The WA Strata Magazine | August 2026

The WA

STRATA MAGAZINE AUGUST 2026

Can a tenant be fined for a guest’s by-law breach?

Page 4 | magixstrata

What are the safety obligations for an older WA block?

Can an owner join an AGM on Zoom with camera and microphone off?

Page 10 | QIA Group

Page 26 | Cygnet West

About Us Welcome to the latest issue of The LookUpStrata Magazine!

For over a decade, LookUpStrata has been Australia’s premier resource for everything related to strata living.

Our mission is to keep strata communities informed and connected, providing thousands of lot owners, strata managers, and professionals with reliable, unbiased, easy-to-understand information to help you solve your strata problems and make informed decisions.

The WA Strata Magazines, published bi-monthly, are just one of the many ways we’re dedicated to supporting you. They’re packed with articles from industry experts and include our comprehensive printable strata directory.

Beyond these pages, we also offer: • Q&A Service: Our team of leading strata specialists answer hundreds of your questions every month, which helps shape the magazine topics we cover.

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Advertising and Admin Enquiries: administration@lookupstrata.com.au Disclaimer: The information contained in this magazine, including the response to submitted questions, is not legal advice and should not be relied upon as legal advice. You should seek independent advice before acting on the information contained in this magazine.

Strata legislation is updated regularly. The information in this magazine is based on the legislation at the time of publishing.

2 www.lookupstrata.com.au 2 www.lookupstrata.com.au

Contents 4

an a tenant be fined for a guest’s C by-law breach?

18

Jamie Horner, Empire Estate Agents

Marietta Metzger, magixstrata

6

m I covered if a fire in my neighbour’s A duplex spreads?

20

an a strata scheme require unpaid C labour instead of levies?

22

hat are the safety obligations for an W older WA block?

24

Craig Welsh, QIA Group

12

hat happens when council nominations W exceed the 7 available spots? ow do we set up a proper email system H for our strata committee records?

hy does our balance sheet show a W large amount outlaid to fobs but not reimbursed?

Rick Blampey, SVN Perth

26

Ben Sasson, Vogt Legal

14

an sociocracy work within WA strata C governance rules?

Luke Downie, WA Strata Consultant

Luke Downie, WA Strata Consultant

10

wner refuses plumbing inspection O after suspicious major flood Ben Sasson, Vogt Legal

Tyrone Shandiman, Strata Insurance Solutions

8

oes a strata company have a say D over a granny flat?

an an owner join an AGM on Zoom C with camera and microphone off?

Amy McCaffrey, Cygnet West

28

The WA LookUpStrata Directory

Leya Wall, Town Square

16

Pets in strata ESM Strata

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Can a tenant be fined for a guest’s by-law breach?

Is a tenant liable for a fine when a guest breached a by-law on arrival at the property?

I have been a tenant in our scheme for over six years and have never had a breach notice or any complaints before. Strata have issued me a fine of $88 dollars for a guest urinating in the garden of the complex before they arrived at my lot.

Am I in breach and liable for the fine imposed upon me?

A strata company can’t issue a fine. Enforcement has to go through the proper legal process.

Based on what you’ve described, not necessarily. In fact, there are a few important issues that need to be considered.

A strata company cannot issue a monetary fine to a tenant because it believes a by-law has been breached.

Some key points are to be considered in our opinion: • A guest’s conduct can be attributed to the occupier (tenant) if the guest breaches a valid strata by-law while visiting the property.

• However, the strata company must be able to demonstrate that a valid by-law was breached.

• The strata company must also follow the enforcement process set out under the strata legislation and the applicable scheme’s by-laws.

• Under the current WA strata legislation, strata companies generally do not have the power to impose on-the-spot fines 4 www.lookupstrata.com.au 4 www.lookupstrata.com.au

in the way a local government or the police can. If a by-law provides for a monetary penalty, enforcement is generally through the appropriate legal process (for example, an application to the Tribunal), not simply by sending an invoice demanding payment.

From your description, you have been a tenant for over six years, and you have no previous breach notices or complaints. A guest of yours allegedly urinated in the garden before they arrived at your unit, and because of that, you have received an invoice or fine for $88.

