What is a prescribed owners corporation?
Prescribed owners corporations (formerly body corporate):
- have more than 100 lots (including storage lots, car parking lots, and accessory or ancillary lots), OR
- collect more than $200,000 in annual fees in a financial year. This fee total includes fees collected:
- from separate owners corporations for storage lots, car parking lots and accessory lots
- for general administration and maintenance and contributions to maintenance plans.
It does not include extraordinary fees as determined under section 24 of the Owners Corporations Act 2006.
Is my owners corporation prescribed?
To work out if your owners corporation is prescribed, count the total lots in the unlimited owners corporation on the plan of subdivision, which is available from Land Victoria. If this is more than 100, your unlimited owners corporation is prescribed.
Duties of prescribed owners corporations
There are extra legal requirements for prescribed owners corporations, in addition to those that apply to all owners corporations.
Prescribed owners corporations must also:
- prepare and maintain a 10-year maintenance plan for major capital items that are its responsibility
- establish a maintenance fund to implement the maintenance plan
- report on the implementation of the maintenance plan at every general meeting
- prepare a financial statement in accordance with prescribed standards. (The standards are not currently prescribed.)
- have financial statements audited at the end of every financial year (download the Application for exemption to audit owners corporation accounts (Word, 64KB))
- obtain a valuation of all buildings it is required to insure every five years for insurance purposes. Once received, the valuer’s report must be tabled at the next general meeting.
For a list of the responsibilities of all owners corporations, view our What is an owners corporation? page.