the end of the period of 10 years following the registration of the plan of subdivision.

(4)Subsection (2) applies only to the enforcement of a breach of contract—

(a)to the extent that it relates to the common property affected by the owners corporation; and

(b)of which the initial owner is aware or ought reasonably to be aware.

(4A)The initial owner of land affected by an owners corporation or an associate of the initial owner must not—

(a)be appointed as the manager of the owners corporation; or

(b)vote on any resolution of the owners corporation that relates to a defect in or on a building on the plan of subdivision.

(4B)The initial owner of land affected by an owners corporation must not—

(a)propose an annual budget of the owners corporation that is unreasonable or unsustainable; or

(b)designate as a private lot what normally would be common property or services; or

(c)receive any payment from the manager of the owners corporation in relation to the manager's contract of appointment.

(5)In this section—

associate, of the initial owner, means—

(a)a director of the initial owner; or

(b)an employee or agent of the initial owner; or

(c)a spouse, domestic partner, parent, brother, sister or child of the initial owner or the initial owner's representative; or

(d)a child of the spouse or domestic partner of the initial owner or the initial owner's representative;

initial owner means the person who was the applicant for the registration of the plan of subdivision.

Division 2—Annual general meeting

69Annual general meeting

(1)An owners corporation must have an annual general meeting if it receives or pays out money in any financial year.

(2)The time between the annual general meetings must not exceed 15 months.

Note

Section 100 provides for the election of a committee of the owners corporation at the annual general meeting.

(b)if the person becomes an insolvent under administration, the assignee, trustee or receiver of the person;

(c)if the person becomes a represented person within the meaning of the Guardianship and Administration Act 2019, the guardian or administrator of the person or any person nominated by the guardian or administrator;

(d)if the person becomes an externally-administered body corporate, the liquidator, official manager, receiver, receiver and manager or other external administrator.

(2)If a person authorised to carry on a business applies to the Business Licensing Authority within the 60 day period for permission to carry on the business for a longer period, the person may continue to carry on the business until the Authority makes a decision on the application.

(3)The Business Licensing Authority may grant an application if it is satisfied that it is not contrary to the public interest to do so.

(4)In granting its permission, the Authority may limit it in any way it thinks appropriate and may impose any conditions it thinks appropriate to ensure the ongoing protection of the public interest.

(5)A person who carries on a management business under this section is deemed to be a registered manager for the purposes of this Act.

188If details given in application or annual statement change

If, before a decision is made under section 182 to register a person as a manager or while a registration is in force, a material change occurs in any of the details provided in the application for registration or in the last statement lodged by a person under section 183, the person must give the Business Licensing Authority written details of the change within 14 days after the person becomes aware of the change.

Penalty:10 penalty units.

189Offence to supply false or misleading information

A person who is required under this Part to give any information or document to the Business Licensing Authority must not—

(a)give information that the person believes to be false or misleading in a material particular; or

(b)produce a document that the person knows to be false or misleading in a material particular without indicating the respect in which it is false or misleading and, if practicable, providing correct information.

Penalty:60 penalty units.

190Cancellation of registration if false information is given

The Business Licensing Authority may cancel the registration of a manager if the Authority believes on reasonable grounds that the manager has obtained that registration by providing false or misleading information.

191Application for review

(1)A person whose interests are affected by a decision of the Business Licensing Authority under this Act may apply to VCAT for a review of the decision.

(2)An application for review must be made within 28 days after the later of—

(a)the day on which the decision is made; or

(b)if, under the Victorian Civil and Administrative Tribunal Act 1998, the person requests a statement of reasons for the decision, the day on which the statement of reasons is given to the person or the person is informed under section 46(5) of that Act that a statement of reasons will not be given.

Division 2—Register of managers

192Register of managers

The Licensing Registrar must keep a register of managers in the form determined by the Licensing Registrar.

193Purposes of register of managers

The purposes of keeping the register of managers are—

(a)to enable lot owners and members of the public to have access to information about registered managers; and

(b)to record details of the professional indemnity insurance held by registered managers; and

(c)to provide the Director and the Business Licensing Authority with information enabling them to contact registered managers to inform them of changes in legal requirements affecting them; and

(d)to provide the Director and the Business Licensing Authority with information in relation to owners corporations managed by a registered manager to enable them to contact the owners corporations in relation to the activities of the manager.