In our opinion, the strata company cannot simply issue a fine to a tenant or any other scheme participant. The strata company would generally need to establish that the incident occurred, that the person was one of your guests, that any of the strata company’s bylaws were breached and that the enforcement process that is normally required by law has been followed.

We would recommend writing to the strata company asking them to provide: • the by-law allegedly breached; • the evidence relied upon; • the legal basis for imposing the $88 charge; • an explanation of how the amount was calculated; and • confirmation of the legislative authority under which they say the charge is payable.

Until they can explain the legal basis for the charge, it is reasonable to question whether the fine issued is enforceable.

The above information is general in nature and should not be considered legal advice.

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

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Am I covered if a fire in my neighbour’s duplex spreads?

Can I force my duplex neighbour to have building insurance, and will my policy cover me if their lot burns and the fire spreads?

It depends on whether your duplex is a survey strata or a built strata. Your own policy should cover damage caused by a fire spreading from next door.

I live in a single tier duplex. Both lots are street front with common land all round. The two units are joined by two carports, which I assume are common property as they sit on the common property area. My neighbour’s building is run down, and I doubt whether they have building insurance.

The answer depends on how your duplex is structured under the strata legislation. If it is a two-lot survey strata (which is very common for street-front duplexes with common property), there is generally no legal requirement for the strata company to insure the buildings. Each owner is usually responsible for insuring their own building. If it is a two-lot built strata, the strata company is generally required to insure all buildings under a single strata insurance policy that covers both lots.

What is my risk if they don’t have building insurance? If their building burns down and the fire spreads to my side, will my insurer cover me? Can I force the other lot to have insurance, given that we both have a carport on common property? Under the Strata Titles Act 1985, is there an obligation for all insurable assets to be covered?

6 www.lookupstrata.com.au

The first thing I would check is whether your property is a survey strata or a built strata.

Regarding your main concern: if your neighbour’s unit burns down and damages your unit, your insurer would normally cover your insured loss, subject to your policy terms, excess and sum insured. Your insurer may then seek recovery from any responsible party if appropriate.

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

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Can a strata scheme require unpaid labour instead of levies?

Our strata council wants us to do unpaid garden work instead of paying levies. Is that allowed?

At our last AGM, the strata council proposed dividing maintenance of our common property gardens among lot owners. We’re a survey strata with extensive gardens and an orchard.

The proposal requires us to contribute a minimum number of “community work hours” each week, recorded in a register, to help keep strata levies low. The motion was unanimously approved and described as a house rule.

Lot owners who don’t complete their required hours are issued an invoice by the council, payable to the strata company. However, no external contractors are engaged to complete the work not done; instead, it is either left undone or taken on by other residents.

The council also grants exemptions from the work requirement for reasons such as medical conditions, provided the request is made in writing.

My questions are: • As common property maintenance costs are shared equally among lot owners under the by-laws, is a “work instead of levies” system with discretionary exemptions not contrary to the by-laws and unfair?

• How could a contribution system like this operate within the legal framework for strata companies?

A strata company cannot force owners to do physical labour instead of paying levies unless the arrangement is voluntary and non-punitive.

A strata company cannot require owners to perform physical labour as a substitute for levies unless the arrangement is voluntary, non-punitive, and consistent with the scheme’s by-laws and the Strata Titles Act 1985 (WA) (the Act).

8 www.lookupstrata.com.au

The system described, involving mandatory work hours, a register, invoices for noncompliance, and discretionary exemptions, raises several legal and practical issues.

Is a compulsory “work hours” system contrary to the by-laws and unfair?

In most schemes, the by-laws state that common property maintenance costs are shared by unit entitlement unless there is a by-law stating otherwise.

The Act requires levies to be raised in accordance with: • the budget approved at the AGM, and • the method of contribution set out in the by-laws.

A system that: • forces owners to perform unpaid labour, • penalises those who do not, and • allows the council to grant exemptions at its discretion is not consistent with the statutory levy framework.

Key issues: • A “house rule” cannot override by-laws or the Act. House rules have no legal force if they conflict with the scheme’s governing documents.

• Mandatory labour is not a lawful substitute for levies. Levies must be raised in money, not labour.

• Discretionary exemptions create inequality.

