A Better Deal For Apartment And Townhouse Owners

One in five Victorians now own or live in a strata-managed home like an apartment or townhouse – and Labor is making sure they get a fair go.

Review of the Owners Corporations Act 2006

Following an independent review of owners corporation legislation, new laws introduced to Parliament today will better protect Victorians.

The review made 51 recommendations. The Government supports 17in full, three in part and 26 in principle. Three recommendations are under review and will be given further consideration while two are not supported.

Immediate change following the review

These are the first tranche of changes to come following the review.

It will mean owners struggling to pay body corporate fees get a clear, standard right to a hardship payment plan.

This will protect Victorians struggling to pay their bills and means they won’t face aggressive and relentless debt collection.

It will also make it easier for owners to act together.

These laws make it clear that an owners corporation can start legal proceedings over non-monetary matters with the support of 50 percent of strata owners in the Magistrates’ Court or VCAT.

In addition, changes will be made to the Subdivision Act 1988 to make it easier to alter subdivision plans.

Previously, every single owner had to agree before changes could be made – meaning one person could block something that everyone else wants.

More change to come

These are just the first changes following the review with further changes to come next year including:

giving Consumer Affairs Victoria greater powers to enforce the laws

a new licensing scheme for owners corporation managers

better protections from dodgy strata managers

more transparency over how strata money and decisions are handled.

With strata managed properties across the state numbering more than 500,000 and growing fast, Labor is delivering solutions to make life easier, fairer and more affordable for hundreds of thousands of Victorians.

For more information, visit engage.vic.gov.au/ocactreview.

Quotes attributable to Minister for Consumer Affairs Paul Edbrooke

“No one should be hounded over fees they simply can’t afford – so we’re putting a stop to it.”

“One in five Victorians call a strata property home – they deserve a fair go and that’s exactly what they’ll get under Labor.”

“If you live in an apartment, a unit or a townhouse, Labor has your back. If you’re a strata manager taking kickbacks and illegal commissions, you are squarely in our sights.”