Owners Corporations Regulations 2018

The Regulations are structured around a small number of core regulatory concepts that translate the Act's higher-level duties into specific, operationalised rules and administrative requirements.

1. Prescribed content and standard forms. The Regulations prescribe precise content for documents and processes that drive owner interactions and property transfers. Examples include the voting form content required for voting on resolutions outside a meeting (reg 7B), the proxy form in Schedule 1 (reg 8), the owners corporation certificate content (reg 16) and the statement for prospective purchasers in Schedule 3 (reg 17). Prescribed content reduces uncertainty about what is required to make a vote or certificate valid, and standardises disclosure provided to purchasers and lot owners.

2. Model rules. The Regulations provide a default set of rules an owners corporation may adopt (reg 11, Schedule 2). Schedule 2 covers health and safety obligations (rule 1), committee and subcommittee functions (rule 2), management and apportionment of metered services (rule 3.1), use of common property, vehicles and parking, damage and alterations (rules 4.1-4.3), change of use and external appearance (rules 5.1-5.2), behaviour and noise control (rule 6), and a staged grievance and dispute-resolution procedure (rule 7). The model rules include provisions that permit reasonable conditions on sustainability items while precluding conditions that increase installation cost or reduce their impact (Sch 2 rule 5.2(3)-(5)).

3. Records and transparency. The Regulations expand record-keeping obligations beyond those in s 144 by prescribing additional records owners corporations must retain (reg 11A). The list includes contact details, certain safety check dates and outstanding recommendations, and records of notices or reports relating to building defects or safety concerns. The owners corporation certificate content (reg 16) requires disclosure of financial position, insurance, current contracts and unresolved notices, which is intended to make the corporation's state more transparent to prospective purchasers and lot owners.

4. Administrative fee ceilings and timing tiers. The Regulations translate administrative services into maximum fees set in fee units (regs 12-14, 19-21). Owners corporation certificates have tiered maximum fees based on the turnaround time (2 business days, 3-5, 6-10) and provide reduced rates for additional certificates processed for the same paying applicant and managers that handle multiple owners corporations (reg 14). The value of a fee unit and penalty unit is governed by the Monetary Units Act 2004 and the Sentencing Act 1991, with specific 2021 values in the Explanatory Details.

5. Meeting and voting mechanics for remote participation. The Regulations explicitly allow videoconferencing as an acceptable teleconferencing medium for general meetings and committee meetings (regs 7A and 9A). They also prescribe the required information for formal votes conducted by form, addressing identity, motion text, voting instructions, proxy details and signatures (reg 7B). These provisions set administrative standards for how remote participation and postal or electronic ballots must be structured.

6. Limits on proxy voting aggregation and committee attendance enforcement. The Regulations impose a restriction on the number of lot owners for whom a single proxy can vote if a person is authorised by a lot owner who owns multiple lots and has authorised that person for each lot, or where the owners corporation manages commercial, retail or industrial development (reg 8A). For committees, reg 9 provides a mechanism for removal of a committee member who is absent from at least 25 per cent of meetings over a 6 month period without prior notice or reasonable explanation.

7. Compliance-focused safety and insurance. The Regulations set $2 000 000 as the prescribed professional indemnity insurance amount for s 119(5) purposes (reg 10) and require records of safety checks and outstanding remedial recommendations (reg 11A(c) and (d)). These interventions supply minimum insurance cover and evidence trails for safety compliance.

8. Enforcement through infringement notices and referral routes. The Regulations identify specific Act provisions as infringement offences with prescribed penalty units (reg 23) and list external bodies to which disputes may be referred under s 161(3), including several Ombudsman offices and commissions (reg 18).

These main concepts reframe democratic, managerial and disclosure functions of owners corporations into a set of mandatory administrative practices, fixed fee ceilings and model behavioural rules. Each concept embeds compliance costs and affects decision-making processes: prescribed forms and record-keeping standardise behaviour but impose administrative burdens; tiered certificate fees and fee-unit valuation create a predictable charging framework but produce sensitivity to fee-unit adjustments; remote meeting rules expand participation options while creating standards parties must meet.

The Regulations affect a defined set of actors in the owners corporation ecosystem. Below I identify the parties who bear obligations, who pay fees, who decide, and who may be affected indirectly by the regulatory prescriptions.

Primary duty-bearers and decision-makers

• Owners corporations themselves. The corporate entity created under the Act must adopt or keep records and produce owners corporation certificates containing the prescribed information when requested (reg 16), maintain a letterbox/sign or manager signage (reg 22), comply with record-keeping obligations (reg 11A in addition to s 144 of the Act), and apply the model rules where adopted (reg 11, Sch 2). Owners corporations also decide on removal of committee members for absenteeism under reg 9.

