10 Key Changes to Victoria’s Strata Laws

Strata laws and expectations continue to evolve, and many buildings are still adjusting to the major reforms introduced in 2021.

The Victorian government also launched a formal review of the Owners Corporations Act in 2025, with an expert panel examining whether the current reforms are working effectively and where further changes may be needed.

Topics such as short-stay regulation, levy hardship, manager conduct and collective sale are already under review.

While the current rules remain in effect, further legislative changes may still follow.

Before any additional reforms are introduced, here are the key changes from 2021 and what they mean for your OC today.

Key Takeaways:

• The way your owners corporation is managed today reflects higher standards set by recent reforms. Many buildings still operate under older practices, which can create risks.
• These changes are not just legal updates, they directly shape how your strata manager performs. Understanding them sets a clear benchmark for good management.
• If your current setup feels out of step, it may fall further behind over time. Reviewing it early helps keep your building aligned.

Why these changes matter more than most Committees realise

Many buildings are still operating the same way they did before these reforms.

The problem is that the standard has shifted. What was once acceptable can now result in:

• limited visibility over finances
• unclear commission structures
• reduced flexibility under outdated contracts

In most cases, the issue is not the legislation itself. It is whether the current manager has adapted to it.

What are the 10 key strata law changes and what do they mean for your OC?

Here are the 10 key strata law changes, along with what each one means in practical terms for your OC.

1. The 5-tier system

OCs are now classified into five tiers based on the number of occupiable lots:

• Tier 1: More than 100 occupiable lots
• Tier 2: 51 to 100 occupiable lots
• Tier 3: 10 to 50 occupiable lots
• Tier 4: 3 to 9 occupiable lots
• Tier 5: 2-lot subdivisions or services-only owners corporations

Occupiable lots exclude areas such as car parks and storage lots, which can affect how an owners corporation is classified.

Each tier has different obligations, particularly around financial reporting, governance and administration.

In practical terms, larger buildings are subject to stricter requirements, while smaller properties have reduced compliance, creating a more proportionate approach.

2. 3-year cap on strata manager contracts

Strata manager contracts are now limited to a maximum of three years.

This means Committees have a clear opportunity to review performance regularly and reassess whether their current manager is still the right fit.

3. Proxy voting limits

Limits now apply to how many proxies one person can hold:

• For 20 occupiable lots or fewer, a person cannot vote as proxy on behalf of more than one lot owner
• For more than 20 occupiable lots, a person may only hold proxies for up to 5% of lot owners

An exception applies for family members, which is common in smaller owners corporations.

This reduces the risk of voting power being concentrated and supports more balanced decision making.

4. Disclosure of conflicts of interest

Strata managers must disclose commissions, supplier relationships and any financial benefits they receive.

This gives Committees clearer visibility over how decisions are made and whether conflicts exist.

5. Maintenance plan requirements

Tier 1 and Tier 2 OCs must prepare and approve a long term maintenance plan.

Tier 3, Tier 4 and Tier 5 OCs may choose to do so.

This encourages forward planning and reduces the likelihood of unexpected major costs.

6. Financial reporting obligations by tier

Financial reporting requirements now vary depending on the tier, with larger buildings subject to audits or independent reviews.

This introduces a higher level of accountability over how funds are managed.

7. Committee powers and responsibilities

Owners corporations with 10 or more occupiable lots must now elect a Committee at each annual general meeting, reduced from the previous threshold of 13 lots.

Committees must have at least 3 and no more than 7 members, unless increased by ordinary resolution to a maximum of 12.

Tier 4 and Tier 5 owners corporations may still choose to elect a Committee, although they are not required to do so.

These changes provide clearer structure and improve how decisions are made and managed.

8. Insurance and valuation requirements

OCs must generally obtain a valuation at least every 5 years for buildings they are required to insure, although services-only OCs are exempt.

This helps ensure insurance coverage remains accurate and avoids underinsurance.

9. Limits on developer influence

New rules place limits on initial owner influence, particularly where a developer retains control after registration.

Initial owners face 10-year obligations and cannot be appointed as manager, vote on defects or receive related payments.

These changes help ensure control transitions appropriately to owners.

10. Dispute resolution pathways

Owners corporations can now initiate legal proceedings for claims up to $100,000 with an ordinary resolution.

Claims above this threshold still require a special resolution.

This makes it easier for Committees to take action when needed without the higher voting threshold previously required.

How can you tell if your strata manager is not keeping up with current requirements?

These changes have made it easier to spot gaps in how a building is being managed.

Common signs include:

• contracts that do not reflect current limits
• limited transparency around commissions or supplier relationships
• poor communication about compliance requirements
• financial reporting that has not kept pace with current standards

If your building has not reviewed its management approach in recent years, these issues can often go unnoticed.

How to compare strata managers under the new laws

For most Committees, the challenge is not deciding to review their strata manager. It is knowing where to start.

Reaching out to multiple companies individually can be time consuming and difficult to manage. Instead, many Committees now look for a more efficient way to compare strata managers.

With StrataQuote, you can:

• submit one enquiry
• receive proposals from multiple strata managers
• compare options side by side

This makes it easier to identify a manager that aligns with current requirements and your building’s needs.

Is your strata manager keeping up with these changes?

Strata laws and requirements do not stand still. As expectations continue to evolve, staying up to date becomes increasingly important for how your building is managed.

For Committees, this means understanding whether your current setup still meets today’s standards. For strata managers, it means continually adapting to deliver the level of service now expected.

If your current setup already feels out of step with these changes, it is worth considering how it will hold up as further changes come in.

We give Committees a clearer view of their options, so they can make informed decisions about what comes next. Reach out today.