Strata Subdivision vs Plan of Subdivision: What You Must Know

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One of the most common questions I get from clients looking at subdividing property in Melbourne is this:

What’s the difference between a strata subdivision and a plan of subdivision?

There’s a lot of confusion out there so in this article, I’m going to break it all down in plain English, from a developer’s perspective.

Now, technically speaking, the term “strata” isn’t even used anymore. Today, all subdivisions fall under the Subdivisions Act, but the legacy term still floats around, especially when talking about multi-unit or apartment-style developments.

Let’s jump in.

Quick lInks

• What is a Strata Plan?
• What is a Plan of Subdivision?
• Subdivision Act 1988 Overview
• Owners Corporation Act Explained
• Common Owners Corporation Scenarios
• Plan of Subdivision Process (Step-by-Step)
• Strata Plan vs Plan of Subdivision: Final Thoughts

What is a Strata Plan?

A strata plan was the official document used to define lot boundaries for typical ‘in-fill’ subdivisions in Victoria, especially between 1967 and 1988. These were not greenfield estate subdivisions, but rather urban or inner-suburban dual occupancy or townhouse-style setups.

Key characteristics included:

• Upper and lower height limits for each lot
• Common property at ground level (and above or below)
• Ownership of common property via a Body Corporate, shared by all lot owners

These plans were governed by the Strata Titles Act 1967, which was later replaced by the Subdivision Act 1988. The goal? To modernise how subdivisions were defined, titled, and presented.

So today, strata plans have effectively been replaced by plans of subdivision, though the term “strata” still gets used informally, especially when people talk about older dual occupancy projects with shared driveways or services.

If you’re asking can I subdivide my property under this model, the answer is yes, but what you’re likely doing is a strata subdivision dual occupancy in modern terms. That means two homes on one title, later split via a plan of subdivision, possibly with shared areas.

It’s no longer called a “strata plan” legally, but the structure and responsibility setup might still feel the same in practice.

What is a Plan of Subdivision?

A plan of subdivision is a legal document that allows land to be divided into two or more separate lots, each with its own individual title. It’s the modern replacement for the older strata plan system in Victoria and it’s now the default method used when subdividing property.

Unlike the older strata approach, plans of subdivision typically:

• Do not include height restrictions
• May or may not include common property
• Can include shared access-ways or driveways, if needed

If common property is included, it’s managed through an owners corporation (previously known as a body corporate). This ensures shared responsibilities, like driveways, services, or common land, are legally accounted for and maintained.

Today, almost all dual occupancy, townhouse, and multi-lot developments use a plan of subdivision, even if they still get referred to casually as a “strata project.”

Owners Corporations Act

The Owners Corporations Act (2006) was introduced to modernise the way shared property is managed in subdivisions. It replaced the older body corporate system that applied before 1988, aligning all shared-property developments under one updated framework.

In Victoria, multi-lot subdivisions (such as townhouses and apartments) are now commonly governed by owners corporations, which are legal entities responsible for managing shared spaces like driveways, landscaping, entry points, and communal infrastructure.

What is an Owners Corporation?

If you subdivide land that includes any shared space, even a single driveway or a roof cavity, you’ll likely trigger the need for an owners corporation to manage it. Each lot owner automatically becomes a member.

There are different types of owners corporations, depending on the level of control and access:

For example, if your dual occupancy project involves stacked townhouses with shared driveways or garages, you’ll probably need a limited owners corporation to manage access and maintenance obligations.

If the development spans multiple levels or more complex infrastructure (like elevators or rooftop gardens), there might be multiple owners corporations involved, each responsible for specific components of the property.

Each owner’s entitlement and liability is recorded as a percentage, based on the size, value, and location of their lot.

Example: A three-bedroom penthouse with two car spaces would have a higher entitlement and liability percentage than a smaller ground-floor apartment.

In larger developments (1–10+ lots), it’s common for an independent owners corporation manager to be engaged to maintain the shared areas. However, in smaller dual occupancy subdivisions, lot owners often manage these responsibilities themselves, either informally or through a simple agreement.