• Committee members and the committee. Committee governance is directly affected by the regulations concerning absentee removal (reg 9), permitted teleconferencing for meetings (reg 9A), and the committee's power to appoint sub‑committees (Sch 2 rule 2.1). Committee behaviour standards and reporting functions are governed by the model rules.

• Owners corporation managers. Registered managers must comply with the manager registration fee and annual fee regimes (regs 19 and 20), provide a postal address that must be displayed when appointed (reg 22(4)), and may be affected by the additional register information requirement (reg 21A) that includes permission determinations. Managers are also the recipients of reductions in certificate costs for multiple certificates managed centrally (reg 14).

Those who pay fees, and the fee pathways

• Applicants for owners corporation certificates pay the prescribed maximum fees. The Regulations set differential maximum fees depending on turnaround and whether an intermediary is used (reg 14). Where GST applies, the fee is increased by the GST amount (reg 15). Intermediaries applying on behalf of persons attract the same tiering structure with special rules for additional certificates (reg 14(2)).

• Parties requesting copies of records or registers pay the maximum fees specified in regs 12 and 13, including per-page charges for printed copies.

• Managers seeking registration and maintaining registration pay the registration application fee and annual registration fee (regs 19 and 20). Late lodgement fees for prescribed documents are 1 fee unit (reg 21).

Prospective purchasers and lot owners

• Prospective purchasers are recipients of the Schedule 3 statement and the owners corporation certificate content under reg 16 and reg 17 and therefore are affected by the scope and timeliness of disclosures. Schedule 3 is a prescribed statement of advice and information for prospective purchasers and lot owners and sets out what an owners corporation is and what buyers should inspect.

• Lot owners are affected in multiple ways. They must comply with model rules if adopted (Schedule 2), their contact details and other information are part of the additional records owners corporations must hold (reg 11A), they may be subject to levies and special fees disclosed in certificates (reg 16), and they may be restricted in their ability to change external appearance or install sustainability items only subject to the conditions allowed by the model rules.

Regulatory and dispute resolution bodies

• The Registrar of Titles and the Registrar functions under the Act operate to maintain the register. Regulation 21A requires managers' register information to include permission determinations. The Regulations also specify bodies to which disputes may be referred (reg 18), including the Victorian Ombudsman, Health Complaints Commissioner, Victorian Legal Services Board, Victorian Equal Opportunity and Human Rights Commission, and the Commonwealth Ombudsman.

Indirectly affected parties

• Suppliers and contractors. The model rule on metering and apportionment (Sch 2 rule 3.1) prohibits an owners corporation recovering from a lot owner amounts that exceed what a supplier would have charged, or amounts that include concession or rebate claims, unless certain conditions are met. This affects billing and concession administration between suppliers, owners corporations and lot owners.

• Insurers and building surveyors. The Regulations require disclosure of insurance details in the owners corporation certificate (reg 16(f)). The additional records requirement captures building surveyor notices and reports (reg 11A(e)), which may increase interactions between owners corporations and building compliance professionals.

In short, the Regulations reach virtually all participants in strata-style property ownership: owners corporations themselves, committees, managers, lot owners and purchasers, service providers and several oversight agencies. Who pays varies by operation: applicants and document requesters pay fees, managers pay registration fees, and owners corporation members bear the costs of additional record-keeping, insurance and compliance activity. Decision-making authority remains largely with owners corporations and their committees, constrained by prescribed forms, record-keeping and disclosure obligations set out in these Regulations.

This section sets out specific duties the Regulations impose and rights they create or preserve, with citations to the relevant provisions. These duties and rights interact with the Act, but here I limit the discussion to what the Regulations themselves require or enable.

Duties imposed by the Regulations

• Maintenance plan definition. By prescribing classes of items that constitute "major capital items" for the maintenance plan under s 37 of the Act, owners corporations must treat common property structures, services and assets such as roofs, stairways, shared pipes, pumps, drains, electrical and telephony infrastructure, fences, pools and water tanks as major capital items where relevant (reg 7). This affects what the maintenance plan must address.

• Meeting and teleconferencing procedures. Owners corporations must permit participation in general meetings and committee meetings via videoconference where teleconferencing is used (regs 7A and 9A(1) and (2)). This creates a duty to provide facilities and procedural rules enabling videoconference participation consistent with the Act.

• Voting form content. Where voting on a resolution is conducted in the manner contemplated by s 89(1) of the Act, the owners corporation must provide a form,hard copy or electronic,that contains the specified items, including plan number, owner identity and address, lot number, proxy name where applicable, closing date, nature of resolution, text of the motion, voting instructions, an abstention implication statement, a statement about the right to appoint a proxy, and signature and date (reg 7B). The form sets a minimum content standard for distant or postal ballots.

