Owners Corporation Management Services
Owners Corporation Financial Management in Melbourne & Victoria
Professional financial management is at the core of successful owners corporation administration across Melbourne and Victoria. Strong financial governance goes beyond balancing budgets — it involves long-term planning, transparent reporting, and realistic forecasting.
Our comprehensive financial services ensure your OC maintains healthy cash flow, meets all statutory obligations, and plans effectively for future expenditure. Buildings age whether plans exist or not, and our approach helps owners corporations plan ahead to avoid sudden levy spikes and rushed decisions.
Understanding owners corporation finances
Every owners corporation in Victoria is required under the Owners Corporation Act 2006 to maintain two separate funds — an administrative fund for the day-to-day running costs of the owners corporation, and a maintenance fund (also known as a sinking fund) for longer-term capital expenditure and major repairs to common property. The distinction between these two funds is important: levies collected for the administrative fund cannot simply be redirected to capital works, and vice versa, without a resolution of the owners corporation.
The financial complexity of managing an owners corporation increases significantly with the size and tier of the OC. Tier 1 and Tier 2 owners corporations face mandatory audit or review requirements, statutory reporting obligations to Consumer Affairs Victoria, and compulsory 10-year maintenance plans. Even smaller Tier 3, 4, and 5 owners corporations must maintain accurate financial records, collect levies correctly, and meet their insurance and compliance obligations.
OC Support provides transparent, professionally managed financial services that give lot owners and committee members full visibility over where their levies are going, what the OC’s financial position is, and what expenditure is planned for the years ahead.
Levy collection and financial reporting
Levy collection and accurate financial reporting are the foundation of sound OC financial management. OC Support manages the complete levy lifecycle — from invoice preparation and collection through to arrears management and financial reporting — keeping your owners corporation’s cash flow healthy and committee members informed.
- Levy Collection & Management – Timely invoicing, collection, and banking of owners corporation fees with automated reminders and follow-up on outstanding payments
- Budget Preparation & Management – Detailed annual budget development for administrative and maintenance funds, with quarterly reviews and adjustments as required
- Financial Reporting – Monthly financial statements, quarterly reports, and comprehensive annual financial reports prepared in accordance with accounting standards
- Management Fund Administration – Proper allocation and management of administrative fund and maintenance (sinking) fund in compliance with Section 24 of the OC Act
Accounts management and banking
Day-to-day accounts management ensures your owners corporation’s funds are properly controlled, suppliers are paid promptly, and any financial irregularities are identified and addressed quickly. OC Support maintains rigorous approval workflows and transparent banking practices for all OC accounts under our management across Melbourne and Victoria.
- Accounts Payable – Efficient processing of invoices, contractor payments, and utility accounts with proper approval workflows
- Creditor Management – Professional liaison with suppliers and service providers to negotiate competitive rates and payment terms
- Debtor Management – Systematic follow-up on overdue levies, payment plan arrangements, and legal recovery action when necessary
- Bank Account Management – Oversight of OC bank accounts, term deposits, and investment strategies to maximise returns on reserve funds
Compliance, tax, and long-term planning
Victorian owners corporations face specific tax and compliance obligations that require specialist knowledge to manage correctly. OC Support handles all GST, BAS, and audit requirements and works closely with your committee to develop realistic long-term financial plans that protect property values and avoid financial surprises.
- GST Compliance – Accurate GST calculations, BAS preparation, and lodgement for registered Owners Corporations
- Audit Coordination – Preparation of financial records for audit and liaison with external auditors as required
- 10-Year Maintenance Plans – Development of long-term capital works budgets and funding strategies for major projects, supporting property values and reducing tension within the community
Owners corporation levies — how they work
Owners corporation levies are the primary source of funding for all OC activities — from day-to-day maintenance and insurance through to major capital works. Understanding how levies are calculated and set is important for all lot owners and committee members.
How levies are calculated Levies are set at the Annual General Meeting (AGM) based on the approved budget for the coming financial year. Each lot owner’s contribution is proportional to their lot liability — a figure defined in the plan of subdivision that reflects each lot’s share of the total owners corporation liability. Lot liability is fixed in the plan and cannot be changed without an amendment to the plan of subdivision.
Administrative fund levies The administrative fund covers recurring operational costs including management fees, insurance premiums, common area utilities, garden and cleaning maintenance, and routine repairs. The administrative fund levy is set annually at the AGM.
Maintenance fund levies The maintenance fund (sinking fund) accumulates reserves for future capital expenditure — roof replacements, lift overhauls, facade repairs, driveway resurfacing, and other major works that cannot reasonably be funded from the annual administrative budget. Under the Owners Corporation Act 2006, Tier 1 and Tier 2 owners corporations must prepare a 10-year maintenance plan to guide maintenance fund contributions. OC Support develops these plans in close coordination with our maintenance coordination team.
