The WA Strata Magazine

JULY 2025

About Us

LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.

As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.

Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.

Meet the team

Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ.

Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.

Liza came on board in early 2020 to bring structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.

Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.

Liza Jovicic Sales and Content Manager

owners have a right to review the

ceiling tiles: Is strata required to replace them all for a perfect match?

Does the classification on your strata company tax return affect the amount of

Overcoming limit of supply for EV charging in a 60s apartment block

Mould in strata: Prevalence, impacts and prevention

Levy recovery by seizure and sale of goods

Luke Downie, Realmark

Are we required to complete a tax return?

Rod Laws, TINWORTH & CO 26 Our council of owners ignored a resolution because they did not agree

Jordan Dinga, Abode Strata

Do proxies count towards the quorum?

Marietta Metzger, magixstrata

Can owners evade levies if they don’t use the common property?

Jamie Horner, Empire Estate Agents

How can owners corporations control costs when repairing concrete spalling?

Bruce McKenzie, Sedgwick

Incidence of pedestal paving hiding water issues

What is the incidence of pedestal paving hiding water issues beneath?

The success of pedestal paving depends on elements beneath, including drainage, falls to substrates, membranes and upturns.

Pedestal paving has become more popular in the past 5 -10 years, and our experience with water issues beneath is varied.

There is no specific Australian Standard yet that covers the paving installation. Therefore, installations rely on manufacturer recommendations combined with other standards such as waterproofing and drainage.

The success very much depends on elements beneath, including drainage, falls to substrates, membranes and upturns.

It can be a very effective product. I have seen some very good installations and some bad ones that have failed.

In instances where the substrate was incorrectly installed, issues have been undetected because they are not visible and difficult to access.

It is very difficult for building inspectors to check the substrate during a post completion inspection without lifting pavers. That becomes very time consuming and expensive for owners. For this reason, it can be a problematic area to regulate.

More often, I have seen blocked drainage due to build up where leaf and/or debris has fallen between joints.

Pedestal paving needs to be on a maintenance schedule where specific pavers are lifted above drainage points routinely so the paving can be inspected and cleaned.

Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com

BUILDING CONSULTANCY

•

• Scope of works

• Dilapidation and risk surveys

• Dispute mediation and expert witness

•

• Construction management

• Capital works funds/maintenance

• Digital capability

• Façade assessments

REPAIR SOLUTIONS

• Emergency make safe

• Fire water damage restoration

• Leak detection

• Contamination response

• Building repairs

• Cost validation services

• Digital capability

LOSS ADJUSTING AND CLAIMS MANAGEMENT

• Third Party Administration (TPA)

Do owners have a right to review the strata insurance policy before renewal?

Our strata insurance renewal is due well before the AGM, so approval occurs after the insurance policy is renewed. Do owners have a right to review the policy before the renewal is paid on their behalf?

Our strata insurance policy renewal date is well before the AGM scheduled date, and thus, the insurance renewal is approved months later at the AGM. Owners never receive a Product Disclosure Statement (PDS) to review and/or approve. Our strata company has had several insurance providers over the past 8 years. Thus, the committee has accepted the new PDS and policy terms and conditions without owners’ consent. What right does an owner have under the legislation to review the policy and voice their approval or non-approval before the renewal is paid on their behalf?

What obligations does our strata insurance broker have to any owner? Do all owners have the right to access the broker’s support and assistance?

Strata insurance is arranged by the strata company, with the strata council making decisions on behalf of all lot owners.

There are a few key considerations here.

1. Strata Insurance Renewal and Owner Involvement

In Western Australia, strata insurance is arranged by the strata company, with the strata council making decisions on behalf of all lot owners. The Strata Titles Act 1985 (WA) grants the strata council the authority to arrange insurance unless the strata company has passed a resolution requiring broader owner approval before renewal.

If owners wish to have more control over insurance decisions, they may:

• Seek election to the strata council, which allows direct involvement in decisionmaking.

• Propose a motion at a general meeting requiring all owners to approve insurance renewals before payment.

• Review the by-laws to determine if any provisions exist regarding owner involvement in insurance approvals.