• Proxy form and restrictions. The prescribed proxy form is in Schedule 1 (reg 8). The Regulations also impose restrictions on the number of lot owners on behalf of whom a proxy may vote in specified circumstances: where a lot owner owns multiple lots and has authorised a proxy for each, or where the owners corporation is for commercial, retail or industrial development (reg 8A).

• Committee attendance and office. Committees may resolve that a member ceases to hold office if absent from 25 per cent or more of committee meetings within any 6 month period without reasonable notice or explanation (reg 9). This sets an internal mechanism for ensuring attendance.

• Professional indemnity insurance. The Regulations prescribe $2 000 000 as the amount for professional indemnity insurance purposes under s 119(5) (reg 10). Where the Act requires this standard, the manager or other person must ensure coverage aligns with this amount.

• Record-keeping. Owners corporations must keep, in addition to the s 144 records, telephone numbers and email addresses of lot owners; records of homicides known to have occurred on common property; dates of gas, electrical and pool-barrier compliance checks and outstanding recommendations from those checks; and notices, orders, declarations, reports or recommendations issued by a building surveyor, municipal building surveyor, public authority or under an Act relating to building defects or safety concerns (reg 11A). Owners corporations must therefore maintain an expanded compliance and safety record register.

• Fees and charges. Maximum fees for copies of records (reg 12), copies of the register (reg 13), and owners corporation certificates (reg 14) are set out, with per-page print costs where requested, and tiered certificate fees according to turnaround time. Managers seeking registration must pay an application fee of 14.26 fee units and an annual registration fee of 10.01 fee units (regs 19 and 20). A late lodgement fee is prescribed at 1 fee unit (reg 21).

• Disclosure in owners corporation certificates. The owners corporation certificate must contain specific information, including fee status, unpaid fees, special levies, upcoming works, insurance details (company, policy number, kinds of policies, buildings covered, amounts, renewal date), date of any resolution permitting members to arrange their own insurance, total funds held, liabilities, current contracts and leases affecting common property, current service agreements, recent unresolved notices or orders, legal proceedings or potential proceedings, whether a manager or administrator has been appointed, and minutes of the most recent AGM (reg 16). The owners corporation has a duty to populate these fields accurately when issuing a certificate.

• Letterbox and sign obligations. Unless a manager is appointed, an owners corporation must maintain a letterbox and a sign labelled with its postal address that corresponds with the address on the register kept by the Registrar of Titles; it may be placed on the letterbox of a lot owner responsible for mail (reg 22(1)-(3)). Where a manager is appointed, the owners corporation must erect and maintain a sign giving the manager's name and postal address in a place clearly visible from the main group of letterboxes or the main entrance (reg 22(4)).

• Infringement offences. The Regulations identify offences under the Act that attract infringement notices and prescribe the monetary penalty equivalent (reg 23). Sections 127 and 178 carry a prescribed infringement penalty of 6 penalty units; s 188 carries a penalty of 1 penalty unit (reg 23(2)).

Rights and options created or preserved

• Right to appoint a proxy and length of authorisation. The Schedule 1 proxy form offers optional wording to authorise a proxy to attend, speak and vote for up to 12 months or for a specific meeting or ballot (Schedule 1). It allows direction to the proxy on how to vote on particular resolutions and confirmation that the signatory has the right to sign on behalf of all owners of the lot.

• Right to seek dispute resolution. The model rules set out a grievance procedure that preserves a staged process before resort to Part 10 of the Act: the complainant prepares a written statement, notifies the grievance committee or owners corporation, meets to discuss within 28 days, may appoint a person to act on their behalf, and may be referred to the parties' further rights under the Act where unresolved (Sch 2 rule 7).

• Right to remote participation. Lot owners and committee members have an express right to participate in meetings via videoconference facilities where teleconferencing is permitted (regs 7A and 9A).

• Right to prescribed information when acquiring a lot. Prospective purchasers have access to the prescribed owners corporation certificate content and must be provided with the Schedule 3 statement about what an owners corporation is and what to inspect (reg 17 and Sch 3).

These duties and rights shift the administrative burden of compliance to owners corporations and managers while standardising information flows to lot owners and purchasers. The Regulations specify precise content and minimum standards rather than leaving these matters to ad hoc decisions. That clarity reduces uncertainty but increases routine compliance costs, record-keeping obligations and the need for administrative capacity within smaller self-managed owners corporations.

The Regulations set out specific infringement offences and penalty levels, and they interact with the Act's enforcement machinery and external referral routes. The Regulations do not introduce new criminal offences; instead they prescribe certain existing Act provisions as infringement offences and provide monetary penalty unit levels for those infringement notices.

