In summary
- Victoria’s Owners Corporations Act 2006 is heading towards its most significant overhaul in years. In June 2026 the State Government responded to a wide-ranging expert panel review and backed the majority of its 51 recommendations.
- Potential changes being signalled include a licensing regime for owners corporation managers, stronger record-keeping and disclosure, fairer voting, financial hardship support, faster dispute resolution, and clearer rules around sustainability and short-stay accommodation.
- None of this is law yet, which makes now the ideal time to get records, planning and governance in good shape. MBCM helps Victorian owners corporations prepare early, so reform feels like an opportunity rather than a scramble.
Why it pays to look ahead
Owners corporations are a bigger part of Victorian life than ever. Around one in five Victorians now live in or own property governed by an owners corporation, and that share keeps growing as higher-density living becomes the norm across Melbourne and our regional centres. As the sector grows, so does the attention it receives from government.
The Owners Corporations Act 2006 is the rulebook for how owners corporations are run in Victoria, covering everything from meetings and finances to maintenance, rules and dispute resolution. It has not had a major update since the 2021 reforms, and the State Government recently completed a review to decide whether it is still fit for purpose.
In June 2026, the Government released its response to that review. The short version is that substantial change is coming. The longer version is that most of the detail is still to be worked out, which is exactly why this is a good moment for committees and owners to get ahead rather than wait to react.
What’s driving the review
The review was prompted by a simple reality: apartment living has grown faster than the law around it. The Act was written for a smaller, simpler sector, and it has been showing strain in areas such as manager conduct, decision-making in larger schemes, and the time and cost of resolving disputes.
An expert panel examined the Act and made 51 recommendations across seven areas, from governance and manager conduct to short-stay accommodation, financial hardship, dispute resolution, fairer voting and collective sales. The Government has indicated it broadly supports the direction of reform and backs most of those recommendations in full, in part or in principle. Importantly, it has signalled a shift towards a more proactive and interventionist approach, including expanded powers for Consumer Affairs Victoria and a move away from relying on private dispute resolution.
The changes that may be coming
While nothing has yet passed Parliament, the Government’s response gives a clear sense of what Victorian owners corporations should be watching for. The likely areas of change include:
- Licensing for owners corporation managers. A new licensing regime is on its way, alongside clearer duties and stronger accountability for managers. This builds on the professional standards that good managers already hold themselves to.
- Stronger governance and transparency. Expect a greater focus on record-keeping, better access to information for lot owners, and clearer disclosure, the kind of practices that help owners understand how and why decisions are made.
- Fairer voting and decision-making. Reforms are being considered to make voting and collective decisions work better, particularly in larger schemes where keeping owners engaged can be difficult.
- Financial hardship support. This has been identified as an early priority given cost-of-living pressures, with clearer arrangements for owners who are struggling to pay fees.
- Faster, fairer dispute resolution. The Government has flagged streamlining the approach to mediation at VCAT, to reduce the volume of OC related hearings, and resolve simple disputes more quickly and cost-effectively.
- Sustainability, short-stay and more. Practical, emerging issues such as consideration of sustainability measures (think solar and EV charging) and improving management of short-stay accommodation are also on the agenda.
The Government is required to review the operation of the 2021 amendments by 1 December 2026, and has already begun progressing some priority items, including a strengthened licensing system for strata managers and avenues to better support lot owners experiencing financial hardship. So while the full overhaul will take time, some changes have already begun to move this year.
Turning reform into an opportunity
It is easy to read a list like this as a looming pile of new obligations. We see it differently. Most of these reforms point in the same direction good management already does: clearer records, better communication, sensible planning and fair decision-making. An owners corporation that runs well today has very little to fear from reform, and a lot to gain from getting in early.
The committees that navigate change smoothly tend to share a few habits. They keep accurate, accessible records. They understand their building’s long-term maintenance and financial position. They communicate openly with owners. And they work with a manager who is watching the horizon on their behalf.
What your committee can do now
You do not need to wait for a bill to start preparing. A few practical steps will leave your owners corporation in a strong position whatever the final detail looks like:
- Make sure your records, registers and meeting documents are complete, accurate and easy to access.
- Review your management and service contracts so you understand their terms and renewal dates.
- Check that your long-term maintenance plan and finances are realistic and up to date.
- Keep owners informed, so decisions are made with good information and genuine engagement.
How MBCM helps you stay ahead
This is where a local, proactive strata manager earns their place. At MBCM Strata Specialists, our purpose is to help strata communities thrive through education and proactive management, which means we keep a close eye on legislative change and translate it into plain, practical guidance for the committees we work with.
Our managers are qualified, registered with the Business Licensing Authority and proud members of the Strata Community Association, so the professionalisation these reforms point towards is already part of how we operate. And because every MBCM branch is locally owned and operated, you get someone who understands both the legislation and your community, close by, responsive and ready to help you prepare.
If your committee is wondering what the coming changes might mean for your building, that is a conversation worth having now. With the right support in place, reform becomes part of good management: an opportunity to protect your property, support community harmony, and plan for the future with confidence.
FAQs
Are these changes law yet?
No. As of mid-2026, the State Government has responded to the review and signalled its support for reform, but not all the suggestions are contained within an existing bill. The detail will be developed through further consultation and legislative process.
What is the Owners Corporations Act review?
It is a wide-ranging review of Victoria’s Owners Corporations Act 2006, carried out by an expert panel that made 51 recommendations. The Government is required to review the 2021 amendments by 1 December 2026, and has indicated it broadly supports the panel’s direction.
Could owners corporation managers soon need a licence?
Yes. A licensing regime for an owners corporation management business and registered owners corporation manager is being considered, along with the introduction of required educational requirements. MBCM strata managers are registered with the Business Licensing Authority and are members of the Strata Community Association.
What can our committee do now to prepare?
Keep your records and registers accurate and accessible, review your contracts, make sure your long-term maintenance plan and finances are current, and keep owners well informed. These habits put you in a strong position whatever the final reforms look like, and particularly focus on the introduction of potential reporting requirements.
How can MBCM help?
MBCM monitors legislative change and provides practical guidance, alongside administration, financial management, insurance support, maintenance coordination and day-to-day owners corporation management, all delivered by a locally owned branch near you.
Glossary of terms
Owners corporation
The legal body made up of all lot owners in a subdivision. It is responsible for managing and maintaining common property and meeting its obligations under the Owners Corporations Act 2006. (Formerly known as a body corporate.)
Committee
A group of lot owners elected to help make decisions and oversee the day-to-day running of the owners corporation on behalf of all owners. Committee roles are voluntary and unpaid.
Lot owner
A person who owns a lot, such as an apartment, unit or townhouse, within an owners corporation, with both rights and responsibilities under the Act.
Owners Corporations Act 2006
The principal Victorian legislation governing how owners corporations are managed and run, including meetings, finances, rules, maintenance and dispute resolution.
Consumer Affairs Victoria (CAV)
The state regulator responsible for owners corporation laws in Victoria, including guidance and dispute resolution. The reforms propose expanding its powers.
VCAT
The Victorian Civil and Administrative Tribunal, which hears and resolves many owners corporation disputes.
Long-term maintenance plan
A plan mapping out a building’s major maintenance and repair needs over time, helping an owners corporation budget for future costs and avoid unexpected special levies.
Model rules
The standard rules that apply to an owners corporation under the Owners Corporations Regulations 2018 unless it registers its own rules, covering matters such as behaviour and maintenance as it impacts common property and all lot owners.