In Victoria, Tier 1 and Tier 2 must appoint an owners corporation management company to manage their OC – unless they have opted not to do so via the passing of a special resolution of the owners corporation.
The Owners Corporations and Other Acts Amendment Act 2021 came into effect on 1 December 2021. The amendment categorises owners corporations into the following 5 tiers and stipulates certain requirements for each tier:
| Tier 1 | Owners corporation that consists of more than 100 occupiable lots/not a services only owners corporation.- Owners corporation must elect a Committee at the annual general meeting.
- Owners corporation must appoint a manager unless opted out by special resolution.
- Financial statements must be audited by a registered or authorised auditor, or an accredited accountant.
- Maintenance plans must be prepared and approved.
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| Tier 2 | Owners corporation that consists of 51 to 100 occupiable lots/not a services only owners corporation.- Owners corporation must elect a Committee at the annual general meeting.
- Owners corporation may choose to have a manager but it is not mandatory.
- Financial statements must be reviewed by either:
✓ an independent person who is a member of CPA Australia
✓ the Institute of Public Accountants
✓ Chartered Accountants Australia and New Zealand - Maintenance plans must be prepared and approved.
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| Tier 3 | Owners corporation that consists of 10 to 50 occupiable lots/not a services only owners corporation.- Owners corporation must elect a Committee at the annual general meeting.
- Owners corporation may choose to have a manager but it is not mandatory.
- Owners corporation may choose to have their financial statements audited by either of the methods used from Tier 1 or Tier 2.
- Maintenance plans are not mandatory but may choose to have them prepared and approved.
|
| Tier 4 | Owners corporation that consists of 3 to 9 occupiable lots/not a services only owners corporation.- Owners corporation may choose to elect a Committee.
- Owners corporation may choose to have a manager but it is not mandatory.
- Owners corporation may choose to have their Financial statements audited by either of the methods used from Tier 1 or Tier 2.
- Maintenance plans are not mandatory but may choose to have it prepared and approved.
|
| Tier 5 | An owners corporation for a 2-lot subdivision or a services-only owners corporation.- Owners corporation may choose to elect a Committee.
- Owners corporation may choose to have a manager but it is not mandatory.
- Owners corporation may choose to have their financial statements audited by either of the methods used from Tier 1 or Tier 2.
- Maintenance plans are not mandatory but may choose to have it prepared and approved.
|
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