Victoria’s 2026 owners corporation reforms: legal proceedings, payment plans and proxies
- Act: Consumer Legislation Amendment Act 2026 (Vic), Act number 36/2026, Royal Assent 8 September 2026.
- Now in effect: ordinary resolution is enough to start non-monetary proceedings, and monetary claims below twice the OC's total annual fees.
- From 1 December 2027 (unless proclaimed earlier): payment plans for owners in tier 1–4 OCs, which must accept eligible owner-occupier requests of up to 12 months.
- Same date: a person can be proxy for only one lot owner, regardless of scheme size.
- These are the first tranche of reforms from the review of the Owners Corporations Act 2006 (Vic).
What is the Consumer Legislation Amendment Act 2026?
It is the Victorian law that delivers the first tranche of reforms from the independent review of the Owners Corporations Act 2006 (Vic). It received Royal Assent on 8 September 2026 as Act number 36/2026 (Victorian legislation – bill page). Engage Victoria says it progresses financial hardship reforms responding to the Expert Panel's Chapter 5 recommendations and clarifies section 18 of the OC Act and section 34D of the Subdivision Act 1988 (Vic) (Engage Victoria – update, 9 September 2026).
What changes, and when?
| Reform | What changes | Start date |
|---|---|---|
| Legal proceedings: non-monetary (OC Act s 18) | An OC can start proceedings for a non-monetary order by ordinary resolution instead of a special resolution, in any court or tribunal with jurisdiction to make the order. | Now in effect |
| Legal proceedings: monetary (OC Act s 18) | An OC can be authorised by ordinary resolution to bring a monetary claim if it is less than twice the OC's total annual fees. Larger claims still need a special resolution. | Now in effect |
| Subdivision Act s 34D | Restores VCAT's ability to make an order on an application under s 34D(1)(b) where more than half of the OC's membership previously consented to the proposal. | Now in effect |
| Payment plans | A framework for lot owners in tier 1–4 OCs to spread fee payments, with protection from debt recovery and penalty interest while on a plan. | 1 December 2027, unless proclaimed earlier |
| Proxy cap (OC Act s 89D) | A person may act as proxy for only one lot owner, regardless of the number of lots. | 1 December 2027, unless proclaimed earlier |
All rows are from Engage Victoria's summary of the Act (Engage Victoria). The later date allows time to prepare and consult on supporting regulations.
How will owners corporation payment plans work?
All lot owners in tier 1–4 OCs will be able to request a payment plan. For owners who are not owner-occupiers, the OC keeps its discretion. For owner-occupiers, the OC must accept a request if:
- it includes the prescribed hardship information (details to come in regulations),
- the owner has no existing payment plan,
- the owner complied with any payment plans in the previous two years,
- accepting it would not leave the OC with insufficient funds to meet its statutory obligations (details to be prescribed), and
- the plan is for no more than 12 months.
Source: Engage Victoria. Until the regulations are made, the exact forms and evidence are not known.
What is the new proxy cap?
Today, a person must not vote as proxy for more than one lot owner if there are 20 or fewer occupiable lots, or for more than 5% of lot owners if there are more than 20. These limits do not apply where the owners are members of the proxy holder's family, or another exception in the Owners Corporations Regulations 2018 (Vic) applies (Consumer Affairs Victoria – Voting and ballot guidelines).
From 1 December 2027, unless proclaimed earlier, amended section 89D will say a person may act as proxy for only one lot owner "regardless of the number of lots in the OC". In a 300-lot building, that is a big change: today one person could hold proxies for up to 15 owners (5%).
Why do the OC tiers matter here?
Victoria has used a five-tier system since 1 December 2021: tier 1 has more than 100 occupiable lots, tier 2 has 51 to 100, tier 3 has 10 to 50, tier 4 has 3 to 9, and tier 5 is a two-lot subdivision or a services-only OC (Consumer Affairs Victoria – Tiers). The payment plan framework applies to tiers 1 to 4, so most two-lot subdivisions sit outside it. Tiers also decide whether you must elect a committee (tiers 1–3), appoint a manager (tier 1, unless it opts out by special resolution) and prepare a maintenance plan (tiers 1 and 2).
What else is happening with the OC Act review?
The Victorian Government has published the Expert Panel's final report and its response. The government must review the 2021 governance amendments within five years of their commencement, by 1 December 2026 (Engage Victoria – Review of the OC Act). Further tranches may follow; we will update this page when they are introduced.
What should OCs do now?
- Update meeting templates: legal proceedings within the new limits can be approved by ordinary resolution.
- Tell owners and managers that the one-owner proxy cap is coming, so large proxy holdings can be planned for.
- Watch for the payment plan regulations and budget for some owners spreading fees over up to 12 months.
How Watchdog Strata helps
Watchdog Strata's owners' poll gives one vote per lot to owners on the roll and hides results until close. It can help an OC test opinion before a meeting, but it does not replace a formal vote, ballot or proxy under the Owners Corporations Act 2006 (Vic). See our Victoria page.
General information only, not legal advice. Check the current legislation or ask a strata lawyer for your scheme.
Questions people ask
When does the Victorian owners corporation proxy cap start?
On 1 December 2027, unless proclaimed earlier. From then, a person may act as proxy for only one lot owner regardless of the number of lots, under amended section 89D of the Owners Corporations Act 2006 (Vic).
Can a Victorian owners corporation sue by ordinary resolution?
Yes, now. For non-monetary orders, and for monetary claims under twice the OC’s total annual fees, an ordinary resolution is enough. Larger monetary claims still need a special resolution.
Who can get an owners corporation payment plan in Victoria?
From 1 December 2027 unless proclaimed earlier, any lot owner in a tier 1–4 OC can request one. OCs must accept eligible owner-occupier requests of up to 12 months that meet the conditions, and keep discretion for other owners.
What is Act 36/2026 in Victoria?
It is the Consumer Legislation Amendment Act 2026 (Vic), which received Royal Assent on 8 September 2026 and includes the first tranche of owners corporation reforms.
Sources
- Engage Victoria – Consumer Legislation Amendment Act 2026 update (9 September 2026)
- Victorian legislation – Consumer Legislation Amendment Bill 2026 (Royal Assent 8 Sep 2026, Act 36/2026)
- Victorian legislation – Consumer Legislation Amendment Act 2026 (as made)
- Engage Victoria – Review of the Owners Corporations Act 2006
- Consumer Affairs Victoria – Voting and ballot guidelines
- Consumer Affairs Victoria – Tiers of owners corporations
See it running in a real building
Open the live demo as an owner, a tenant or the building manager. No sign-up, and it resets every night.