If you manage properties in Queensland, the term “body corporate” comes up constantly, in owner conversations, compliance checklists, and settlement paperwork. Yet many property managers, landlords, and investors are fuzzy on exactly what a body corporate is, how it operates, and what obligations it creates. Understanding body corporate is not optional when you work with strata-titled properties. It shapes how decisions get made, how money is managed, and how your responsibilities as a property manager are defined. In this guide, I’ll walk you through everything you need to know.
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Table of Contents
What Is a Body Corporate in Simple Terms?
A body corporate is the legal entity created when land is subdivided and registered as a community titles scheme under a community management statement (CMS). According to Better Boards, it is made up of all the lot owners in a scheme and exists to manage and maintain the common property, the shared areas such as:
- Driveways
- Lobbies
- Lifts
- Pools
- Gardens
- Structural elements of the building
Who Is Part of the Body Corporate?
In practical terms, every person who owns a lot in a unit block, townhouse complex, or mixed-use development automatically becomes a member of the body corporate. It is not voluntary. The moment you settle on a lot in a community titles scheme, you are in.
The body corporate has a defined legal purpose. According to Queensland’s SSKB Body Corporate Management, the body corporate must:
- Administer the common property and the body corporate’s assets for the benefit of all owners
- Carry out maintenance and repairs on common areas
- Fulfil other legislative obligations such as keeping records and managing meetings
How Body Corporates Are Governed in Queensland
Queensland is home to approximately 49,000 strata schemes, making it one of the most active strata markets in Australia. The primary legislation governing body corporates in Queensland is the Body Corporate and Community Management Act 1997 (BCCM Act), which was significantly updated by the Body Corporate and Community Management Regulation 2020.
Governance within a body corporate operates through three interconnected roles:
- The committee
- The body corporate manager
- The building manager (for larger schemes)
The Role of the Committee
The committee is the elected group of volunteer lot owners who make decisions on behalf of the entire body corporate. It is the driving force behind the scheme’s day-to-day administration. The committee typically includes three executive positions:
- Chairperson: Leads meetings and ensures proper procedures are followed
- Secretary: Handles communication, notices, and record-keeping
- Treasurer: Manages the finances and prepares budgets
According to PICA Group, during each annual general meeting (AGM) committee members are elected to serve a one-year term. Their responsibilities include:
- Carrying out day-to-day administration
- Maintaining common property
- Facilitating service providers
- Taking care of financial issues
- Enforcing by-laws
- Ensuring sufficient insurance cover
One important principle I always reinforce with property managers who manage strata properties: no single committee member can make decisions on behalf of the whole committee. Decisions must be made:
- Collectively
- Documented in meeting minutes
- Comply with the scheme’s by-laws
How the Body Corporate Manager Fits In
A body corporate manager, also called a community manager or strata manager, is a professional engaged by the body corporate to assist the committee with administration. The key distinction here is critical: the body corporate manager is not the body corporate.
According to Queensland Government guidance, the manager may be engaged to perform administrative functions on behalf of the committee, often including duties similar to a secretary or treasurer, depending on the terms of their engagement. They act under delegated authority rather than as decision-makers. Where a committee exists, the manager acts within delegated administrative powers rather than replacing committee or general meeting decisions. If no committee has been elected and a manager is engaged in its place, the manager can carry out committee functions and exercise committee powers.
This distinction matters enormously for property managers. When one of your landlords asks why the body corporate manager “allowed” something to happen, you can explain that the manager acts within the scope set by the committee. They are administrators, not decision-makers.
How the Building Manager Fits In
Larger schemes, particularly high-rise apartment buildings, often engage a separate building manager through a caretaking agreement. The building manager handles the on-site physical responsibilities:
- Maintaining gardens
- Cleaning lobbies
- Overseeing contractors
- Changing light fittings
- Keeping the building in good order
This role is distinct from both the body corporate manager and the property manager who manages individual investor lots.
Understanding Body Corporate Levies
Body corporate levies (also called contributions or fees) are the regular payments that lot owners make to fund the scheme’s operations. If you manage investment properties in strata schemes, understanding how these levies work will help you advise your landlords and anticipate cash flow impacts.
According to Stratacare Australia, levies are calculated based on the cost of running the building or complex. The total amount required to maintain and manage the building is budgeted annually, then divided between owners based on their unit entitlements, their allocated share of the scheme’s rights and responsibilities.
Levies are typically paid quarterly, though this varies by scheme.
