Common Property Repairs and Maintenance in Victoria: Owners Corporation Responsibilities and Disputes

Scope of this guide

Repairs and maintenance are the most frequent source of work for an owners corporation, and one of the most frequent sources of conflict. A leaking roof, a failed lift, a cracked balcony slab or a blocked stormwater line all raise the same questions. Whose property is it? Who must fix it, and how fast? Who decides and who pays? Can the owners corporation get into the lot? What happens if someone refuses to cooperate?

This guide answers those questions under Victorian law, for the people who usually have to act on them: committees, chairpersons, secretaries and professional owners corporation managers. It is also useful for lot owners who want to understand what they can expect from their owners corporation.

It deliberately does not repeat our broader guide to owners corporation disputes in Victoria. That guide covers tiers, fees generally, conduct issues, records, managers and the complete dispute process. Two related topics will have their own guides: water ingress between lots, and building defect claims against builders and other parties. This article explains how those topics connect to day-to-day repair obligations, and where the legal approach changes.

The statutory references are to the Owners Corporations Act 2006 (Vic) as currently in force, incorporating amendments to 9 September 2026, and to the Owners Corporations Regulations 2018 (Vic). An owners corporation's own registered rules, its plan of subdivision and any contracts also matter, and can change the answer in a particular building.

Start with the plan: common property versus lots

Repair responsibility in Victoria largely follows ownership, and ownership is fixed by the registered plan of subdivision. The owners corporation manages and administers the common property (s 4(a)) and must repair and maintain it. The lot owner owns the lot and is responsible for the parts of it the Act assigns to them. Before any money is spent, the first question is therefore where the item in question sits on the plan.

Boundary notations

In multi-level and attached developments, lot boundaries are commonly defined by reference to the building rather than by surveyed land boundaries. Regulation 10 of the Subdivision (Registrar's Requirements) Regulations 2021 (Vic) requires a plan that defines a boundary by a building to state whether the boundary is the interior face, the median (of a floor and ceiling, or of a wall, window, door or balustrade), the exterior face, or some other location. The regulation also sets default meanings. For example, unless the plan says otherwise, an interior face boundary includes internal coverings, waterproof membranes and fixtures attached to the walls, floors and ceilings within the lot.

The practical consequences can be significant. With an interior face boundary, the structural walls, slab and window frames will often be common property, while the plasterboard and internal membrane fall inside the lot. With a median boundary, the structure is divided along its centre line, which can make responsibility for a single wall or slab shared. Plans registered under earlier regulations may use different notations or diagrams. Read the plan actually registered for the property and do not rely on a template description.

What to check on every repair question

• The registered plan of subdivision, including the sheets showing building boundaries and the notations on them.
• Whether there is more than one owners corporation, such as a limited owners corporation responsible for particular common property.
• Any registered rules that deal with the item, such as balcony, window or service rules.
• Any exclusive-use arrangements, leases or licences over common property that allocate maintenance.
• Any easements or implied rights for services. Section 12(2) of the Subdivision Act 1988 (Vic) implies easements for matters such as support, shelter, services and drainage.
• Building records: as-built drawings, warranties, service manuals and previous reports.

Section 131 deals with one common edge case. If a lot boundary bisecting a roof is located anywhere other than the internal face of the walls, the lot owner is responsible for maintaining eaves and guttering that overhang the lot boundary.

The owners corporation's repair duties: ss 46 and 47

Section 46: common property and related items

Section 46 is mandatory. An owners corporation must repair and maintain the common property, and the chattels, fixtures, fittings and services related to the common property or its enjoyment. Section 4(b) lists the same items among the owners corporation's functions. It adds equipment and services for which an easement or right exists for the benefit of the land affected by the owners corporation, or which otherwise benefit all or some of that land.

The duty applies in every tier and does not depend on whether a maintenance plan exists. It is a duty both to repair and to maintain. Maintenance is preventive work that keeps the property in working order. Repair restores something that has failed or been damaged. A committee that only reacts to failures, and never budgets for preventive work, is more exposed to complaints and claims when deterioration causes loss.

The owners corporation must also act honestly and in good faith, and exercise due care and diligence, when it carries out its functions (s 5). That standard is relevant to how it investigates a problem, chooses a solution and deals with affected owners.

