Owners Corporations Act 2006 PDF
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2025
Chief Parliamentary Counsel
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Summary
This document is the Authorised Version of the Owners Corporations Act 2006, incorporating amendments as at 1 January 2025. It details the functions, powers, financial management, and decision-making procedures of owners corporations. The Act covers various aspects such as financial management, maintenance, insurance, meetings and voting procedures within owners corporations.
Full Transcript
Authorised Version No. 021 Owners Corporations Act 2006 No. 69 of 2006 Authorised Version incorporating amendments as at 1 January 2025 TABLE OF PROVISIONS Section...
Authorised Version No. 021 Owners Corporations Act 2006 No. 69 of 2006 Authorised Version incorporating amendments as at 1 January 2025 TABLE OF PROVISIONS Section Page Part 1—Introductory 1 1 Purposes 1 2 Commencement 1 3 Definitions 1 Part 2—Functions and powers of owners corporation 9 Division 1—Functions and powers of owners corporation 9 4 Functions of owners corporation 9 5 Owners corporation must act in good faith 10 6 Powers of owners corporation 10 7 The five tiers of owners corporations 11 7A Owners corporation for 2-lot subdivision (tier five owners corporations) 12 8 Services only owners corporation (tier five owners corporations) 12 9 Power to employ or engage persons 13 10 Execution of documents by owners corporation 13 11 Management of owners corporation and power to delegate 13 Division 2—Powers relating to services 15 12 Provision of services to members and occupiers 15 13 Owners corporation not to carry on business 15 Division 3—Powers relating to property 15 14 Leasing or licensing of the common property 15 15 Power to obtain lease or licence over land 15 16 Power to acquire and dispose of personal property 15 17 Owners corporation must not mortgage or charge common property 16 17A Water on common property 16 Division 4—Power to commence legal proceeding 16 18 Power to commence legal proceeding 16 Authorised by the Chief Parliamentary Counsel i Section Page Division 5—The common seal 17 18A Owners corporation not required to have or use common seal 17 19 The common seal 17 20 When can the common seal be used? 18 21 Who must witness the use of the common seal? 18 22 Judicial notice of use of common seal 19 Part 3—Financial management 20 Division 1—Financial powers 20 23 Owners corporation may levy annual fees 20 23A Owners corporation may levy fees in relation to insurance 21 24 Extraordinary fees and charges 22 25 Power to borrow money 23 26 Power to invest 23 27 Bank account 23 28 Liability of lot owners 23 29 Penalty interest on arrears 24 30 Recovery of money owed 24 31 Fee notice 25 32 Final notice 25 Division 2—Accounts and audit 26 33 Financial records 26 34 Financial statements 26 35 Audit of financial statements of owners corporations 27 35A Exemption from requirement to audit financial statements 29 Division 3—Maintenance plan 29 36 Maintenance plan 29 37 What must a maintenance plan contain? 29 38 When does a maintenance plan have effect? 30 39 Report on approved maintenance plan 30 Division 4—Maintenance fund 30 40 Establishment of maintenance fund 30 42 Payments into maintenance fund 31 43 Payments from maintenance fund 31 44 Extraordinary payments from maintenance fund 32 45 Extraordinary payments for urgent matters 32 Division 5—Asset management 33 46 Owners corporation to repair and maintain common property 33 47 Owners corporation must repair and maintain services 33 47A Lot owners must not repair, alter or maintain common property or services 34 48 Lots not properly maintained 34 Authorised by the Chief Parliamentary Counsel ii Section Page 49 Cost of repairs, maintenance or other works 35 50 When can an owners corporation authorise a person to enter a lot? 36 51 What notice of entry must be given? 36 52 Significant alteration to common property requires special resolution 37 53 Upgrading of common property 37 Division 5A—Disposal of goods abandoned on common property 38 53A Owners corporation may dispose of goods abandoned on common property 38 53B Notice of intention to dispose of goods abandoned on common property 39 53C Removal of goods to safe place 39 53D Disposal of goods 40 53E Owners corporation not liable in relation to disposed goods 40 Division 6—Insurance 40 54 What is an insurable building? 40 55 Members may take out insurance 41 56 Owners corporation has insurable interest 41 57 Amount payable under owners corporation insurance 41 58 Insurance if lot mortgaged 42 59 Reinstatement and replacement insurance 43 60 Public liability insurance 44 61 Insurance for lots in multi-level developments 44 61A Insurance for multiple single dwellings on a plan of subdivision 46 62 Owners corporation may have additional insurance 46 63 Insurance not required where there is no common property 46 64 Insurance not required where another owners corporation has insured 46 65 Valuation of buildings 46 Part 4—Meetings and decisions of owners corporation 48 Division 1—First meeting of owners corporation 48 66 When must the first meeting be held? 48 67 What documents must be provided at the first meeting? 48 67A What must be disclosed at the first meeting? 50 67B Contract entered into by applicant for registration of the plan of subdivision prior to first meeting 50 67C Minutes of first meetings 51 68 Obligations of initial owner 51 Division 2—Annual general meeting 53 69 Annual general meeting 53 Authorised by the Chief Parliamentary Counsel iii Section Page 70 Who may convene annual general meetings? 53 71 Agenda for annual general meeting 53 72 Notice of annual general meetings 54 Division 3—Special general meetings 55 73 What is a special general meeting? 55 74 Who can convene a special general meeting? 55 75 Agenda for special general meeting 56 76 Notice of special general meetings 56 Division 4—Procedure at general meetings 57 77 Quorum for a general meeting 57 78 Can a general meeting proceed even without a quorum? 57 79 Who chairs the general meeting? 58 80 Procedure at meeting 59 81 Minutes of meetings 59 82 Owners corporation may require certain matters to be dealt with at general meetings 60 Division 5—Ballots 60 83 Who can arrange a ballot? 60 84 How can a ballot be conducted? 61 85 Notice of ballot 61 86 Resolution by ballot 61 Division 6—Voting 62 87 One vote for each lot 62 88 Voting on a resolution of the owners corporation by ballot 63 89 Voting on a resolution of the owners corporation at a meeting 63 89A Does the chairperson have a casting vote? 64 89B Can a lot owner vote if fees are unpaid? 64 89C Proxies 65 89D Restriction on number of lot owners on behalf of whom a proxy may vote on a resolution 67 89E Revocation of a proxy 67 89F Voting under power of attorney 67 89G Person must not require or demand that a lot owner give authorisation to vote under power of attorney or proxy 68 89H Term of contract of sale limiting voting rights void 69 Division 7—Decisions of owners corporation 69 90 Resolutions by meeting or ballot 69 95 What is a unanimous resolution? 69 96 What is a special resolution? 70 97 Interim special resolutions 70 Authorised by the Chief Parliamentary Counsel iv Section Page Division 8—Office-holders 72 98 Chairperson of owners corporation 72 99 Secretary 72 Part 5—Committees 73 100 Election of committee 73 101 Functions and powers of committee 73 102 Delegation by committee 73 103 Membership of committees 73 104 Casual vacancies on a committee 74 105 Chairperson of committee 75 106 Acting chairperson 75 107 Secretary of committee 75 108 How can a meeting of a committee be called? 