Disputes & Legal
In this article
- Key VCAT principles on levies and the benefit principle
- VCAT’s approach to the OC’s duty to maintain common property
- How VCAT handles rule enforcement — what is and isn’t reasonable
- Emerging case law on short-stay accommodation
- Building defect cases — the importance of acting early
Knowledge is leverage
Understanding how VCAT has decided similar cases in the past helps you assess the strength of your position, prepare more effectively, and make better decisions about whether to proceed with a dispute.
VCAT’s decisions in owners corporation cases establish important precedents and provide practical guidance for lot owners, committees, and managers across Victoria. While each case is decided on its facts, understanding the key principles from significant decisions helps you navigate your own issues with greater confidence.
Levy and Financial Disputes
VCAT has consistently upheld the power of owners corporations to levy fees for services that benefit the community, even where individual lot owners object. Key principles established by the tribunal include that a lot owner’s personal preference not to use common facilities is not a valid reason to refuse payment, and that the benefit principle under Section 49 requires that where costs benefit some lots more than others, the allocation must reflect that differential benefit — objectively, not subjectively.
Maintenance Obligations
⚖️ VCAT’s approach to Sections 46–47
VCAT has reinforced that the OC’s duty to repair and maintain common property is not discretionary. Where an OC has failed to carry out necessary repairs, VCAT has ordered compliance and, in some cases, awarded compensation to lot owners who suffered loss as a result.
Rule Enforcement
VCAT has upheld the right of owners corporations to enforce rules about noise, parking, pets, and use of common property. However, the tribunal has also struck down rules that are unreasonable or oppressive — emphasising that rules must be fair, proportionate, and consistent with the Act.
Short-Stay Accommodation
Following the 2019 amendments to the Act, VCAT has been developing a body of case law around short-stay accommodation disputes. Key principles emerging include that owners corporations can take action against disruptive short-stay occupants, prohibition orders are available for repeated breaches, and lot owners may be liable for the conduct of their short-stay guests.
Building Defects
Time limits on defect claims — act now
VCAT has heard numerous building defect cases where OCs have lost their right to claim because limitation periods were missed. Committees should engage a building surveyor and seek legal advice well before the 10-year occupancy permit deadline.
OC Manager Disputes
Cases involving OC manager performance have established that the OC has the right to terminate a manager’s contract in accordance with its terms, managers must fulfil the duties specified in their contract, and commissions and financial benefits must be disclosed to the owners corporation.
How to Access VCAT Decisions
VCAT decisions are publicly available through the VCAT website and the Australasian Legal Information Institute (AustLII at austlii.edu.au). Search for “owners corporation” combined with specific topics like “levies,” “maintenance,” or “pets.” Reading relevant decisions can help you understand how the tribunal is likely to approach an issue similar to yours.
Frequently Asked Questions
⚖️ Are VCAT decisions binding on future cases?
VCAT decisions are not strictly binding the way higher court decisions are. However, they provide persuasive guidance and establish practical precedents that the tribunal considers in future cases.
📋 Can I use a VCAT decision to support my case?
Yes. Referring to relevant VCAT decisions in your application or hearing can strengthen your argument, particularly if the facts are similar to your situation.
🔍 Where can I find VCAT decisions about owners corporations?
The VCAT website and AustLII both provide searchable databases. Search for ‘owners corporation’ or specific topics like ‘levies’ or ‘maintenance.’ The searches are free.
📋 Key takeaways
- VCAT decisions are persuasive (not strictly binding) — but they provide vital practical guidance.
- The OC’s duty to maintain common property under Sections 46–47 is not discretionary — VCAT will enforce it.
- Rules must be fair, proportionate, and consistent with the Act — unreasonable rules will be struck down.
- Building defect cases are highly time-sensitive — acting before limitation periods expire is critical.
- You can search VCAT decisions on VCAT’s website or AustLII — useful preparation for any dispute.