Does the Act apply to a townhouse with its own title and no shared land?

No. An owners corporation exists only where the registered plan contains common property. A townhouse on its own title with nothing shared has none. A buyer can confirm this from the plan of subdivision and the Section 32 vendor statement.

Where are the model rules, in the Act or the Regulations?

The model rules are in the Owners Corporations Regulations 2018, not in the Act, and CAV says they apply where an owners corporation has not made its own rule on an item. CAV refers to them as Schedule 1 of the Regulations, so check the schedule number in the authorised version. See owners corporation model rules.

Who enforces the Act?

Owners corporations enforce their own rules through a complaints process. The Dispute Settlement Centre of Victoria can help if everyone agrees to take part, and VCAT can hear disputes and make orders. The Director of Consumer Affairs Victoria is among those who can bring a complaint to VCAT. Paid managers must be registered, and CAV says acting as an unregistered manager for fee or reward is an offence under section 178.

Is the Act likely to change again soon?

Version 024 has been in force since 9 September 2026, and the amendment Regulations start on 25 November 2026. The review's recommendations were published in December 2025, so further changes are possible. This guide cannot say whether they will happen. The legislation website shows the current version.

The Owners Corporations Act 2006 in plain English

The Owners Corporations Act 2006 is the Victorian law that sets out how an owners corporation looks after common property, raises fees, holds meetings, makes rules and resolves disputes. It came into operation on 31 December 2007. As at October 2026 the current version on the Victorian legislation website is version 024, in force from 9 September 2026.

This page covers Victoria only. Queensland uses a different law and a different name, explained in what a body corporate is.

The Act applies where a registered plan of subdivision creates an owners corporation. Consumer Affairs Victoria (CAV) says one is created automatically when a plan containing common property is registered, and that company title and stratum title properties are outside the Act.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

What the Act is for

The Act covers how an owners corporation manages common property, raises fees, holds meetings, makes rules and resolves disputes. Three pieces of law work together.

Subdivision Act 1988 deals with plans of subdivision. When a plan with common property is registered at Land Use Victoria, an owners corporation is created and the lot owners become its members. CAV also points to the Subdivision Act for how an unlimited owners corporation can take on the functions of limited ones.
Owners Corporations Act 2006 says how an owners corporation operates.
Owners Corporations Regulations 2018 hold the detail, such as the model rules and prescribed matters like the certificate's contents. Version 002, in force from 1 December 2021, was the current version when the sources for this page were read.

Before 31 December 2007 Victoria used the term body corporate. CAV says the body corporate became an owners corporation when the Act came into force.

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What the Act covers

Area	What it covers
Functions and powers	What an owners corporation does, the five tiers, exemptions for two-lot and services-only schemes, delegation, legal proceedings (s 18)
Money	Annual and special fees, fee notices, accounts and audit, maintenance plans and funds, repairs, insurance
Meetings and voting	Meetings, ballots, voting and the types of resolution
Committees	Who sits on the committee and what it does
Managers	Appointment, contracts, duties, disclosure of commissions, and registration of managers (the register is kept under s 194, according to CAV)
Lot owners	Duties of lot owners and occupiers
Rules	Making rules, and the model rules
Records	Records, the owners corporation register and the certificate (s 151)
Disputes	Complaints, and applications to VCAT (Part 10 deals with disputes, according to the model rules)

The authorised version's table of contents gives the current Part and section numbers, so quote them from there.

What a townhouse owner is likely to meet

Fees. Annual fees cover general administration, maintenance and insurance, and are based on lot liability. CAV says a special resolution is needed for special fees above twice the total current annual fees.
Fee notices. A notice gives 28 days to pay. A final notice can follow, with another 28 days before legal action.
Repairs. The owners corporation repairs and maintains common property, fixtures and services. A lot owner must not repair, alter or maintain common property unless the owners corporation has expressly authorised it.
Looking after a lot. CAV says an owner must keep the exterior of a lot in good and serviceable repair, and its appearance must not affect other owners' use and enjoyment.
Insurance. CAV says lot owners in an owners corporation without common property can decide unanimously that each arranges their own insurance. The certificate has to say whether members may arrange their own, so ask who insures each building.
Voting. Votes count by lot or by lot entitlement, depending on the kind of resolution and whether it is decided at a meeting, by ballot or by poll. A special resolution needs 75%. An interim special resolution can pass with at least 50% in favour and no more than 25% against, subject to a 29-day petition window.
Rules. Rules are made by special resolution and take effect when registered at Land Use Victoria. CAV says unregistered rules are void and that a rule cannot unfairly discriminate against an owner or occupier.
Certificate (s 151). Any person can apply, and it must be issued within 10 business days after the application and fee are received.