The Administrative Fund
The administrative fund covers the day-to-day running costs of the scheme. This includes regular maintenance of common property and other routine expenses, such as:
- Pool cleaning and garden maintenance
- Pest control
- Bank fees
- Professional fees
- The insurance premium, which is often the single largest administrative fund expense.
Think of the administrative fund as the scheme’s operating account. It funds what the scheme needs this year.
The Sinking Fund
The sinking fund is the scheme’s long-term savings account. It exists to allow a body corporate to pay for major repairs and maintenance, such as:
- Repainting the exterior
- Replacing the roof
- Resurfacing car parks
- Upgrading lift systems
What makes the sinking fund distinct is that it is governed by a forward-looking budget requirement. According to Queensland Government legislation, the sinking fund budget must provide for necessary and reasonable spending for the current financial year and reserve an amount to meet likely spending for at least nine years after the current financial year. This is sometimes based on a professional sinking fund forecast prepared by a quantity surveyor.
BCsystems’ guide to levy setting captures this well: the sinking fund is essentially forced savings as a group. Rather than asking owners to make large one-off payments when expensive works arise, the law requires owners to contribute a manageable amount each quarter so that funds are available when capital works become necessary.
A critical point for property investors: the administrative fund and sinking fund are legally separate and must be budgeted and accounted for independently. In practice, funds are not interchangeable except in limited circumstances permitted under legislation.
Special Levies
When unexpected major expenses arise, such as:
- Storm damage
- Litigation
- Building defects
- A sinking fund shortfall
The body corporate can raise a special levy to cover the cost.
These are unbudgeted, one-off payments demanded from all owners based on their unit entitlements. Special levies can range from a few hundred dollars to tens of thousands per owner, depending on the nature of the expense.
From my experience working with property managers across Australia, special levies are one of the most common surprises landlords face. One of the first things I recommend when a property manager takes on a new investor client with a strata property is to review the body corporate’s last two years of minutes and the sinking fund balance. An underfunded sinking fund is a clear warning sign that a special levy is on the horizon.
How Levies Are Calculated
Your individual levy as a lot owner is affected by your unit entitlements. A larger penthouse, for example, typically carries higher entitlements and pays a proportionally larger levy than a smaller ground-floor unit in the same building. Levy amounts are set through the budgeting process and approved at a general meeting (typically the AGM), with the committee preparing proposed budgets for owner approval.
Body Corporate By-Laws and Compliance
Every body corporate scheme is governed by a set of by-laws, rules about how owners, tenants, and visitors must use the property. By-laws can cover matters such as:
- Noise levels
- Pet ownership
- Use of common areas
- Vehicle parking
- Renovations
- Short-term rental arrangements
From 1 August 2025, sellers in Queensland community titles schemes must provide the CMS and a body corporate certificate as part of the seller disclosure package. Where the CMS already includes the by-laws, a separate by-laws copy is not required.
What This Means for Property Managers
For property managers, by-laws add another layer of tenant management. If a tenant breaches a by-law, the property manager is often the first point of contact. However, formal breach notices are issued by the body corporate, usually through the committee or an authorised body corporate manager. This is a distinction worth clarifying in your owner onboarding documents.
By-laws can only be changed through a general meeting of owners. In Queensland, changing by-laws usually requires a special resolution. If the change involves a new or amended exclusive use by-law, a resolution without dissent is required.
Keeping Compliance Systematic
Our team at PMVA supports property managers who handle strata properties by managing the administrative side of body corporate-related tasks, including:
- Body corporate fee processing
- Levy tracking
- Compliance auditing
Keeping these tasks systematic is essential when your portfolio includes strata-titled properties.
The Different Regulation Modules in Queensland
One of the areas that trips up even experienced property managers is Queensland’s system of regulation modules. The BCCM Act governs all community titles schemes, but the specific rules that apply depend on which regulation module the scheme falls under.
The Main Regulation Modules
The main modules are:
- Standard Module: Applies to general community titles schemes (most residential complexes)
- Accommodation Module: Applies to schemes primarily used for tourism or short-term accommodation
- Commercial Module: Applies to schemes primarily used for commercial purposes
- Small Schemes Module: Applies to schemes with six or fewer lots
- Two-Lot Module: Applies to two-lot schemes
What Must Be Disclosed to Buyers
The regulation module that applies to a scheme must be disclosed to buyers as part of the body corporate certificate process. Different modules carry different rules around committee composition, spending limits, and dispute resolution procedures.
When working with a body corporate property, the first step is always to establish which regulation module applies. This shapes everything from how meetings are run to how the committee can spend money without owner approval. Our commercial property management service is tailored to handle the specific compliance requirements that come with commercially modulated schemes.