Regarding the Product Disclosure Statement (PDS), the insurer or broker provides this to the policyholder — the strata company — rather than to individual lot owners. However, under Section 107 of the Strata Titles Act 1985 (WA), lot owners are entitled to request a copy of the insurance policy and associated documents (including the PDS) from the strata company. Transparency can vary, but owners should be able to review these documents upon request.

2. Role of the Strata Insurance Broker and Access to Support

For insurance brokers, the service agreement is between the strata company and the broker. The strata company has some control over how the broker provides services. If the strata company allows a lot owner to access broker support, then the broker can assist.

Access to broker support depends on the service agreement between the broker and the strata company. Typically:

• Claims Assistance: Brokers assist with claims lodged under the strata policy. This support is facilitated through the strata manager, especially if they act as a policy distributor or authorised representative of the broker.

• Policy Queries: If a lot owner needs clarification about the policy, they should first request access through the strata council or strata manager. The broker may provide direct assistance, provided the strata company permits it.

When dealing with insurers, if you have a claim, insurers will typically recognise your insurable interest under the insurance contract and process the claim accordingly. However, it’s important to note that insurance contracts and broker agreements are separate, and as a result, they may be treated differently.

Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au

Mention this offer when requesting a quote from us, and we will provide a discount off our standard fee for service of $250 (GST Inc) for buildings with 10-25 lots or $500 (GST Inc) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions.

To redeem this offer email a copy of your current policy schedule to Strata Insurance Solutions within 1 month of the publication of this magazine. Your policy can expire any time in the next 12 months. However we can only provide quotes 30 days prior to the expiry of your policyif your policy is not due now, we will schedule a quote at the appropriate time. To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the "LookUpStrata Special Offer".

Take the test todaysee how much you can save.

The hidden complexities of renovating in strata properties.

Renovating a property is exciting for owners, but when it comes to strata-titled properties, the journey from idea to execution has several complexities.

It is important to consider the balance of enhancing a space without disrupting the wider community.

Your strata manager can help you navigate the process as well as how to ensure compliance and harmony within the community strata scheme.

Lot vs. Common Property Alterations

A key challenge is distinguishing between the lot boundaries and common property. If you are unsure, reach out to your Strata Manager who will be able to provide guidance or advise you on how best to obtain this information.

Alterations to both require approval from the Strata Company however, the methods differ depending on the project.

Lot Alterations

When altering a Lot it is important to consider the following, as there is varied approval processes:

• Can the alteration be seen from outside of the lot?

• Is the alteration considered decorative/cosmetic or structural?

Structural alterations are technical in terms of the approval process and most schemes have by-laws that outline the approval process relating to alterations and appearance of the Lot.

Section 86 of the Strata Titles Act 1985 (STA) deﬁnes a structural alteration and generally the application is put to all Owners by Resolution without Dissent. The proposal must set out the details and speciﬁcations of the application and include the information prescribed by the Act. Section 87 of the STA sets out the grounds on which approval may be refused, so considering these grounds and addressing potential concerns as part of the application is recommended.

Common Property Alterations

If a renovation affects Common Property, a resolution of the Strata Company may also be required with liability for ongoing costs (maintenance or otherwise) needing to be considered. Section 91 of the STA sets out that a Strata Company may improve or alter the common property for the beneﬁt of all Owners.

However, if the changes don’t beneﬁt all owners collectively, it would be best practice to seek legal advice and consider an exclusive use proposal by way of a registered by-law.

Formal Approval and Due Process

Regulations in relation to alteration and renovation of strata property differ from standard property renovation rules by considering the collective nature of enjoyment of a strata property.

Applications for structural alterations should include and consider:

• Detailed plans

• Cost estimates

• Contractor details

• Potential disruptions

• Consideration for plot ratio restrictions

• Structural soundness

• Easements

• Strata Company By-laws

In the world of strata, a proactive and transparent approach is essential. Failure to follow these procedures can render approvals invalid.

At Realmark Strata, we take a proactive approach, working with all our stakeholders to navigate the process and provide practical commercial insights, and recommending legal and other professional advices when required.

Ultimately, navigating renovations in strata schemes isn’t just about aesthetics—it’s about preserving the integrity, safety, and harmony of shared living environments.

Damaged ceiling tiles: Is strata required to replace them all for a perfect match?

