What is Body Corporate?
Definition
Body Corporate
A body corporate (known as an owners corporation in Victoria and New South Wales) is the legal entity made up of all lot owners in a strata scheme. It is responsible for managing and maintaining the common property, enforcing by-laws, collecting levies, and arranging building insurance for the complex.
When you buy a strata-titled property, such as an apartment, townhouse, or villa, you automatically become a member of the body corporate. You share responsibility for the common areas and contribute financially through quarterly levies. Understanding how the body corporate operates is essential for any unit buyer in Australia. For a comprehensive breakdown, read our body corporate guide for buyers.
Body Corporate Responsibilities
The body corporate has a range of obligations set out in state strata legislation:
- Maintaining common property: Lobbies, hallways, lifts, driveways, gardens, pools, roofing, and external walls.
- Building insurance: Arranging and maintaining adequate building insurance for the entire complex (not contents, that is each owner's responsibility).
- Financial management: Setting annual budgets, collecting levies from owners, and managing the administration and sinking funds.
- Enforcing by-laws: Ensuring owners and tenants comply with the scheme's by-laws covering noise, pets, parking, renovations, and common area usage.
- Record keeping: Maintaining financial records, meeting minutes, correspondence, and the strata roll (register of owners).
Before purchasing, always order a strata report to assess the scheme's financial health. Learn how to read a strata report so you know what to look for.
Body Corporate Levies
Owners pay regular levies (also called strata fees or contributions) to fund the body corporate's operations. These are typically paid quarterly and are split into two main funds:
- Administration fund: Covers day-to-day running costs including insurance premiums, strata management fees, cleaning, gardening, utilities for common areas, and minor repairs.
- Capital works fund (sinking fund): A reserve for major long-term expenses such as roof replacement, repainting, lift upgrades, waterproofing, and structural repairs. A well-funded sinking fund reduces the likelihood of special levies.
Levy amounts vary widely depending on the size of the complex, the facilities provided, and the building's age. Expect anywhere from $500 to $5,000+ per quarter. Buildings with pools, gyms, concierge services, or lifts will have higher levies.
State Terminology Differences
Body Corporate Terminology by State
| Criteria | Term Used | Governing Legislation |
|---|---|---|
| Queensland | Body Corporate | Body Corporate and Community Management Act 1997 |
| New South Wales | Owners Corporation | Strata Schemes Management Act 2015 |
| Victoria | Owners Corporation | Owners Corporations Act 2006 |
| Western Australia | Strata Company | Strata Titles Act 1985 |
| South Australia | Strata Corporation | Strata Titles Act 1988 |
| Tasmania | Body Corporate | Strata Titles Act 1998 |
| ACT | Owners Corporation | Unit Titles (Management) Act 2011 |
| Northern Territory | Body Corporate | Unit Titles Act 1975 |
Meetings and Voting
The body corporate must hold an Annual General Meeting (AGM) each year where owners vote on the annual budget, elect committee members, approve major expenditure, and amend by-laws. Extraordinary general meetings can be called for urgent matters. Each lot typically has one vote, though some schemes use unit entitlement-based voting for financial matters.
Day-to-day decisions are managed by the strata committee (or body corporate committee), a smaller group of owners elected at the AGM. Many schemes also appoint a professional strata manager to handle administration, compliance, and financial reporting.
Frequently Asked Questions
Membership is automatic and mandatory. When you purchase a strata-titled property, you become a member of the body corporate by law. You cannot opt out of membership or refuse to pay levies.
The body corporate can charge interest on overdue levies, recover the debt through a tribunal or court, and register a charge against your lot. In some states, persistent non-payment can lead to the body corporate forcing a sale of your unit to recover the debt.
Yes. Most by-laws require approval for renovations that affect common property or the external appearance of the building. Even internal works may need approval if they involve structural changes, waterproofing, or plumbing. Minor cosmetic changes inside your lot (painting, replacing carpet) generally do not need approval.
A special levy is a one-off additional charge raised when the existing funds are insufficient to cover a major expense, such as building defect repairs, lift replacement, or waterproofing. Special levies can be substantial, sometimes $10,000 to $50,000+ per lot, and are typically payable within a set timeframe.
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