New Disclosure Requirements
for Strata Managers

What strata owners need to know

On February 3, 2025, significant changes commenced to how strata managers must disclose information to strata owners. These new requirements are designed to provide you with greater transparency and control over your strata scheme’s management.

What’s changing and how it benefits strata owners

Before appointing a strata manager

Strata managers must now disclose:

• Their connections with suppliers they regularly use, including detailed information about these relationships.
• Whether they’ve provided advice about strata plans to your building’s developer in the past two years.

During their appointment

Your strata manager will be required to provide more frequent and detailed updates throughout their tenure through real time disclosures. Your strata manager must promptly inform you in writing when they:

• Develop new connections with service providers working with your strata scheme.
• Purchase property within your strata scheme.
• Plan to enter into contracts on behalf of the owners corporation using related suppliers.

Commission and training services

Before receiving any commissions or training services not included in the original management agreement, your strata manager must:

• Provide a written explanation justifying why the approval serves the owners corporation’s interests.
• Disclose the exact commission amount.
• Obtain approval through an owners corporation meeting.

Annual General Meeting transparency

At each AGM, your strata manager is required to provide information about:

• The strata manager’s connections with suppliers and developers over the past 12 months.
• Commissions and training services received in the past year.
• Expected commissions and training services for the upcoming year.

Insurance changes

The new requirements bring welcome transparency to insurance arrangements. Insurance quotes must be clearly itemised, showing:

• Base premium amount
• GST
• Commission amounts
• Broker fees
• Recipients of all payments

Importantly, strata managers cannot collect commissions on insurance if the owners corporation independently obtained quotes and arranged payments.

Intended benefits for owners

These changes aim to strengthen protection for strata owners by providing:

• Better access to information for evaluating strata managers’ performance and making informed decisions about appointments
• Timely disclosure requirements designed to highlight potential conflicts of interest
• Increased transparency around costs, with a particular focus on insurance-related expenses
• Greater oversight of additional fees and commissions earned by strata managers

Protecting your interests

Strata managers face substantial penalties (up to $110,000) for breaching these disclosure requirements. As a strata owner, you should:

• Review insurance documentation carefully.
• Actively participate in owners corporation meetings where approvals are sought.
• Ensure your strata committee members understand these requirements to help monitor compliance.

These new regulations represent a significant step forward in protecting strata owners’ interests and ensuring more transparent strata management practices.

They provide you with the information needed to make better decisions about your property and ensure your strata manager acts in your best interests. For more information, contact your Strata + strata manager.