The Australian Capital Territory is considering a major overhaul of its strata management industry following a parliamentary inquiry that has recommended mandatory training for all strata managers. The inquiry, which was launched in response to growing concerns about mismanagement and disputes within strata schemes, aims to professionalise the sector and provide better protection for homeowners.
Key Recommendations
The inquiry's report, tabled in the ACT Legislative Assembly, proposes a range of reforms including compulsory licensing, ongoing professional development, and a code of conduct for strata managers. It also suggests the establishment of a dedicated tribunal to handle disputes more efficiently. These measures are designed to address issues such as poor financial management, lack of transparency, and conflicts of interest.
Industry Reaction
The Strata Community Association (SCA) has welcomed the recommendations, stating that mandatory training will raise industry standards. However, some smaller operators have expressed concerns about the potential costs and administrative burden. The ACT government is expected to consult further with stakeholders before finalising any legislation.
Homeowner groups have largely supported the inquiry's findings, arguing that stronger regulation is long overdue. They point to numerous cases where residents have been left out of pocket due to incompetent or unscrupulous strata managers.
Next Steps
The ACT government will now consider the report and develop a response. It is anticipated that a bill will be introduced within the next 12 months. If passed, the ACT would join other states such as New South Wales and Queensland in requiring strata managers to hold a licence.
The inquiry has also called for a review of the ACT's strata laws more broadly, including the rights and responsibilities of owners' corporations and the management of sinking funds. This could lead to further changes in the future.