Special levies When unexpected major expenditure arises that cannot be funded from existing reserves — such as emergency structural repairs or the outcome of a significant insurance claim — the owners corporation may resolve to raise a special levy. Special levies require a resolution of the owners corporation and are separate from the annual administrative and maintenance fund levies. OC Support provides clear financial analysis and transparent communication to lot owners when a special levy is proposed, minimising tension and ensuring the process is properly documented.
10-year maintenance plans
A 10-year maintenance plan is a long-term financial planning document that identifies all anticipated major maintenance and capital works for a property over a 10-year period, estimates the cost of each item, and calculates the annual maintenance fund contributions required to fund those works without the need for special levies.
Under the Owners Corporation Act 2006, a 10-year maintenance plan is mandatory for all Tier 1 and Tier 2 owners corporations in Victoria. However, OC Support recommends that all owners corporations — regardless of tier — maintain some form of long-term capital planning to protect property values and give lot owners certainty about future costs.
A well-prepared 10-year maintenance plan typically covers:
- Building envelope — roof, facades, windows, waterproofing, and external painting
- Mechanical and electrical — lifts, car stackers, pumps, switchboards, intercom, and CCTV systems
- Fire and safety — sprinkler systems, fire hydrants, and essential safety measure upgrades
- Common area finishes — lobby, corridor, and amenity refurbishments
- Car park and hard surfaces — line marking, drainage, and driveway resurfacing
- Landscaping — garden upgrades, irrigation systems, and tree management
- Contingency — a reserve buffer for unforeseen expenditure
OC Support works with qualified quantity surveyors and building consultants to prepare accurate, defensible 10-year maintenance plans that are presented clearly to lot owners at the AGM and updated annually to reflect completed works and revised cost estimates.
Trust accounting and financial transparency
All owners corporation funds managed by OC Support are held in dedicated trust accounts as required under the Owners Corporation Act 2006, ensuring complete separation of client funds from OC Support’s own operating accounts. This is a non-negotiable legal requirement for registered OC managers in Victoria, and one that provides lot owners with maximum financial security and protection.
Our trust accounting procedures include:
- Regular bank reconciliations — all trust accounts are reconciled monthly against bank statements to ensure accuracy and identify any discrepancies promptly.
- Segregated accounts — each owners corporation’s administrative fund and maintenance fund are held in separate accounts, preventing any commingling of funds between properties or funds.
- Independent audit coordination — where required by the tier of the owners corporation, OC Support coordinates independent financial audits and prepares all required working papers and documentation for external auditors.
- Full financial transparency — lot owners and committee members receive detailed monthly and annual financial statements and can access their levy account and financial documents at any time through the OC Support owner portal.
Owners are more comfortable contributing to levies when they understand what the funds support and can see the outcomes over time. This transparent, disciplined approach to financial management supports property values, reduces committee tension, and provides the foundation for sustainable community living across Melbourne and Victoria.
Frequently asked questions
What is the difference between an administrative fund and a maintenance fund in an owners corporation? The administrative fund covers the day-to-day running costs of the owners corporation — management fees, insurance, utilities, routine maintenance, and general administration. The maintenance fund (sinking fund) accumulates reserves for future capital expenditure and major repairs to common property. Under the Owners Corporation Act 2006, these funds must be kept separate, and levies collected for one fund cannot be redirected to the other without a resolution of the owners corporation.
How are owners corporation levies calculated in Victoria? Levies are calculated based on the approved annual budget and each lot owner’s lot liability — a proportional share defined in the plan of subdivision. Lot liability reflects each lot’s share of the total owners corporation obligation and is fixed in the plan. The annual budget is approved at the AGM, and levies are then issued to lot owners in accordance with the approved budget and levy schedule.
Is an owners corporation required to have its finances audited? Under the Owners Corporation Act 2006, Tier 1 owners corporations must have their financial statements independently audited each year. Tier 2 owners corporations require a financial review (a less extensive form of independent examination). Tier 3, 4, and 5 owners corporations are not required to have an external audit unless the owners corporation resolves to do so. OC Support coordinates all audit and review requirements and prepares the necessary documentation for external auditors.
What is a special levy and when can one be raised? A special levy is an additional levy raised outside the annual budget process to fund unexpected major expenditure that cannot be met from existing reserves — such as emergency structural repairs, an uninsured loss, or the outcome of a significant building defect claim. Special levies require a resolution of the owners corporation, typically at a Special General Meeting (SGM). OC Support provides transparent financial analysis and clear communication to lot owners when a special levy is proposed.
What happens if a lot owner doesn’t pay their owners corporation levies? Unpaid levies accrue interest under the Owners Corporation Act 2006 and can be recovered through a structured debt recovery process. OC Support issues automated reminders, arranges payment plans where appropriate, and escalates persistent non-payment to legal recovery action including VCAT proceedings. See our dispute resolution page for details on the VCAT levy recovery process.
Whether your owners corporation needs day-to-day financial administration, a comprehensive 10-year maintenance plan, or expert guidance through a complex levy recovery or special levy process, OC Support delivers professional financial management services across Melbourne and Victoria. Contact our team to discuss how we can strengthen your owners corporation’s financial governance.