Owners cannot be treated differently based on subjective criteria.

• Issuing invoices for “missed work hours” is not authorised. A strata company may only raise levies and contributions in accordance with the Act. Luke Downie | WA Strata Consultant luked0876@gmail.com READ MORE HERE

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What are the safety obligations for an older WA block?

What are the safety obligations for an older apartment block regarding balustrades, bi-fold windows and roof anchor points?

I reside in an older apartment block in WA. I am reading about the growing area of safety issues and the onerous effect on the council of owners and strata company. I would like to know generally about these issues. For example, can an owner install bi-fold windows in their unit? What about our old balustrades?

Do they need to be changed? And what are the requirements for roof anchor points, and what are the alternatives?

My concern is that requesting a formal safety report will bind us to completing those tasks or face potential liability in case of an accident, which would completely change our 10 year maintenance plan and budget. What are our obligations under the Work Health and Safety Act 2020?

10 www.lookupstrata.com.au

A safety report creates no new obligations. The strata company’s duty to manage foreseeable risks already exists, and the report simply helps prioritise that work.

This is a question we’re hearing more often, particularly from owners in older buildings.

A common misconception is that obtaining a common property safety report creates new obligations for the strata company.

In reality, the strata company already has a responsibility to maintain the common property and take reasonable steps to identify and manage foreseeable safety risks. A safety report provides a practical snapshot of any visible hazards, helping the strata company make informed decisions about maintenance and risk management.

For older schemes, there isn’t a requirement to automatically upgrade every building element to today’s standards. Features such as balustrades don’t necessarily need replacing simply because they’re older. However, if they have deteriorated, present a safety risk or are being significantly modified, further assessment may be required, and the proposed works may need to comply with the building requirements that apply at the time. The same applies to roof anchor points; whether they’re required depends on the building, the type of work being carried out and the risks associated with accessing the roof. They may actually be a cost-saving when compared to alternatives such as scaffold, but will trigger a requirement for annual testing.

these types of alterations. Consideration must also be given to falls from heights and the possible need for window restriction devices that may be necessary to ensure the bifolds do not have an opening that will allow a fall to occur.

As for installing bi-fold windows, there isn’t a simple yes or no answer. It will depend on whether the works affect common property, structural elements or the external appearance of the building, along with the scheme’s by-laws and approval requirements. It’s always best for owners to seek approval before undertaking

Craig Welsh | QIA Group info@qiagroup.com.au

Rather than viewing a safety report as something that forces immediate expenditure, we encourage strata companies to see it as a planning tool. Recommendations can generally be prioritised according to the level of risk, allowing maintenance to be incorporated into future budgets where appropriate, while ensuring higher-risk issues are addressed sooner. A proactive approach not only helps manage safety, but also supports better longterm planning for the scheme.

READ MORE HERE

What happens when council nominations exceed the 7 available spots?

What is the correct ballot process when electronic council nominations exceed the 7 available positions?

Our strata manager, with the approval of the council, introduced electronic voting for our AGM last year. However, although there was an option to self-nominate electronically for council, there was no opportunity given to vote for candidates should the number of nominees exceed 7 and thereby require a ballot, which it did.

What is the correct process, particularly in relation to how a ballot should be conducted electronically under the Strata Titles Act 1985 (the Act)?

Electronic nominations don’t remove the need for a ballot.

When nominations exceed the available positions, your bylaws should set out the required process at the AGM. Generally, your scheme’s by-laws will set out the process that must be followed if, at the AGM, the number of candidates nominated for council exceeds the number of available council positions. For schemes that are subject to the Schedule 1 by-laws in the Act, this process is prescribed by By-law 5 (By-Law 5).

Under By-Law 5, if the number of candidates exceeds the number of council positions available, the chairperson must: 1. announce the names of all candidates; and 2. provide a ballot form to each person entitled to vote who is present in person or by proxy (a separate ballot form must be provided for each lot in respect of which they are entitled to vote).

12 www.lookupstrata.com.au

To complete a valid ballot form, each eligible voter must: 1. w rite the names of the candidates they wish to vote for. The number of names must be equal to the number of council positions to be filled; 2. r ecord the lot number in respect of which the vote is being cast and indicate whether they are voting as an owner, first mortgagee, or as the proxy of an owner or first mortgagee; 3. s ign the ballot form; and 4. r eturn the completed ballot form to the chairperson.