Infringement offences and penalty units

• The Regulations prescribe ss 127, 178 and 188 of the Act as infringement offences for the purposes of s 203A(1) of the Act (reg 23(1)). They also prescribe the infringement penalties: a contravention of s 127 or s 178 attracts 6 penalty units, and a contravention of s 188 attracts 1 penalty unit (reg 23(2)(a)-(b)).

• The Explanatory Details in the Endnotes explain the mechanics for converting penalty units to monetary amounts and provide the 2021 monetary value of a penalty unit (value for the financial year commencing 1 July 2021 is $181.74). The calculation of the monetary penalty is made under section 7 of the Monetary Units Act 2004 and section 110 of the Sentencing Act 1991.

• Separate fees convert to monetary amounts using fee units. Fee-unit-based fees in regs 12-14, 19-21 are calculated by multiplying the number of fee units by the fee unit value for the relevant financial year. The Explanatory Details set out that the fee unit for 2021 is $15.03 and that the Treasurer determines future values.

Mechanism of enforcement

• Infringement notices. The Act's infringement-notice framework under s 203A is engaged where a prescribed infringement offence is committed. The prescribed penalties in reg 23 are the statutory maximums for infringement notices as specified by the Regulations. Infringement notices are an administratively expedient enforcement tool that substitutes a monetary penalty in lieu of prosecution.

• Administrative fees and compliance. The Regulations prescribe maximum fees for services such as providing records, registers, and owners corporation certificates. Failure to comply with obligations to provide records or certificates within statutory timeframes may attract the late lodgement fee of 1 fee unit (reg 21) or other enforcement under the Act. The tiered certificate fees provide a commercial incentive for owners corporations and managers to process applications promptly and for applicants to select faster service where necessary.

• Removal of committee members. Reg 9 allows a committee to resolve that a member ceases to hold office for absenteeism, resulting in a casual vacancy that is to be dealt with under s 104 of the Act. This is not a penalty in the criminal sense but is an internal governance enforcement mechanism that does not require external adjudication.

• Referral of disputes. The Regulations prescribe certain external agencies as bodies to which disputes may be referred under s 161(3) of the Act (reg 18). These bodies include the Victorian Ombudsman, the Health Complaints Commissioner, the Victorian Legal Services Board, the Victorian Equal Opportunity and Human Rights Commission, and the Commonwealth Ombudsman. Referral does not itself determine penalties but channels issues to bodies with investigative or conciliatory powers.

Practical enforcement considerations

• Monetary exposure is sensitive to fee unit and penalty unit adjustments. Because the monetary amounts of penalties and fees are calculated by reference to the fee unit or penalty unit, changes in their value by the Treasurer will alter the real monetary penalties and fees without an amending regulation. The Explanatory Details underline this mechanism and the requirement that the values be published in the Government Gazette and a Victorian newspaper each year.

• Administrative discretion and timing. The tiered fee structure for owners corporation certificates (reg 14) suggests an acceptable processing timetable and creates revenue differentials for expedited processing. Owners corporations and managers may therefore prioritise applications where revenue or resource incentives exist. Conversely, applicants may be incentivised to use intermediaries where cost reductions for additional certificates apply, subject to the intermediary rules in reg 14(2).

• Enforcement boundaries. The Regulations identify particular Act provisions as suitable for infringement notices. Other breaches of the Act not specified in reg 23 would be enforced through the Act’s broader compliance and adjudication mechanisms, including the Tribunal or court processes available under the Act.

In summary, enforcement under the Regulations operates mainly through prescribed infringement notices with set penalty unit levels and through administrative fee schemes that create incentives to comply. The enforcement architecture relies on fee-unit and penalty-unit valuation mechanisms external to the Regulations, which means monetary effects vary over time as the Treasurer sets values.

The Regulations operate as subordinate legislation to the Owners Corporations Act 2006 and explicitly interact with a network of other statutes by reference or operational cross‑linking. The Regulations both implement particular Act provisions and import concepts from other Acts. Key interactions are as follows.

Interaction with the Owners Corporations Act 2006

• The Regulations are made under s 204 of the Act (reg 2) and repeatedly implement or clarify discrete duties stated in the Act, for example the definition of "major capital item" in s 37 (reg 7), meeting procedure provisions in s 80 and s 112 (regs 7A and 9A), voting and proxy rules in ss 89, 89C and 89D (regs 7B, 8 and 8A), committee membership and casual vacancy provisions in ss 103-104 (reg 9), professional indemnity requirements in s 119(5) (reg 10), prescribed model rules under s 139(1) (reg 11), records under s 144 and s 146 and s 150 relating to copies and registers (regs 11A, 12, 13), owners corporation certificates under s 151 (regs 14-17), dispute referral (s 161(3)) (reg 18), manager registration under ss 180, 183 and late lodgement s 185 (regs 19-21), and the infringement notice framework s 203A (reg 23).