194What must the register of managers contain?

The register of managers must contain information that is available to the Business Licensing Authority on the following in relation to each person registered as a manager under this Part—

(a)the registration number issued by the Business Licensing Authority;

(b)the name of the person;

(c)if the person is a natural person, the person's address for service, telephone number and email address (if any);

(d)if the person is a corporation—

(i)the corporate name (including the ACN);

(ii)the address of its registered office or its address for service if this is different from its registered office;

(iii)the telephone number and email address (if any);

(iv)the name of each director of the corporation;

(e)all business names under which the person carries on a management business;

(f)the Australian Business Number (if any) issued under the A New Tax System (Australian Business Number) Act 1999 of the Commonwealth issued to the person;

(g)the Internet site address maintained by the person for the purposes of the management business (if any);

(h)current details of the professional indemnity insurance held by the person;

(i)any orders of VCAT under this Act relating to the person as a manager, including orders for appointment or removal of the person as manager;

(j)any undertakings given to the Director under this Act or the Australian Consumer Law and Fair Trading Act 2012;

(k)the date of grant, surrender or cancellation of registration;

(l)any other prescribed information.

195Inspection of register of managers

A person in accordance with the regulations (if any) and on payment of the prescribed fee (if any) may—

(a)inspect the register of managers; and

(b)obtain copies of, or extracts from, the register of managers.

196Removal of information from register of managers

Subject to the Public Records Act 1973, the Licensing Registrar, if in his or her opinion it is no longer necessary or desirable to retain it, may remove any information from the register of managers 12 years after the information was added to the register.

197Duty of Licensing Registrar

In the exercise and performance of his or her duties under this Part the Licensing Registrar must act on any information that appears to the Licensing Registrar sufficient in each case.

Division 3—General

198Provision of information for the purposes of this Act

Despite anything to the contrary in section 18 of the Business Licensing Authority Act 1998, for the purposes of determining compliance with this Act and for carrying out the functions of the Business Licensing Authority or the Director under this Act—

(a)the Authority may disclose to the Director, any information collected in the course of carrying out the Authority's functions under this Act; and

(b)the Director may disclose to the Authority any information collected in the course of carrying out the Director's functions under this Act.

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PART 13—GENERAL

199Application of Australian Consumer Law and Fair Trading Act 2012

(1)Part 6.4 of the Australian Consumer Lawand Fair Trading Act 2012 (except sections 152, 153 and 175) extends and applies (with any necessary modifications) to this Act as if any reference in that Part to the Australian Consumer Law and Fair Trading Act 2012 were a reference to this Act and any regulations made under this Act.

(2)Sections 125, 195 and 196 and Part 8.2 (except section 213) of the Australian Consumer Law and Fair Trading Act 2012 extend and apply (with any necessary modifications) to this Act as if anyreference in those provisions to the Australian Consumer Law and Fair Trading Act 2012 were a reference to thisAct and any regulations made under this Act.

(3)For the purposes of subsection (2)—

(a)section 210 of the Australian Consumer Law and Fair Trading Act 2012 applies as if a reference in that section to Part 3.1 or Part 6.3 of the Australian Consumer Law and Fair Trading Act 2012 were a reference to this Act and any regulations made under this Act; and

(b)section 212 of the Australian Consumer Law and Fair Trading Act 2012 applies as if a reference in that section to prescribed proceedings were a reference to—

(i)proceedings for an offence against a provision of this Act or any regulations made under this Act (except an offence applied by subsection (1)); or

(ii)proceedings on an application for an injunction under section 201, 202 or 203 of the Australian Consumer Law and Fair Trading Act 2012 (as applied by subsection (2)) against a person alleged to have contravened a provision of this Act or any regulations made under this Act (except an offence applied by subsection (1)); or

(iii)proceedings on an application for an order under section 216, or for damages under section 217, of the Australian Consumer Law and Fair Trading Act 2012 (as applied by subsection (2)).

200Approved forms

(1)The Director may from time to time approve forms for the purposes of this Act.

(2)The Director must publish a copy of each approved form on the Internet site for the Department.

