Having owned, lived in, served on committees and chaired in NSW in multiple stratas over some decades and having owned, lived in, served on committees and chaired in VIC in multiple stratas over some decades, I’m probably better placed than most to compare the two.
For me, the VIC system is by far the best. But it’s for sure not without its issues.
The main difference in VIC, compared to NSW, is the simplification of what is common and lot property and what are common and lot services.
In VIC apartments, the lot usually owns all the airspace of their lot including all of its surfaces (eg paint, tiles, wallpaper and surface treatments including waterproofing membranes). This is mostly due to definitions in the Subdivision (Registrar’s Requirements) Regulations 2021 (an update of the 2011 version). The lot also owns all the services (water, drainage, electricity etc) from the point where the service branches to exclusively service the lot, regardless of the service location. Those concepts are not unique to VIC. In VIC apartments, lots usually also have the legislated (s.132 of the OC Act) right to “to decorate or attach fixtures or chattels” to the lot’s interior side of common property walls, floors and ceilings.
Lots cannot damage or alter common property or common services without OC permission. And no, attaching fixtures or chattels is not considered to be damaging common property. OC common property inside an apartment lot will include structural walls, slabs, beams, columns and ducts. In other words, the integrity of the building. That again is not unique to VIC.
What it means is, for most lot interior works, as long as they do not affect common property, lots do not need OC permission. The lot must still meet all rules, laws and standards including council and building code requirements. Certain works trigger a legislated (s.133 OC Act) requirement to inform the OC of the works.
In comparison, the definition of what is common and lot property and what are common and lot services in NSW is much more complex. Lot owners in NSW need more OC permissions. Lot owners in NSW may need maintenance by-laws to be created. VIC doesn’t need the by-laws (rules in VIC) or similar for maintenance to be created as long as common property if not affected. The lot will always be responsible for lot property and lot services.
The situation in VIC is not perfect but it does, IMO make owning, living in, serving on the committee and chairing VIC apartments a much more enjoyable strata experience.
For me, the minuses of the VIC system, include the increased responsibility that lot owners have to maintain their lots and their services. That can lead to more lot v lot maintenance disputes if the OC itself is not affected.
The maintenance of outdoor balconies, terraces and courts of VIC apartments can also be a bit of a shock to lot owners. While VIC apartment owners are usually happy with the idea that they are responsible for the waterproofing of their bathrooms and laundries, they can be surprised when they discover that their responsibility extends to the waterproofing around the airspace areas of their outdoors balconies, terraces and courts.
The OC is still responsible for its common property and its common services. And lots can’t always just do as they like. There are definite limits.