Interaction with Commonwealth and other State statutes

• Tax law. The Regulations adopt the definition of GST from the A New Tax System (Goods and Services Tax) Act 1999 for the purposes of determining whether GST applies to supplies referenced in the maximum fees (reg 5 and reg 15). Where GST applies, the maximum fees prescribed are increased by an amount equivalent to that GST (reg 15).

• Monetary and penalty units. The Regulations use fee units and penalty units as the currency for fees and penalties. The Monetary Units Act 2004 sets the value of fee units and provides the mechanism for calculation (Explanatory Details). The Sentencing Act 1991 provides the legal definition and valuation of penalty units used in calculating monetary penalties (Explanatory Details).

• Referral bodies. Regulation 18 prescribes several bodies under other statutes as appropriate referral points for disputes under s 161(3) of the Act. The list references the Ombudsman Act 1973 (Victorian Ombudsman), the Health Complaints Act 2016 (Health Complaints Commissioner), the Legal Profession Uniform Law Application Act 2014 (Victorian Legal Services Board), the Equal Opportunity Act 2010 (Victorian Equal Opportunity and Human Rights Commission), and the Commonwealth Ombudsman Act 1976. This creates direct referral pathways to bodies with their own statutory powers.

• Building regulation and safety. Regulation 11A requires owners corporations to keep records of notices, orders, declarations, reports or recommendations issued by a building surveyor, municipal building surveyor, public authority or under an Act relating to building defects or safety concerns. This explicitly links owners corporation records to building-regulation enforcement regimes and statutory obligations under building and planning laws.

• Subordinate Legislation Act 1994 and Interpretation of Legislation Act 1984. The Endnotes state that the Regulations will sunset ten years after making in accordance with the Subordinate Legislation Act 1994. The Interpretation of Legislation Act 1984 provisions about headings, notes and punctuation apply to how the Regulations are to be read and interpreted (Endnotes).

Practical points about cross‑statutory effects

• Fee and penalty volatility. Because monetary amounts are expressed in fee units and penalty units, changes effected under the Monetary Units Act 2004 or the Sentencing Act 1991 will alter how expensive or punitive particular regulatory requirements are in money terms without amendment to these Regulations.

• Evidence and disclosure flows across statutes. The additional records requirement (reg 11A) creates a documented trail that affects regulatory interactions with building safety regulators and could provide evidence to other statutory bodies. Likewise, the certificate disclosure obligations (reg 16) carry implications for property law transactions and consumer protection during transfers.

• Manager registration and professional regulation. The manager registration fees and permissions in regs 19-21 and 21A sit alongside the Business Licensing Authority framework referenced in Schedule 3, and interact with occupational and licensing regimes for property managers.

In sum, these Regulations are an instrument that implements specific Act requirements while importing standards and mechanisms from tax, penalty, financial, building safety and administrative law statutes. Practitioners must therefore read the Regulations together with the Act and the referenced statutes to understand the full compliance and enforcement landscape.

The Regulations were made on 10 October 2018 and commenced on 2 December 2018 (reg 4 and Endnotes). The text as provided incorporates subsequent amendments up to 1 December 2021. The Edition includes the Owners Corporations Amendment Regulations 2021, S.R. No. 147/2021, made on 30 November 2021 and commencing 1 December 2021 (Endnotes and Table of Amendments).

Key amendment events recorded in this version

• Revocation of earlier Regulations. The Regulations revoke the Owners Corporations Regulations 2007 (reg 3), replacing the 2007 subordinate instrument with the 2018 instrument.

• Owners Corporations Amendment Regulations 2021. S.R. No. 147/2021 introduced multiple insertions and amendments across the Regulations. These are annotated in the body of the Regulations and the Schedules by notes such as "inserted by S.R. No. 147/2021 reg. 7" and similar. Notable insertions and amendments include:

  • Reg 7A and reg 7B were inserted (reg 7A: Procedure at meeting; reg 7B: Voting on a resolution at a meeting). These provisions expand and clarify remote participation and voting form requirements.

  • Reg 8A was inserted to prescribe limitations on the number of lot owners on behalf of whom a proxy may vote in particular circumstances.

  • Reg 9A (Proceedings of committee) was inserted, clarifying videoconference participation and the prescribed manner of participation.

  • Reg 11A (Additional records) was inserted, enlarging owners corporations' record-keeping obligations.

  • Reg 21A was inserted to specify the information for the register of managers.