Plan of Subdivision Process (Step-by-Step)

So, how does the plan of subdivision process actually work?

Here’s a simplified breakdown of what happens when you’re subdividing land in Victoria, whether it’s a dual occupancy or a full-scale townhouse development:

1. Engage a Licensed Land Surveyor

It all starts with a re-establishment survey to confirm the existing boundaries. This helps define the new lots on what will become your plan of subdivision in Victoria.

2. Prepare the Plan of Subdivision

The surveyor then prepares a draft plan showing the lot layout, dimensions, and any proposed common property or easements.

3. Coordinate Town Planning and Authority Approvals

Your surveyor (or development project manager) will liaise with your local council and other authorities to secure the necessary sign-offs. This may occur alongside your broader town planning process.

4. Statement of Compliance

Once conditions are satisfied, council issues a statement of compliance, a critical milestone whether you’re subdividing land before building or heading straight toward title registration.

5. Lodge with Land Use Victoria

Your conveyancer or solicitor will then lodge the approved plan with Land Use Victoria. This creates separate titles for each lot.

If your project includes a shared driveway or infrastructure, you’ll also trigger the formation of an owners corporation. This is handled under the Owners Corporations Act 2006, and applies even in basic dual occupancy setups.

Tip: Can you subdivide land with a mortgage?
Yes, but you’ll need consent from your lender. Most banks will require updated valuations and evidence the project is viable. In many cases, they’ll release the new lots conditionally once titles are issued.

Strata Plan vs Plan of Subdivision: Final Thoughts

If you’re trying to decide between a strata subdivision and a plan of subdivision, here’s what you really need to know.

In modern-day Victoria, the Subdivision Act 1988 governs all lot creation which means a plan of subdivision in Victoria is now the go-to option for most projects, from dual occupancies to full-scale townhouse builds.

You’ll still hear people use the term “strata subdivision” especially in older builds or agent listings but what they’re usually referring to is a site with shared property managed under an owners corporation.

So if you’re asking can I subdivide my land?, or should I subdivide before building?, the answer depends on your site, your goals, and your financing setup. Some developers choose to subdivide first (to unlock equity), while others build first and then split titles for sale or refinance.

There’s no one-size-fits-all, which is why working with an experienced development project manager can save you months of delays and tens of thousands in avoidable costs.

Still unsure where to start? Our property development consultants can walk you through what’s possible on your block, and what makes the most financial sense for your unique situation.

Frequently Asked Questions

What’s the difference between a strata plan and a plan of subdivision?

A strata plan was used before 1988 and includes common property rules and height restrictions. A plan of subdivision is the modern legal method under the Subdivision Act 1988 to divide land and allocate title boundaries.

Can I subdivide land in Victoria with a mortgage?

Yes, you can. You’ll need permission from your lender, and they may require a partial discharge of mortgage before issuing separate titles.

Do I need an owners corporation when subdividing?

Only if your development includes shared common areas like driveways or landscaping. This is common in dual occupancy and townhouse developments.

Is it possible to subdivide before building on the land?

Yes. Many developers choose to complete the plan of subdivision and register titles before construction to streamline finance and sales.

How does a plan of subdivision work in Victoria?

It begins with a land survey, followed by development design, council approval, and title registration. The process is governed by the Subdivision Act 1988.

What role does a development project manager play in the process?

They coordinate the entire process, from land survey and council submissions to title registration and builder engagement, ensuring your subdivision runs smoothly.

What costs are involved to subdivide land in Melbourne?

Costs vary depending on your site and complexity, but typically include surveying, council fees, infrastructure contributions, and legal documentation.

Ready to Subdivide? Get Expert Help.

If you’re considering a strata subdivision or plan of subdivision in Melbourne, don’t guess your way through it. Book a free strategy call with our team today and get expert guidance tailored to your site, goals, and budget.

It’s free. It’s fast. And it could save you thousands.

Filled under: All Subdividing