Section 47: shared services in or relating to a lot

Pipes, cables and ducts often run through lots. Section 47(1) requires the owners corporation to 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. Under section 47(3), a service includes one for which an easement or right is implied under section 12(2) of the Subdivision Act 1988. Typical examples include shared water, sewer and stormwater stacks and risers, fire services and communal electrical or data infrastructure.

Section 47(2) is permissive. At the request and expense of a lot owner, the owners corporation may repair and maintain a service in or relating to a lot if it is impracticable for the lot owner to do so. This can be useful where a service serving only one lot is accessible only from common property or requires specialist building-wide access. The lot owner bears the cost.

What the duties do not cover

The duties do not make the owners corporation responsible for everything inside a building. Fixtures and finishes within a lot, appliances, and services serving only one lot are generally the lot owner's responsibility. Damage to a lot's contents or finishes caused by a common property failure raises a separate question of liability and insurance. It does not automatically become an owners corporation repair obligation. We return to that distinction below in the context of water ingress.

Lot owner duties and the prohibition on self-help

The Act places parallel obligations on lot owners. A lot owner must:

• properly maintain, in a state of good and serviceable repair, any part of the lot that affects its outward appearance or the use or enjoyment of other lots or the common property (s 129(a));
• maintain any service that serves that lot exclusively (s 129(b)); and
• not use or neglect the common property, or permit it to be used or neglected, in a way likely to cause damage or deterioration (s 130).

Where the model rules apply, rule 4.3 of the model rules in Schedule 2 to the Regulations also prohibits an owner or occupier from damaging or altering common property, or a structure forming part of it, without the owners corporation's written approval. The model rules apply if the owners corporation has no rules. They also fill gaps on any matter that its own rules do not cover (s 139). Model rule 5.3 also requires an owner or occupier to notify the owners corporation when undertaking renovations or other works that may affect the common property or other lot owners' or occupiers' enjoyment of it.

Section 47A: no unauthorised repairs

Lot owners sometimes fix a common property problem themselves and then seek reimbursement. Section 47A prohibits that unless the owner has been expressly authorised by the owners corporation to carry out the work as its agent under section 46 or 47. The prohibition covers the common property and services in or relating to a lot that benefit more than one lot or the common property. It is subject to section 56 of the Equal Opportunity Act 2010 (Vic), which concerns alterations for people with a disability.

For committees, the practical point is to put any authority in writing. It should identify the work, the contractor, the standard, the approved cost, insurance and access requirements, and who signs off the completed work. For managers, a clear written process for authorising owner-arranged works reduces later disputes about reimbursement.

Section 48: lots that are not properly maintained

If a lot owner refuses or fails to carry out repairs, maintenance or other work needed because the lot's outward appearance or state of repair, or other owners' use and enjoyment, is adversely affected, the owners corporation may serve a notice requiring the work (s 48(1)). The lot owner must do the work within 28 days of service (s 48(2)). If they do not, the owners corporation may carry out the necessary work to the lot (s 48(3)) and recover the cost from the lot owner as a debt (s 48(4)). Entry for that purpose is authorised by section 50(1), subject to the notice requirements discussed below.

A section 48 notice should be specific. It should describe the condition, explain why it falls within section 48(1), state the work required and the 28-day period, and attach supporting evidence such as photographs or a contractor's report. Vague notices invite disputes about what was required and whether the owner complied.

Maintenance plans, maintenance funds and capital works

Who must have a plan

Under section 36, tier one owners corporations (more than 100 occupiable lots) and tier two owners corporations (51 to 100 occupiable lots) must prepare and approve a maintenance plan. Tier three, four and five owners corporations may do so. The tiers are set out in section 7. For many smaller schemes, a voluntary plan is still a sensible way to budget for predictable capital costs.

What a plan must contain

Section 37(1) requires a maintenance plan to set out:

• the major capital items expected to need repair and replacement within the next 10 years;
• their present condition or state of repair;
• when they, or their components, will need repair or replacement;
• the estimated cost of that repair and replacement;
• the expected life of the items or components once repaired or replaced; and
• any other prescribed information.

"Major capital item" includes a lift, an air-conditioning plant, a heating plant and any item of a prescribed class (s 37(2)). In practice, plans commonly also address roofs, façades, waterproofing, car park structures, fire services, pumps and plant. The plan has no effect until the owners corporation approves it (s 38(1)). An approved plan may be amended by ordinary resolution (s 37(1A)), and implementation must be reported to the annual general meeting (s 39).