76 109 Notice of meetings 76 110 Co-opted members 77 111 Ballots 77 112 Proceedings of committee 78 113 Resolutions of committee to be resolutions of owners corporation 79 114 Minutes 79 115 Committee to report 80 116 Sub-committees 80 117 Duties of members of committees and sub-committees 80 118 Immunity of committee members 81 Part 6—Managers 82 119 Appointment and removal of manager 82 119A Contract of appointment of manager 83 120 Functions of manager where there is a committee 84 121 Functions of the manager where there is no committee 85 122 Duties of manager 85 122A Manager must disclose beneficial relationship with supplier 87 122B Manager must disclose commission, payment or other benefit 90 123 Immunity of volunteer manager 90 124 Delegation 91 125 VCAT may appoint manager 91 126 Report 91 127 Manager to return records 92 Part 7—Duties and rights of lot owners and occupiers 93 128 Compliance with laws 93 129 Care of lots 93 130 Care of common property 93 131 Overhanging eaves 93 132 Right to decorate interior walls, floors and ceilings 93 Authorised by the Chief Parliamentary Counsel v Section Page 133 Notice of planning and building applications and plans of subdivision 94 134 Address of new owners 94 135 Address of absent owners 94 136 Advice to occupiers 95 137 Duties of occupiers of lots 95 Part 8—Rules of the owners corporation 96 138 Power to make rules 96 138A Power to make rules regarding proxies 96 138B Power to make rules regarding external alterations and other works affecting lot owners 96 139 Model rules 98 140 Rules to be of no effect if inconsistent with law 98 141 Who is bound by the rules? 98 141A Occupier to ensure guests comply with rules 99 142 Recording of rules 99 143 Rules to be given to lot owners 100 Part 8A—Retirement villages 101 143A Application 101 143B Fees 101 143C Maintenance fees 102 143D Obligation of initial owner of retirement village land 102 143E Appointment of the manager of an owners corporation 102 143F Rules of owners corporation of retirement villages 102 Part 9—Records 104 Division 1—Keeping of records 104 144 Keeping of records 104 145 How long must records be kept? 105 146 Availability of records 105 Division 2—Owners corporation register 105 147 Owners corporation register 105 148 What must be kept on the owners corporation register? 106 149 In what form must the register be kept? 107 150 Availability of register 107 Division 3—Owners corporation certificate 108 151 Owners corporation certificate 108 Part 10—Dispute resolution 111 Division 1—Complaints and procedures 111 152 Complaints 111 153 Decision whether to take action in respect of alleged breach 111 Authorised by the Chief Parliamentary Counsel vi Section Page 154 Notice of decision not to take action 112 155 Notice to rectify breach 113 156 What if the person does not rectify the breach? 113 157 Final notice 114 158 How may notice be given? 115 159 Report to annual general meeting 115 Division 1A—Complaints and procedures— conduct of short-stay occupants 116 159A Complaints—conduct of short-stay occupant 116 159B Decision whether to take action in respect of alleged breach by a short-stay occupant 118 159C Notice of decision not to take action—complaint about conduct of short-stay occupant 119 159D Notice to rectify breach—complaint about conduct of short- stay occupant 119 159E What if the person does not rectify the breach? 120 159F Report to annual general meeting 120 Division 2—Powers of Director 121 160 Making a complaint 121 161 Conciliation and mediation 121 Part 11—Applications to VCAT 123 Division 1—Owners corporation disputes 123 162 VCAT may hear and determine disputes 123 163 Who may apply to VCAT in relation to a dispute? 123 164 VCAT may dismiss application 124 165 What orders can VCAT make? 124 166 Penalty for breach of rules 127 167 What must VCAT consider? 127 168 Monetary orders 128 169 Notice to Business Licensing Authority 129 Division 1A—Short-stay accommodation disputes—conduct of short stay occupants 129 169A VCAT may hear and determine short-stay accommodation disputes 129 169B Who may apply to VCAT in relation to a short-stay accommodation dispute? 129 169C What orders can VCAT make? 130 169D Prohibition order 130 169E Loss of amenity compensation order 132 169F What must VCAT consider? 133 169G Civil penalty for breach by short-stay occupant 134 Authorised by the Chief Parliamentary Counsel vii Section Page 169H Joint and several liability of short-stay provider and short- stay occupant 134 Division 1B—Proceedings commenced, prosecuted, defended or discontinued by lot owner on behalf of owners corporation 136 169I Lot owner may apply to VCAT to commence, prosecute, defend or discontinue any proceeding on behalf of owners corporation 136 169J VCAT may make order authorising lot owner to commence, prosecute, defend or discontinue proceeding 137 Division 2—Exemption orders 137 170 Owners corporation may apply to VCAT for exemption 137 171 VCAT may make exemption order 138 Division 3—Restriction of access to records 138 172 Application to VCAT to restrict access to information 138 Division 4—Appointment of administrator 139 173 Application for appointment of administrator 139 174 Appointment of administrator 139 175 Remuneration of administrator 139 176 Powers and responsibilities of administrator 139 177 Administrator to act in good faith 140 Part 12—Registration of managers 141 Division 1—Managers to be registered 141 178 Offence to act as manager without being registered 141 179 Eligibility for registration 141 180 Application for registration 142 181 Further information 143 182 Registration 143 182A Permission to be registered as manager despite criminal record 144 183 Annual registration fee and statement 145 184 Extension of time 145 185 Failure to lodge annual statement 146 185A Professional indemnity insurance 146 186 Automatic cancellation of registration 146 186A Permission to continue to be registered as manager despite criminal record 148 186B Conditions on permission 149 187 Death, disability etc. of registered manager 150 188 If details given in application or annual statement change 151 189 Offence to supply false or misleading information 152 190 Cancellation of registration if false information is given 152 Authorised by the Chief Parliamentary Counsel viii Section Page 191 Application for review 152 Division 2—Register of managers 153 192 Register of managers 153 193 Purposes of register of managers 153 194 What must the register of managers contain? 153 195 Inspection of register of managers 155 196 Removal of information from register of managers 155 197 Duty of Licensing Registrar 155 Division 3—General 155 198 Provision of information for the purposes of this Act 155 Part 13—General 157 199 Application of Australian Consumer Law and Fair Trading Act 2012 157 200 Approved forms 158 200A Manner in which documents may be given to or served on owners corporation 158 201 Money to be paid to Victorian Property Fund 159 202 Certain provisions of contracts void 160 203 Who may commence a proceeding for offences? 