Following water damage from a common property roof, is a strata company obligated to replace all ceiling tiles for a perfect aesthetic match? Only some tiles were damaged, and the existing ceiling is 30 years old.

In a multi-lot commercial property, one lot experienced unsightly water damage to ceiling tiles as a result of water ingress from a damaged roof. The roof has been replaced. The lot owner would like the strata company to replace all ceiling tiles as the new tiles do not perfectly match the 30-year-old tiles. The council of owners only wants to replace the damaged tiles.

Is the strata company required to replace all tiles so they match? What would be a fair outcome?

What We Check:

• ABNs, ACNs, business registrations

• Licence & certification validity

• Insurance: Public Liability, Workers Comp, Indemnity

• Safe Work Method Statements

• Automatic alerts on expired/missing documents

How It Works:

• Contractors access a secure online portal

• Uploads and updates are quick and simple

• You receive detailed compliance feedback

• Ongoing monitoring and status updates

The owner may try to negotiate with the council of owners to have all tiles replaced for a cohesive aesthetic. However, there is no requirement to agree.

The strata is only required to replace the damaged tiles. If strata cannot source new tiles for a like-for-like replacement, they should replace the damaged tiles with ones that are as close to a match as possible.

The owner may try to negotiate with the council of owners to have all tiles replaced for a cohesive aesthetic. However, there is no requirement to agree.

SVN Perth info@svnperth.com.au

Why It Matters:

• Avoid compliance breaches & insurance issues

• Ensure certification of building works

• Reduce your liability in case of incidents

• Peace of mind knowing contractors are verified for the work

Onsite QR Code Tracking:

• QR code installed at building entrances

• Contractors scan in and out on arrival/departure

• Email alerts notify a representative of who’s onsite and the work performed

Powering Ahead: How Johnson Court Future-Proofed Its Electrical Infrastructure

A strata complex in Fremantle has set an example for other ageing properties in WA by converting to an embedded network model.

Johnson Court, a mixed-use development with 121 lots, underwent a major electrical overhaul to enhance efficiency and prepare for future energy needs.

The initiative was spearheaded by EnergyTec in collaboration with ESM Strata, alongside multiple stakeholders including electrical contractors, legal advisors, and utility providers.

Originally built over 40 years ago, Johnson Court faced a high risk of electrical failure due to outdated infrastructure. Its previous metering setup meant each lot was individually billed, creating inefficiencies and compliance concerns.

The embedded network model introduced a unified metering system, reducing costs, enhancing service quality, and enabling better energy management.

EnergyTec conducted feasibility studies to ensure the upgrade was financially viable. Instead of imposing special levies, the project was funded through an unsecured finance model with a payback period of approximately eight years.

Whether you have an embedded network or are considering one, EnergyTec can help!

This approach allowed the scheme to self-fund the infrastructure improvements without impacting owners’ reserves.

The first cycle of billing under the new system has already delivered significant savings that are being directed toward repaying the infrastructure upgrades. Once the project is fully paid off, future savings will be reinvested into renewable energy installations or passed on as financial benefits to residents.

The previous fragmented metering system resulted in multiple accounts and inefficiencies.

The new configuration replaced outdated electrical components and introduced automated meter reading, enabling real-time energy monitoring and billing.

Additionally, customer service was streamlined, with a single point of contact for residents, such as in levy reductions.

Regulatory compliance was a significant focus, given the complexities of managing embedded networks. Legal and technical guidance ensured adherence to governance standards, laying the foundation for long-term sustainability and future regulatory changes and bylaws.

“The upgrade has already delivered tangible benefits, including improved infrastructure reliability, cost savings, and future-readiness for solar energy and electric vehicle charging.”

Centralized energy procurement further optimized expenses, reducing financial strain on lot owners.

The success of this project was driven by proactive collaboration and transparency among stakeholders. Johnson Court’s transformation demonstrates how embedded networks can provide a scalable, cost-effective, and sustainable energy solution for similar strata complexes in WA.

The site’s main switchboard was upgraded as part of the Embedded Network project.

Does the classification on your strata company tax return affect the amount of tax your scheme pays?

