🏢 Five Years On: Is Western Australia's Strata Legislation Delivering What It Promised?
Updated: 4 days ago
🏢 Five Years On: Is Western Australia's Strata Legislation Delivering What It Promised?
⚖️ The Strata Titles Act underwent significant reform in 2020. Five years on, the WA Government's statutory review raises an important question: have those changes genuinely improved strata living, or is there still work to be done?
When the major reforms to the Strata Titles Act 1985 came into effect on 1 May 2020, they represented the most significant changes to Western Australia's strata legislation in more than two decades.
The intention was to create a clearer, fairer and more accountable strata industry, with better protections for owners, improved governance and higher professional standards for strata managers.
Landgate's five-year review provides an opportunity to examine whether those objectives have been achieved.
The Phase One Discussion Paper, released for consultation in October 2024, identifies several areas where the legislation may not be working as intended.
For those of us working in strata management every day, many of these issues are familiar.
And while the 2020 reforms were undoubtedly a positive step forward, legislation is only as effective as its practical application.
Fast-forward to 2026, and this review focuses on three key areas: improving cost controls within strata schemes, enhancing the strata living experience, and raising professional standards across the strata management industry.
The feedback received through the consultation process will help form potential legislative reforms, with the findings and recommendations to be presented to Parliament. Key dates:
15 October 2026: Phase Two public consultation opened.
26 November 2026: Public consultation closes.
After November 2026: Landgate will consider submissions and prepare final recommendations.
Parliamentary report: Date yet to be confirmed.
🏗️ 1. Ten-Year Maintenance Plans: Planning Is One Thing, Funding Is Another
One of the most significant changes introduced in 2020 was the requirement for designated strata companies to prepare a 10-year maintenance plan.
The intention was sensible: encourage owners to understand the long-term maintenance needs of their buildings and plan financially for those expenses.
However, the review identifies a significant problem.
💰 Having a 10-year maintenance plan does not necessarily mean a strata company is putting aside enough money to fund it.
The discussion paper questions whether the legislation should go further and introduce an obligation to fund these plans, as occurs in some other Australian jurisdictions.
At XO Strata, we believe that a professionally prepared maintenance plan is an essential financial planning tool.
But a plan sitting in a folder, without appropriate reserve fund contributions, achieves very little.
Owners need to understand that underfunding maintenance doesn't make those costs disappear. It simply transfers the financial burden to future owners, often when the work has become more urgent and expensive.
The review also questions whether the requirement for maintenance plans should extend to more schemes.
This is an important conversation, particularly for smaller schemes where substantial maintenance expenses can create significant financial pressure.
💰 2. Financial Hardship and the Rising Cost of Strata Living
The discussion paper acknowledges the increasing financial pressure on strata owners.
Insurance premiums, building maintenance costs and general inflation have all contributed to higher strata levies.
It also raises the question of whether strata legislation should include stronger protections for owners experiencing financial hardship.
For example, should strata companies be required to consider reasonable requests for payment plans?
And should there be clearer restrictions on administrative charges associated with overdue levies and debt recovery?
These are important questions.
Strata companies have a responsibility to collect contributions and maintain sufficient funds to meet their obligations. However, they also have a responsibility to act reasonably.
At XO Strata, we believe that financial hardship should be approached with compassion, transparency and practical solutions.
We also question the practice of charging additional fees for automated levy reminders, particularly where there is little or no administrative work involved. At XO Strata, we do not charge either the strata company or individual owners for these reminders. We believe that helping owners stay on top of their levy obligations is simply part of good strata management, not an opportunity to generate additional revenue.
❤️ Good strata management should help owners meet their obligations, not unnecessarily increase the financial burden when they are already struggling.
👥 3. Councils of Owners: Greater Responsibility Requires Better Understanding
The 2020 reforms introduced statutory duties for Council of Owners members, including obligations to act honestly, in good faith, with due care and diligence, and to disclose conflicts of interest.
These were important changes.
However, Landgate's discussion paper acknowledges that confusion remains about the respective responsibilities of strata councils, strata companies and strata managers.
The review also considers whether larger and more complex schemes should have additional governance obligations.
This raises an interesting question.
Should the governance requirements for a small six-lot scheme be the same as those for a large residential tower with complex infrastructure and substantial annual expenditure?
There is certainly an argument for a more tailored approach.
But regardless of scheme size, we believe education is fundamental.
Council members are volunteers, often making decisions involving significant sums of other people's money.
They deserve clear guidance about their responsibilities, their authority and the limitations of their role.
🤝 A good strata manager should support informed decision-making, rather than simply taking instructions without considering whether those instructions are appropriate or lawful.
🗳️ 4. Proxy Voting: Protecting the Democratic Process
Strata schemes operate as democratic communities, with owners making collective decisions about their shared property.
The review identifies concerns about proxy farming, where an individual collects multiple proxies and potentially influences the outcome of meetings.
It considers whether additional restrictions should be introduced, including limits on the number of proxies one person can hold.
This is particularly relevant as electronic voting becomes increasingly common.
Technology has made participation easier, but it has also introduced new governance challenges.
Owners should understand what they are voting on, whether their vote can be changed, how amendments to motions affect previously submitted votes, and who is authorised to exercise their proxy.