160 203A Infringement notices 160 204 Regulation-making powers 161 205 Transitional and savings provisions 163 Part 14—Transitional and savings provisions—Owners Corporations and Other Acts Amendment Act 2021 164 206 Definitions 164 207 Requirement to have maintenance plan 164 208 Term of contract of appointment void 164 209 Financial statements 165 210 Review of amendments made by 2021 Act 165 Schedules 167 Schedule 1—Power to make rules of owners corporation 167 Schedule 2—Transitional and savings provisions 170 ═══════════════ Authorised by the Chief Parliamentary Counsel ix Section Page Endnotes 174 1 General information 174 2 Table of Amendments 176 3 Explanatory details 179 Authorised by the Chief Parliamentary Counsel x Authorised Version No. 021 Owners Corporations Act 2006 No. 69 of 2006 Authorised Version incorporating amendments as at 1 January 2025 The Parliament of Victoria enacts as follows: Part 1—Introductory 1 Purposes The main purposes of this Act are— (a) to provide for the management, powers and functions of owners corporations; and (b) to provide for appropriate mechanisms for the resolution of disputes relating to owners corporations; and (c) to amend the Subdivision Act 1988 in relation to the creation of owners corporations. 2 Commencement (1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed. (2) If a provision of this Act does not come into operation before 31 December 2007, it comes into operation on that day. 3 Definitions In this Act— agent provider means a person who, for a S. 3 def. of agent fee, arranges and manages short-stay provider accommodation on behalf of a lot owner, inserted by No. 34/2018 lessee or sub-lessee; s. 4. Authorised by the Chief Parliamentary Counsel 1 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory amend in relation to a rule, includes add to or replace; approved form means form approved by the Director under section 200; bank account means an account with an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth; building includes— (a) a structure and part of a building or a structure; and (b) walls, out-buildings, service installations and other appurtenances of a building; and (c) a boat or a pontoon which is permanently moored or fixed to land; S. 3 def. of Building Code of Australia has the same Building Code of Australia meaning as it has in section 3(1) of the inserted by Building Act 1993; No. 34/2018 s. 4. business day means a day that is not— (a) a Saturday or Sunday; or (b) a public holiday appointed under the Public Holidays Act 1993; Business Licensing Authority means the Business Licensing Authority established under the Business Licensing Authority Act 1998; common property means land shown as common property on a plan of subdivision or a plan of strata or cluster subdivision; Council means the Council of the municipal district in which the land in the plan is located; Authorised by the Chief Parliamentary Counsel 2 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory CPA Australia means CPA Australia A.C.N. 008 392 452; Director has the same meaning as it has in the S. 3 def. of Director Australian Consumer Law and Fair amended by Trading Act 2012; No. 21/2012 s. 239(Sch. 6 item 33.1). externally administered body corporate has the same meaning as it has in the Corporations Act; function includes duty and authority; guest does not include a contractor or a S. 3 def. of guest tradesperson engaged by the occupier of a inserted by lot; No. 4/2021 s. 3(1). hotel and resort management contract means, in S. 3 def. of hotel and relation to a hotel, resort or serviced resort apartment complex on land affected by an management contract owners corporation— inserted by No. 4/2021 (a) a letting agreement to provide an s. 3(1). on-site letting manager (being a manager who lives at the hotel, resort or serviced apartment complex who manages letting of accommodation at the hotel, resort or complex); or (b) a common property agreement (including but not limited to a lease or a licence) to use common property for the purposes of— (i) operating an on-site letting business at the hotel, resort or serviced apartment complex; or Example Office, storage area or reception area. Authorised by the Chief Parliamentary Counsel 3 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory (ii) providing caretaking services at the hotel, resort or serviced apartment complex; or (c) a building maintenance or facilities management agreement to provide caretaking services at the hotel, resort or serviced apartment complex; or (d) any prescribed agreement or prescribed class of agreement relating to the management of a hotel, resort or serviced apartment complex by a third party; S. 3 def. of inspector means an inspector appointed under the inspector amended by Australian Consumer Law and Fair No. 21/2012 Trading Act 2012; s. 239(Sch. 6 item 33.2). land includes buildings and airspace; land affected by an owners corporation means the lots the owners for the time being of which are members of the owners corporation together with the common property for which the owners corporation is responsible; Licensing Registrar means the Registrar of the Business Licensing Authority appointed under the Business Licensing Authority Act 1998; limited owners corporation has the same meaning as it has in the Subdivision Act 1988; lot has the same meaning as it has in the Subdivision Act 1988; lot affected by an owners corporation means a lot the owner for the time being of which is a member of the owners corporation; Authorised by the Chief Parliamentary Counsel 4 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory lot entitlement in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot entitlement for that lot, expressing the extent of the lot owner's interest in any common property affected by the owners corporation; lot liability in relation to a lot affected by an owners corporation, means a number specified in the plan as the lot liability for that lot, expressing the proportion of the administrative and general expenses of the owners corporation which the lot owner is obliged to pay; lot owner, in relation to an owners corporation, means an owner of a lot affected by the owners corporation; non-occupiable lot means— S. 3 def. of non– occupiable lot (a) a car park; or inserted by No. 4/2021 (b) a storage locker; or s. 3(1). (c) a lot that is not ordinarily used for residential or business purposes; occupiable lot means a lot that is ordinarily used S. 3 def. of occupiable lot for residential or business purposes; inserted by No. 4/2021 s. 3(1). ordinary resolution means a resolution other than S. 3 def. of ordinary a special resolution or a unanimous resolution resolution; inserted by No. 2/2008 s. 12(1). owner has the same meaning as it has in the Subdivision Act 1988; owners corporation means a body corporate which is incorporated by registration of a plan of subdivision or a plan of strata or cluster subdivision; Authorised by the Chief Parliamentary Counsel 5 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory owners corporation register means the register kept by an owners corporation in accordance with section 147; plan of subdivision has the same meaning as plan has in the Subdivision Act 1988; S. 3 def. of police officer has the same meaning as in the police officer inserted by Victoria Police Act 2013; No. 37/2014 s. 10(Sch. 121.1). S. 3 def. of * * * * * prescribed owners corporation repealed by No. 4/2021 s. 3(2). Register means the Register under the Transfer of Land Act 1958; registered manager means a manager registered under Part 6; Registrar has the same meaning as it has in the Transfer of Land Act 1958; rules in relation to an owners corporation, means the rules of the owners corporation for the time being in force; S. 3 def. of services only owners corporation means an services only owners owners corporation for a subdivision that