🎯 STRisker: Bulletin - Victoria, Australia
The Allan government has introduced the first tranche of owners corporation changes, supporting 17 of 51 expert recommendations but declined to mandate a two-people-per-bedroom limit on short-stay guests
Victoria Moves to Reform Strata Sector but Rejects Airbnb Occupancy Cap
Photo by Janak Gorana on Unsplash
The Victorian government introduced legislation to parliament this June to overhaul the owners corporation sector and bring new penalties, fresh offenses, and expanded enforcement powers for Consumer Affairs Victoria while rejecting a recommendation that would have capped occupancy for short-stay guests in strata buildings. The move is the first legislative response to an expert review of the Owners Corporations Act 2006 and leaves the state's roughly 63,000 short-stay accommodation operators largely unaffected.
The package is the first tranche of changes arising from an independent review commissioned in June 2025 and led by former Consumer Affairs Minister Marsha Thomson alongside economist Karen Chester and strata lawyer David McKenzie. The panel produced 51 recommendations, the government supports 17 in full, three in part, and 26 in principle, with three under further consideration and two rejected outright. Immediate measures include:
For short-stay hosts, the headline outcome is what the government chose not to adopt: the expert panel had recommended a statewide occupancy cap of two people per bedroom for short-stay accommodation in residential strata buildings and frame it as a safeguard against disruptive guest behavior. However, the government rejected this recommendation outright which means:
The government also declined to ban insurance commission-sharing despite the expert panel finding that broker kickbacks create conflicts of interest that distort manager incentives and inflate owner premiums. The response supports the recommendation in principle but warns a ban could drive up service fees for owners corporations. Consumer Affairs Minister Paul Edbrooke provided no timeframe for completing further analysis.
The contrast with New South Wales is notable: the NSW Productivity and Equality Commission found in February 2026 that ending commissions could generate more than $300 million in net benefits for that state over 15 years. A proactive licensing scheme for owners corporation managers and expanded compliance powers for Consumer Affairs Victoria are deferred until at least next year.
LookUpStrata presentation outlining Victoria’s strata reform agenda and short-stay accommodation framework.
Watch: https://www.youtube.com/watch?v=PX7vNfNHk1I&t=239s
⦾ Governing instrument: Owners Corporations Act 2006; first tranche amending legislation introduced to parliament June 2026
⦾ Short-stay occupancy cap: Rejected; proposed two-per-bedroom statewide limit not adopted
⦾ Strata ban power: Owners corporations may ban short-stay use by special resolution (75% vote); principal residence exemption applies; see Short Stay Levy Act 2024
⦾ Short-stay levy: 7.5% on bookings under 28 days from 1 January 2025; principal residence exemption applies; Airbnb, Stayz, and Booking.com collect and remit; direct-booking hosts register with the State Revenue Office
⦾ New obligations (current tranche): Hardship payment plan rights; proxy cap violations subject to prosecution; developer fines for failure to certify maintenance schedules
⦾ Enforcement: Consumer Affairs Victoria; VCAT for conduct disputes
⦾ Deferred: Manager licensing scheme; expanded CAV compliance powers; insurance commission ban, not expected in parliament before 2027
⦾ Next milestone: Second legislative tranche; no confirmed date; Victorian state election due November 2026
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