The chairperson (or a person appointed by the chairperson) must then count the votes before declaring the successful candidates.

Ordinarily, it is not known at the time nominations are submitted whether a ballot will be required.

As a result, where nominations exceed the number of vacancies, the ballot will generally take place at the AGM after nominations have closed. While electronic nominations may form part of the meeting process, they do not remove the requirement to conduct a ballot where one is required by the applicable by-laws.

If your strata company wishes to continue using electronic voting, it should ensure that the electronic voting platform is capable of facilitating a ballot that complies with the requirements of the Act and any applicable by-laws. If the platform cannot accommodate, it may be capable of being used to submit nominations, with the ballot itself being conducted at the AGM in accordance with the procedure set out in the by-laws.

The above is for general information purposes only and does not constitute legal advice.

The requirements that apply to your strata company will depend on specific matters such as its registered by-laws and the particular circumstances of the meeting. If you require advice about the validity of a past election or the process that should be followed for your scheme specifically, you should obtain independent legal advice.

Ben Sasson | Vogt Legal bsasson@vogtlegal.com.au READ MORE HERE

How do we set up a proper email system for our strata committee records?

How do we set up a shared email system that reliably captures out of meeting decisions and gives owners a clear way to contact the council?

Our strata council meets only once per year.

All communication between members and decisions made are conducted via private email. Unless the strata manager is included, these emails do not form part of the strata record. How do we set up a shared email system to ensure decisions are part of the strata record and to assist owners and occupiers to contact the council?

14 www.lookupstrata.com.au

A purpose-built strata communications platform creates an audit trail, keeps correspondence accessible to all council members, and gives owners a consistent point of contact.

Really common pain point, and a great example of where the right technology solves two problems at once. Refer to your strata manager (SM) on the compliance and recordkeeping requirements in your state.

Regarding the technology, the first problem is internal. Decisions via private email mean no shared record, no visibility, and no audit trail. When a council member leaves, that history goes with them.

The second problem is external. Owners have no clear, consistent way to reach the council. That creates frustration and a feeling of being shut out.

What you’re really looking for is a shared, structured communication layer, something that sits between private inboxes and the formal strata record. For me, the answer here is a purpose-built strata communications platform.

Three things to look for: does it create a clear audit trail, can multiple people access it without it living in one person’s inbox, and does it give owners a professional and consistent way to make contact. Loop in your SM on the compliance piece, but the conversation about the communication infrastructure is worth having now.

Leya Wall | Town Square Leya.Wall@townsquare.au READ MORE HERE

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Pets in Strata

Welcome to the ESM Strata Community RECORD PET OWNERSHIP AND WA’S RENTAL REFORMS HAVE

MADE THE SCHEME BY-LAW THE DECIDING DOCUMENT - AND

MANY WE’RENT DRAFTED FOR THE JOB

Pet ownership in Australia has reached a record high. The 2025 Pets in Australia survey found 73% of households (7.7 million) now include a pet, up from 61% before the pandemic. One in five owners is keeping a pet for the first time.

In WA, where roughly a quarter of the population lives in strata, that growth flows directly into schemes. And since the 2024 tenancy reforms, the scheme by-law has become the deciding document on whether a pet stays .... which makes vague or outdated by-laws a bigger problem than they used to be.

73%

OF HOUSEHOLDS NOW INCLUDE PETS

WHAT WA LAW ACTUALLY SAYS The Strata Titles Act 1985 (WA) contains no general restriction on

THE TE NA N C Y R E FO R M UP DA TE

(or right to) keeping a pet. Its only

Since 29 July 2024, WA tenants have been entitled to

conduct by-law 12(c), is not a ban

keep a pet with the lessor's consent, and consent can only be refused on grounds set out in the legislation.

Most refusal grounds require the landlord to apply to the Commissioner for Consumer Protection, who decides the dispute. Fewer than 5% of those

default provision, Schedule 2 either: an occupier must not keep animals after notice from the council.