Our new strata manager has changed our strata company tax return classification. Would this affect the amount of tax we pay?

Since engaging a strata manager, the classification on our strata company tax return is “BUILDINGS, RESIDENTIAL –RENTING OR LEASING – OTHER THAN HOLIDAY”. Previously, the category was “Body Corporate”. Our tax bill is higher than we expected. Could this increase be due to the change in classification?

The classification code used on the tax return does not alter the tax result for the strata company tax return.

The classification code used on the tax return does not alter the tax result for the strata company tax return. The tax return should be prepared in accordance with the requirements spelt out in Tax Ruling 2015/3. To satisfy yourself that the return is being prepared correctly, the manager could show you the return. The tax return can only be prepared by a registered tax agent and not the manager unless they are registered tax agents.

Rod Laws | TINWORTH & CO RodLaws@tinworth.com

Overcoming limit of supply for EV charging in a 60s apartment block

Our 60s apartment block has an old switchboard. Even with solar grants, we can’t change the board’s capacity. How do we overcome the limit of supply so we can install EV chargers?

The switchboard in our 60s apartment block was installed in the 80s. We get anything from 40 amps to typically 60 amps per unit. It’s just not feasible to run a 32 amp level 2 EV charger. We’re stuck with 16 amp level 1 chargers. It is hugely expensive to upgrade the switchboard. Even if we get a solar for apartments grant, discounted batteries or free chargers, none of this helps if our switchboard can’t cope.

We also need a special vote to get the upgrade approved. What’s motivating owners to upgrade electricity switchboards? There’s no direct benefit. I’d like to know more about limit of supply. Better advocacy for this problem, plus government support, would be great.

In the case of extremely limited supply, we suggest a full power audit in advance to see how much ‘headroom’ you have.

You are right about the distribution board and main switch upgrades. They typically run anywhere from $3k-$10k to bring them up to current standards. It is definitely a larger cost but one that generally brings benefit and compliance to the whole building.

In the case of extremely limited supply, we suggest a full power audit in advance to see how much ‘headroom’ you have. Our experience is that there will still be room for several 10A GPOs, and even more when you load balance between them.

Charlie Richardson | NOX Energy charlie.richardson@noxenergy.com.au

Mould in Strata.

Welcome to the ESM Strata Community

M o u l d i s a c o m m o n i s s u e i n m a n y A u s t r a l i a n h o m e s , i n c l u d i n g

s t r a t a - t i t l e d a p a r t m e n t s a n d u n i t s . I t h a s b e e n r e c o g n i s e d a s a

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1 in 5 households

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E T T I N G O N T H E F R O N T F O O T

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p r o t e c t i n g y o u r h e a l t h a n d y o u r i n v e s t m e n t

Levy recovery by seizure and sale of goods

We have an owner with a decades-long history of arrears. Is seizure and sale of real property ever enforced in the courts? And if it’s not, what other options do we have?

I am on the owner’s council of a 24-unit scheme. One lot owner has a decades-long history of arrears, failed payment plans and broken promises. Last year, they stopped paying altogether, so we took legal action. The process has been drawn out and finally resulted in a payment plan that has again failed. Based on the history, it looks like the seizure and sale of assets is going to be the final solution.

Is seizure and sale of real property ever enforced in the courts? And if it’s not, what other options do we have?

I encourage strata companies to do whatever possible to prevent any levy arrears from getting to this stage.

Levy recovery can sometimes be a drawnout process even when the steps taken are actioned promptly.

Seizure and Sale Orders (PSSO orders) are used to recover unpaid levies by a strata company. In recent years, I have witnessed successful recovery via seizure and sale in strata companies under our management.

A seizure and sale order, once issued by the court, allows the Bailiff to seize a property and sell it to recover the debt. Once the PSSO order is lodged with Landgate, it will prevent any other dealings on the property until the judgment sum is satisfied or the sale period expires (12 months from issue for the process with a saleable period of 6 months).

The granting of the PSSO order is not guaranteed. If the judgment debtor can demonstrate hardship, a suspension order may be granted, delaying PSSO enforcement. Of course, a PSSO order does not necessarily only apply to property. The PSSO order can be applied to other assets. There are also certain assets that a PSSO order can not be applied to, for example, electrical goods used for family entertainment to a value of $300.