Changes in recent years

The Victorian legislation website lists a new version of the Act on each date below. The table says what each change did where CAV or another official page explains it.

Date	Change
1 December 2021	The Owners Corporations and Other Acts Amendment Act 2021 took effect (version 019). CAV says it replaced the earlier category of prescribed owners corporations with the five-tier system, added duties for committee members, and from this date a manager cannot be appointed for more than three years (five for a retirement village)
1 January 2025	The Short Stay Levy Act 2024 amended the Act. CAV says owners corporations can now make a rule banning short stay accommodation by special resolution, but not for a lot that is someone's principal place of residence
25 and 26 November 2025	Versions 022 and 023 took effect. CAV's page on new education rules for managers sets initial training for managers due by 30 June 2027 and annual development from 1 April 2028
9 September 2026	Version 024 took effect. CAV's page on enforcing rules now says who may start legal proceedings: an ordinary resolution is enough for non-monetary claims and for money claims up to twice the total current annual fees, and larger money claims need a special resolution

A Victorian Government notice says the Owners Corporations Amendment Regulations 2026 start on 25 November 2026. They change registration and late lodgement fees for individuals in charge of owners corporation management businesses.

The statutory review

A review of how the 2021 amendments have operated was carried out under section 210 of the Owners Corporations and Other Acts Amendment Act 2021. An expert panel of three completed the final report in December 2025, and it was tabled in the Parliament of Victoria.

The report counted about 128,896 active owners corporations as at 2024, covering 1,044,400 lots. It said 74% have five or fewer lots, though those schemes hold only 26% of all lots. Its 23 recommendations cover developer duties, committee education, manager contracts and benefits, financial transparency, voting procedures and legal proceedings. Recommendation 23 is about the wording of section 18(2) on legal proceedings, but the sources read for this page do not say whether the 2026 change followed from it. Check CAV for any further reform.

Where to read it

The authorised version is on the Victorian legislation website, and its listing shows the version number and the date each version took effect. CAV's owners corporation pages explain the rules in plainer language, but they do not always agree with each other. For example, CAV's tiers page says owners corporations with 10 to 50 lots (tier 3) must elect a committee at each annual general meeting, while its page on annual general meetings says 13 or more lots. Its model rules page points to Schedule 1 of the Regulations, so check the schedule number in the authorised Regulations before quoting a rule.

Common questions

Does the Act apply to a townhouse with its own title and no shared land?: No. An owners corporation exists only where the registered plan contains common property. A townhouse on its own title with nothing shared has none. A buyer can confirm this from the plan of subdivision and the Section 32 vendor statement.
Where are the model rules, in the Act or the Regulations?: The model rules are in the Owners Corporations Regulations 2018, not in the Act, and CAV says they apply where an owners corporation has not made its own rule on an item. CAV refers to them as Schedule 1 of the Regulations, so check the schedule number in the authorised version. See owners corporation model rules.
Who enforces the Act?: Owners corporations enforce their own rules through a complaints process. The Dispute Settlement Centre of Victoria can help if everyone agrees to take part, and VCAT can hear disputes and make orders. The Director of Consumer Affairs Victoria is among those who can bring a complaint to VCAT. Paid managers must be registered, and CAV says acting as an unregistered manager for fee or reward is an offence under section 178.
Is the Act likely to change again soon?: Version 024 has been in force since 9 September 2026, and the amendment Regulations start on 25 November 2026. The review's recommendations were published in December 2025, so further changes are possible. This guide cannot say whether they will happen. The legislation website shows the current version.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.