On 9 September 2026, amendments to section 34D of Victoria's Subdivision Act 1988 commenced operation, introducing a significant new mechanism for overcoming deadlocks within owners corporations. The reforms are contained in the Consumer Legislation Amendment Act 2026 and may have important implications for redevelopment, common property alterations, plan amendments and other actions requiring unanimous consent of owners.

Section 32 of the Subdivision Act 1988 permits an owners corporation to undertake a range of actions affecting common property and plans of subdivision, including altering boundaries, creating, varying or removing easements, creating lots, changing lot entitlement and liability and dealing with common property. Traditionally, these actions required a unanimous resolution of members. 

While the Victorian Civil and Administrative Tribunal (VCAT) has long had power to overcome certain owners corporation deadlocks, the available pathways were limited. Since the 2021 reforms (Owners Corporations and Other Acts Amendment Act 2021), section 34D(3)(c) principally addressed situations where consent was withheld by a member, or group of members, holding more than 50% of the total lot entitlement. 

This left uncertainty as to how owners corporations could proceed where a proposal was supported by a majority of owners, but unanimity could not be achieved because of opposition from a minority of owners. The new section 34D(3)(ba) is directed at that gap.

The key reform is the insertion of section 34D(3)(ba). The new provision allows VCAT to authorise a proposal where:

• a member or group of members has refused consent, or did not vote on the proposal;

• more than half of the membership of the owners corporation supports the proposal;

• the supporting members hold more than half of the total lot entitlement; and

• VCAT is satisfied that the proposal is likely to deliver economic or social benefits to the subdivision as a whole that outweigh any corresponding disadvantages to the members who did not consent.

This represents a substantial departure from the previous position. Although unanimity remains the starting point, a proposal can now proceed despite minority opposition where it has majority support and VCAT considers the overall benefits outweigh the disadvantages to dissenting owners.

The amendment is likely to be particularly significant for:

• redevelopment proposals;

• subdivision and boundary alterations;

• creation or amendment of easements;

• common property reconfiguration;

• owners corporation restructures; and

• other actions requiring unanimous consent under sections 32 or 33 of the Act.

The reform recognises that a small minority of owners can sometimes prevent proposals that are supported by most owners and which may provide broader benefits to the development as a whole. VCAT now has an express statutory basis to assess those competing interests and, where appropriate, permit the proposal to proceed.

The amendments also make a modest change to the existing section 34D(3)(c). Previously, this provision applied where a member holding more than 50% of the total lot entitlement had refused consent to the proposed action. The amendment extends the provision so that it also applies where that member did not vote on the proposal. The balancing test has been amended accordingly. Although comparatively minor, the change closes a potential gap where a majority owner could avoid the operation of the provision simply by declining to participate in the vote.

The new section 34D(3)(ba) has the potential to reshape how owners corporation disputes are resolved in Victoria. It provides a practical avenue for proponents of a proposal to seek VCAT approval where genuine majority support exists but unanimity cannot be achieved. At the same time, VCAT retains an important supervisory role through the requirement to assess the competing economic and social impacts on affected owners.

Developers, owners corporations, lot owners and planning practitioners should consider the new provisions when evaluating projects that have previously been viewed as incapable of proceeding due to a lack of unanimous consent.

To discuss how the new Subdivision Act reforms may affect a proposed redevelopment, common property alteration, easement, plan amendment or other owners corporation proposal, please contact our Planning, Government, Infrastructure & Environment group.