200AManner in which documents may be given to or served on owners corporation

(1)Any document under this Act required to be given to an owners corporation may be given to the owners corporation—

(a)by leaving it with the chairperson or secretary of the owners corporation or a member of the committee of the owners corporation; or

(b)by leaving it in the letterbox of the owners corporation at the address of the owners corporation recorded in the owners corporation register; or

(c)by posting it, by prepaid mail, to the owners corporation at the address of the owners corporation recorded in the owners corporation register; or

(d)by sending it by electronic transmission to an address or location nominated by the chairperson or the secretary of the owners corporation or a member of the committee of the owners corporation.

(2)Any document under this Act required to be served on an owners corporation may be served on the owners corporation—

(a)by leaving it with—

(i)the chairperson or the secretary of the owners corporation; or

(ii)a member of the committee of the owners corporation; or

(iii)the manager of the owners corporation (if any); or

(b)by posting it, by prepaid mail, to the owners corporation at the address of the owners corporation recorded in the owners corporation register.

201Money to be paid to Victorian Property Fund

The following money must be paid into the Victorian Property Fund under the Estate Agents Act 1980—

(a)all fees payable to the Authority under this Act;

(b)all penalties (other than a civil penalty under section 166) payable under this Act.

202Certain provisions of contracts void

A provision of a contract is void to the extent that it purports to exclude, modify or restrict the operation of this Act.

203Who may commence a proceeding for offences?

(1)Proceedings for an offence against this Act may only be commenced by—

(a)the Director; or

(b)a person authorised by the Director for the purposes of this section.

(2)In any proceeding for an offence against this Act it must be presumed, in the absence of evidence to the contrary, that the person commencing the proceeding was authorised to commence the proceeding.

203AInfringement notices

(1)An authorised officer may serve an infringement notice on any person who the officer has reason to believe has committed an offence against this Act that is prescribed for the purposes of this subsection.

(2)An offence referred to in subsection (1) for which an infringement notice may be served is an infringement offence within the meaning of the Infringements Act 2006.

(3)The infringement penalty for an offence prescribed for the purposes of subsection (1) is the prescribed infringement penalty.

(4)In this section authorised officer means—

(a)an inspector;

(b)a police officer;

(c)a person authorised in writing by the Director.

204Regulation-making powers

(1)The Governor in Council may make regulations for or with respect to—

(a)regulating and requiring the taking out of insurance by an owners corporation and lot owners of an owners corporation including but not limited to—

(i)prescribing terms to be contained in insurance policies in relation to lots or common property; and

(ii)requiring the noting of mortgagees' interests on insurance policies taken out by owners corporations; and

(iii)prescribing the manner of indexing the sum insured for any particular class of insurance; and

(iv)prescribing approved insurers;

(b)requiring documents or information required to be kept under this Act to be lodged with the Registrar of Titles;

(c)requiring records or registers to be kept and prescribing the content and manner of keeping records or registers under this Act or the regulations;

(d)prescribing model rules for the purposes of this Act;

(da)prescribing fees generally under this Act;

(db)prescribing the fees that may be imposed by an owners corporation for the provision of an owners corporation certificate;

(dc)prescribing for the purposes of section 67B(2) requirements for or in relation to hotel and resort management contracts or classes of hotel and resort management contracts, including but not limited to—

(i)restricting the duration of those contracts;

(ii)limiting or placing parameters on fees and charges under those contracts or increases on those fees and charges;

(iii)prohibiting or regulating the inclusion of specified terms or conditions in those contracts;

(dd)prescribing courses or examinations to be completed by natural persons to be eligible to register under Part 12;

(de)for the purposes of section 179, exempting any person or class of persons from the requirement to complete prescribed courses or examinations to be eligible to register under Part 12;

(df)prescribing continuing professional development requirements for managers who are natural persons and registered officers in effective control;

(dg)prescribing records to be kept by managers who are natural persons and registered officers in effective control of continuing professional development activities undertaken for the purposes of this Act;

(e)providing for any other matter that is authorised or required to be prescribed or necessary to be prescribed to carry out this Act.

(2)The regulations may—

(a)differ according to differences in time, place and circumstance; and

(b)leave any matter to be determined by the Director or the Authority.