  • Schedule 2 model rules were amended with a number of new or modified subrules, for example rules concerning smoke penetration (rule 1.4), grievance procedure teleconferencing (rule 7(5A)), expert evidence (rule 7(6A)-(6B)), and sustainability items and external appearance (rules 5.2(3)-(5)).

  • Schedule 1, the proxy form, was amended by S.R. No. 147/2021 reg. 13.

• Fee and unit values. The Explanatory Details make clear that fee and penalty amounts are calculated by reference to fee units and penalty units, the values of which are fixed under the Monetary Units Act 2004 and Sentencing Act 1991 respectively. The Endnotes contain the 2021 values used for conversion: a fee unit at $15.03 and a penalty unit at $181.74 for the financial year commencing 1 July 2021. These values will be updated annually by the Treasurer and published.

• Sunset provision. The Endnotes state that the Regulations will sunset 10 years after the day of making on 10 October 2028, pursuant to the Subordinate Legislation Act 1994.

Practical implications of the amendment history

• The 2021 amendments reflect policy movement to accommodate remote participation in meetings and to expand record-keeping and transparency obligations, as well as changes to model rules that address sustainability items and grievance procedures. The amendments therefore materially changed procedural and administrative duties for owners corporations and managers.

• Because the Regulations draw on fee units and penalty units, changes to those external values will change the monetary impact of prescribed fees and penalties without further amendment to the Regulations.

• Practitioners should track subordinate instrument numbers and commencement dates carefully when advising clients about transitional obligations or historic conduct, for example where older contracts or certificates were issued under the 2007 Regulations.

This version’s Endnotes and Table of Amendments list and annotate the 2021 amendment material. The Regulations also include marginal notes indicating where particular provisions were inserted or amended by S.R. No. 147/2021.

The Regulations as provided include no case law citations, judicial determinations, or Tribunal decisions. The instrument itself does not record any litigation history. There are no cases named in the text.

What the Regulations do show is the route for disputes and possible forums: Schedule 2 rule 7 directs parties to a grievance procedure and expressly preserves parties' rights to take further action under Part 10 of the Owners Corporations Act 2006 if the grievance is not resolved (Sch 2 rule 7(7)-(8)). Regulation 18 prescribes agencies that may receive dispute referrals under s 161(3) of the Act, including the Victorian Ombudsman, Health Complaints Commissioner, Victorian Legal Services Board, Victorian Equal Opportunity and Human Rights Commission, and the Commonwealth Ombudsman.

To determine actual litigation trends, precedent or contested interpretation of these Regulations, practitioners must consult tribunal and court databases and the decisions under the Act and related statutes. This instrument provides the regulatory framework and prescribed processes but does not itself include case law or litigation records.

The Regulations are precise but contain several practical traps for the unwary. Below are concrete items to watch for, each grounded in the relevant regulation or Schedule.

1. Fee-unit and penalty-unit sensitivity. The Regulations express fees and penalties in fee units and penalty units (regs 12-14, 19-21, 23). The monetary amounts change automatically when the Treasurer varies the fee-unit or penalty-unit value under the Monetary Units Act 2004 and the Sentencing Act 1991. Practitioners must check the current year fee unit and penalty unit values published in the Government Gazette. The Explanatory Details show 2021 values, but those will change annually.

2. GST add-on. The Regulations require that if GST is chargeable on a supply to which a prescribed maximum fee relates, the maximum fee is increased by an amount equivalent to that GST (reg 15). Where parties misread the schedule and assume the fee is inclusive of GST they will undercharge or underpay.

3. Tiered owners corporation certificate fees and intermediary rules. The owners corporation certificate fees are tiered by turnaround time and offer reduced rates for additional certificates for the same paying applicant provided the owners corporations are managed by the same manager (reg 14(1)(b)). If an applicant uses an intermediary the first application attracts the full fee tier while additional intermediary applications attract the reduced rate only if the person paying the fee is the same and the owners corporations are managed by the same manager (reg 14(2)). The combination of applicant identity, manager identity and timing determines which fee applies; mistakes in invoicing or payment can arise if those links are not verified.

4. Proxy aggregation limit and commercial developments. Reg 8A restricts the circumstances in which a person may vote by proxy for multiple lot owners. The restriction is triggered where a lot owner owns multiple lots and has authorised the person for each lot, or if the owners corporation manages a commercial, retail or industrial development. Practitioners and managers must check for aggregated proxy appointments and the type of development before counting proxy votes.

5. Attendance-based removal of committee members. Reg 9 allows a committee to resolve that a member ceases to hold office where the member is absent from 25 per cent or more of committee meetings held within any 6 month period without prior notice or reasonable explanation. Committees can therefore remove members for attendance reasons without recourse to the Tribunal. The mechanism creates governance risk for a member who fails to document reasons or notifications for absences.