corporation has no land or building that is designated inserted by No. 4/2021 as the common property and either— s. 3(1). (a) the initial owner of the subdivision has arranged for a utility company to install common meters that are designated as the common property; or (b) the subdivision has a common supply or common service that is unmetered; Authorised by the Chief Parliamentary Counsel 6 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory short-stay accommodation means accommodation S. 3 def. of provided under a short-stay accommodation short-stay accommo- arrangement; dation inserted by No. 34/2018 s. 4. short-stay accommodation arrangement means S. 3 def. of short-stay a lease or licence for a continuous period of accommo- less than 28 days to occupy a lot or part of a dation arrangement lot affected by an owners corporation that inserted by is— No. 34/2018 s. 4, amended by (a) in a building wholly classified as No. 40/2024 a Class 2 building in Part A3.2 of s. 24. Volume One of the Building Code of Australia; or (b) in the case of a building where only part of that building is classified as a Class 2 building in Part A3.2 of Volume One of the Building Code of Australia—in that part of the building; short-stay occupant means a person who occupies S. 3 def. of short-stay a lot or part of a lot under a short-stay occupant accommodation arrangement; inserted by No. 34/2018 s. 4. short-stay provider means— S. 3 def. of short-stay provider (a) the owner of a lot or part of a lot that is inserted by leased or licensed by the owner to a No. 34/2018 s. 4. person under a short-stay accommodation arrangement; or (b) a lessee or sub-lessee of the owner of a lot or part of a lot that is leased or licensed by the lessee or sub-lessee to a person under a short-stay accommodation arrangement; or (c) an agent provider; Authorised by the Chief Parliamentary Counsel 7 Owners Corporations Act 2006 No. 69 of 2006 Part 1—Introductory S. 3 def. of tier five owners corporation has the meaning tier five given by section 7(6); owners corporation inserted by No. 4/2021 s. 3(1). S. 3 def. of tier four owners corporation has the meaning tier four owners given by section 7(5); corporation inserted by No. 4/2021 s. 3(1). S. 3 def. of tier one owners corporation has the meaning tier one owners given by section 7(2); corporation inserted by No. 4/2021 s. 3(1). S. 3 def. of tier three owners corporation has the meaning tier three owners given by section 7(4); corporation inserted by No. 4/2021 s. 3(1). S. 3 def. of tier two owners corporation has the meaning tier two owners given by section 7(3); corporation inserted by No. 4/2021 s. 3(1). S. 3 def. of 2-lot subdivision means an owners corporation 2–lot subdivision comprising of 2 occupiable lots; inserted by No. 4/2021 s. 3(1). unlimited owners corporation has the same meaning as it has in the Subdivision Act 1988. Authorised by the Chief Parliamentary Counsel 8 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation Part 2—Functions and powers of owners corporation Division 1—Functions and powers of owners corporation 4 Functions of owners corporation An owners corporation has the following functions— (a) to manage and administer the common property; (b) to repair and maintain— (i) the common property; (ii) the chattels, fixtures, fittings and services related to the common property or its enjoyment; (iii) equipment and services for which an easement or right exists for the benefit of the land affected by the owners corporation or which are otherwise for the benefit of all or some of the land affected by the owners corporation; (c) to take out, maintain and pay premiums on insurance required or permitted by any Act or by Part 3 and any other insurance the owners corporation considers appropriate; (d) to keep an owners corporation register; (e) to provide an owners corporation certificate in accordance with Division 3 of Part 9 when requested; Authorised by the Chief Parliamentary Counsel 9 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation (f) to carry out any other functions conferred on the owners corporation by— (i) this Act or the regulations under this Act; or (ii) the Subdivision Act 1988 or the regulations under that Act; (iii) any other law; or (iv) the rules of the owners corporation. Note to s. 4 Note amended by No. 4/2021 An owners corporation is a body corporate which is incorporated s. 4. by registration of a plan of subdivision or a plan of strata or cluster subdivision. An owners corporation has perpetual succession and is capable of suing and being sued in its own name. See section 28 of the Subdivision Act 1988. 5 Owners corporation must act in good faith An owners corporation in carrying out its functions and powers— (a) must act honestly and in good faith; and (b) must exercise due care and diligence. 6 Powers of owners corporation An owners corporation has— (a) all the powers conferred on the owners corporation by— (i) this Act or the regulations; or S. 6(a)(ii) (ii) the Subdivision Act 1988 or the amended by No. 36/2011 regulations under that Act; or s. 14. (iii) any other law; or (iv) the rules of the owners corporation; and (b) all other powers that are necessary to enable it to perform its functions. Authorised by the Chief Parliamentary Counsel 10 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation 7 The five tiers of owners corporations S. 7 substituted by (1) For the purposes of this Act, an owners No. 4/2021 corporation falls within one of 5 tiers as specified s. 5. in this section. (2) A tier one owners corporation is an owners corporation that consists of more than 100 occupiable lots and is not a services only owners corporation. (3) A tier two owners corporation is an owners corporation that consists of 51 to 100 occupiable lots and is not a services only owners corporation. (4) A tier three owners corporation is an owners corporation that consists of 10 to 50 occupiable lots and is not a services only owners corporation. (5) A tier four owners corporation is an owners corporation that consists of 3 to 9 occupiable lots and is not a services only owners corporation. (6) A tier five owners corporation is— (a) an owners corporation for a 2-lot subdivision; or (b) a services only owners corporation. (7) If an owners corporation consists of less than 10 occupiable lots and more than 50 non-occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) and (3) as if a reference in those subsections to an occupiable lot were a reference to a non-occupiable lot. (8) If an owners corporation consists solely of non-occupiable lots, the tier into which the owners corporation falls is to be determined in accordance with subsections (2) to (6) as if a reference in those subsections to an occupiable lot were a reference to a non-occupiable lot. Authorised by the Chief Parliamentary Counsel 11 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation S. 7A 7A Owners corporation for 2-lot subdivision (tier five inserted by owners corporations) No. 4/2021 s. 5. (1) An owners corporation for a 2-lot subdivision is exempt from compliance with— (a) sections 18, 31, 32, 59, 60, 61, 61A, 62, 65, 89A, 89B, 95, 96 and 97; and (b) Divisions 2, 3 and 4 of Part 3; and (c) Divisions 1, 2, 3, 4 and 5 of Part 4; and (d) Divisions 1 and 2 of Part 9; and (e) Division 1 of Part 10. (2) In any provision of this Act or any other Act as it applies in relation to an owners corporation for a 2-lot subdivision, a reference to— (a) a unanimous resolution means a resolution passed by the total votes for those lots; and (b) a special resolution means a unanimous resolution. S. 8 8 Services only owners corporation (tier five owners substituted by No. 4/2021 corporations) s. 5. A services only owners corporation is exempt from compliance with— (a) the provisions specified in section 7A(1); and (b) the following provisions— (i) sections 48, 49, 50, 51, 61A, 129, 133 and 135; (ii) Division 8 of Part 4; (iii) Division 3 of Part 9. Authorised by the Chief Parliamentary Counsel 12 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation 9 Power to employ or engage persons An owners corporation may appoint or employ persons to assist the owners corporation in carrying out its functions. 