I will be going online next week with advice that the Owners Corp should pass a by-law that individual owners’ webcams should not be looking at common property or into private property. In this case, if the camera was at the edge of the property looking back at the unit, there would probably be no cause for complaint.
However, if this is part on an ongoing dispute between neighbours, then logic and mutual respect have probably long since fled the scene.
If you have the time and want to look at the mesmerising range of issues questions like this raise, click on this link to the Australian Law Reform Commission’s report on privacy and, specifically, this section on the protection of children and young people which notes that ‘innocent’ pictures can end up being used for nefarious purposes. Scary.