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You are fortunate that you are in Victoria as, unlike in NSW, the Tribunal there (VCAT) will rule on Company Title matters, according to this factsheet.
But wherever this dispute takes you, your first challenge is to establish that the laundry and balconies are common property, and that will be somewhere in the articles (rules) of the company that owns the building.
There is only one appropriate response to people who say “sue me” – and that is, “I hope your lawyers are as expensive as mine as I will be coming after all costs when I win.”
BTW, you neighbour sounds like a bully – and there’s only one way to deal with that kind of beast … unless you want to see where the thin end of this wedge leads to.