Strata living now accounts for 1 in 3 homes in Victoria—yet many owners feel powerless, and developers are navigating an increasingly complex regulatory environment. With complaints on the rise and outdated practices still common, the Victorian Government has launched a major Owners Corporation (OC) law review aimed at improving fairness, transparency, and performance.
Whether you own a unit, sit on a committee, or deliver new housing projects, these changes will impact you.
Why the Review Is Underway
The Owners Corporations Act 2006 saw its last major update in 2021, introducing a tiered system and tighter governance requirements. But ongoing concerns—particularly around:
- Undisclosed commissions,
- Proxy vote manipulation, and
- A lack of owner protections—
have triggered this 2025 reform effort.
In June, the Allan Government appointed a 5-member Expert Panel, led by former Minister Marsha Thomson, to conduct a deep review of OC laws. Public consultation is open until September 30, 2025.
Submit feedback via Engage Victoria
Key Reform Areas Being Reviewed
1. Hardship Policies
Mandatory hardship support may be introduced for owners facing genuine financial difficulty—changing how fees, arrears, and debt collection are handled.
2. Voting & Proxy Rules
New rules could cap the number of proxies a person can hold, reduce manipulation in decision-making, and improve transparency in meeting outcomes.
3. Unfair Contracts & Commissions
Managers may soon be banned from receiving referral commissions from trades or insurers—potentially reducing costs and improving trust.
4. Collective Sale Thresholds
Victoria may follow NSW’s lead by reducing the voting threshold for selling entire strata schemes—from 100% to as low as 75%. This could fast-track redevelopment opportunities for ageing buildings.
5. Dispute Resolution & Oversight
Expect stronger VCAT powers, mandatory training for OC managers, and simpler owner-led dispute pathways.
What Developers Need to Know
Reforms will likely require developers to rethink how OCs are set up, disclosed, and managed in new projects.
Here’s a preview checklist:
- Avoid bundled contracts that include commissions
- Engage independent OC managers early
- Prepare detailed maintenance and budget plans at pre-sale stage
- Review how sales contracts disclose common property rights
- Factor potential collective sale strategies into long-term value planning
These changes could impact both Build-to-Sell and Build-to-Rent models—particularly in medium- and high-density developments.
What It Means for Owners & Committees
The reforms aim to level the playing field for owner-occupiers and investors. If implemented, owners could expect:
Easier access to financial counselling and dispute help
Greater say in meetings (especially in smaller buildings)
More control over OC managers and service provider contracts
Protection from poorly disclosed or conflicted decisions
If you’ve felt disengaged or overwhelmed by your OC’s decisions in the past, this review could bring meaningful change.
Quick Stat Snapshot
- 1.6 million Victorians live in strata housing
- >85,000 Owners Corporations exist across the state
Consumer Affairs Victoria receives thousands of complaints annually, with many relating to poor governance, hidden fees, or lack of transparency
(Source: CAV, 2025)
Final Thoughts
The 2025 OC law review presents an opportunity to fix systemic problems—while also placing more responsibility on those managing or establishing new schemes.
At Amity Strata Management, we’re monitoring these reforms closely and advising clients—whether you're purchasing, developing, or living in a property governed by an OC.
Want to understand how these changes might affect your next project or property strategy? Talk to our team for a confidential consultation.