Body Corporate vs Owners Corporation: Terminology Across Australia
One source of confusion I encounter frequently, particularly when managing portfolios that span multiple states, is the inconsistent terminology used around Australia. The legal structure is the same everywhere, but the name changes depending on where you are.
Terms Used in Different States
According to Better Boards:
- Queensland, Tasmania, and Northern Territory use “body corporate”
- Victoria, New South Wales, and ACT use “owners corporation”
- Western Australia uses “strata company”
- South Australia uses “community corporation” or “strata corporation”
Each state also operates under its own legislation. Queensland’s BCCM Act is distinct from New South Wales’ Strata Schemes Management Act 2015, Victoria’s Owners Corporations Act 2006, and Western Australia’s Strata Titles Act 1985 (reformed in 2020). If you manage properties across state lines, understanding the applicable legislation in each jurisdiction is non-negotiable.
What This Means for Property Managers
Our investment property compliance outsourcing service covers the compliance requirements across multiple jurisdictions, ensuring your agency meets its obligations regardless of where the strata property is located.
What Body Corporate Means for Property Managers
If you are managing an investor’s lot in a strata scheme, you sit at the intersection of two separate governance structures: the tenancy relationship you manage directly, and the body corporate framework that governs the building.
Understanding this distinction protects you, your owners, and ultimately your agency.
Managing Strata Properties in Your Portfolio
Strata managers and property managers play distinct but complementary roles. The strata manager takes care of:
- The building’s common property administration
- Financial management
- Record keeping
Your role as the property manager covers the individual property and tenant relationships.
Where the distinction matters most is in maintenance. If a tenant reports a leaking roof, your first determination is whether the issue involves common property; the roof structure, for instance, almost certainly does. In that case, the repair falls within the body corporate’s responsibility, and you will need to liaise with the body corporate manager to have it actioned. If the issue relates to the interior of the lot (a dripping tap, a broken internal door), that is the owner’s responsibility to repair.
Getting this right quickly:
- Reduces delays for tenants
- Protects owners from unnecessary costs
- Demonstrates the level of expertise that differentiates a quality property management service
The Administrative Load of Body Corporate Management
One of the realities I have observed across more than two decades in property management is that strata properties generate a disproportionate amount of administrative work. Each property in a strata scheme generates:
- Quarterly levy notices to track and process
- Body corporate meeting notices and minutes to review
- By-law queries from tenants to manage
- Maintenance requests that need to be categorised as individual lot or common property
- Disclosure documents to collect and retain at lease and sale
For agencies with a significant number of strata properties in their rent roll, this volume adds up fast. Systems are the answer. Without a clear process for managing body corporate administration, from levy tracking to maintenance triage, the complexity accumulates and errors follow. Our back-office outsourcing service includes body corporate levy processing as a quarterly task, ensuring these obligations are handled systematically and never fall through the cracks.
The best strata management software platforms can also help agencies manage the documentation and communication requirements of strata properties more efficiently.
Recent Changes to Queensland Body Corporate Law in 2025
Queensland’s body corporate landscape shifted significantly from 1 August 2025, when the Property Law Act 2023 came into force. These reforms represent the most significant update to Queensland’s property disclosure regime in decades.
New Seller Disclosure Requirements
From 1 August 2025, Queensland’s mandatory seller disclosure scheme replaced the old section 206 process. For community titles schemes, sellers must now provide a seller disclosure statement and prescribed certificates, together with the CMS and a body corporate certificate, being Form 33 for most schemes and Form 34 for specified two-lot schemes.
Key Points From the 2025 Reforms
- The body corporate certificate is now a mandatory disclosure document for all sales of existing lots in community titles schemes
- Only the body corporate can prepare and issue the certificate (not the seller)
- The body corporate must provide the certificate within five business days of a written request and payment
- An urgent 24-hour service is available at a higher fee
- The certificate covers levies payable, any outstanding debts, insurance arrangements, applicable by-laws, existing service agreements, and improvements to common property
For sales agents handling strata-titled properties, ordering the body corporate certificate early in the sale process is now essential. If any required disclosure document is missing, incomplete or inaccurate, the buyer may have a right to terminate the contract at any time before settlement, including after finance approval, subject to the statutory materiality requirements.
Our real estate trust account compliance resources cover the financial management obligations that intersect with these disclosure requirements.
Work Health and Safety Obligations in Body Corporates
One area that surprises many property managers is the application of Queensland’s Work Health and Safety (WHS) Act to body corporates. According to WorkSafe Queensland, a body corporate is generally not considered a PCBU when managing purely residential common property and not employing workers directly; however, obligations may arise depending on the nature of activities, particularly in mixed-use or commercial contexts.