6. Expanded record-keeping obligations that raise privacy and liability questions. Reg 11A requires additional records beyond s 144. Those include telephone numbers and email addresses, and records of homicides on common property "if known". Keeping records of homicides and detailed safety-check recommendations creates potential privacy and liability considerations for owners corporations regarding data protection and the use or disclosure of sensitive information. Practitioners should advise on data-handling policies and retention.

7. Safety-check records and outstanding recommendations. Owners corporations must keep dates of gas safety checks, electrical safety checks and pool-barrier compliance checks, and details of any outstanding recommendations for work to be completed (reg 11A(c)-(d)). This record-keeping creates an affirmative evidence trail that can be used to demonstrate compliance but also may expose the owners corporation to liability if outstanding recommendations are not actioned.

8. Certificate content includes most recent AGM minutes. Reg 16(p) requires inclusion of the minutes of the most recent annual general meeting in an owners corporation certificate. That is a substantial disclosure obligation that might create privacy and commercial sensitivities if AGM minutes contain contested items or personal information.

9. Sustainability item restrictions with cost protection. Schedule 2 rule 5.2(3)-(5) provides that owners corporations cannot unreasonably prohibit installation of sustainability items and may impose reasonable conditions related to colour, mounting and location provided those conditions do not increase installation costs or reduce the sustainability item’s impact. Owners corporations must therefore draft and apply conditions carefully to avoid inadvertently imposing conditions that contravene the non-increase-of-cost rule.

10. Dispute procedure timelines and expert evidence costs. The grievance procedure in Sch 2 rule 7 requires the parties to meet within 28 calendar days of the dispute being raised (rule 7(5)). The grievance committee may seek expert evidence only if the owners corporation or the parties agree in writing to pay for the cost (rule 7(6B)). Parties must therefore be prepared to fund expert evidence or accept resolution without it.

11. Proxy form signature consequences and abstention note. The Schedule 1 proxy form contains notes explaining that directing a proxy to abstain means the vote will not be counted on a show of hands or poll. Misunderstanding the implications of abstention may lead to unintended voting outcomes. Properly completed signatures and dates are required by reg 7B(f) and (k) for voting forms.

12. Letterbox/address consistency obligations. Reg 22(2) requires the owners corporation address on the sign to correspond with the address held on the register kept by the Registrar of Titles. Inconsistent addresses can create service and compliance problems.

Each of these items is grounded in a specific regulation or Schedule. The combined effect is a set of precise administrative duties that raise operational risks around fee calculation, record management, privacy, governance and safety compliance. Compliance systems, written procedures and training for committees and managers will reduce the chance of administrative errors.

Below is a practical compliance checklist and procedural notes that owners corporations, committees, managers and practitioners can use to operationalise the requirements in the Regulations. Each step cites the relevant regulation or Schedule.

1. Maintenance plan and major capital items (reg 7)

• Review the owners corporation's maintenance plan and ensure it treats the prescribed classes of major capital items,common property structures (roof, stairways, balustrades, window frames), common property services (shared water/gas/sewer pipes, pumps, drains, electrical and telephony infrastructure) and common property assets (fences, pools, water tanks),as major capital items where relevant.
• Update asset registers and budgeting processes to reflect these classes for planning and levies.

2. Meeting procedures and remote participation (regs 7A, 9A)

• Ensure meeting procedures permit videoconference facilities for general meetings and committee meetings where teleconferencing is used.
• Test videoconference systems for security, authentication and the capacity to record attendance and votes.
• Update meeting notices and standing orders to specify how remote participants will be counted and how they can raise questions or move/second motions.

3. Voting forms and proxy compliance (regs 7B, 8, 8A and Schedule 1)

• Use a voting form that includes all prescribed items in reg 7B when conducting votes outside a meeting. Provide both electronic and hard-copy options where appropriate.
• Adopt the Schedule 1 proxy form or ensure an equivalent meets Schedule 1 content. Ensure signatories record date and name and, where signing for multiple owners, confirm authority to sign.
• Check for the proxy aggregation limits in reg 8A before counting proxy votes, especially where lot owners own multiple lots or the development is commercial/retail/industrial.

4. Committee membership and attendance monitoring (reg 9)

• Record committee attendance and set up a process for prior notice or reasonable explanation for absences. If a member reaches the 25 per cent absence threshold over a 6 month period without notice or explanation, follow reg 9’s procedure to pass a resolution that the member ceases to hold office and manage the resulting casual vacancy under s 104 of the Act.

5. Professional indemnity insurance (reg 10)

• Confirm that any professional indemnity insurance required by the Act meets the prescribed amount of $2 000 000. Document policy details and keep records of policy numbers, insurer, covered amounts and renewal dates to be disclosed in the owners corporation certificate (reg 16(f)).