(3)The regulations may apply, adopt or incorporate any document, code, standard, rule, specification or method formulated, issued, prescribed or published by any authority or body whether—

(a)wholly or partially or as amended by the regulations; or

(b)as formulated, issued, prescribed or published at the time the regulations are made or at any time before then; or

(c)as formulated, issued, prescribed or published from time to time.

(4)A power conferred by subsection (1) to make regulations providing for the imposition of fees for the provision of an owners corporation certificate may be exercised by providing for all or any of the following matters—

(a)specific fees;

(b)maximum fees;

(c)minimum fees;

(d)fees that vary according to value, time, complexity or urgency;

(e)fees that vary based on the number and regularity of requests made by a person;

(f)differential fees for different classes of request or based on the number of lots in a property.

205Transitional and savings provisions

Schedule 2 has effect.

PART 14—TRANSITIONAL AND SAVINGS PROVISIONS—OWNERS CORPORATIONS AND OTHER ACTS AMENDMENT ACT 2021

206Definitions

In this Part—

2021 Actmeans the Owners Corporations and Other Acts Amendment Act 2021;

commencement day means the day on which Parts 2 and 3 of the 2021 Act come into operation.

207Requirement to have maintenance plan

Section 36(1) as substituted by the 2021 Act does not apply to—

(a)a tier one owners corporation until 12 months after the commencement day; or

(b)a tier two owners corporation until 24 months after the commencement day.

208Term of contract of appointment void

(1)This section applies to a contract of appointment of the manager of an owners corporation that is entered into or renewed by the owners corporation on or after the commencement day.

(2)If a contract of appointment includes any of the terms referred to in section 119A(1) as inserted by the 2021 Act, that term is void on and after the commencement day.

209Financial statements

(1)Section 34 as substituted by the 2021 Act and sections 35 and 35A as substituted and inserted by the 2021 Act apply only in relation to a financial year commencing on or after the commencement day.

(2)Sections 34 and 35 as in force immediately before the commencement day, continue to apply in relation to a financial year that commenced before the commencement day.

210Review of amendments made by 2021 Act

(1)The Minister must cause a review of the operation of the amendments made to this Act by the 2021 Act to be undertaken.

(2)The review must commence at least 2 years after the commencement day and no later than 5 years after the commencement day.

(3)The review must review the operation of the amendments made to this Act by the 2021 Act in accordance with the terms of reference determined by the Minister, including how this Act as amended has operated and whether further or other amendments are required.

(4)The person appointed by the Minister to conduct the review must provide a written report to the Minister.

(5)The Minister must cause a copy of the review to be tabled before each House of the Parliament as soon as practicable after the review is completed.

(6)This section is repealed on 1 December 2027.

PART 15—TRANSITIONAL AND SAVINGS PROVISIONS—CONSUMER AND PLANNING LEGISLATION AMENDMENT (HOUSING STATEMENT REFORM) ACT 2025

211Definitions

In this Part—

amending Act means the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025;

commencement day means the day on which Division 1 of Part 4 of the amending Act commences.

212Registration—courses or examinations

(1)A natural person who is registered as a manager under Part 12 before the commencement day must complete any courses or examinations prescribed for the purposes of section 179 by 30 June 2027.

(2)Despite the amendments to section 179 by the amending Act, a natural person who applies for registration as a manager under Part 12 on or after the commencement day and until 30 June 2027 is not ineligible to be registered under that Part merely because the person has not completed any courses or examinations prescribed for the purposes of section 179.

(3)A natural person who is first registered as a manager under Part 12 on or after the commencement day and until 30 June 2027 must complete any courses or examinations prescribed for the purposes of section 179(e) on or before 30 June 2027.

(4)A natural person who is registered as a manager under Part 12 before 30 June 2027 must give the Business Licensing Authority evidence of completion of any courses or examinations required under subsection (1) or (3) on or before 1 August 2027.

(5)The Business Licensing Authority may suspend or cancel the registration of a natural person if the person has not completed any courses or examinations prescribed for the purposes of section 179 on or before 30 June 2027.

(6)Despite the amendments made to Part 12 by Division 1 of Part 4 of the amending Act, a corporate manager who is registered under Part 12 before 30 June 2027 is not required to appoint an officer in effective control until 1 August 2027.