The maintenance fund

An owners corporation with an approved maintenance plan must establish a maintenance fund in its name (s 40). The owners corporation must determine, by ordinary resolution, how much of the annual fees is paid into the fund, and that amount must be adequate to fund the approved plan (s 42(2)–(3)). Insurance money for damage to property covered by the plan, and interest on the fund, must also be paid in (s 42(1)).

Money can leave the fund in three ways:

• in accordance with the approved plan, subject to any prescribed conditions and an ordinary resolution (s 43);
• for other purposes, if approved by special resolution (s 44); or
• for an urgent matter under section 45, discussed below.

An under-funded plan creates risk. If capital works fall due and the fund cannot meet them, the owners corporation may need a special fee. Depending on the amount, that may require a special resolution. Delay can also lead to further deterioration. Committees should test the plan's cost estimates against current quotes periodically and record why the annual contribution is considered adequate.

Who decides: owners corporation, committee and manager

An owners corporation is managed by or under the direction of the lot owners (s 11(1)). It may delegate powers and functions by instrument or by resolution at a general meeting to the committee, manager, a lot owner, the chairperson, the secretary or an employee (s 11(2)). A delegation by resolution is effective only if it is recorded in the general meeting minutes (s 11(4)).

Some powers cannot be delegated. These include anything requiring a unanimous resolution, a special resolution or a resolution at a general meeting, and the power of delegation itself (s 11(3)). If no delegation to the committee is in force, the committee is delegated all powers and functions except those powers and any matters that must be decided at a general meeting under section 82 (s 11(5)). Section 82 lets the owners corporation decide, by ordinary resolution at a general meeting, that a matter or type of matter may be decided only at a general meeting, so check the minutes for any such reservation.

For repairs, the key decision points are usually these:

• Routine repairs and planned maintenance within budget will usually be within the committee's or manager's delegated authority. Check the actual delegation and the manager's contract of appointment.
• Special fees to fund extraordinary expenditure require a special resolution if the amount involved is more than twice the total amount of the current annual fees set under section 23 (s 24(4)). The urgent safety and loss exception is discussed below.
• Significant alterations to the use or appearance of common property need a special resolution first. Alternatively, they must be permitted by the maintenance plan, agreed as upgrading works under section 53, or justified as immediately necessary (s 52). Like-for-like repairs are not usually alterations. A repair that changes materials, appearance or function may be.
• Upgrading works need a special resolution. These are works to upgrade, renovate or improve common property that are estimated to cost more than twice the current annual fees or that require a planning or building permit. Works provided for in an approved maintenance plan, and works referred to in section 4(b), are excluded (s 53).
• Payments from the maintenance fund outside the plan need a special resolution (s 44), unless the urgent-matter pathway applies.

Good process matters as much as the right resolution. Minutes should record the problem, the advice obtained, the options considered, the cost and the reasons for the decision. That record is often the best evidence that the owners corporation acted with due care and diligence if the decision is later challenged.

Urgent repairs

The Act recognises that some repairs cannot wait for a general meeting. Several provisions use similar language: reasonable grounds to believe that immediate action is necessary to ensure safety or to prevent significant loss or damage. In those cases:

• money may be paid from the maintenance fund for an urgent matter (s 45(2)(b)). Urgent matters also include complying with a court or VCAT order, repairs that could not reasonably have been foreseen when the plan was prepared, and obtaining adequate required insurance (s 45(2));
• the special resolution requirement for large special fees does not apply to fees levied to pay for, or recoup, immediately necessary repairs or maintenance of property for which the owners corporation is responsible (s 24(5));
• a significant alteration may be made without a special resolution (s 52(b)); and
• the 7-day notice requirement for entry to a lot does not apply in an emergency (s 51(1)(b)), as explained below.

Section 45 includes safeguards. Urgent expenditure must not exceed the amount necessary for the purpose or any limit set by the owners corporation. It must comply with any other restrictions imposed, and must be reported to lot owners as soon as possible (s 45(3)–(5)). Section 153(5) also provides that a decision under the breach and complaints provisions cannot prevent the carrying out of a section 46 or 47 obligation that is necessary to ensure safety or prevent significant loss or damage.

