Navigating Strata and Community Title Legislation

An overview of the legal frameworks governing shared living arrangements in Australia 

As more Australians embrace apartment and townhouse living, understanding the legal structures that support shared living arrangements becomes increasingly important. Strata and community title schemes provide the framework for managing shared ownership, responsibilities, and decision-making within multi-dwelling developments. However, these schemes are governed by different legislation across Australia's states and territories, reflecting local variations in legal and administrative systems. 

This article provides a general overview of the key legal frameworks for strata and community title living across Australia and outlines common principles, legislative differences, and the roles and responsibilities of owners, committees, and managers. 

What Are Strata and Community Titles? 

Strata title is the most common form of shared property ownership in Australia. It divides buildings and land into lots (such as individual apartments or townhouses) and common property (like driveways, lobbies, and gardens). Lot owners automatically become members of the owners corporation (also known as a body corporate or strata company), which manages shared responsibilities. 

Community title is similar but often used for larger or more complex developments, such as master-planned estates or mixed-use precincts. Community title schemes may include several layers of management and often allow for more flexibility in design and land use. 

While the structure of these schemes is broadly similar across the country, each state and territory has its own legislation and terminology. 

Legislative Overview by State and Territory 

New South Wales (NSW) 

• Strata Schemes Management Act 2015 (NSW) 

• Strata Schemes Development Act 2015 (NSW) 

• Community Land Management Act 2021 (NSW) 

• Community Land Development Act 2021 (NSW) 

NSW has a well-established and frequently updated legal framework. Strata schemes are managed by owners corporations, with clear rules around meetings, financial management, and by-laws. Community schemes in NSW often include multiple subsidiary schemes under an umbrella association. 

Victoria 

• Owners Corporations Act 2006 (VIC) 

• Subdivision Act 1988 (VIC) 

In Victoria, strata schemes are managed under the term “owners corporations.” Reforms in 2021 introduced changes around proxies, committee elections, and financial reporting to improve transparency and governance. 

Queensland 

• Body Corporate and Community Management Act 1997 (QLD) 

• Body Corporate and Community Management Regulation Modules 

Queensland’s legislation provides for various “regulation modules” depending on the type of scheme—such as residential, commercial, or small schemes. Each module contains specific rules around meetings, budgets, and dispute resolution. 

Western Australia (WA) 

• Strata Titles Act 1985 (WA) (amended significantly in 2020) 

WA’s updated strata laws introduced key changes such as electronic voting, a new type of leasehold strata scheme, and a more streamlined process for collective decision-making and scheme termination. 

South Australia (SA) 

• Strata Titles Act 1988 (SA) 

• Community Titles Act 1996 (SA) 

SA distinguishes clearly between strata and community titles. Strata corporations manage strata schemes, while community corporations govern community title schemes, which may involve shared infrastructure like roads or recreation facilities. 

Tasmania 

• Strata Titles Act 1998 (TAS) 

Tasmania uses the term “body corporate” for the collective group of lot owners. The Act outlines governance rules, lot entitlements, and procedures for dispute resolution. While relatively straightforward, Tasmania's legislation is due for review to align with contemporary best practice. 

Australian Capital Territory (ACT) 

• Unit Titles (Management) Act 2011 (ACT) 

• Unit Titles Act 2001 (ACT) 

The ACT uses “units plans” to manage strata properties. The legislation includes provisions for developers, owners corporations, dispute resolution, and financial and building management. 

Northern Territory (NT) 

• Unit Titles Act 1975 (NT) 

• Unit Title Schemes Act 2009 (NT) 

The NT has two separate systems depending on the age and type of the development. The 2009 Act introduced more modern governance structures for new developments, with clearer definitions of common property and voting rights. 

Common Legal Principles Across Australia 

Despite differences in terminology and administrative details, all strata and community schemes in Australia share certain core principles: 

1. Shared Ownership and Responsibility 
   Owners hold individual title to their lot and share ownership of common property. This requires cooperation in decision-making and maintenance. 

1. Governing Body (Owners Corporation / Body Corporate / Strata Company) 
   A legal entity made up of all lot owners, responsible for managing common property, financial records, meetings, insurance, and by-laws. 

1. By-Laws or Rules 
   Each scheme can create or adopt by-laws to regulate resident behaviour, noise, pets, renovations, and more—within limits set by legislation. 

1. Levies and Funds 
   Owners pay regular levies into administrative and capital (sinking) funds (or equivalent) to cover ongoing costs and long-term capital works. 

1. Meetings and Decision-Making 
   Annual general meetings (AGMs) are required, and committees may be elected to manage day-to-day affairs. Voting rights usually align with unit entitlements. 

1. Dispute Resolution 
   State-based tribunals (such as NCAT in NSW or VCAT in Victoria) resolve disputes between lot owners and owners corporations or committees. 

Key Differences to Be Aware Of 

While the overarching structure is similar, buyers and residents should be aware of the following differences across jurisdictions: 

• Terminology (e.g., “owners corporation” vs “body corporate”) 

• Minimum insurance requirements 

• Financial reporting standards and audit obligations 

• Dispute resolution processes and timeframes 

• The role and regulation of strata managers 

• Flexibility around by-law creation and enforcement 

These differences can significantly impact daily life in a strata scheme, especially for committee members or investors with properties in multiple states. 

The Importance of Legal Awareness in Shared Living 

Understanding the legislation behind strata and community titles is not just for legal professionals. Every lot owner, tenant, and committee member benefits from knowing their rights and obligations. This knowledge helps prevent disputes, encourages compliance, and fosters a more harmonious living environment. 

Legislative reform is ongoing in many states, particularly to address issues such as short-term letting, sustainability upgrades, pet ownership, and improving building defects accountability. Owners are encouraged to stay informed through state-based authorities, such as: 

• NSW Fair Trading 

• Consumer Affairs Victoria 

• Queensland’s Office of the Commissioner for Body Corporate and Community Management 

• Strata Community Association (SCA) chapters across Australia 

Conclusion 

Strata and community title living plays a central role in Australia’s urban housing landscape. While each state and territory has its own legislation, the shared principles of cooperation, governance, and community management apply across the board. By understanding the legal frameworks that underpin these schemes, owners and residents can better navigate shared living arrangements and contribute to well-functioning, respectful communities. 

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Disclaimer: 

This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction