Key Changes to Strata Law - In Effect as of 3 Feb 2025
As of 3rd February 2025, Strata Managers now have increased disclosure obligations, meaning that they must disclose more information, more frequently, to owners corporations. This includes details about any connections they may have with suppliers or developers, and any commissions they receive. These changes are the latest to be implemented as per the Strata Managing Agents Legislation Amendment Bill 2024.
To help you understand the changes, we’ve prepared a quick overview of how they will impact you moving forward.
Why are the changes necessary?
At the heart of the amendments is a commitment to more transparency on industry partnerships. This initiative aims to clarify any potential conflicts of interest and ensure that all decisions are made with the owners’ best interests in mind.
Under the amended regulations, commissions and training services will now also require resolutions at general meetings and not just with the committee. This new requirement means that owners can now engage in these discussions and present their interests and concerns.
With the new legislation also comes a much-welcomed, robust system of accountability. It introduces significant penalties for non-compliance, in an effort to deter any unethical practices and rebuild confidence in the industry.
What does this mean for your Strata Manager?
These changes set a standard for all strata management companies, ensuring they all take greater steps to be more open and transparent around connections with suppliers, and ensure that owners are fully informed about the service providers they engage. Disclosing these relationships will provide you with a much clearer understanding of how decisions are made and who is involved in the process.
Ideally, your strata manager should already be encouraging owners to participate in general meetings and discussions. Everyone's participation and engagement are invaluable in shaping a vibrant, harmonious community. If you have been feeling left out of the loop, these changes present a unique opportunity for owners to become more involved in the management of their strata schemes.
More changes to come
The next phase of change will be the introduction of the Strata Schemes Legislation Amendment Bill later in 2025.
As this new chapter unfolds, we are optimistic about the positive impact these changes will have on our strata communities and across the industry. Together, we can build a more transparent, accountable, and collaborative strata management landscape.