Urgency justifies stabilising the problem, not necessarily solving it permanently. A common and defensible approach is to authorise make-safe works immediately, such as propping, isolating a service, temporary waterproofing or fencing off a hazard. The permanent repair can then be scoped, quoted and approved through the ordinary process. Keep contemporaneous evidence of why the matter was urgent.

Funding repairs: annual fees, special fees and the benefit principle

Ordinary repairs and maintenance are funded through annual fees set under section 23 and, where applicable, the maintenance fund. Extraordinary items can be funded by special fees and charges (s 24(1)). These are generally based on lot liability (s 24(2)), subject to the exceptions below. Our broader disputes guide explains fees generally.

Four provisions shift repair costs away from a straightforward lot-liability split:

• Section 24(2A). Special fees for repairs, maintenance or other works carried out wholly or substantially for the benefit of some or one, but not all, of the lots must be levied so that the lot that benefits more pays more.
• Section 24(2B). The owners corporation may levy special fees on a lot owner for repairs, maintenance and other works arising from the particular use of that lot by the lot owner.
• Section 49. The owners corporation may recover as a debt the cost of repairs, maintenance or other works, to the common property or a lot, carried out wholly or substantially for the benefit of one or some, but not all, lots. The amount is calculated so that the lot that benefits more pays more.
• Section 53(1B). Fees for upgrading works approved by special resolution are generally based on lot liability (s 53(1A)), but where the works are carried out wholly or substantially for the benefit of some or one, but not all, of the lots, the lot that benefits more pays more.

These provisions require judgment. "Wholly or substantially for the benefit of" is not the same as "located next to". Replacing the membrane on a balcony that is common property but used only by one lot may raise a benefit argument. Repairing a roof that protects the whole building usually does not. If the owners corporation intends to rely on the benefit principle, it should record the factual basis and the calculation, and be prepared to justify both.

Except under specific provisions such as sections 24, 49 and 53, a lot owner is not liable to contribute more than their lot liability share towards a liability of the owners corporation (s 28(2)).

Access to lots for repairs

Many common property repairs can be reached only through a lot. The owners corporation may authorise a person to enter a lot or a building on a lot to carry out work under section 47(1), 47(2) or 48(3) (s 50(1)). It may also authorise entry where necessary to carry out work on the common property (s 50(2)).

Notice

At least 7 days' written notice of the intention to enter must be given to the occupier, unless the occupier agrees to a shorter time or there is an emergency (s 51(1)). If the lot is occupied under a residential rental agreement, the owners corporation must give the same notice that a residential rental provider must give under section 85 of the Residential Tenancies Act 1997 (Vic) (s 51(2)). An emergency includes:

• an interruption to gas, water, electricity, telephone, drainage, sewerage or a similar service;
• a leak or similar problem requiring prompt attention; and
• cracking or a similar structural problem likely to affect the immediate safety of a building or any person (s 51(3)).

Refusal of entry

On receiving a notice given in accordance with section 51, the occupier must grant entry to a person authorised under section 50 (s 51(2A)). If the occupier still refuses, VCAT can make an order requiring the occupier to grant entry (s 165(1)(n)). Before applying, committees should check that the notice was correctly addressed and served. It should identify the authorised person, the purpose and the expected timing. An application seeking only an entry order is non-monetary, so an ordinary resolution authorising it is sufficient under section 18(2A); a special resolution is needed if the application also seeks money above the section 18(2) threshold.

In practice, a cooperative approach usually works better than enforcement. Agree a time, explain the work, arrange protection of floors and contents, and confirm afterwards what was done and any damage observed.

Water ingress: where repair obligations stop

Water ingress is the most common way repair questions become loss claims. It deserves a separate guide, but three points connect it to this one.

First, finding the source determines the repair obligation. If water enters through a failed roof, façade, slab or shared stack, the repair of that item is normally the owners corporation's under sections 46 and 47. If it comes from a lot owner's own shower, appliance or exclusive service, the repair is normally the owner's under section 129. Membranes need particular care. Whether a membrane is within a lot or common property depends on the plan's boundary notations, as explained above.

