Strata Under Scrutiny: Victoria Launches a Major Review of Owners Corporation Laws

Victorian Government Announces Review of Owners Corporations Act

On 13 June 2025, the Victorian Government announced that it will conduct a wide ranging review of the Owners Corporations Act 2006 (Vic), setting the stage for potential reforms to how strata communities are governed across the state. With one in four Victorians now living in apartments, townhouses or units managed by an owners corporation, the review reflects a growing need to ensure the legal framework remains fair, functional, and fit for modern living.

Independent Panel Appointed to Lead the Review

The review will be led by an independent expert panel chaired by Marsha Thomson, a former Minister for Consumer Affairs, with two additional panel members to be appointed shortly. The panel has been tasked with identifying whether the current laws continue to serve the best interests of lot owners, residents, and stakeholders, particularly in light of increasing density, ageing strata infrastructure, and rising concerns about management practices. The panel is expected to consult widely with the public and industry stakeholders later this year, with a final report due by December 2025.

Key Issues

One of the core issues being examined is how the Act supports lot owners experiencing financial hardship. As strata fees increase and economic conditions fluctuate, the panel will consider whether additional protections or clearer hardship arrangements are warranted.

Another area of focus is decision making within owners corporations, particularly the requirement for unanimous consent when selling common property. With redevelopment pressures rising, there is growing debate over whether a lower threshold (such as a special or majority resolution) would better support the needs of owners while still protecting individual rights.

Concerns About OC Manager Conduct

The review also takes aim at governance standards among owners corporation managers. The panel will consider concerns about undisclosed commissions, potential conflicts of interest, and lack of transparency in management contracts and procurement decisions. In an environment where professional OC managers wield significant influence over budgets and long term building decisions, questions are being asked about whether stronger disclosure and accountability measures are needed.

Revisiting Short-Stay Accommodation Rules

Short stay accommodation is another area under review. Reforms introduced in 2019 attempted to regulate the impact of platforms like Airbnb in strata buildings. The panel will assess whether those changes have been effective, and whether further reform is needed to better balance investment use with resident amenity and building security.

Why Builders and Developers Should Care

For builders and developers, the review may seem peripheral, but the potential impacts are real. If collective sale thresholds change or stricter rules around the appointment of OC managers are introduced, it could affect how new builds are structured and disclosed. Greater regulatory attention on owners corporations could also heighten scrutiny during the defect liability period, or impact relationships with early stage building managers and consultants.

A Chance for Owners and Committees to Shape the Law

For lot owners and committee members, this is a rare opportunity to have a say in how strata communities function. The review acknowledges concerns around voting procedures, fee disputes, governance challenges and the balance of power between residents and professional managers. Owners who feel the system currently lacks fairness or transparency will be encouraged to contribute to the consultation process.

Next Steps: Public Consultation and What to Expect

Public engagement is expected to begin in late 2025, primarily through Engage Victoria. The panel will also consider other channels to gather input from individuals and stakeholder groups. The final report is due to the Minister for Consumer Affairs by December 2025.

Time to Review Your Own Position

This review isn’t just about patching gaps, it’s about modernising the entire system of shared property ownership and governance. Whether you're planning a new development, dealing with an owners corporation, or living in a strata managed property, now is the time to understand your rights, review your documents, and prepare for reform.