⚖️ The objective should always be a fair, transparent voting process that accurately reflects the wishes of owners.
Convenience should never come at the expense of proper governance.
📜 5. By-Laws: Are We Still Living With Rules From Another Era?
One of the more interesting observations in the discussion paper is that some of Western Australia's standard strata by-laws have changed very little since the original legislation was introduced in the 1960s.
Landgate questions whether these rules remain appropriate for modern strata living.
Issues such as pets 🐶, smoking, short-term accommodation, renovations and the use of common property can be particularly contentious.
The review also highlights the difficulty of obtaining a resolution without dissent for certain changes, particularly where a single dissenting owner can prevent a proposed governance by-law from being adopted.
There needs to be a balance between protecting individual property rights and allowing strata communities to make reasonable decisions about how their schemes operate.
At XO Strata, we encourage schemes to periodically review their registered by-laws.
🏡 Rules should be relevant, understandable, enforceable and appropriate for the particular scheme.
By-laws should support harmonious community living, not create unnecessary conflict.
🔨 6. Renovations and Common Property: A Need for Greater Clarity
The review also acknowledges the complexity of the existing approval processes for alterations to lots and common property.
Even relatively straightforward renovations can create uncertainty about what approvals are required.
The discussion paper considers whether a more proportionate approach should be adopted, with different approval requirements depending on the nature and scale of the proposed works.
It also identifies uncertainty about infrastructure installed for the benefit of individual lots, particularly where that infrastructure passes through common property.
❓ Who owns it? Who maintains it? And who pays when it needs replacing?
These are questions that frequently arise in strata management.
Clearer legislation would benefit both owners and strata managers by reducing unnecessary disputes and providing greater certainty about responsibilities.
🔐 7. Strata Management Standards: Transparency Must Be More Than a Disclosure Statement
One of the most important areas of the review concerns the professional standards and accountability of strata managers.
The 2020 reforms introduced significant statutory duties for strata managers, including requirements relating to financial management, conflicts of interest and professional conduct.
The five-year review examines whether further improvements are needed, including possible licensing or registration requirements and stronger protections for strata company funds.
For us, this goes to the heart of what professional strata management should represent.
Owners are entitled to know how their money is being managed, what their strata manager is being paid, and whether any financial relationships or incentives could influence recommendations.
At XO Strata, we believe good governance should include:
💰 Transparent, clearly disclosed management fees and insurance remuneration.
🏦 Separate bank accounts for individual strata companies.
✅ Meaningful Council of Owners oversight of invoices and expenditure.
🤝 Genuine freedom of choice when selecting insurance providers and contractors.
📄 Clear, fair contractual arrangements.
📊 Accurate financial reporting and accessible records.
These principles should not be regarded as premium services.
They should be fundamental expectations of professional strata management.
🔎 Transparency isn't simply about disclosing a conflict of interest. It is also about ensuring owners have enough information to make genuinely informed decisions.
🕊️ 8. Strata Disputes: Can We Do Better Than Litigation?
Disputes are an inevitable part of shared property ownership.
People have different expectations, financial circumstances, priorities and opinions about how their community should operate.
The 2020 reforms strengthened the role of the State Administrative Tribunal in resolving strata disputes.
However, the review also examines whether dispute resolution and strata advice services are adequately supporting owners and residents.
As strata managers, we regularly find ourselves helping people navigate disagreements long before they become formal disputes.
At XO Strata, we believe early intervention, clear communication and facilitative mediation can prevent many matters from escalating.
Not every disagreement needs to become a legal battle.
Sometimes the most valuable thing a strata manager can do is help the parties understand each other's position, identify the actual issue and work towards a practical resolution.
🤝 Better education and accessible dispute resolution options could make a meaningful difference to strata communities.
🚀 So, Where to From Here?
The five-year review is an important opportunity to assess whether Western Australia's strata legislation is achieving its intended purpose.
The 2020 reforms introduced meaningful improvements, but the discussion paper makes it clear that some areas still need attention.
For us, several themes stand out.
🏗️ Better financial planning. Strata companies need to properly prepare for future maintenance costs, rather than continually deferring expenditure.
🔎 Greater transparency. Owners should understand how their funds are managed and how decisions are made.
👥 Stronger governance. Councils of Owners need clear responsibilities, appropriate authority and access to reliable professional advice.
⚖️ Fairer processes. Voting, by-laws and dispute resolution mechanisms should protect individual rights while allowing strata communities to function effectively.
🌟 Higher professional standards. Strata managers should be accountable, competent and committed to acting in the best interests of the strata companies they serve.
Ultimately, the success of any legislative reform should be measured by whether it delivers better outcomes for the people who own, live in and manage strata properties.
At XO Strata, we believe the future of strata management lies in education, transparency, accountability and genuine collaboration with owners.
💛 Good legislation provides the framework. Good governance brings it to life.
XO Strata | Ethical Strata Management
📚 Source: Landgate – Phase One Discussion Paper, Five-Year Review of WA Strata Law (October 2024). This article discusses issues raised for consultation, not necessarily changes that have been enacted.
📘Read the full paper here:
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