Second, repair responsibility is not the same as liability for resulting damage. Whether the owners corporation, a lot owner, or a builder or other party must compensate someone for damaged finishes or contents depends on the facts and on other laws. These may include negligence principles and the Water Act 1989 (Vic). Section 17A of the Owners Corporations Act provides that 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 (s 17A(1)), and that the owners corporation is the occupier of land to the extent that the land is common property for the purposes of section 8(4)(c) of the Water Act (s 17A(2)). Liability for damage caused by an unreasonable flow of water from one person's land onto other land is dealt with separately, in section 16 of the Water Act.

Third, insurance often responds differently to the repair and to the resulting damage. An early, documented diagnosis by a suitably qualified person serves all three questions: repair, liability and insurance. Liability and recovery for water damage are outside the scope of this guide. Our broader disputes guide includes a short overview of water leaks.

Evidence and practical triage

Most repair disputes are won or lost on early evidence. A consistent triage process protects the owners corporation, lot owners and the manager.

1. Make safe. Identify any risk to people or property and take immediate steps, using the urgent pathways if needed.
2. Record the report. Note when the problem was reported, by whom, and what was described. Keep photographs, video and written reports.
3. Identify the location on the plan. Check the plan of subdivision, boundary notations and any rules or exclusive-use arrangements before deciding responsibility.
4. Diagnose the cause. Obtain an inspection and report from an appropriately qualified contractor or consultant. Where responsibility is disputed, a written opinion on the cause is often worth more than a quote.
5. Notify. Tell affected owners and occupiers, the insurer (where a claim may arise) and, if the building may still be within a warranty or limitation period, consider whether the builder or other parties should be notified.
6. Decide and document. Confirm who has authority, which resolution is needed, how the work will be funded and whether a benefit-principle allocation applies. Minute the decision and the reasons.
7. Repair and close out. Keep completion certificates, warranties, compliance documents and photographs. Update the maintenance plan if the repair affects a major capital item.

If physical evidence may be needed later, for example in a defect or damage claim, preserve it before it is removed. Photograph the condition before and during opening-up works, and consider having a consultant attend.

Insurance versus repair responsibility

Owners corporations must take out reinstatement and replacement insurance for all buildings on the common property (s 59). They must also take out public liability insurance for the common property with a limit of at least $20 million, or another prescribed amount (s 60). Where a building is located above or below common property, a reserve or a lot, additional requirements apply. These include insuring all buildings on each lot (s 61). Section 61 does not apply to a single-storey building, or to a plan registered under the Cluster Titles Act 1974 or Strata Titles Act 1967 unless a lot is located above another lot (s 61(2)). For multiple single dwellings with common property, the owners corporation may by unanimous resolution make each lot owner responsible for insuring their lot (s 61A). The reinstatement cover must include the owners corporation's portion of any shared services (s 59(2A)). Lot owners may take out their own cover (s 55). Section 57 provides that a lot owner's policy is disregarded when calculating amounts payable under the owners corporation's policy.

Two practical consequences follow:

• Insurance does not discharge the duty to repair. The section 46 and 47 duties apply whether or not a claim is available. Policies commonly exclude wear and tear, gradual deterioration, and defective design or workmanship, although the wording of each policy controls. A declined claim does not reduce the owners corporation's obligation.
• Claims need to be managed alongside repairs. Notify promptly, follow the insurer's requirements before removing damaged material, and keep the repair scope separate from any improvement that the insurer will not fund. Insurance received for damage to property covered by an approved maintenance plan must go into the maintenance fund (s 42(1)(b)).

How excesses are allocated, and whether a particular loss is covered, depend on the policy terms, any applicable owners corporation rule or resolution, and the facts. Do not assume that the lot where damage appears must pay the excess, or that the owners corporation must.

Engaging contractors

An owners corporation may appoint or employ persons to assist it in carrying out its functions (s 9). In practice, the manager often engages contractors under delegated authority. For repair work, committees and managers should consider:

• whether the contractor holds any registration or licence the work requires, such as building practitioner registration or plumbing licensing, which can be checked on the Building and Plumbing Commission's public registers;
• whether the work needs a building or planning permit, which may also affect whether it is upgrading work under section 53;
• a written scope, price, timing and variation process, and who supervises and signs off the work;
• the contractor's public liability and other relevant insurance;
• workplace safety obligations for work on roofs, plant and other hazardous areas; and
• warranties and documentation to be supplied on completion.

