1. What is an Owners Corporation?

An Owners Corporation is a legal entity created when common property exists in a plan of subdivision. It manages and maintains shared areas such as gardens, driveways, stairwells, lifts, and other communal facilities.

The Owners Corporations Act 2006, which came into effect on 31st December 2007, outlines the key duties, powers, and responsibilities for Owners Corporations and their Managers. It was updated with important changes that took effect on 1 December 2021.

2. What are the main responsibilities of an Owners Corporation?

• Maintenance of common property (gardens, driveways, shared facilities)
• Financial management, including budgeting, financial reporting and levy collection
• Insurance arrangements for buildings and public liability
• Compliance with regulations and by-laws
• Facilitating meetings (Annual General Meetings and Special General Meetings)

3. Who are the members of an Owners Corporation?

All lot owners within the subdivision automatically become members. Membership transfers when a property is sold.

4. Why do I have to pay Owners Corporation fees?

Fees fund essential services such as insurance, maintenance, and repairs. Without these contributions, the Owners Corporation cannot meet its obligations.

5. Why have my levies changed?

Proposed budgets are tabled and approved at each Annual General Meeting. If the needs of the property change, or costs to service increase, the budget may increase and fees increase in line with the budget adopted by the Owners.

6. Can I withhold payment if I have a dispute?

No. Fees are legally required and must be paid regardless of disputes. Non-payment can lead to recovery action through a court or tribunal.

7. What do my levies cover?

Levies typically cover:

• Building insurance
• Maintenance of common property and facilities
• Utilities for shared areas
• Management fees
• Compliance costs
• Fire and essential services maintenance

8. Who can vote at Owners Corporation meetings?

Generally, lot owners who are financial (not in arrears) can vote. Voting rights may vary depending on the type of resolution (ordinary vs. special).

9. How are disputes handled?

Owners Corporations must have a grievance procedure, refer to the Model Rules or Special / Consolidated Rules specific to your property for details. Disputes can be escalated to Consumer Affairs Victoria or VCAT if internal resolution fails.

10. What happens if I experience financial hardship?

You can request a payment plan from your Owners Corporation. While not mandatory, many corporations consider hardship arrangements. Refer to your levy notice for further information.

11. Where can I find the rules and regulations?

Rules are set under the Owners Corporations Act 2006 (Victoria) and any additional by-laws adopted by your Owners Corporation. A copy of these rules are provided in the Section 32 at the time of purchase. Alternatively, you can reach out to your Owners Corporation Manager to obtain a copy.

12. Is my matter an Owners Corporation issue or a private matter?

Not every repair or fault is the Owners Corporation’s responsibility, so it’s helpful to know the difference. Referring to your Plan of Subdivision to understand the boundaries of your lot can assist.

If the issue relates to something that provides services to your lot exclusively — such as your oven, heater, air conditioner—that’s considered private property. In these cases, you’ll need to arrange a repair through your managing agent or a trusted service provider.

Problems that affect common property or shared facilities fall under the Owners Corporation. Examples include; Security gates not working, Lift breakdowns, Damage to shared areas, Hallway lighting issues, Blocked sewer lines, Fallen trees on common grounds.