I encourage any strata company to engage a lawyer to assist in the debt recovery process and assist in the PSSO order process. A lawyer with a sound knowledge of the Civil Judgement and Enforcement Act 2004, and preferably, with experience in the PSSO order process.

I encourage strata companies to do whatever possible to prevent any levy arrears from getting to this stage and offer the following suggestions:

• Take steps to ensure owner contact details are up to date.

• Pick up the phone and have a conversation with the owner in arrears as early as possible.

• Allow owners to enter payment arrangements and, express the importance of keeping up with those arrangements and continue to communicate their position.

• Review arrears report regularly.

• Adopt a debt recovery policy with clearly outlined steps and apply strict timelines for each step.

• Be prepared to incentivise debt settlement. Sometimes, offering to waive interest can help secure funds faster.

• Develop a strong working relationship with a lawyer who specialises in recovery action.

Luke Downie | Realmark ldownie@realmark.com.au

Our experienced team assists strata managers, council members and individual lot owners with clear and practical advice. Call us today to find out how we can help you resolve your strata issues.

Are we required to complete a tax return?

We are a small, self-managed property with three lots and limited funds. Are we required to complete a tax return?

We are a small, self-managed property of three lots. We don’t have much money in the strata company funds. Is there a threshold we need to consider before we pay taxes or submit a tax return?

Our levies are set at $275 each per quarter, with minimal overheads apart from water bills, building insurance, and the occasional building valuation. Are we required to complete a tax return?

Whilst there may be no legal requirement to lodge a tax return, our general practice every year is to lodge a client update form, telling the ATO that a return is not required.

Strata companies are taxed as public companies, so there is no tax-free threshold. As soon as you earn more than a dollar of accessible income, such as interest, you are required to lodge a tax return.

In this situation, I’ll assume there is no interest income in the accounts. Whilst there is no legal requirement to lodge a tax return, our general practice every single year is to inform the ATO that a return is not required. Otherwise, in three or four year’s time, the ATO may say, “Strata plan A has not lodged a tax return since 2001. Please lodge them now, even if they’re all nil.” If you don’t submit this within 30 days, the ATO will fine you $900 per year, so we recommend submitting a client update form to the ATO annually to confirm that your building is not required to lodge a return.

Rod Laws | TINWORTH & CO RodLaws@tinworth.com

Our council of owners ignored a resolution because they did not agree

Can the COO ignore a valid resolution because they do not agree with the outcome?

A valid resolution, detailed on the AGM notice of meeting, was passed unanimously by attending owners. The incoming council of owners (COO) decided not to act on the resolution.

Does the COO have the right to ignore the vote because they disagree with the outcome? Should resolutions that comply with the Act and by-laws passed at meetings of owners be regarded as COO instructions?

The COO do not have the authority to disregard a properly passed resolution simply because they disagree with it.

A valid resolution, listed on the AGM agenda and passed unanimously by those in attendance, carries weight.

Once passed, it becomes a decision of the strata company — not just a suggestion. While the incoming COO is responsible for implementing resolutions, they do not have the authority to disregard a properly passed resolution simply because they disagree with it.

Unless the resolution is later overturned or amended by the owners at a general meeting, it should be treated as an instruction from the strata company to the COO. This is particularly the case when the resolution complies with the Strata Titles Act 1985 and the scheme’s by-laws

If the COO is unsure about how to action the resolution or has legitimate concerns (e.g. legal risks, cost blowouts, or new information), the correct course would be to raise the matter at the next general meeting or seek further direction from the owners — not to ignore the resolution entirely.

Jordan Dinga | Abode Strata abode@abodestrata.com.au

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Do proxies count towards the quorum?

Our council of owners resolved for seven members, but only four were elected. Does a proxy vote cast by a physically present member count towards the quorum of four if only three members are physically present?

I reside in a survey-strata scheme in Western Australia. At our recent AGM, a resolution was passed that the council of owners (COO) would comprise seven members. Only four were nominated and subsequently elected. Our governance by-laws provide that if the COO consists of seven members, the quorum is four (by-law 3.11).