Where a contract is significant, unusual or long-term, have it reviewed before signing. Retained-defect and payment terms are much easier to negotiate before work starts than to enforce afterwards. Contracts of appointment for managers are a separate subject and are not covered here.

Repairs or building defects?

When a building is relatively new, a failure in common property may be a construction defect rather than ordinary deterioration. The owners corporation still has its repair duty, but it may also have a claim against the builder, designers, consultants or others. Pursuing that claim can affect how the repair is carried out and documented.

Section 134 of the Building Act 1993 (Vic) is often misunderstood. It is a limitation period, not a warranty. It provides that a building action generally cannot be brought more than 10 years after the date the occupancy permit was issued or, if none was issued, the certificate of final inspection. Section 134(2) allows a cladding building action (defined in s 134(3)) to be brought more than 10 but less than 15 years after that date, but only where the action became or becomes barred on or after 16 July 2019 and before 1 December 2023. Section 134(2A) also allows a building action after 10 years if a court extends the period under section 77 of the Victorian Civil and Administrative Tribunal Act 1998. Section 134 does not create a right to have defects fixed. Whether any claim exists, against whom, and on what basis depends on the contracts, statutory warranties, the parties and the facts. Separate procedural requirements, including dispute resolution steps, may apply depending on the claim, and other limitation periods, including under the Limitation of Actions Act 1958 (Vic), may run earlier than the section 134 long-stop.

If a defect is suspected, get early advice before carrying out permanent repairs that may destroy evidence, and before allowing time to run. Building defect claims, parties and time limits are outside the scope of this guide.

Disputes, internal processes and VCAT

Repair disputes take several forms. A lot owner may say the owners corporation has failed to repair. The owners corporation may say a lot owner has failed to maintain their lot or has damaged common property. The dispute may concern who pays, or how a benefit-principle allocation was calculated. Or an occupier may refuse access.

Internal dispute resolution

Owners corporation rules may provide a dispute resolution process. Under the model rules, which apply where the owners corporation's own rules do not cover dispute resolution (s 139), the complainant prepares a written statement in the approved form and notifies the grievance committee or, if there is none, the owners corporation. The parties must meet within 28 calendar days after the dispute comes to the attention of all parties, in person or by teleconference or videoconference, and a party may appoint someone to act for them (model rule 7(5), (5A) and (6)). For repair disputes it is useful that a grievance committee may obtain expert evidence, if the owners corporation or the parties agree in writing to pay for it (model rule 7(6A)–(6B)). If the dispute is not resolved, each party must be told of their right to take further action under Part 10 of the Act (model rule 7(7)). The process does not limit further action under Part 10 (model rule 7(8)).

Note who can complain under section 152. A lot owner, occupier or manager may complain to the owners corporation about an alleged breach by a lot owner, occupier or manager. A complaint that the owners corporation itself has failed to repair is therefore not a section 152 complaint; it is usually raised through the grievance procedure in the rules and, if unresolved, by an application to VCAT (ss 162–163). A section 152 complaint cannot concern personal injury or the recovery of fees owing under section 28 (s 152(4)).

Before taking action under Part 10, or applying to VCAT, in relation to a complaint made under section 152, the owners corporation must first follow the dispute resolution process required by the rules. It must also be satisfied that the matter was not resolved through that process (s 153(3)). It must not take action or apply to VCAT about an alleged breach unless it believes on reasonable grounds that the person committed it (s 153(4)). VCAT may dismiss or strike out an owners corporation's application for rectification of an alleged breach if section 153 has not been complied with (s 164). Following the correct process is therefore a precondition, not a formality.

Resolution to commence proceedings

From 9 September 2026, section 18 provides that an owners corporation must not commence a proceeding in a court or tribunal unless authorised by special resolution. There are two exceptions where an ordinary resolution is sufficient:

• the matter may be resolved by an order for payment of an amount, or relief, of no more than twice the total current annual fees set under section 23 (s 18(2)); or
• the matter may be resolved by an order that is non-monetary in nature (s 18(2A)).