(7)Despite the amendments made to Part 12 by Division 1 of Part 4 of the amending Act, an officer in effective control that is appointed by a corporate manager referred to in subsection (6) is not required to apply to be registered as an officer in effective control under Part 12 until 1 August 2027.

213Transitional regulations—Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025

(1)The Governor in Council may make regulations containing provisions of a transitional nature, including matters of an application or savings nature, arising as a result of the enactment of Part 4 of the amending Act, including any repeals and amendments made as a result of the enactment of that Part.

(2)Regulations made under this section may—

(a)have a retrospective effect to a day that is not before the day on which the amending Act receives the Royal Assent; and

(b)be of limited or general application; and

(c)differ according to time, place or circumstance; and

(d)leave any matter or thing to be decided by a specified person or class of person.

(3)Regulations under this section have effect despite anything to the contrary in any Act (other than Part 4 of the amending Act or the Charter of Human Rights and Responsibilities Act 2006) or in any subordinate instrument.

(4)This section is repealed on the second anniversary of its commencement.

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SCHEDULES

SCHEDULE 1—POWER TO MAKE RULES OF OWNERS CORPORATION

Section 138(1)

1Health, safety and security

1.1Health, safety and security of lot owners, occupiers of lots and guests.

1.2Safety of children, including their exclusion from areas that may be unsafe for them or restricting activities that may be unsafe.

1.3Storage of flammable liquids and other dangerous substances and materials.

1.4Waste disposal.

1.5Requiring advice to be given to occupiers about fire safety procedures and the operation of fire alarm systems.

2Committees and sub-committees

2.1Functions, powers and reporting of committees and sub-committees.

2.2Functions of the chairperson and secretary.

2.3Financial controls for committees, sub-committees and delegates.

3Management and administration

3.1Management and administration of common property and services.

3.2Functions of manager.

3.3Repair and maintenance of common property and services.

3.4Metering of services and apportioning of costs of services.

3.5Payment of fees by instalments by lot owners in financial difficulty.

4Use of common property

4.1Use of and access to common property.

4.2Use of and access to equipment, services and amenities on common property.

4.3Vehicles and parking on common property.

4.4Drying of laundry on common property or external or visible areas of lots.

4.5Damage to common property (but not preventing the installation of insect screens or safety lock devices).

4.6Deposit of rubbish and other material on common property.

5Lots

5.1Change of use of lots.

5.2External appearance of lots.

5.3Requiring notice to the owners corporation of renovations to lots.

5.4Times within which work on lots can be carried out.

5.5Prohibition on use of lots as short-stay accommodation (but not prohibiting an owner of a lot, or a lessee or sub-lessee of the owner of a lot, from providing a lot as short-stay accommodation if that person occupies the lot as their principal place of residence).

6Design

Design, construction and landscaping.

7Behaviour of persons

7.1Behaviour of owners, occupiers and guests on common property.

7.2Noise and other nuisance control.

7.3Regulating or prohibiting the drifting of tobacco smoke from a lot in a multi-level development.

8Dispute resolution

Dispute resolution, including internal grievance procedures, hearing procedures and communication procedures.

9Notices and documents

9.1Notices, noticeboards and advertising.

9.2Fees for provision of copies of rules, records and owners corporation register.

9.3Notices about fees and charges.

10Common seal

If the owners corporation uses a common seal, the use of the common seal.

SCHEDULE 2—TRANSITIONAL AND SAVINGS PROVISIONS

Section 205

1Definitions

In this Schedule—

commencement day means the day on which section 211 of the new Act comes into operation;

Subdivision Act means Subdivision Act 1988;

subdivision body corporate has the same meaning as body corporate has in the Subdivision Act as in force immediately before the commencement day;

Subdivision Regulations means the Subdivision (Body Corporate) Regulations 2001;

new Act means Owners Corporations Act 2006.

2General transitional provisions

(1)This Schedule does not affect or take away from the Interpretation of Legislation Act 1984.

(2)This Schedule applies despite anything to the contrary in any other provision of the new Act.

3Subdivision bodies corporate deemed to be owners corporations

On and from the commencement day, a subdivision body corporate is deemed to be an owners corporation within the meaning of the Subdivision Act as amended by the new Act and to be the same body despite that change.

