Victorian Government launches expert panel to review owners’ corporation laws

The Victorian Government has launched a long-awaited review of owners’ corporation laws, appointing an expert panel to examine concerns raised by the growing number of Victorians living in apartment and strata settings.

Announced by Minister for Consumer Affairs Nick Staikos in June, the review will be led by former Consumer Affairs Minister Marsha Thomson and is expected to deliver recommendations by December 2025.

It follows years of advocacy from resident groups and is being welcomed as a major step forward in ensuring fairness, transparency and better protections for strata communities across the state – particularly in central Melbourne where high-rise living dominates.

With one in four Victorians now living in properties governed by an owners’ corporation (OC), the review will assess whether current laws are fit for purpose in what is becoming an increasingly dense and complex housing environment.

“Significant reforms were made in 2021 to better reflect the needs of Victorians living in apartments and other owners’ corporation properties – this expert panel will ensure those reforms are strengthened and improved even further,” Minister Staikos said.

The review will cover a wide range of issues including unethical management practices, unfair contracts, undisclosed commissions, voting structures, hardship provisions for owners who cannot pay fees, and the processes surrounding collective sales of strata assets. The government also confirmed the panel will examine whether recent amendments to short-stay accommodation regulations are proving effective.

In January, residents’ advocacy group We Live Here welcomed new legislation that granted OCs the right to vote on regulating short-stay letting – provided a 75 per cent threshold is met – as well as new enforcement powers for councils and a mandatory registration and levy scheme.

While those changes were considered a “significant step forward” in restoring community control, the group argued that further reforms were needed to fully protect strata communities from exploitative practices and poor governance.

Short-stay accommodation remains a contentious issue, especially in Melbourne’s CBD, Southbank and Docklands, where high-density buildings are often marketed on booking platforms. The 2016 so-called “Party Bill” proved ineffective, resulting in no successful prosecutions over an eight-year period, leading to renewed pressure on the government to act.

In Southbank, local residents’ group Southbank3006 has welcomed the review but raised strong concerns about its scope and timeline. President Dr David Hamilton said while the group “applauds” the review, it worries the terms of reference are too narrow and the timeframe too short for meaningful reform.

“The existing [Owners Corp-orations Act 2006] Act is a poorly drafted, moribund piece of legislation that suffers many defects from repeated tinkering over the years,” Dr Hamilton said.

“It does not reflect the needs of owners, particularly in the complex buildings found in Southbank. The laws relating to OC management, governance, facility management, sustainable improvements, rule changes, and committee training roles and responsibilities are all long overdue for a complete overhaul.”

Dr Hamilton also pointed to the rapidly changing nature of strata living, arguing that old-style prescriptive legislation cannot keep up with evolving community needs.

He also called for specific attention to the build-to-rent (BTR) sector, warning of the “ticking time bomb” of legal and social issues that can arise when entire buildings are owned by a single developer or institutional landlord.

“This review needs to consider how it is going to protect the rights of renters in the BTR environment, where the roles of the management company and developer can be mixed. When 100 per cent of the apartments are owned by one party, the needs of those living in that environment need to be addressed at the outset.”

Dr Hamilton said it will also be important to see who is appointed to the expert panel and their experience in strata living and ownership. He highlighted that Southbank’s local MP Nina Taylor was one of only two members of Parliament known to live in a strata high-rise building, and hopes she could bring first-hand experience to influence policy outcomes.

Strata Title Lawyers principal and Southbank News OC Law columnist Tom Bacon commended the Allan Government for the initiative.

“It is long overdue that the OC Act needs serious reform,” Mr Bacon said.

“The reality is that the last batch of amendments, which took place in 2021, were part of a Consumer Affairs Victoria review that commenced back in 2016, sat on the shelves for four years, and then got put back during COVID.”

“OCs are stuck - literally stuck - by the legislation. They cannot pass special resolutions easily, they cannot get quorums to make decisions. And that is the fault of the legislation. These matters are readily achieved in other states and territories each day.”

“Greater clarification and education is required on what is common property and lot property. Too often, lawyers are required to get involved to sort out waterproofing issues where lot owners are arguing with each other about who is responsible. The legislation could make this crystal clear,” Mr Bacon said.

“These are limited examples of course, but what I see every day in my practice is frustration from owners and committee members that nothing moves quick enough. Melbourne is a grown up city, and it has a buzz and vibrancy to it. However, 25 per cent of the population is stuck in a legislative framework that is needlessly complex and outdated.”

Minister Staikos said the review aimed to deliver “essential protections for apartment residents” and confirmed the expert panel would engage widely with the community through Engage Victoria and other consultation channels starting later this year. •