6. Record-keeping expansion (reg 11A)

• Ensure the owners corporation record system includes:
  • Telephone numbers and email addresses for each lot owner.
  • Where known, records of homicides on common property.
  • Dates of gas safety checks, electrical safety checks and pool barrier compliance checks and details of outstanding recommendations.
  • Notices, orders, declarations, reports or recommendations from building surveyors, municipal building surveyors or public authorities concerning building defects or safety concerns.
• Establish retention and data-protection policies for these records and limit access to authorised personnel.

7. Copy and register fees (regs 12 and 13)

• When charging for copies of records or the register, apply the maximum fees prescribed, including the 20 cent per-page printing charge where a printed copy is requested.
• Distinguish between the first record requested at any one time and additional records in the same request for fee calculation purposes (reg 12).

8. Owners corporation certificates: content, timing and fees (regs 14-17 and Schedule 3)

• Implement a standard operating procedure for processing owners corporation certificate requests that collects all items listed in reg 16(a)-(p).
• Be aware of the tiered maximum fees for certificates: expedited 2 business day, 3-5 business days, and 6-10 business days options, and reduced rates for additional applications made by the same applicant where managed by the same manager (reg 14).
• If using or receiving a certificate via an intermediary, apply the intermediary rules in reg 14(2) concerning which fee applies.
• Include the Schedule 3 statement of advice and information for prospective purchasers with the certificate as required by reg 17.
• Confirm whether GST is applicable to the supply and add GST in accordance with reg 15.

9. Manager registration and annual fees (regs 19-21, 21A)

• Managers must pay the application fee of 14.26 fee units (reg 19) and maintain the annual registration fee of 10.01 fee units (reg 20). Ensure timely lodgement to avoid the late lodgement fee of 1 fee unit (reg 21).
• Provide the register of managers with the prescribed information including permission determinations under s 182A or 186A as required by reg 21A.

10. Letterbox and signage (reg 22)

• Ensure the owners corporation maintains a letterbox and a sign labelled with the postal address that corresponds with the register kept by the Registrar of Titles (reg 22(1)-(3)).
• If a manager is appointed, erect and maintain a sign with the manager's name and postal address visibly near the main letterbox group or entrance (reg 22(4)).

11. Grievance procedure and dispute handling (Schedule 2 rule 7)

• Adopt or ensure the owners corporation's rules include the grievance process set out in Sch 2 rule 7: written statement in the approved form, notification of the grievance committee or owners corporation, meeting within 28 calendar days, right to appoint a representative, and the procedure for obtaining expert evidence only where costs are agreed in writing.
• Keep documentary evidence of the grievance steps taken to establish compliance with the prescribed process before escalating to Part 10 remedies under the Act.

12. Model rules adoption and sustainability items (reg 11 and Sch 2 rule 5.2)

• If the owners corporation adopts the model rules in Schedule 2, ensure any approval process for external appearance or sustainability items complies with the constraints that owners corporations cannot unreasonably prohibit installation and may impose conditions only where they do not increase installation cost or reduce the sustainability item's impact.
• Update rule templates and approval forms to reflect these requirements and to document the reasoning where approvals are subject to conditions.

13. Infringement and compliance monitoring (reg 23)

• Monitor for conduct that could result in an infringement notice under ss 127, 178 or 188 of the Act. Ensure record-keeping and procedural documents are current and capable of demonstrating compliance to avoid issuance of infringement notices equivalent to the prescribed penalty units.
• Keep abreast of current penalty unit values for monetary calculations and budgeting.

14. Practical systems and training

• Create simple checklists and templates for: voting forms (reg 7B), proxy forms (Schedule 1), certificate data collection (reg 16), safety-check records (reg 11A), and grievance process logs (Sch 2 rule 7).
• Train committee members and managers on the new attendance removal mechanism, proxy aggregation rules, remote participation procedures and data-privacy obligations arising from expanded record-keeping.
• Perform periodic audits of the owners corporation register and records for completeness and currency.

15. Legal and professional advice

• Where the owners corporation confronts complex matters,outstanding recommendations from safety checks, legal proceedings, building defect notices, or sensitive minutes disclosure,seek legal advice before issuing a certificate or responding to a dispute. The Regulations require disclosure but do not remove legal duties related to confidentiality, privilege or ongoing litigation strategy.

This compliance plan aims to translate the Regulations’ prescriptive requirements into operational tasks for owners corporations and managers. The key is documentation: if the owners corporation can show that it followed the prescribed forms and kept required records, it will be able to demonstrate compliance under the framework the Regulations establish.