Changes to the Owners Corporations Act 2006

Deb Andronaco

Special CounselAitken PartnersView Profile

Alexandra Cunningham

AssociateAitken PartnersView Profile

Katie Dam

LawyerAitken PartnersView Profile

On 8 September 2026, the Consumer Legislation Amendment Act 2026 received royal assent, consequently amending the Owners Corporations Act 2006 (the OC Act). We have summarized some of the most substantial changes to the Act below.

Changes to Power of Owners Corporation to Commence Proceedings

On Wednesday 9 September 2026, amendments to the OC Act came into effect which will impact the way that Owners Corporations commence legal proceedings and recover unpaid fees from owners.

Section 18 of the Act has been amended to allow an Owners Corporation to commence proceedings by ordinary resolution where:

• the matter can be resolved for payment of an amount that is no more than twice the total amount of the current annual fees set by the owners corporation; and/or
• where the dispute is non-monetary in nature.

Previously an Owners Corporation was prevented from commencing proceedings where the relief sought was non-monetary or above the civil jurisdictional limit of the Magistrates’ Court.

This change will allow Owners Corporations to recover unpaid levies and bring action with respect to breaches of the Owners Corporation Rules without the need for a special resolution.

Changes to Fee Notices and Recovery of Unpaid Levies

A date is yet to be proclaimed for the commencement of changes to fee notices and penalty interest.

Section 29 of the Act which will introduce a series of specified circumstances which will prevent and Owners Corporation from charging a lot owner interest on outstanding amounts payable after the date for payment.

Section 29(1A) will provide that where a specified Owners Corporation, which will be defined as an Owners Corporation that is not a tier 5 owners corporation, cannot charge penalty interest if a lot owner has requested to enter into a payment plan or has entered into a payment plan in relation to the amount outstanding and has complied with the terms of that payment plan.

Section 31(2)(a)(ab) will provide that a fee notice must include a notice of the effect of the new section 32(3) of the Act on the giving of a final notice. Under that new section, if a payment plan is requested, the 28 day payment period does not include that time between the request and its determination or the term of the payment plan.

There will also be the introduction of sections 32A to 32J in relation to payment plans. A request can be made in writing in the prescribed form to the Owners Corporation at any time after receiving a fee notice or final fee notice for a payment plan and the owners corporation will have 28 days to notice the lot owner in writing of its decision, failing which the payment plan will be deemed to be accepted. In determining a request for a payment plan, the owners corporation must not charge a fee or disclose identifying personal details of the lot owner in the minutes of any meeting held.

A payment plan cannot be refused unless the proposed payment plan:

1. The acceptance would result in prescribed financial circumstances for the owners corporation;
2. The lot owner has not included the prescribed hardship information in their request;
3. The lot owner has another existing payment plan or has failed to comply with a plan within 2 years;
4. The requested term is longer than 12 months in length; or
5. Or on other prescribed grounds

Should an owner fail to comply with the terms of the payment plan, it is open to the owners corporation to cancel the payment plan or recover the money owed in accordance with existing fee notice recovery mechanisms.

Changes to Voting Entitlement and Proxies

A date is also yet to be proclaimed for the commencement of changes to voting entitlements and proxies.

A lot owner will still be entitled to vote, be a member of the committee, or hold a proxy in circumstances where they have requested or entered into a payment plan for the repayment of unpaid amounts owing to the owners corporation.

New section 89D(1) will provide that a person is no longer able to vote on a resolutions as a proxy at a meeting on behalf of more than one lot owner.

Introduction of Information Use and Disclosure Provisions

A date is also yet to be proclaimed for the commencement of the introduction to information use and disclosure provisions.

The introduction of section 203AA,203AAB, 203AAC, 203AAD and 203AAE means that:

• The owners corporation must take reasonable steps to protect a lot owners information from misuse or loss and unauthorised access, modification or disclosure.
• Should loss or unauthorised access occur, the affected lot owner must be notified within 7 days.
• Any original documents must be returned or copies destroyed within 28 days of a lot owner’s request, entrance into a payment plan or notice of a decision in that respect.
• A lot owner’s information must not be disclosed without written consent unless it is for the purpose of exercising a power to enter into a payment plan by persons specified under the act include the committee or manager of the Owners Corporation.
• The Owners Corporation is not required to comply with these sections to the extent that it has complied with, or has been exempted from compliance with, a corresponding obligation under any of the following:
• The Privacy Act 1988 (Cth)
• The Privacy and Data Protection Act 2014
• The Health Records Act 2001

Section 254 of the Crimes Act 1958.

At Aitken Partners, our OC team is equipped with the skills and experience necessary to assist OCs, OC managers, and lot owners to understand their rights and obligations under relevant OC law. If you have any questions regarding the OC space, please contact us at (03) 8600 6000.