At a recent COO meeting, only three of the four elected members were physically present. One of those three held a proxy for the absent fourth member and cast two votes accordingly. Does this arrangement meet the quorum requirement?

Based on Re Owners of Glenway Gardens Strata Plan 12305 [2008] WASAT 103, the Tribunal found that quorum is determined by the number of council members resolved at the AGM, not the number elected. Therefore, if the resolution was for a seven-member council, the quorum remains at four.

Does a proxy held by someone already physically present count toward quorum? Or does a meeting with only three physically present fall short of the required four?

Standard governance by-law 8(3) allows a council member to appoint an owner of a lot to act in their place at a council meeting.

Under standard governance By-law 4(11) (Schedule 1 of the Strata Titles Act 1985 (WA)), the quorum for a meeting of the council is determined based on the number of council members resolved at a general meeting of the strata company (usually at an Annual General Meeting (AGM) each year). In your case, as the AGM resolved that the council would comprise seven members, the quorum is accordingly set at four, as provided by your scheme’s governance by-law 4(11).

In relation to the participation of proxies and quorum:

Standard governance by-law 8(3) allows a council member to appoint an owner of a lot to act in their place at a council meeting. When such an appointment is properly made, the substitute is taken to be a member of the council for that meeting and is counted towards a quorum and entitled to vote.

Therefore, based on the scenario you have described:

• Three elected council members were physically present; and

• One of those present was properly appointed under by-law 8(3) to act in place of a fourth, absent member;

It is our opinion that the quorum of four was met, and the meeting was validly constituted.

Further, by-law 8(5) provides that if the person appointed under sub-by-law (3) is also a member of the council, they may vote both in their own capacity and as a proxy for the member they have been appointed to represent. By-law 8(4) also confirms that an appointee may be any owner of a lot (or, in the case of a corporation, an individual nominated under Section 136(2) of the Act), whether or not they are already a council member.

While the by-laws are silent that such an appointment be made in writing, we recommend that all appointments to act in another member’s place be confirmed in writing to avoid any uncertainty regarding their validity.

Please note that the above is general information only and does not constitute legal advice. We recommend obtaining legal advice if you require further clarification in relation to your scheme’s specific circumstances.

Marietta

Metzger | magixstrata marietta@magixstrata.com.au READ MORE HERE

Can owners evade levies if they don’t use the common property?

The owners of six lots do not contribute to the reserve fund because they never use the common areas. Was this decided at the inaugural AGM?

We have a common area with a lawn and paved driveway. Four units use this area to access their lots. The other six units access their lots from the street. The six units decided not to contribute to the reserve fund because they never used the common lawn or paved driveway. Would the decision about which units contribute to the reserve fund have been made at the inaugural AGM when the units were first built in 1991?

If a scheme levies differently than unit entitlement, it can only be via a by-law. If no by-law was lodged, levies must be by unit entitlement.

Section 100 of the Strata Titles Act 1985 details the requirements of a strata company, and it must, under section 100(1)(c), raise amounts determined by levying contributions on owners of lots in two ways.

1. In the portion of the unit entitlements of their respective lots or

2. If the scheme by-laws provide for a different basis for levying contributions

This means if a scheme wants to levy differently than unit entitlement, the only other option is via a by-law.

If a by-law was registered on the strata plan in 1991, following the Inaugural General Meeting, then yes, they may levy as per the by-law. If no by-law was lodged, levies must be by unit entitlement.

Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com

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How can strata companies control costs when repairing concrete spalling?

It’s difficult for strata companies to control costs when repairing spalling. How do we receive a reliable estimate for concrete spalling repairs?

How do we know how much it is going to cost to fix spalling? We understand why it’s difficult to get a true estimate, but at the same time, our capital works fund isn’t a bottomless bucket. How can strata companies control costs when repairing concrete spalling?

Have an engineer provide a detailed scope of works first.

Get an expert involved to supply a defined scope of work detailing what work needs to be done. I recommend you spend a little more upfront on an engineer to carry out exploratory work. They can remove the concrete in some areas to get a better idea of the extent of the damage. The engineer can then clearly define the scope of work.