10 Execution of documents by owners corporation S. 10 substituted by No. 4/2021 (1) An owners corporation may, in its own name or s. 6. on behalf of its members, execute any document or do anything necessary or convenient to enable it to carry out its functions, powers, rights and obligations. (2) A document executed or any thing done under subsection (1) has effect as if the document was executed or the thing was done by the members of the owners corporation. (3) An owners corporation may authorise a document to be executed by at least 2 lot owners of separate lots who— (a) sign the document; and (b) print on the document— (i) each lot owner's full name and address; and (ii) a statement that each lot owner is a lot owner or a director of a body corporate that is a lot owner. 11 Management of owners corporation and power to S. 11 substituted by delegate No. 36/2011 s. 5. (1) An owners corporation is to be managed by or under the direction of the lot owners. (2) Subject to subsection (3), an owners corporation may, by instrument or by resolution at a general meeting, delegate any power or function of the owners corporation to— (a) the committee of the owners corporation; Authorised by the Chief Parliamentary Counsel 13 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation (b) the manager of the owners corporation; (c) a lot owner; (d) the chairperson of the owners corporation; (e) the secretary of the owners corporation; (f) an employee of the owners corporation. (3) An owners corporation must not delegate any of the following powers or functions under subsection (2)— (a) a power or function that requires a unanimous resolution, a special resolution or a resolution at a general meeting; (b) the power of delegation under that subsection. Note See section 82. (4) A resolution under subsection (2) is only effective if it is recorded in the minutes of the general meeting. (5) If no delegation is in force under subsection (2)(a), the committee of the owners corporation is delegated all powers and functions that may be exercised by the owners corporation, except for— (a) those powers and functions set out in subsection (3); and (b) those matters which must be determined at a general meeting under section 82. (6) Subsection (1) does not give rise to any fiduciary duties or directors' duties on the part of lot owners. Note See section 5 for duties of an owners corporation. Authorised by the Chief Parliamentary Counsel 14 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation Division 2—Powers relating to services 12 Provision of services to members and occupiers (1) An owners corporation, by special resolution, may decide— (a) to provide a service to lot owners or occupiers of lots or the public; or (b) to enter into agreements for the provision of services to lot owners or occupiers of lots. (2) An owners corporation may require a lot owner or occupier to whom a service has been provided to pay for the cost of providing the service to the lot owner or occupier. 13 Owners corporation not to carry on business (1) An owners corporation must not carry on a business. (2) An owners corporation may participate in or be a member of another body that carries on a business. Division 3—Powers relating to property 14 Leasing or licensing of the common property By special resolution, an owners corporation may lease or license the whole or any part of the common property to a lot owner or other person. 15 Power to obtain lease or licence over land By special resolution, an owners corporation may obtain a lease or licence over any land (including Crown land) whether or not in the plan. 16 Power to acquire and dispose of personal property (1) An owners corporation may acquire or hold personal property for the use of lot owners or other persons. Authorised by the Chief Parliamentary Counsel 15 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation (2) An owners corporation may lease personal property to a lot owner or other person. (3) An owners corporation may dispose of personal property. (4) An owners corporation may obtain a licence for personal property for the use of lot owners or other persons. 17 Owners corporation must not mortgage or charge common property An owners corporation must not mortgage or otherwise charge common property. S. 17A 17A Water on common property inserted by No. 4/2021 s. 7. (1) Any rainwater or other water that falls, occurs or flows on the common property (otherwise than in a waterway or a bore) is taken to be part of the common property. (2) For the purposes of section 8(4)(c) of the Water Act 1989, an owners corporation is the occupier of land to the extent that the land is common property. (3) In this section, waterway and bore have the same meanings as in section 3(1) of the Water Act 1989. Pt 2 Div. 4 (Heading) Division 4—Power to commence legal proceeding amended by No. 4/2021 s. 8. S. 18 18 Power to commence legal proceeding substituted by No. 4/2021 s. 9. (1) Subject to subsection (2), an owners corporation must not commence any legal proceeding unless it is authorised by special resolution to do so. Authorised by the Chief Parliamentary Counsel 16 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation (2) If a matter is within the civil jurisdictional limit of the Magistrates' Court and an owners corporation is authorised to do so by ordinary resolution, the owners corporation may commence any legal proceeding in— (a) the Magistrates' Court; or (b) VCAT or any other tribunal; or (c) a court of another State or a Territory that corresponds to the Magistrates' Court. Division 5—The common seal 18A Owners corporation not required to have or use S. 18A common seal inserted by No. 4/2021 (1) An owners corporation is not required to have or s. 10. use a common seal. Note Section 10 provides for the execution of documents of an owners corporation by signature. (2) Section 19 applies only to an owners corporation that has a common seal. (3) Sections 20, 21 and 22 apply only to an owners corporation that has a common seal and uses the common seal on a document. (4) An owners corporation that has a common seal under sections 19, 20, 21 and 22 may, by ordinary resolution, determine that the common seal is no longer required and can be destroyed. 19 The common seal (1) The common seal of an owners corporation must S. 19(1) amended by include the name of the owners corporation and No. 1/2010 the plan of subdivision number of the plan that s. 21(1). created the owners corporation. (2) The common seal must be kept as directed by the owners corporation. Authorised by the Chief Parliamentary Counsel 17 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation S. 19(3) (3) Despite subsection (1), a common seal that existed inserted by prior to the commencement of section 21 of the No. 1/2010 s. 21(2). Consumer Affairs Legislation Amendment Act 2010 is not invalid solely because it does not include the subdivision plan number. 