Body Corporate Guide for Australian Unit and Townhouse Owners

What is a Body Corporate?

A body corporate (owners corporation in VIC; strata corporation in SA) is the legal entity created when a block of land is subdivided under a strata plan. All lot owners are automatically members and jointly responsible for managing common property (common areas, building exteriors, lifts, pools, gardens) and insuring the building.

Lot vs Common Property

Your lot is the space within your walls (and your balcony in most schemes). Common property is everything else: corridors, lifts, pool areas, external walls, roof, and often the car park. You're responsible for maintaining your lot; the body corporate is responsible for common property. Disputes often arise about exactly where the boundary falls — check your strata plan.

Body Corporate Levies

• 1 Administrative fund: day-to-day expenses (gardens, cleaning, insurance, management fees) — paid quarterly
• 2 Sinking fund (capital works fund): long-term capital maintenance (lift replacement, roof, external painting) — paid quarterly
• 3 Special levies: one-off contributions for unexpected expenses or capital works not covered by sinking fund — controversial but common in older buildings with inadequate sinking fund accumulation

Renovation Approvals

In a strata scheme, renovations to your lot that affect structural elements, common property, or the external appearance of the building require body corporate approval. Minor cosmetic changes (painting your walls, replacing carpet) typically don't. Check your strata by-laws — they vary significantly between schemes.

Dispute Resolution

Most states have a strata disputes tribunal: NCAT (NSW), VCAT (VIC), QCAT (QLD). Common disputes: levy disputes, by-law breaches, common property maintenance failures, meeting procedural disputes. Most states now require mediation before tribunal proceedings for many strata disputes.