4References to subdivision bodies corporate

On and from the commencement day unless the context otherwise requires, in any Act (other than the new Act), or in any instrument made under any Act or in any other document of any kind, a reference to a subdivision body corporate (however described) must be read as a reference to an owners corporation.

5Rules of body corporate

Any rules of a subdivision body corporate in force immediately before the commencement day, continue in force on and after that commencement and are deemed to be rules of the owners corporation under the new Act to the extent that they are not inconsistent with the new Act or the regulations under the new Act.

6Body corporate certificate

A body corporate certificate issued under the Subdivision Regulations and existing immediately before the commencement day is deemed to be an owners corporation certificate under the new Act.

7Committees

A committee or sub-committee of a body corporate under the Subdivision Regulations and existing immediately before the commencement day is deemed on that commencement to be a committee or sub-committee established by the relevant owners corporation under the new Act.

8Resolutions

(1)A resolution of a body corporate in force immediately before the commencement day continues in force (until amended or revoked) to the extent that it is not inconsistent with the new Act or the regulations under the new Act or the Subdivision Act as amended by the new Act.

(2)A postal ballot commenced under the Subdivision Regulations but not completed before the commencement day may be completed on or after the commencement day despite anything to the contrary in this Act and any resolution resulting from that postal ballot takes effect as a resolution of the owners corporation to the extent that it is not inconsistent with the new Act or the regulations under the new Act or the Subdivision Act as amended by the new Act.

(3)Any delegation made by a subdivision body corporate and existing immediately before the commencement day continues in force as a delegation under the new Act until—

(a)if it is inconsistent with the new Act, the first annual general meeting of the owners corporation after the commencement day; and

(b)in any other case, it is revoked by the owners corporation under the new Act.

9Managers

(1)Despite section 178, a person who was a manager of a subdivision body corporate for fee or reward immediately before the commencement day may continue to act as the manager of an owners corporation for the period of 3 months after the commencement day without being registered under Part 12.

(2)Despite section 178, a person who was a manager of a subdivision body corporate for fee or reward immediately before the commencement day and who applies to the Business Licensing Authority, before the end of the period of 3 months after the commencement day, for registration under Part 12 may, without being registered under Part 12, continue to act as the manager of an owners corporation until the application is finally determined.

10Administrators

Any administrator of a subdivision body corporate appointed by the Supreme Court or the County Court under section 38 of the Subdivision Act before its repeal by the new Act continues as administrator of the owners corporation and for that purpose section 38 continues to apply despite its repeal.

11Transitional regulations

(1)The regulations may contain provisions of a savings and transitional nature consequent on the enactment of this Act.

(2)Regulations under this clause may have retrospective effect to a day on or after the day on which this Act receives Royal Assent.

(3)Regulations under this clause have effect despite anything to the contrary in any Act (other than this Act) or in any subordinate instrument.

12Saving of certain delegations

A delegation under section 11 is not invalid merely because of the commencement of section 5 of the Consumer Acts Amendment Act 2011.

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 20 July 2006

Legislative Council: 12 September 2006

The long title for the Bill for this Act was "to provide for the management, powers and functions of owners corporations and for appropriate mechanisms for the resolution of disputes relating to owners corporations, to amend the Subdivision Act 1988 in relation to the creation of owners corporations, to amend other Acts and for other purposes."

The Owners Corporations Act 2006 was assented to on 19 September 2006 and came into operation on 31 December 2007: section 2(2).

INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes

Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.

References to ILA s. 39B

Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original section or clause.

Interpretation

As from 1 January 2001, amendments to section 36 of the ILA have the following effects:

•     Headings

All headings included in an Act which is passed on or after 1 January 2001 form part of that Act.  Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act.  This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms.  See section 36(1A)(2A).

•     Examples, diagrams or notes

All examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act.  Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act.  See section 36(3A).

•     Punctuation

All punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act.  Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act.  See section 36(3B).

•     Provision numbers

All provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001.  Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs.  See section 36(3C).

•     Location of "legislative items"

A "legislative item" is a penalty, an example or a note.  As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision.  For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision.  See section 36B.

•     Other material

Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act. 
See section 36(3)(3D)(3E).

2   Table of Amendments

This publication incorporates amendments made to the Owners Corporations Act 2006 by Acts and subordinate instruments.