20 When can the common seal be used? S. 20(1) (1) The common seal of an owners corporation must amended by No. 1/2010 not be used on a document unless its use for that s. 22. purpose has been authorised by this Act, regulations made under this Act or a resolution of the owners corporation. (2) The resolution to authorise the use of the common seal must be recorded— (a) in the minutes of the general meeting; and (b) if the owners corporation keeps a common seal register, in that register. 21 Who must witness the use of the common seal? (1) The use of the common seal on a document must be witnessed by at least 2 persons who are owners of separate lots and are members of the owners corporation. (2) Despite subsection (1), in the case of an owners corporation with only one lot owner, the use of the seal must be witnessed by the lot owner. S. 21(2A) (2A) Despite subsection (1), the sealing of an owners inserted by No. 63/2010 corporation certificate may be witnessed by— s. 77(3), amended by (a) the registered manager; or No. 4/2021 s. 11. (b) the chairperson of the owners corporation elected under section 98. (3) If a lot owner is a corporation, a director of the corporation may witness the document on behalf of the corporation. Authorised by the Chief Parliamentary Counsel 18 Owners Corporations Act 2006 No. 69 of 2006 Part 2—Functions and powers of owners corporation (4) Each lot owner or director who witnesses the use of the common seal must record next to the seal that he or she has witnessed the use of the seal by— (a) signing his or her name; and (b) printing in full his or her name and address; and (c) stating that he or she is a lot owner or a director of the corporation that is a lot owner. 22 Judicial notice of use of common seal All courts must take judicial notice of the common seal of the owners corporation on a document and, until the contrary is proved, must presume that the seal was properly used. Authorised by the Chief Parliamentary Counsel 19 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management Part 3—Financial management Division 1—Financial powers S. 23 23 Owners corporation may levy annual fees (Heading) amended by (1) An owners corporation may set annual fees to No. 4/2021 cover— s. 12(1). (a) general administration; and (b) maintenance and repairs; and (c) insurance; and (d) other recurrent obligations of the owners corporation. (2) If the owners corporation has an approved maintenance plan, the annual fees must include fees that are— (a) designated for the purpose of the maintenance plan; and (b) sufficient to allow the maintenance plan to be implemented. S. 23(3) (3) Subject to subsection (3A), the annual fees set substituted by No. 4/2021 must be based on lot liability. s. 12(2). S. 23(3A) (3A) The owners corporation may levy an additional inserted by No. 78/2013 annual fee on a lot owner if— s. 3, substituted by (a) the owners corporation has incurred No. 4/2021 s. 12(2). additional costs arising from the particular use of the lot by the lot owner; and (b) an annual fee set on the basis of the lot liability of the lot owner would not adequately take account of those additional costs. Authorised by the Chief Parliamentary Counsel 20 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (3B) Any additional annual fees under subsection (3A) S. 23(3B) must be levied on the basis that the lot owner of inserted by No. 4/2021 the lot that benefits more from the use of the lot s. 12(2). pays more. (4) The owners corporation may determine the times S. 23(4) amended by for payment of annual fees. No. 4/2021 s. 12(3). 23A Owners corporation may levy fees in relation to S. 23A inserted by insurance No. 4/2021 s. 13. (1) In addition to the annual fees levied under section 23, an owners corporation may levy fees to cover the costs of the premium for reinstatement and replacement insurance taken out in accordance with Division 6 of Part 3. (2) The fees levied under subsection (1) must be based on lot entitlement. (3) An owners corporation may levy a lot owner a fee to cover the cost of any of the following— (a) an excess amount or an increased premium resulting from or attributable to an insurance claim, if the claim is caused by a culpable or wilful act or the gross negligence of— (i) a lot owner; or (ii) a lot owner's lessee; or (iii) a guest of a lot owner or a guest of a lot owner's lessee; (b) damage to the common property that is caused by a lot owner or a lot owner's lessee where either— (i) the damage is not covered by insurance; or Authorised by the Chief Parliamentary Counsel 21 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (ii) the cost of the damage is less than the excess amount that would have been payable on an insurance claim in relation to the damage; (c) an excess amount on an insurance claim if the claim solely relates to a lot owner's lot. (4) The owners corporation may determine the times for payment of fees levied under subsection (1) or (3). S. 24 24 Extraordinary fees and charges (Heading) amended by No. 4/2021 (1) An owners corporation may levy special fees and s. 14(1). charges designed to cover extraordinary items of expenditure. S. 24(2) (2) Subject to subsection (2A), the fees and charges substituted by No. 78/2013 must be based on lot liability. s. 4, amended by No. 4/2021 s. 14(2). S. 24(2A) (2A) Fees and charges for extraordinary items of inserted by No. 78/2013 expenditure relating to repairs, maintenance or s. 4, other works that are carried out wholly or amended by No. 4/2021 substantially for the benefit of some or one, but s. 14(3). not all, of the lots affected by the owners corporation must be levied on the basis that the lot owner of the lot that benefits more pays more. S. 24(2B) (2B) The owners corporation may levy special fees and inserted by No. 4/2021 charges on a lot owner relating to repairs, s. 14(4). maintenance and other works arising from the particular use of a lot by the lot owner. (3) The owners corporation may determine the times for payment of the special fees and charges. (4) A special resolution is required when exercising a power under subsection (1) if the amount involved is more than twice the total amount of the current annual fees set under section 23. Authorised by the Chief Parliamentary Counsel 22 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (5) Subsection (4) does not apply if the fees and S. 24(5) charges are levied to pay for or recoup the cost of amended by No. 4/2021 repairs or maintenance carried out to any part of s. 14(5). the property for which the owners corporation is responsible where immediate expenditure is or was necessary to ensure safety or to prevent significant loss or damage to persons or property. 25 Power to borrow money (1) An owners corporation may borrow money— (a) by ordinary resolution, if the amount S. 25(1)(a) amended by borrowed does not exceed the amount of the No. 2/2008 current annual fees of the owners corporation s. 12(2). set under section 23; or (b) by special resolution in any other case. (2) An owners corporation may repay money borrowed. 26 Power to invest An owners corporation may invest money. 27 Bank account (1) An owners corporation may establish and operate bank accounts. (2) Each bank account must be established in the name of the owners corporation. (3) All fees levied by an owners corporation under this Part must be paid into a bank account of the owners corporation or of the manager of the owners corporation. 