If you own an apartment, unit or townhouse in Victoria, your property is almost certainly part of an owners corporation — the Victorian version of what other states call a strata scheme or body corporate. The Owners Corporations Act 2006 (Vic) is the legislation that governs how your owners corporation runs: meetings, fees, committees, managers, insurance and your rights as a lot owner. This guide explains the Act in plain English, what it requires of owners corporations, and what it means for you day to day.
For the broader picture, see our companion guides to navigating owners corporation laws in Victoria and strata management companies across Australia.
What the Owners Corporations Act 2006 covers
The Act (together with the Owners Corporations Regulations 2018) sets the legal framework for:
- The creation, registration and powers of owners corporations
- Lot owners’ rights and obligations
- Committees and their powers
- General meetings, voting and resolutions
- Fees, levies and financial management
- The appointment, duties and contract terms of managers
- Insurance requirements
- Record keeping and information certificates
- Dispute resolution through Consumer Affairs Victoria and VCAT
The Subdivision Act 1988 works alongside it, governing the subdivision process and the definition of common property.
Prescribed vs non-prescribed owners corporations
The Act divides owners corporations into two tiers, and the distinction matters for your obligations:
| Type | Definition | Key extra obligations |
|---|---|---|
| Prescribed | More than 13 lots, or annual fees over $200,000, or a manager appointed, or development still in progress | Must hold an AGM, prepare an annual report, keep financial records for 7 years, hold committee meetings with proper notice |
| Non-prescribed | 13 lots or fewer, fees under $200,000, no manager, development complete | Lighter obligations: no mandatory AGM or annual report, but all other duties still apply |
Most Melbourne apartment buildings are prescribed owners corporations; a two-unit driveway shared in the suburbs is often non-prescribed.
Your rights as a lot owner under the Act
- Access to records: the owners corporation must provide access to its register, minutes and financials within specified timeframes
- Vote at meetings: every lot owner is entitled to vote (subject to the Act’s rules on unfinancial owners in some cases)
- Stand for the committee: lot owners and proxies can nominate for committee positions
- Request a general meeting: owners holding 25% or more of lot entitlements can require a meeting be called
- Challenge fees and rules: at VCAT, if a fee, rule or decision is unreasonable
- Receive information certificates: when selling your lot
Your obligations under the Act
- Pay fees and levies on time
- Comply with the owners corporation rules (formerly by-laws)
- Not create nuisance or hazard to other lot owners
- Maintain your own lot and not damage common property
- Allow the owners corporation access for works required under the Act
Managers under the Act
Where an owners corporation appoints a manager, the Act regulates the appointment carefully: the contract must be in writing for a fixed term (maximum 3 years + 1 additional year option), the manager owes statutory duties (act honestly, exercise care and diligence, disclose conflicts), and owners can terminate the appointment in specified circumstances. Since 2021 amendments, managers must also be registered with the Business Licensing Authority. See our guide to choosing an owners corporation manager in Melbourne for the practical comparison checklist.
Insurance requirements
The Act requires owners corporations to hold rebuild insurance (full replacement cost) for common property and public liability insurance. Prescribed owners corporations must renew annually and report the insurance details at the AGM. Our guides to Melbourne strata insurance brokers cover the market in detail.
Disputes under the Act
Dispute resolution follows an escalation path: internal resolution with the committee, then Consumer Affairs Victoria dispute resolution, then VCAT for binding orders. VCAT can resolve disputes about fees, repairs, rules, manager conduct and almost any other owners corporation matter. Time limits and notice requirements apply, so document everything.
Frequently asked questions
Does the Owners Corporations Act apply to my two-lot subdivision?
Yes — every scheme with common property is an owners corporation. Two-lot schemes are usually non-prescribed, so lighter meeting and reporting obligations apply, but the core duties (insurance, maintenance, rules) still bind.
Can my Victorian owners corporation fine me for breaches?
The Act allows prescribed owners corporations to impose penalties for rules breaches after written warning, with amounts set in the regulations. Infringement notices follow a formal process; disputes go to VCAT.
How long is a manager’s contract under the Act?
Maximum 3 years, with one renewal option of up to 3 years if the contract allows. Owners can terminate earlier in specified circumstances including breach or by resolution.
Related guides: owners corporation exemptions in Victoria, short-term rental rules in Victoria.