When the Position Changes
However, this changes in certain circumstances. If the body corporate is responsible for commercial areas such as ground-floor shops or restaurants, it is considered to be undertaking a business or undertaking and WHS duties apply. Bodies corporate that engage workers as employees, rather than just hiring tradespeople for one-off repairs, also take on PCBU obligations.
What This Means for Property Managers
For property managers with commercial or mixed-use strata properties in their portfolios, ensuring the body corporate committee understands its WHS obligations is part of providing a professional service. Our resources on legal responsibilities of a property management company provide broader context on the compliance landscape property managers operate within.
Frequently Asked Questions
What Is the Difference Between a Body Corporate and a Strata Title?
“Strata title” refers to the property ownership structure, a form of ownership that divides a building into individual lots and common property. A “body corporate” is the legal entity created to manage that common property on behalf of all the lot owners. In other words, the strata title is the ownership framework, and the body corporate is the management entity. The two terms are often used interchangeably in conversation, but they refer to different things.
Who Is Responsible for Paying Body Corporate Levies: The Owner or the Tenant?
The owner is responsible for paying body corporate levies in a residential tenancy context. In Queensland, these levies are generally treated as a cost of ownership rather than a tenant expense. In commercial and retail leasing, however, some body corporate-related costs may be recoverable from tenants as outgoings if the lease allows it and the relevant law permits recovery. Property managers should make this distinction clear to clients to avoid disputes about outgoings.
Can a Body Corporate’s By-Laws Restrict My Tenant From Having Pets?
Yes. In Queensland, body corporate by-laws can regulate pet ownership, but they must be reasonable. Blanket bans on animals are generally invalid, and decisions about pets must be assessed on a case-by-case basis. Tenants must comply with the scheme’s by-laws and may still require both landlord approval and body corporate approval.
What Does the Body Corporate Insurance Cover?
In Queensland, compulsory body corporate insurance generally covers common property and, in many schemes, the building structure, though coverage depends on the regulation module and scheme type. A body corporate may also choose additional cover, such as office bearers’ liability, depending on the scheme’s needs. It does not usually cover the contents of individual lots, so owners generally need their own contents insurance for items inside the lot.
What Are the Spending Limits for a Body Corporate Committee?
For most Queensland community titles schemes under the standard, accommodation and small schemes modules, the committee spending limit is set by ordinary resolution of the body corporate. If no amount is set, the default is $200 multiplied by the number of lots. Spending above that limit on a single matter must generally be approved at a general meeting, although an exception applies where the committee needs to exceed the limit to obtain or renew required insurance cover.
How Are Body Corporate Disputes Resolved in Queensland?
In Queensland, most body corporate disputes under the BCCM Act start with the Office of the Commissioner for Body Corporate and Community Management, which handles conciliation and adjudication. QCAT deals with specific matters such as complex disputes, lot entitlement adjustments, and appeals from adjudicators. Most disputes involve by-law breaches, levy arrears, maintenance responsibilities, and committee decisions.
What Is a Sinking Fund Forecast and Do All Body Corporates Need One?
A sinking fund forecast is a planning tool used to estimate future capital spending. In Queensland, the sinking fund budget must cover the current financial year and reserve for likely spending for at least the next 9 years. A professional forecast is optional, with the likely spending able to be estimated by the committee or an owner. From a property management perspective, reviewing the sinking fund forecast is still a sensible step before buying into a scheme.
How Do I Check if a Body Corporate Is Financially Healthy Before My Client Buys Into the Scheme?
The body corporate certificate, introduced under Queensland’s seller disclosure scheme from 1 August 2025, is an important disclosure document, but it is only one part of the package. For community titles schemes, buyers should also review the seller disclosure statement and the CMS. To assess the scheme’s financial health more fully, it is also worth reviewing recent AGM minutes, fund balances, upcoming major works, and any history of special levies. Our guide to investment property management covers how to build systems for assessing investment risk across your portfolio.
Where Better Strata Systems Pay Off
Body corporate management becomes far less reactive when your agency has clear systems for levies, maintenance triage, compliance, and owner communication. The more organised your back office is, the more confidently you can manage strata properties without delays, missed obligations, or unnecessary pressure on your team. PMVA’s investment property compliance outsourcing service is built to support exactly this kind of high-volume administrative workload. If strata properties make up a growing part of your rent roll, now is the time to put stronger support behind the process.
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