28 Liability of lot owners (1) The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution Authorised by the Chief Parliamentary Counsel 23 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management or amount owing to the owners corporation in respect of that lot. S. 28(2) (2) Subject to sections 24, 49 and 53, a lot owner is amended by No. 4/2021 not liable to pay or contribute to the funds of the s. 15(1). owners corporation a proportion of any amount required to discharge a liability of the owners corporation exceeding the lot owner's lot liability. S. 28(3) * * * * * repealed by No. 4/2021 s. 15(2). 29 Penalty interest on arrears S. 29(1) (1) If authorised by a resolution at a general meeting, amended by No. 1/2010 an owners corporation may charge interest on any s. 23(1). amount payable by a lot owner to the owners corporation that is still outstanding after the due date for payment. (2) The rate of interest charged must not exceed the maximum rate of interest payable under the Penalty Interest Rates Act 1983. (3) The owners corporation may waive the payment of interest in a particular case. S. 29(4) (4) The owners corporation must report to the annual inserted by No. 1/2010 general meeting on any decision under s. 23(2). subsection (3) to waive or not to waive the payment of interest in a particular case and the reasons for that decision. 30 Recovery of money owed (1) Subject to subsection (2), an owners corporation may recover any money owed to the owners corporation in any court of competent jurisdiction as a debt due to the owners corporation. (2) Sections 31 and 32 and Division 1 of Part 11 apply to the recovery of money owed to the owners corporation by a lot owner. Authorised by the Chief Parliamentary Counsel 24 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management 31 Fee notice (1) The owners corporation must give notice to a lot owner in the approved form of any fees and charges due and payable by the lot owner to the owners corporation (the fee notice). (2) The fee notice must— (a) state that the lot owner has an obligation to pay the fees and charges within 28 days after the date of the notice; and (b) (if applicable) state that interest at the rate specified in the notice will be payable in respect of any overdue fees and charges; and (c) include details of the dispute resolution process that applies under the rules in respect of disputed fees and charges. 32 Final notice (1) If the money owing is not paid within 28 days S. 32(1) amended by after the date of the fee notice, the owners No. 4/2021 corporation may give a final notice in the s. 16. approved form to the lot owner. (2) The final notice must— (a) state that the lot owner has an obligation to pay the overdue fees and charges and interest immediately; and (b) (if applicable) state— (i) the interest that is payable in respect of the overdue fees and charges at the date of the final notice; and (ii) the amount of interest that will accrue daily until the payment of the overdue fees and charges; and Authorised by the Chief Parliamentary Counsel 25 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (c) state that the owners corporation intends to take action under Part 11 to recover the amount due if the overdue fees and charges and interest owing are not paid within 28 days after the date the final notice is given. Note Section 163(2) provides that an application to VCAT by the owners corporation for an order requiring a lot owner to pay an amount payable by the lot owner to the owners corporation can only be made if the amount is not paid within 28 days after the final notice is given under section 32. Division 2—Accounts and audit 33 Financial records (1) An owners corporation must keep proper accounts that— (a) cover all income and expenditure of the owners corporation and assets and liabilities of the owners corporation; and (b) provide for the making of true and fair view reports of the financial situation of the owners corporation. (2) An owners corporation that has an approved maintenance plan must keep separate accounts for its maintenance fund. S. 34 34 Financial statements substituted by No. 4/2021 s. 17. (1) An owners corporation that is a tier one owners corporation, a tier two owners corporation or a tier three owners corporation must prepare annual financial statements for presentation at the general meeting of the owners corporation in accordance with the Australian Accounting Standards. Authorised by the Chief Parliamentary Counsel 26 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (2) A tier four owners corporation must prepare annual financial statements for any financial year in which it levies annual fees. (3) In this section, Australian Accounting Standards has the same meaning as in the Associations Incorporation Reform Act 2012. Note Annual financial statements prepared under this section may be either General Purpose Financial Reports or Special Purpose Financial Reports as defined by the Australian Accounting Standards Board. 35 Audit of financial statements of owners corporations S. 35 amended by Nos 2/2008 (1) A tier one owners corporation must, after the end s. 13, 36/2011 of each financial year, cause its financial s. 6, substituted by statements to be audited by— No. 4/2021 s. 18. (a) a registered company auditor; or (b) a firm of registered company auditors; or (c) a person who is— (i) a member of CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand; and (ii) authorised to conduct the audit by CPA Australia, the Institute of Public Accountants or Chartered Accountants Australia and New Zealand. (2) A tier two owners corporation must, after the end of each financial year, cause its financial statements to be reviewed by an independent person who is a member of, and holds a current practising certificate from— (a) CPA Australia; or (b) the Institute of Public Accountants; or Authorised by the Chief Parliamentary Counsel 27 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (c) Chartered Accountants Australia and New Zealand. (3) Despite subsection (2), a tier two owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited after the end of the financial year in accordance with subsection (1). (4) A tier three owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year. (5) A tier four owners corporation, or a tier five owners corporation, at its annual general meeting, may resolve that its financial statements are to be audited in accordance with subsection (1) or reviewed by an independent person in accordance with subsection (2) after the end of the financial year. (6) A person who audits the financial statements of an owners corporation must provide the owners corporation with a written report of the audit. (7) A person who conducts a review of the financial statements of an owners corporation must provide the owners corporation with a written report of the review. (8) A person must not be engaged to audit or review the financial statements of an owners corporation under this section if the person has a direct or indirect personal or financial interest in the owners corporation. Authorised by the Chief Parliamentary Counsel 28 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management 35A Exemption from requirement to audit financial S. 35A statements inserted by No. 4/2021 (1) A tier one owners corporation may apply in s. 18. writing to the Director for an exemption from the requirement to audit its financial statements under section 35(1). (2) The Director may grant an exemption under subsection (1) subject to any conditions the Director thinks fit. (3) The Director, at any time, by notice in writing, may vary or revoke an exemption granted under subsection (2). Division 3—Maintenance plan 36 Maintenance plan S. 36 substituted by (1) A tier one owners corporation or a tier two owners No. 4/2021 corporation must prepare and approve a s. 19. maintenance plan for the property for which it is responsible. (2) A tier three owners corporation, a tier four owners corporation or a tier five owners corporation may prepare and approve a maintenance plan for the property for which it is responsible. 