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Bill homepage (legislation.vic.gov.au)The main purposes of this Act are—
to provide for the management, powers and functions of owners corporations; and
to provide for appropriate mechanisms for the resolution of disputes relating to owners corporations; and
to amend the Subdivision Act 1988 in relation to the creation of owners corporations.
Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.
If a provision of this Act does not come into operation before 31 December 2007, it comes into operation on that day.
In this Act—
S. 3 def. of agent provider inserted by No. 34/2018 s. 4.
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 structure and part of a building or a structure; and
walls, out-buildings, service installations and other appurtenances of a building; and
a boat or a pontoon which is permanently moored or fixed to land;
S. 3 def. of Building Code of Australia inserted by No. 34/2018 s. 4.
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 Saturday or Sunday; or
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;
S. 3 def. of Director amended by No. 21/2012 s. 239(Sch. 6 item 33.1).
Director has the same meaning as it has in the Australian Consumer Law and Fair Trading Act 2012;
S. 3 def. of externally administered body corporate amended by No. 46/2025 s. 31(1).
externally administered body corporate means a Chapter 5 body corporate as defined by section 9 of the Corporations Act;
function includes duty and authority;
S. 3 def. of guest inserted by No. 4/2021 s. 3(1).
guest does not include a contractor or a tradesperson engaged by the occupier of a lot;
S. 3 def. of hotel and resort management contract inserted by No. 4/2021 s. 3(1).
hotel and resort management contract means, in relation to a hotel, resort or serviced apartment complex on land affected by an owners corporation—
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
a common property agreement (including but not limited to a lease or a licence) to use common property for the purposes of—
operating an on-site letting business at the hotel, resort or serviced apartment complex; or
Example
Office, storage area or reception area.
providing caretaking services at the hotel, resort or serviced apartment complex; or
a building maintenance or facilities management agreement to provide caretaking services at the hotel, resort or serviced apartment complex; or
any prescribed agreement or prescribed class of agreement relating to the management of a hotel, resort or serviced apartment complex by a third party;
S. 3 def. of inspector amended by No. 21/2012 s. 239(Sch. 6 item 33.2).
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;
S. 3 def. of non–occupiable lot inserted by No. 4/2021 s. 3(1).
non-occupiable lot means—
a car park; or
a storage locker; or
a lot that is not ordinarily used for residential or business purposes;
S. 3 def. of occupiable lot inserted by No. 4/2021 s. 3(1).
occupiable lot means a lot that is ordinarily used for residential or business purposes;
S. 3 def. of ordinary resolution inserted by No. 2/2008 s. 12(1).
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;
S. 3 def. of police officer inserted by No. 37/2014 s. 10(Sch. 121.1).
police officer has the same meaning as in the Victoria Police Act 2013;
S. 3 def. of prescribed owners corporation repealed by No. 4/2021 s. 3(2).
* * * * *
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;
S. 3 def. of services only owners corporation inserted by No. 4/2021 s. 3(1).
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—
the initial owner of the subdivision has arranged for a utility company to install common meters that are designated as the common property; or
the subdivision has a common supply or common service that is unmetered;
S. 3 def. of short-stay accommo-dation inserted by No. 34/2018 s. 4.
short-stay accommodation means accommodation provided under a short-stay accommodation arrangement;
