Victoria Offers Help with Rising Strata Fees and Disputes

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Victorians struggling to keep up with rising owners corporation (OC) fees are about to get a bit of help — thanks to a new rule that makes it mandatory for fee notices to include advice on payment plans and dispute resolution options.

The move comes as more and more apartment owners, especially in Melbourne’s inner suburbs and CBD, are feeling the financial pinch. Real estate agents say they’ve seen a growing number of landlords and owners being forced to sell in recent years, pushed out by the rising costs of OC fees and other property-related expenses.

It’s also part of what’s been driving up rents across the city. Just two years ago, the average unit in the CBD was going for $380 a week. Now? It’s jumped to a whopping $650, according to PropTrack data.

Consumer Affairs Minister Nick Staikos says the new OC fee notices are about giving people support — not just a bill.

“These notices aren’t just about saying ‘pay up’ — they’re about making sure people know their options if they’re struggling,” he said.

Alongside the new notices, there’s now also a dedicated owners corporation helpline, aimed at guiding people through tricky strata issues.

The older version of overdue fee notices is now officially out — and operators of owners corporations will have to use the updated format moving forward.

But while this is a positive step, industry voices say more needs to be done — especially as the state pushes for more high-rise developments.

Real Estate Institute of Victoria boss Kelly Ryan pointed out that the issues with OCs aren’t new — and we need to be proactive, not reactive.

“If people are ending up on payment plans, that means there’s been a breakdown somewhere earlier in the process,” she said. “If we’re encouraging more high-rises, now’s the time to sort this out. We can’t just be playing catch-up later.”

Susan Chandler from the Strata Community Association of Victoria agrees. She welcomed the helpline as a “practical” move, especially for people who are new to apartment living.

“Strata rules can be really overwhelming if you’re not familiar with them,” she said. “This gives people a clear line of support.”

She also said offering payment plans would help keep buildings financially healthy, by preventing unpaid fees from stacking up. But her group is still pushing for the introduction of a Victorian Strata Commissioner to take things even further.

From the real estate side, Ray White Southbank principal Andrew Salvo says OC fees have added nearly $1000 a year to the costs of a typical two-bedroom apartment. That, on top of interest rate hikes and new rental standards for landlords, has caused many investors to bow out.

“As investors leave the market, rents go up — especially with increased migration and supply shortages,” he said.

Salvo added that many OC fee increases are locked to the Consumer Price Index (CPI), so in a high-inflation environment, it’s no surprise fees have jumped.

While payment plans might ease the burden a little, he doesn’t think they’ll make a big dent, given the broader pressures landlords and owners are facing.

So, while this new initiative may not fix everything, it’s at least a step in the right direction for those just trying to stay afloat in a tough market.

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