37 What must a maintenance plan contain? (1) The maintenance plan must set out— (a) the major capital items anticipated to require repair and replacement within the next 10 years; and (b) the present condition or state of repair of those items; and (c) when those items or components of those items will need to be repaired or replaced; and Authorised by the Chief Parliamentary Counsel 29 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (d) the estimated cost of the repair and replacement of those items or components; and (e) the expected life of those items or components once repaired or replaced; and (f) any other prescribed information. S. 37(1A) (1A) An owners corporation may, by ordinary inserted by No. 4/2021 resolution, amend an approved maintenance plan. s. 20. (2) In this section— major capital item includes— (a) a lift; or (b) an air conditioning plant; or (c) a heating plant; or (d) an item of a prescribed class. 38 When does a maintenance plan have effect? (1) A maintenance plan does not have effect unless it is approved by the owners corporation. (2) In approving a maintenance plan, an owners corporation may set conditions for the payment of money out of the maintenance fund. 39 Report on approved maintenance plan The owners corporation must report to the annual general meeting in relation to the implementation of its approved maintenance plan. Division 4—Maintenance fund 40 Establishment of maintenance fund An owners corporation that has an approved maintenance plan must establish a maintenance fund in the name of the owners corporation. Authorised by the Chief Parliamentary Counsel 30 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management * * * * * S. 41 repealed by No. 4/2021 s. 21. 42 Payments into maintenance fund S. 42 amended by No. 4/2021 (1) If an owners corporation has established a s. 22(2) (ILA maintenance fund, the following must be paid into s. 39B(1)). that fund— (a) any part of the annual fees that is designated S. 42(1)(a) amended by as being for the purpose of the approved No. 4/2021 maintenance plan; s. 22(1). (b) any amounts received under an insurance S. 42(1)(b) amended by policy in respect of the damage or No. 4/2021 destruction of property covered by the s. 22(1). approved maintenance plan; (c) any interest earned on the investment of the money in the fund; (d) any amounts of a prescribed kind; (e) any amounts of a kind determined by the owners corporation. (2) The owners corporation must, by ordinary S. 42(2) inserted by resolution, determine the amount of the annual No. 4/2021 fees that under subsection (1)(a) must be paid into s. 22(2). the fund. (3) The amount determined under subsection (2) must S. 42(3) inserted by be adequate to fund the approved maintenance No. 4/2021 plan. s. 22(2). 43 Payments from maintenance fund S. 43 amended by No. 2/2008 Subject to any conditions specified in the s. 12(2). regulations and an ordinary resolution of the owners corporation, money may be paid out of the maintenance fund at any time in accordance with the approved maintenance plan. Authorised by the Chief Parliamentary Counsel 31 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management S. 44 44 Extraordinary payments from maintenance fund amended by No. 4/2021 Money may also be paid out of the maintenance s. 23. fund other than in accordance with the approved maintenance plan if the owners corporation by special resolution approves the payment. 45 Extraordinary payments for urgent matters (1) Subject to this section, money may also be paid out of the maintenance fund for an urgent matter. (2) For the purposes of subsection (1), an urgent matter includes where payments are required— (a) to comply with an order of a court or VCAT; (b) to repair or maintain any part of the property for which the owners corporation is responsible where there are reasonable grounds to believe that an immediate expenditure is necessary to ensure safety or prevent significant loss or damage to persons or property; S. 45(2)(c) (c) to repair any part of the property for which amended by No. 4/2021 the owners corporation is responsible where s. 24. the need for the repairs could not have been reasonably foreseen in preparing the approved maintenance plan; (d) to enable the owners corporation to obtain adequate insurance for the property that the owners corporation is required to insure. (3) Expenditure under this section must not exceed— (a) the amount necessary for the purpose for which it is expended; or (b) any limitation imposed by the owners corporation on expenditure under this section. Authorised by the Chief Parliamentary Counsel 32 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management (4) Expenditure under this section must comply with any other restrictions or requirements imposed by the owners corporation. (5) The owners corporation must report to the lot owners on any expenditure under this section as soon as possible after the expenditure is made. Division 5—Asset management 46 Owners corporation to repair and maintain common property An owners corporation must repair and maintain— (a) the common property; and (b) the chattels, fixtures, fittings and services related to the common property or its enjoyment. 47 Owners corporation must repair and maintain services (1) An owners corporation must repair and maintain a service in or relating to a lot that is for the benefit of more than one lot and the common property. (2) An owners corporation may, at the request and expense of a lot owner, repair and maintain a service in or relating to a lot if it is impracticable for the lot owner to repair or maintain that service. (3) In this section— service includes a service for which an easement or right is implied over the land affected by the owners corporation or for the benefit of each lot and any common property by section 12(2) of the Subdivision Act 1988. Authorised by the Chief Parliamentary Counsel 33 Owners Corporations Act 2006 No. 69 of 2006 Part 3—Financial management Note The easements or rights that may be implied under section 12(2) of the Subdivision Act 1988 are those necessary to provide— support, shelter or protection; passage or provision of water, sewerage, drainage, gas, electricity, garbage, air or any other service of whatever nature (including telephone, radio, television and data transmission); rights of way; full, free and uninterrupted access to and use of light for windows, doors or other openings; maintenance of overhanging eaves. S. 47A 47A Lot owners must not repair, alter or maintain inserted by No. 4/2021 common property or services s. 25. (1) This section is subject to section 56 of the Equal Opportunity Act 2010. (2) A lot owner must not repair, alter or maintain— (a) the common property of the owners corporation; or (b) a service in or relating to a lot that is for the benefit of more than one lot or the common property. (3) Subsection (2) does not apply if a lot owner has been expressly authorised by the owners
