• 1. OC Act and Subdivision Act changes
  • The OC Act be amended to create a duty for initial owners to act in the best interests of subsequent (non-developer) lot owners.
     
  • The establishment of a requirement for independent certification of the initial maintenance schedule, where one is required to be prepared. 
     
  • The OC Act be amended to incorporate the role of building managers.  The government will consider how to ensure building managers comply with the OC Act and act in the best interests of the OC (though the government says it does not support extending the licensing or registration system to building managers).
     
  • The Subdivision Act be amended to clarify that the section is intended to prevent a single owner with a majority lot entitlement from blocking proposals by all other owners.

  Developer takeaway: Developers will need to be mindful of the increased levels of accountability and costs that are introduced by these amendments when initially setting up owners corporation structures within developments.

• 2. OC Managers
  • The establishment of a licensing system to regulate and professionalise the OC sector.
     
  • Further work will be undertaken to determine the best approach to strengthen the regulation of OC manager contracts.  It was recommended that a model OC manager contract be mandated.  The government has not committed to mandating a single, model contract, and it has noted that a one size fits all approach may not be appropriate.
     
  • Further work will be undertaken to determine the impacts of imposing a ban on OC managers and other related entities from receiving financial benefits or other rewards from third parties.

  Developer takeaway: We will need to await details of these proposed reforms, though we suggest that once implemented, developers may need to reconsider their terms of appointment for OC managers in order to comply with the legislation.

• 3. Collective sales
  • The government supports the principle of lowering the threshold for collective sales in certain circumstances. A collective sale involves the sale of all individual lots and common property within a building to a third party, often for redevelopment.  Further work is required to design an appropriate framework. 

  Developer takeaway: The potential to more easily unlock existing buildings for redevelopment is significant for the property industry. If implemented, the reforms would align Victoria with some other jurisdictions within Australia. 

• 4. Voting
  • The government said it supports restrictions on the exercise of proxy votes to address the issue of voting blocs controlled by OC managers, building managers and developers.  This would be done by restricting multiple employees and associates of the same organisation from exercising proxy votes beyond the existing proxy cap. 
     
  • The OC Act be amended to require the AGM agenda and all voting-related information to be shared 21 days before the AGM (currently 14 days). The Expert Panel recommended 28 days.  However, the government considers 21 days more appropriate, noting that 28 days would be administratively burdensome and exceeds requirements for equivalent entities.

  Developer takeaway: Developers will need to be particularly aware of these changes in order to be able to ensure they can deliver on their vision for the development, and to align the development with the product they took to market.

Next steps 

The government has stated that it intends to implement a first tranche of legislative amendments immediately, with a second phase of reforms to be introduced in 2027.

If you are reviewing a current or upcoming project, we can help you respond proactively to these changes—particularly in owners corporation structuring and rules, and managing dispute risk post‑completion.

Our Real Estate team works with developers to:

• structure owners corporations and subdivision arrangements to balance flexibility and control
• design clear, robust OC rules that stand up to increased scrutiny
• mitigate the risk of disputes post development completion and handover.