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.

We Live Here has long campaigned for stronger protections against disruptive short-stay operations in apartment buildings, as well as “stronger, more comprehensive” owners’ corporation law reforms.

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.

“While these latest changes are modest, they represent a significant step forward in improving community dynamics, social equity, and quality of life,” a We Live Here spokesperson said at the time.

“This legislative win provides a strong foundation for continued advocacy to achieve even better laws, more consistent with the comprehensive regulations seen in other major jurisdictions worldwide.”

The upcoming review may also scrutinise how these new laws are working in practice – particularly whether the 75 per cent vote requirement is too high and whether further changes are needed to give residents more power in managing disruptions and maintaining the amenity of their homes.

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.

Strata Title Lawyers principal and Docklands 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." 

"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. •