Limited Common Elements in Australia: 2025 Strata Guide

Australia’s love affair with apartment living continues, and so does the complexity of strata ownership. One term that catches many new (and seasoned) unit owners off-guard is limited common elements. With new strata reforms rolling out in 2025 across several states, understanding these elements is more important than ever for anyone who owns, or plans to buy, into a body corporate or owners corporation.

What Are Limited Common Elements?

In strata schemes, common property refers to areas shared by all owners—think lobbies, lifts, gardens, or roofs. But not all shared spaces are equal. Limited common elements are specific parts of the property designated for the exclusive use of one or a few units, even though ownership is still shared by the entire body corporate. Classic examples include:

• Balconies attached to one apartment

• Private courtyards or gardens

• Allocated car spaces or storage cages

• Roof terraces or patios used by a single lot

The distinction is crucial: while the body corporate maintains these areas, only certain owners benefit from their use. This impacts everything from repair responsibilities to how levies are set.

2025 Reforms: What’s Changing for Limited Common Elements?

This year, several states—most notably New South Wales and Queensland—have introduced or are finalising amendments that clarify the management and cost-sharing of limited common elements. Here’s what strata owners and investors should be watching:

• Stricter Definitions: Updated legislation now requires schemes to explicitly define limited common elements in their strata plans. Vague boundaries are out; clear diagrams and legal wording are in.

• Fairer Levy Allocations: From 2025, bodies corporate can (and often must) allocate additional levies to those who have exclusive use of limited common elements. This means if your apartment is the only one with a rooftop garden, you could pay more for its upkeep.

• Maintenance Responsibilities: New rules clarify when owners are responsible for maintenance versus when the body corporate must step in. For example, if damage is caused by the exclusive user, they may be liable for the repair bill.

• Dispute Resolution: State tribunals are streamlining processes to resolve conflicts over limited common elements—especially around access, alterations, and repairs.

For example, in NSW, the Strata Schemes Management Amendment (2025) now requires that any area listed as a limited common element in the by-laws must have a clear maintenance schedule and cost-sharing arrangement attached to it. Queensland’s Body Corporate and Community Management Act update also introduces templates for exclusive use by-laws, making it easier to understand who pays for what.

Why It Matters: Real-World Impact for Owners and Investors

Ignoring limited common elements can be an expensive mistake. Here’s why they’re so pivotal in 2025’s property landscape:

• Unexpected Costs: Owners with exclusive balconies or car spaces may face special levies for repairs, waterproofing, or upgrades—on top of standard strata fees.

• Resale Value: Well-managed limited common elements (with clear by-laws and fair levies) can boost a property’s market appeal. Conversely, poorly defined or disputed areas can scare off buyers or drag down values.

• Legal Risk: With stricter compliance and new tribunal powers, disputes over limited common elements can escalate quickly. Documentation is everything—if your by-laws aren’t up-to-date, you could find yourself on the hook for costly legal battles or forced repairs.

• Insurance Implications: Some insurers now ask for clear limited common element schedules before providing cover, especially for high-value or high-rise buildings.

Consider the case of a Brisbane owner who recently discovered that their exclusive-use courtyard wasn’t properly defined in the body corporate’s records. When drainage issues hit, the owner faced a $12,000 bill—because the area wasn’t technically a limited common element under the scheme’s by-laws. These sorts of surprises are driving the push for transparency in 2025.

How to Protect Your Investment

If you own or are looking to buy into a strata scheme, here are practical steps to get ahead of the changes:

• Check Your By-Laws: Make sure limited common elements are clearly described in your strata documentation, with maintenance and levy responsibilities spelled out.

• Budget for Levies: If you benefit from exclusive spaces, factor in potential extra costs for repairs or upgrades in 2025 and beyond.

• Seek Clarification Early: Don’t wait for a dispute. Engage with your strata committee or body corporate manager to confirm who’s responsible for what—especially if you’re planning renovations or notice maintenance issues.

• Review Insurance: Double-check that your cover accounts for any exclusive-use areas, as policies may exclude poorly defined limited common elements.

The Bottom Line

Limited common elements are more than just a legal footnote—they shape your daily life, your wallet, and your property’s long-term value. With 2025’s reforms bringing much-needed clarity (and a few new obligations), now’s the time for every strata owner to get across the details and ensure their investment is protected.