Body Corporate vs. Strata: Key Differences

If you’ve ever found yourself in a property meeting wondering whether “strata” and “body corporate” mean the same thing, you’re not alone. These two terms are used a lot, sometimes interchangeably, but they’re not always identical.

So, what’s the actual difference between body corporate and strata?

Let’s clear the air.

Contents

What Do They Have in Common?

At their core, both body corporate and strata refer to shared property management. They involve a group of owners working together to maintain the common property, enforce rules, and manage funds for the building or community.

Whether it’s a residential apartment, a complex, or a mixed-use building, both systems operate on the same principles:

Shared ownership of common property
Payment of levies or fees for maintenance
Legal responsibilities around compliance and repairs
An elected committee or management group

The Terminology

Body corporate is the term traditionally used in Queensland and older Victorian developments, while strata is more commonly used in New South Wales and newer systems across Australia.

In Victoria, the term “body corporate” was officially replaced by “owners corporation” in 2007 under the Owners Corporations Act. Still, many people, and even businesses, use “body corporate” informally when referring to the management of strata properties.

So, when someone says body corporate, they’re often talking about what is now technically called an owners corporation.

Meanwhile, in other states, “strata scheme” is the umbrella term for the property title structure. It’s more of a system, whereas “body corporate” or “owners corporation” is the actual entity managing that system.

Structural and Legal Differences

The differences really come down to legislation and location.

In Queensland, the Body Corporate and Community Management Act 1997 governs body corporates. The system uses modules depending on the type of property.

In Victoria, the Owners Corporations Act 2006 replaced the body corporate model, though functionally, it works similarly.

In NSW and other states, strata is governed by their respective Strata Schemes Management Acts.

The rules about voting, committee roles, dispute resolution, and even meeting frequency can vary between states depending on which legislation is in play. That means a body corporate in Queensland operates differently from a strata scheme in Sydney or an owners corporation in Melbourne.

If you’re managing or living in a Melbourne body corporate, you’re dealing with an owners corporation governed by Victorian law. Even if everyone still calls it “body corporate” out of habit.

Financial Management

Another small but noticeable difference is how the finances are structured.

In Queensland, body corporates often separate funds into administrative and sinking funds.

In Victoria, the owners corporation manages an annual budget and may also establish a maintenance plan and fund if required.

The terminology might differ, but the goal is the same: collect levies and use them to pay for cleaning, maintenance, insurance, and long-term building works.

Communication and Culture

It’s also worth noting that the communication style and expectations can vary depending on whether you’re dealing with strata or a body corporate. Committees in different states may follow different practices around: