Victorian Owners Corporation Reforms Pass Parliament

The Victorian Government has passed the first stage of reforms to the Owners Corporations Act 2006 as part of its response to the independent review of Victoria's owners corporation laws. 

A key focus of these reforms is supporting lot owners experiencing financial hardship while providing owners corporations with a clearer framework for managing overdue fees and debt recovery. 

The new legislation introduces a comprehensive set of rules governing payment plans for outstanding fees, interest and other charges. These changes are expected to commence later in 2026, with an exact start date yet to be confirmed. 

Key changes  

Under the new reforms: 

• Lot owners will have a legislated right to request a payment plan for outstanding fees, interest and other charges. 
• Payment plan requests must be submitted using the approved form. 
• Owners corporations will not be able to charge a fee for assessing or offering a payment plan. As a result, the cost of administering all a scheme’s payment plans will be passed back to the owners corporation. 

Owner-occupiers will receive additional protections, including:  

• Owners corporations must decide on a payment plan request within 28 days. 
• Decisions to refuse a request can only be made on specific grounds and reasons must be provided. 
• If a decision is not made within the required timeframe, the payment plan may be deemed approved. 
• Applicants may be required to provide evidence of financial hardship. 
• New privacy protections will apply to the collection, use and disclosure of personal information provided as part of a payment plan request. 
• Owners who enter into and comply with an approved payment plan will retain their voting rights and eligibility to serve on the owners corporation committee. 
• Owners corporations will be required to report on payment plans at their annual general meetings. 
• The Victorian Civil and Administrative Tribunal (VCAT) will be able to hear and determine disputes relating to payment plans. 

What this means for owners corporations    

These reforms aim to create a more consistent and transparent approach to managing fees arrears while balancing the financial needs of owners corporations with support for lot owners experiencing genuine hardship. 

Owners corporations, committee members and lot owners should familiarise themselves with the new requirements before they commence. 

Looking ahead  

Further details, including the commencement date and supporting regulations, are expected later this year. 

We will continue to monitor the rollout of these reforms and provide updates to our committees and lot owners as more information becomes available.