S. 3 def. of short-stay accommo-dation arrangement inserted by No. 34/2018 s. 4, amended by No. 40/2024 s. 24.
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;
S. 3 def. of short-stay occupant inserted by No. 34/2018 s. 4.
short-stay occupant means a person who occupies a lot or part of a lot under a short-stay accommodation arrangement;
S. 3 def. of short-stay provider inserted by No. 34/2018 s. 4.
short-stay provider means—
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
an agent provider;
S. 3 def. of tier five owners corporation inserted by No. 4/2021 s. 3(1).
tier five owners corporation has the meaning given by section 7(6);
S. 3 def. of tier four owners corporation inserted by No. 4/2021 s. 3(1).
tier four owners corporation has the meaning given by section 7(5);
S. 3 def. of tier one owners corporation inserted by No. 4/2021 s. 3(1).
tier one owners corporation has the meaning given by section 7(2);
S. 3 def. of tier three owners corporation inserted by No. 4/2021 s. 3(1).
tier three owners corporation has the meaning given by section 7(4);
S. 3 def. of tier two owners corporation inserted by No. 4/2021 s. 3(1).
tier two owners corporation has the meaning given by section 7(3);
S. 3 def. of 2–lot subdivision inserted by No. 4/2021 s. 3(1).
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
An owners corporation has the following functions—
to manage and administer the common property;
to repair and maintain—
the common property;
the chattels, fixtures, fittings and services related to the common property or its enjoyment;
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;
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;
to keep an owners corporation register;
to provide an owners corporation certificate in accordance with Division 3 of Part 9 when requested;
to carry out any other functions conferred on the owners corporation by—
this Act or the regulations under this Act; or
the Subdivision Act 1988 or the regulations under that Act;
any other law; or
the rules of the owners corporation.
Note to s. 4 amended by No. 4/2021 s. 4.
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.
An owners corporation in carrying out its functions and powers—
must act honestly and in good faith; and
must exercise due care and diligence.
An owners corporation has—
all the powers conferred on the owners corporation by—
this Act or the regulations; or
S. 6(a)(ii) amended by No. 36/2011 s. 14.
the Subdivision Act 1988 or the regulations under that Act; or
any other law; or
the rules of the owners corporation; and
all other powers that are necessary to enable it to perform its functions.
S. 7 substituted by No. 4/2021 s. 5.
For the purposes of this Act, an owners corporation falls within one of 5 tiers as specified in this section.
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.
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.
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.
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.
A tier five owners corporation is—
an owners corporation for a 2-lot subdivision; or
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.
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.
S. 7A inserted by No. 4/2021 s. 5.
An owners corporation for a 2-lot subdivision is exempt from compliance with—
sections 18, 31, 32, 59, 60, 61, 61A, 62, 65, 89A, 89B, 95, 96 and 97; and
Divisions 2, 3 and 4 of Part 3; and
Divisions 1, 2, 3, 4 and 5 of Part 4; and
Divisions 1 and 2 of Part 9; and
Division 1 of Part 10.
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 unanimous resolution means a resolution passed by the total votes for those lots; and
a special resolution means a unanimous resolution.
S. 8 substituted by No. 4/2021 s. 5.
A services only owners corporation is exempt from compliance with—
the provisions specified in section 7A(1); and
the following provisions—
sections 48, 49, 50, 51, 61A, 129, 133 and 135;
Division 8 of Part 4;
Division 3 of Part 9.
An owners corporation may appoint or employ persons to assist the owners corporation in carrying out its functions.
S. 10 substituted by No. 4/2021 s. 6.
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.
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.
An owners corporation may authorise a document to be executed by at least 2 lot owners of separate lots who—
sign the document; and
print on the document—
each lot owner's full name and address; and
a statement that each lot owner is a lot owner or a director of a body corporate that is a lot owner.
S. 11 substituted by No. 36/2011 s. 5.
An owners corporation is to be managed by or under the direction of the lot owners.
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—
the committee of the owners corporation;
the manager of the owners corporation;
a lot owner;
the chairperson of the owners corporation;
the secretary of the owners corporation;
an employee of the owners corporation.
An owners corporation must not delegate any of the following powers or functions under subsection (2)—
a power or function that requires a unanimous resolution, a special resolution or a resolution at a general meeting;
the power of delegation under that subsection.
Note
See section 82.
A resolution under subsection (2) is only effective if it is recorded in the minutes of the general meeting.
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—
those powers and functions set out in subsection (3); and
those matters which must be determined at a general meeting under section 82.
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
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