Limited Common Elements in Australia: 2026 Strata Guide

In a strata scheme, common property refers to areas shared by all owners, such as hallways, lifts, gardens, and roofs. However, not all shared spaces are equally accessible. Limited common elements are parts of the property that are technically owned by all lot owners but are set aside for the exclusive use of one or a few lots. Examples include:

• Balconies or terraces attached to a single apartment
• Private courtyards or gardens
• Allocated car spaces or storage cages
• Roof decks or patios used by a specific lot

While these areas are maintained by the body corporate or owners corporation, only certain owners have the right to use them. This distinction affects how costs are shared and who is responsible for repairs or upgrades.

Several states, including New South Wales and Queensland, are introducing or finalising changes to strata laws in 2026. These reforms are designed to make the management of limited common elements clearer and fairer for everyone involved. Here are the main changes to be aware of:

Clearer Definitions and Documentation

Strata schemes are now required to clearly define limited common elements in their strata plans and by-laws. This means:

• Boundaries must be shown with clear diagrams and legal descriptions
• By-laws should specify which lots have exclusive use of each area
• Maintenance schedules and cost-sharing arrangements must be documented

This move towards transparency aims to reduce confusion and disputes over who can use what, and who pays for upkeep.

Fairer Levy Allocations

From 2026, bodies corporate and owners corporations can allocate additional levies to owners who have exclusive use of limited common elements. This means that if your lot benefits from a private courtyard or rooftop, you may be asked to contribute more towards its maintenance and repair than owners who do not have access to these areas.

Maintenance Responsibilities

The updated rules clarify when the owner with exclusive use is responsible for maintenance, and when the body corporate must step in. For example:

• If damage to a limited common element is caused by the exclusive user, that owner may be liable for repairs
• Routine maintenance may be shared or allocated based on the by-laws

Having these responsibilities clearly set out helps prevent disputes and ensures that costs are distributed fairly.

Streamlined Dispute Resolution

State tribunals are making it easier to resolve conflicts over limited common elements. This includes disputes about access, alterations, and repairs. With clearer documentation and processes, owners can expect faster and more predictable outcomes if disagreements arise.

Understanding limited common elements is crucial for several reasons:

Unexpected Costs

Owners with exclusive-use areas may face extra levies for repairs, waterproofing, or upgrades—on top of standard strata fees. These costs can be significant, especially if major works are needed.

Impact on Property Value

Properties with well-managed limited common elements—where by-laws are clear and levies are fair—can be more attractive to buyers. On the other hand, poorly defined or disputed areas can make a property harder to sell or reduce its value.

Legal and Compliance Risks

With stricter compliance requirements and new tribunal powers, disputes over limited common elements can escalate quickly. If your by-laws and strata records are not up to date, you could be exposed to legal costs or be required to pay for repairs you did not expect.

Insurance Considerations

Some insurers now require clear documentation of limited common elements before providing cover, particularly for high-value or high-rise buildings. If your exclusive-use area is not properly defined, you may find it difficult to get the right insurance or to make a claim. For more on this, see home insurance.

Consider a situation where an owner in a strata scheme believes they have exclusive use of a courtyard, but the area is not properly defined in the by-laws or strata plan. If a maintenance issue arises—such as drainage problems or structural repairs—the owner may be surprised to find they are responsible for the full cost, or that the body corporate refuses to cover it. These types of situations highlight the importance of clear documentation and understanding your rights and obligations.

Whether you already own a strata property or are considering buying one, there are practical steps you can take to safeguard your interests:

1. Review Your By-Laws and Strata Plan

Check that any limited common elements are clearly described in your strata documentation. Look for:

• Accurate diagrams showing boundaries
• Clear statements about which lots have exclusive use
• Maintenance and cost-sharing arrangements

If anything is unclear, ask your strata committee or body corporate manager for clarification.

2. Budget for Additional Levies

If your lot benefits from exclusive-use areas, be prepared for the possibility of extra levies for repairs or upgrades. Factor these potential costs into your financial planning, especially as new rules take effect in 2026.

3. Seek Clarification Early

Don’t wait for a dispute to arise. If you are unsure about your responsibilities or rights regarding a limited common element, raise the issue with your strata committee or manager as soon as possible. This is especially important if you are planning renovations or notice maintenance issues.

4. Check Your Insurance

Make sure your insurance policy covers any exclusive-use areas attached to your lot. Some policies may exclude areas that are not clearly defined as limited common elements. Review your cover regularly and update it as needed to reflect any changes in your strata scheme.

Limited common elements are a key feature of many strata properties, shaping both your day-to-day experience and your long-term financial obligations. With 2026’s reforms bringing greater clarity and new responsibilities, now is the time to review your strata documents, understand your rights, and ensure your investment is protected. Staying informed and proactive can help you avoid costly surprises and make the most of your property.