A longstanding legal theory that threatened the foundations of Queensland’s management rights industry has been decisively put to rest, following a landmark QCAT Appeals decision handed down in January 2026.
The case — Stevens v Body Corporate for Atlantis West CTS 8790 & Anor [2026] QCATA 2 — confirmed what most industry practitioners had long believed: management rights agreements can be renewed multiple times, provided the proper processes are followed. There is no “one extension only” limit.
The Theory That Caused Concern
For several years, a legal paper had been circulating within body corporate circles arguing that under Queensland’s Body Corporate and Community Management Act 1997:
- Under the Accommodation Module, the maximum term of management rights agreements was 25 years plus one 5-year extension — a total of 30 years, after which agreements must end.
- Under the Standard Module, the maximum was 10 years plus one 5-year extension — 15 years total.
If this interpretation had been upheld, it would have had devastating consequences for the management rights industry. Thousands of existing agreements across Queensland could have faced an expiry date with no path to renewal, potentially wiping out significant business value overnight.
The Atlantis West Decision
The theory was put to the test when a lot owner at the Atlantis West community titles scheme challenged their body corporate’s decision to insert an option of renewal into existing management rights agreements.
The lot owner lost at Adjudication in Atlantis West [2024] QBCCMCmr 340, and then again on appeal to QCAT Appeals in early 2026. The Tribunal upheld the orthodox position that management rights agreements can be amended to include further options to extend their terms — as many times as the body corporate approves.
The Key Rules Confirmed
The Adjudicator clearly set out the framework for renewals under the Standard Module:
- One extension per year: Only one extension can be proposed each year.
- Maximum 5-year extensions: Each extension can be up to 5 years but cannot push the remaining term beyond 10 years.
- Cumulative renewals allowed: There is no limit on the number of times a body corporate can approve further options to extend, provided the above formalities are observed.
What This Means for the Industry
For management rights owners and prospective buyers, this decision provides welcome certainty. The value of a management rights business is intrinsically linked to the length of its agreement term — the longer the term, the more valuable the business.
With the “one extension only” myth now firmly debunked at the highest adjudicative level, the industry can continue to operate on the basis that well-maintained agreements with cooperative bodies corporate can be renewed indefinitely.
Industry Reform Still on the Agenda
While this ruling is positive news for management rights holders, the broader debate around the management rights framework continues. The Australian Apartment Advocacy (AAA) hosted a “Management Rights — Time for a Change” event in Brisbane on 1 April 2026, bringing together legal experts to discuss potential legislative reforms.
Queensland remains the only state yet to amend its management rights legislation to address concerns about long-term lock-in arrangements. Whether further reforms are on the horizon remains to be seen, but for now, the legal position on renewals is clear.
This article is for general information only and does not constitute legal advice. Management rights holders should seek professional legal guidance for matters relating to their specific agreements.