When you approach builders for quotes, you’ll give them the best opportunity to price the work accurately. Don’t go to a builder saying “Can you give me a quote to repair spalling.” If the builder does not know the extent of the work, their quote will include a buffer to ensure they cover themselves. Getting an expert to provide a detailed scope of work first will give the council the best chance of successfully controlling costs.

Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com

Strata Insurance 101

wa.strata.community

What you need to know

Understanding strata insurance is essential for both strata council members and lot owners While it's a legal requirement for all strata companies, the type and scope of insurance can vary significantly depending on the nature of the scheme (strata scheme or a survey-strata scheme). This guide outlines the key insurance responsibilities, the major types of coverage, and what owners and strata managers need to consider to stay protected and compliant

Legal Requirements for Strata Insurance

admin.wa@strata.community

In addition, strata companies must hold public liability insurance of at least $10 million to cover injury or property damage occurring on common property. However, for larger or higher-traffic schemes, this minimum may be considered inadequate, and a higher limit is often recommended

Who is responsible for Insuring What?

One of the most common sources of confusion in strata communities is determining who insures which parts of the property The responsibilities differ depending on whether the scheme is a strata scheme or a survey-strata scheme, as outlined below:

At a minimum, strata companies must hold insurance for all insurable assets against risks such as fire, storm, lightning, explosion, and earthquake. These assets must be covered at their full replacement value, which is determined through regular valuations by a licensed professional or to a reasonable limit

In survey-strata schemes, owners are typically responsible for insuring their individual lots, including the buildings The strata company generally only insures the common property. In some cases where common property is limited to things such as fences and airspace it may be deemed that common property insurance is not necessary

Key Types of Strata Insurance

Public Liability Insurance

This provides protection for the strata company against legal claims arising from injury or damage to third-party property occurring on common property. The policy also covers legal costs associated with defending such claims However, public liability insurance excludes certain events such as workers compensation claims, damage caused by pets, construction over specific values (unless pre-approved), and pollution-related claims.

Office Bearers Legal Liability

Items within your lot that would fall out if the property were turned upside down i e furniture, appliances, or personal effects, are considered contents and must be insured separately. To protect these belongings you’ll need a contents insurance policy or landlords insurance if the property is occupied by tenants

The Role of an Insurance Broker Navigating strata insurance can be complex, and this is where a strata insurance broker becomes invaluable. Brokers hold an Australian Financial Services Licence (AFSL) and act as an intermediary between the insurer and the insured. Their duty is to act in the best interests of the strata company, providing professional advice, negotiating policies, and helping manage claims A broker can identify coverage gaps, ensure appropriate disclosure, and support the scheme through the entire insurance cycle

This cover protects individual members of the strata council, such as the Chairperson, Secretary, or Treasurer, from personal liability if they are sued for a wrongful act while acting in their official capacity. It provides cover for legal defence and associated costs, but excludes known risks, intentional misconduct, failure to comply with the law, and penalties related to conflicts of interest

Workers Compensation Insurance

If a strata company hires anyone, such as a cleaner, gardener, or caretaker, it must provide workers compensation insurance. This is a legal requirement and must cover anyone who qualifies as a "worker" under legislation Workers compensation provides protection when someone is injured while performing duties for the strata or under its instructions. This cover includes statutory entitlements and potential claims made under common law

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LookUpStrata

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Owners Corporation Network

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Your Strata Property

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MYBOS

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Urbanise

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Building Management Software

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HFM Asset Management Pty Ltd

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Bugden Allen

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B Strata

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Realmark Strata

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Chambers Franklyn Strata Management

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Empire Estate Agents

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ESM Strata

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Oakfield

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Abode Strata Management

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magixstrata

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Strata Links

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Southern Strata Services

Strata Management Services in Western Australia

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Strata Property WA

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Logiudice Property Group

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Perth Strata Co.

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Contessi Properties

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PLUMBING

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Independent Embedded Network Consulting Services

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Bright Connect

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Calibre Painting

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Higgins Coatings Pty Ltd

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STRATA REPORTS

Rawlinsons

Calculated Confidence

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EYEON Property Inspections

Buy and Sell with More Confidence

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Delphi Consultants & Valuers

Building Insurance Valuation Services

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Energy On Pty Ltd

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CONSULTING

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LIFTS & ELEVATORS

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