Self-Managing a Body Corporate in Victoria

Can you self-manage in Victoria?

Any Victorian owners corporation can self-manage except a tier 1 OC (more than 100 lots), which must appoint a manager unless it opts out by special resolution. The Owners Corporations Act 2006 (Vic) sorts OCs by occupiable lots: tier 2 has 51–100, tier 3 has 10–50 and tier 4 has 3–9. Tier 5 is a two-lot subdivision or a services-only OC, so a three-lot block is tier 4, not tier 5. A two-lot OC is exempt from a long list of provisions under section 7A — including AGMs, ballots, financial statements, maintenance plans and the compulsory insurance. A tier 4 OC keeps the full meeting and insurance duties but has lighter reporting: no compulsory maintenance plan, audit or review. Owners who run their own OC do not need to register; only paid managers must be registered with the Business Licensing Authority.

Required office bearers

Tier 1, 2 and 3 OCs (10 or more lots) must elect a committee at each AGM, with three to seven members (up to 12 by ordinary resolution) and no more than one member per lot. Tier 4 and 5 OCs may choose to elect a committee. If there is no committee, the lot owners must elect a chairperson. In a small self-managed block, one owner usually also acts as secretary and the contact point.

Meetings and notices

An OC that receives or pays out money in a financial year must hold an annual general meeting (section 69), and no more than 15 months can pass between AGMs. Written notice — email is fine — must reach every lot owner at least 14 days beforehand, with the agenda, the full text of any special or unanimous resolutions, the financial statements, the proposed budget and the previous minutes. Decisions can also be made by ballot. A two-lot subdivision (tier 5) is exempt from the AGM, general meeting and ballot provisions under section 7A, and for those OCs a special resolution must be unanimous.

Levies, budgets and funds

Annual fees are set at the AGM from a proposed budget and charged according to each lot’s lot liability. Fee notices must use the approved forms and give 28 days to pay, and interest on overdue fees can only be charged if the OC has resolved to charge it, capped at the penalty interest rate. Tier 1 and 2 OCs must prepare a maintenance plan; tiers 3–5 may choose to, and any OC with a plan must keep a maintenance fund. Tiers 1–3 prepare annual financial statements to Australian Accounting Standards, and tier 4 prepares them for any year it levies annual fees. Tier 1 statements must be audited and tier 2 statements reviewed; tiers 3–5 may choose either. A two-lot subdivision is exempt from the accounts, audit, maintenance plan, maintenance fund and fee notice provisions under section 7A.

Insurance obligations

Every OC except a two-lot subdivision must hold reinstatement and replacement insurance for the buildings on its common property, and public liability insurance of at least $20 million for the common property. When renewing, the sum insured must be more than the value of the buildings. A two-lot subdivision is exempt from both, but Consumer Affairs Victoria still recommends insuring, because the owners carry the legal and financial risk of the common property. Lot owners in an OC without common property can decide unanimously that each will arrange their own insurance.

Records to keep

Every OC must keep a register of lot owners, minutes of meetings, financial records, correspondence and any contracts entered into. Records must be made available to lot owners and prospective purchasers on request. The OC must also issue an OC certificate (section 151) to owners selling their lot.

Common pitfalls

• Treating a three-lot OC as tier 5. Tier 5 is a two-lot subdivision or a services-only OC; three to nine lots is tier 4, which must hold AGMs and carry building and $20 million public liability insurance.
• Failing to update the lot owner register when a lot is sold, causing notices to be served on the wrong person.
• Missing the 10-business-day deadline for an OC certificate at sale time. The maximum fee is set in fee units — 9.64 fee units before GST for 6–10 business days, with a fee unit worth $17.27 in 2026–27 — and a late certificate can hold up the sale.
• Acting on an interim special resolution straight away. A vote with at least 50% in favour and no more than 25% against is only interim: owners must be notified within 14 days, and it cannot be acted on for 29 days in case owners holding 25% of the votes petition against it.
• Charging interest on overdue fees the OC never resolved to charge, or sending fee notices that are not in the approved form — both make arrears harder to recover.

Frequently asked questions