These provisions were substituted and inserted by section 32 of the Consumer Legislation Amendment Act 2026 (No. 36/2026), which commenced on 9 September 2026. The version they replaced, substituted in 2021, allowed an ordinary resolution where the matter was within the civil jurisdictional limit of the Magistrates' Court. Neither the amending Act nor the Owners Corporations Act contains a savings or transitional provision addressing a resolution passed before 9 September 2026 for a proceeding not commenced by that date, and how the general savings rules in the Interpretation of Legislation Act 1984 (Vic) apply has not, so far as we are aware, been decided. Because section 18 regulates when a proceeding is commenced, the cautious view is that the current test applies at filing: an earlier ordinary resolution for a monetary claim above the new threshold may no longer be enough, so check it and, if in doubt, pass a fresh resolution. Where a single proceeding seeks both a non-monetary order and money above the section 18(2) threshold, the section does not expressly say whether section 18(2A) is enough; the prudent course is to obtain a special resolution.

VCAT

VCAT can hear and determine owners corporation disputes (s 162). Applicants can include the owners corporation, a lot owner, an occupier, a manager, a mortgagee and others (s 163). A lot owner may also apply on behalf of the owners corporation (s 163(1A)). An owners corporation application to recover an amount payable by a lot owner can only be made if the amount is not paid within 28 days after the final notice given under section 32 (s 163(2)); the authorising resolution under section 18 is still required. Sections 45 and 46 of the Consumer Legislation Amendment Act 2026 will add payment-plan rules to sections 162 and 163 on a day to be proclaimed or, failing that, on 1 December 2027 (s 2(3), (6)); they were not in force in Authorised Version 024. VCAT may make any order it considers fair, including orders to do or refrain from doing something, for payment of money or damages, in relation to damaged buildings or insurance money, and requiring an occupier to grant entry (s 165). In making an order, VCAT must consider the parties' conduct and acts or omissions, the impact of a resolution on lot owners as a whole, and whether a resolution is oppressive, unfairly prejudicial or unfairly discriminatory (s 167). VCAT may also order a person who fails to comply with a binding rule to pay a civil penalty of up to $1,100 to the owners corporation (s 166), and may award costs under section 109 of the Victorian Civil and Administrative Tribunal Act 1998 (s 165(4)).

For the full dispute pathway, including Consumer Affairs Victoria's role, see our owners corporation disputes guide and our guide to going to VCAT. Consumer Affairs Victoria also publishes guidance on maintaining and improving common property.

When to obtain legal advice

Legal advice is most valuable before positions harden. Consider advice when:

• responsibility depends on unclear boundary notations, multiple owners corporations or competing rules;
• a major repair may be a significant alteration or upgrading work, or needs a special resolution;
• the owners corporation proposes to rely on the benefit principle or recover costs from a particular lot;
• a lot owner has carried out unauthorised works, or refuses to repair or to allow entry;
• a section 48 notice, a breach notice or a VCAT application is being prepared;
• an insurer has declined or limited a claim;
• the building may still be within the period for a building action and a defect is suspected; or
• a contract for significant works or a long-term service arrangement is being negotiated.

Parke Lawyers' owners corporation practice acts primarily for owners corporations, committees and professional managers. See our owners corporation lawyers in Melbourne page for how we can help. Lot owners are also welcome to enquire, subject to a conflict check. We cannot act for opposing parties in the same dispute.

Sources

• Owners Corporations Act 2006 (Vic), Authorised Version 024 (incorporating amendments as at 9 September 2026): ss 4, 5, 7, 9, 11, 17A, 18, 23, 24, 28, 36–45, 46, 47, 47A, 48–53, 55, 57, 59–61, 61A, 82, 129–131, 139, 152–153, 162–167. Section 18 as substituted and amended by the Consumer Legislation Amendment Act 2026 (Vic) (No. 36/2026), s 32 (commenced 9 September 2026); earlier version substituted by the Owners Corporations and Other Acts Amendment Act 2021 (Vic) (No. 4/2021), s 9.
• Owners Corporations Regulations 2018 (Vic), Schedule 2 (model rules), rules 4.3, 5.3 and 7.
• Subdivision (Registrar's Requirements) Regulations 2021 (Vic), reg 10.
• Building Act 1993 (Vic), s 134(1), (2), (2A) and (3).
• Water Act 1989 (Vic), ss 8(4)(c) (as referred to in OC Act s 17A(2)) and 16.
• Consumer Affairs Victoria, Maintaining and improving common property in an owners corporation.
• VCAT, Owners corporations.

Frequently Asked Questions