An owners corporation and a body corporate are both names for the legal group of lot owners responsible for managing shared property in a strata, unit title or community title scheme. The main difference is state terminology — NSW, Victoria and the ACT use owners corporation, while Queensland, Tasmania and the Northern Territory use body corporate.
In practical terms, both an owners corporation and a body corporate exist to manage shared property, make collective decisions, collect levies, organise insurance and maintain common areas. Other states use different terms again — Western Australia uses strata company, and South Australia uses strata corporation or community corporation depending on the scheme type.
An owners corporation is the legal group made up of all lot owners in a strata or subdivision scheme. When someone buys a lot in the scheme, they generally become a member of the owners corporation automatically.
The owners corporation is responsible for managing common property, keeping records, arranging insurance, collecting levies, organising meetings and making decisions about shared areas. In NSW, an owners corporation — previously called a body corporate — is made up of all owners in a strata scheme. When a person buys into a strata scheme, they automatically become part of the owners corporation.
A body corporate is the legal group of owners in a community titles or strata-style scheme. It is created when land is subdivided and registered to establish a community titles scheme.
In Queensland, all owners in a community titles scheme automatically become members of the body corporate when they buy their lot. A body corporate usually manages common property, owner contributions, meetings, insurance, by-laws and shared maintenance.
The key difference is not the basic purpose. It is the terminology used under different state and territory laws.
In Victoria, an owners corporation manages common property in residential, commercial, retail, industrial or mixed-use developments. In Queensland, a body corporate is created for a community titles scheme and all owners become members when they buy their lot.
They are similar in purpose, but they are not always legally identical because each state and territory has its own legislation, terminology and procedures.
Both usually handle:
The exact rules, powers, dispute processes, terminology and compliance requirements can vary depending on the state or territory.
Common property is the shared part of the scheme that is not owned by one individual owner. It may include lifts, gardens, stairwells, driveways, foyers, pathways, external walls, roofs, shared plumbing and shared building services. Consumer Affairs Victoria describes common property as parts of the land, buildings and airspace that are not lots.
Lot owners belong to the owners corporation or body corporate. Membership is usually automatic when a person buys a lot in the scheme.
Tenants may live in the building and need to follow by-laws or rules, but they are not usually members of the owners corporation or body corporate unless they also own a lot.
The owners corporation or body corporate makes decisions collectively. Some decisions are made by all owners at meetings, while day-to-day matters may be handled by a committee or an appointed strata or body corporate manager. A manager can help administer the scheme, but the owner group remains the main decision-making body.
No. The owners corporation or body corporate is the legal group of owners. A strata manager or body corporate manager is a professional service provider appointed to help administer the scheme. The manager may assist with meeting notices and minutes, levy notices, financial records, contractor coordination, insurance administration, common property repair coordination, owner communication and compliance support. The manager helps the owner group, but does not replace the owner group.
Australia's strata and community title laws are state-based. This means each state and territory uses its own legislation and terminology. The same general concept may be called owners corporation in NSW, Victoria and ACT; body corporate in Queensland, Tasmania and Northern Territory; strata company in Western Australia; or strata corporation or community corporation in South Australia. Because of this, it is important to use the correct term for the state or territory where the property is located.
[[callout:0]]
Compare written fee proposals from strata managers covering your building — free for owners corporations, no obligation.