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Fair Trading and Consumer Acts Further Amendment Act 2008, No. 2/2008

Assent Date:	11.2.08
Commencement Date:	Ss 12–22 on 12.2.08: s. 2(1)
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Consumer Affairs Legislation Amendment Act 2010, No. 1/2010 (as amended by Nos 63/2010, 36/2011)

Assent Date:	9.2.10
Commencement Date:	Ss 28, 29, 92 on 1.8.10: Government Gazette 22.7.10 p. 1628; ss 21–27, 30–32, 34, 35, 37–40 on 1.1.11: Government Gazette 14.10.10 p. 2404; s. 36 on 1.9.11: s. 2(5); s. 33 never proclaimed, repealed by No. 36/2011 s. 35(1)
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Consumer Affairs Legislation Amendment (Reform) Act 2010, No. 63/2010

Assent Date:	28.9.10
Commencement Date:	S. 62 on 1.11.10: Government Gazette 14.10.10 p. 2404; s. 77(3) on 1.1.11: Government Gazette 14.10.10 p. 2404; s. 77(1)(2) never proclaimed, repealed by No. 36/2011 s. 26
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Fair Trading Amendment (Australian Consumer Law) Act 2010, No. 72/2010

Assent Date:	19.10.10
Commencement Date:	S. 48(Sch. item 17) on 1.1.11: Special Gazette (No. 502) 20.12.10 p. 1
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Consumer Acts Amendment Act 2011, No. 36/2011

Assent Date:	23.8.11
Commencement Date:	Ss 5–14 on 24.8.11: s. 2(1)
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Australian Consumer Law and Fair Trading Act 2012, No. 21/2012

Assent Date:	8.5.12
Commencement Date:	S. 239(Sch. 6 item 33) on 1.7.12: Special Gazette (No. 214) 28.6.12 p. 1
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Owners Corporations Amendment Act 2013, No. 78/2013

Assent Date:	17.12.13
Commencement Date:	18.12.13: s. 2
CurrentState:	All of Act in operation

Sale of Land Amendment Act 2014, No. 33/2014

Assent Date:	13.5.14
Commencement Date:	S. 8 on 14.5.14: s. 2(1); s. 7 on 1.10.14: Special Gazette (No. 282) 26.8.14 p. 1
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Victoria Police Amendment (Consequential and Other Matters) Act 2014, No. 37/2014

Assent Date:	3.6.14
Commencement Date:	S. 10(Sch. item 121) on 1.7.14: Special Gazette (No. 200) 24.6.14 p. 2
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Veterans and Other Acts Amendment Act 2015, No. 12/2015

Assent Date:	21.4.15
Commencement Date:	S. 21(Sch. 1 item 7) on 22.4.15: s. 2(1)
CurrentState:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Owners Corporations Amendment (Short-stay Accommodation) Act 2018, No. 34/2018

Assent Date:	14.8.18
Commencement Date:	Ss 4–7 on 1.2.19: s. 2(2)
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Residential Tenancies Amendment Act 2018, No. 45/2018 (as amended by Nos 11/2020, 25/2020)

Assent Date:	18.9.18
Commencement Date:	S. 376 on 29.3.21: Special Gazette (No. 42) 27.1.21 p. 1
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Guardianship and Administration Act 2019, No. 13/2019

Assent Date:	4.6.19
Commencement Date:	S. 221(Sch. 1 item 34) on 1.3.20: s. 2(2)
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Owners Corporations and Other Acts Amendment Act 2021, No. 4/2021

Assent Date:	23.2.21
Commencement Date:	Ss 3−85 on 1.12.21: s. 2(2)
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Building Legislation Amendment Act 2023, No. 11/2023

Assent Date:	6.6.23
Commencement Date:	S. 55 on 1.2.24: s. 2(2)
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Short Stay Levy Act 2024, No. 40/2024

Assent Date:	29.10.24
Commencement Date:	Ss 24–30 on 1.1.25: s. 2
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025, No. 6/2025

Assent Date:	18.3.25
Commencement Date:	Ss 111, 112 on 25.11.25: s. 2(2)
Current State:	This information relates only to the provision/s amending the Owners Corporations Act 2006

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3   Explanatory details

No entries at date of publication.