Until that notice is given, a pet contravenes nothing and the by-

applications have gone the landlord's way.

law sets no grounds for notice, no

One ground stands apart: where a strata by-law prohibits the pet, the request is refused under section 50D(a) - no Commissioner application required.

That puts the scheme's by-law somewhere it has never been: the clearest remaining line. A by-law that is

process, and no test. Registered scheme by-laws may replace it entirely, sometimes with no animal provision at all. The exception: by-laws restricting assistance animals are invalid.

vague, outdated or silent draws no line at all.

esmstrata.com.au

|

+61 (0)8 9362 1166

| 15/443 Albany Highway, Victoria Park WA 6100

THE 10-YEAR PLAN JUST BECAME A STRESS TEST Now run the tenancy reform through that framework. A landlord can refuse a tenant's pet without going to the Commissioner only where keeping it would contravene a by-law. In a scheme with a registered by-law prohibiting pets or requiring council approval, that ground exists.

In a scheme on the default (or whose by-laws are silent on animals) it doesn't. Nothing is contravened at the point of request, so the request effectively cannot be refused. The pet arrives under a lawful tenancy consent, and the council's only remaining tool is an after-thefact removal notice that must survive a fairness challenge at SAT. WHAT A WORKABLE BY-LAW LOOKS LIKE A registered, scheme-specific pet by-law closes the gap at both ends. For the scheme, it answers the three questions the default doesn't: which animals are permitted, on what conditions (written approval, leashing on common property, waste, noise), and what happens on nuisance. For lot owners who rent out, it gives their property manager a lawful basis to respond to pet requests.

Approval-based by-laws with specific conditions sit in the defensible middle ground - easier to apply than a blanket ban, easier to enforce than bare "no nuisance" wording. Amending a by-law requires a special resolution.

QUESTIONS WORTH RAISING Does the scheme have a registered, scheme-specific pet by-law at all?

If a tenant’s pet request arrived tomorrow, would any by-law give a lawful basis to respond or would the pet simply arrive?

How is the council currently responding to pet questions, complaints or concerns and are these documented in house-rules for everyone to understand?

Pet ownership isn't retreating, and the tenancy reforms have made the scheme by-law the deciding document where one exists. The question now is - has your Strata Company made a decision at all or are you leaving it to a default that may cause issues if they arise.

LOOKING FOR BETTER MANAGEMENT?

FIND OUT HOW WE CAN HELP YOU IN THE SMOOTH AND

EFFECTIVE RUNNING OF YOUR STRATA PROPERTY

ESMSTRATA.COM.AU/GET-A-QUOTE

Does a strata company have a say over a granny flat?

Does the strata company have any say over an owner building a granny flat in their private rear garden?

We are a six-unit self-managed strata scheme.

Everything to the front of our buildings is designated common property. At the back of each unit, owners have their own private garden, individually fenced with a rear gate opening onto a common pathway.

One owner, who is currently renting his unit, wants to build a granny flat in his rear garden.

Council no longer requires building permission, but building codes are still in place. The flat itself will be small and, being at the rear, will have little visible impact.

However, the remaining owners have concerns about parking. We currently have two spaces per unit and three visitor spaces, and worry that if other owners follow suit, parking will overflow onto the street.

Do we have any authority over this under the Strata Titles Act 1985?

Yes, a granny flat in the rear garden is likely a structural alteration requiring approval.

The Owner is making a structural alteration to their lot. Therefore, under the Strata Titles Act, alterations on lots are regulated under sections 86-90 and Regulation 75, Strata Titles (General) Regulation 2019.

Regulation 75 details the requirement of the “Application for approval of structural alteration”. For full details, see the Regulation.

Once the application is provided to the strata company as per the prescribed requirements above, the approval is then to be provided under the requirements of sections 86 to 90 of the Act, which include:

Section 87 & Section 88: Approvals for structural alterations

• Section 87: Outlines the procedure an owner must follow when seeking approval from the strata company to structurally alter their lot.

This section notes that the owner of a lot in a strata scheme must not cause or permit the structural alteration of the lot except: (a) with the prior approval, expressed by resolution without dissent, of the strata company or (b) if: (i) the prior written approval to the structural alteration has been given by the owner of each lot in the scheme, • Section 88: Details the conditions under which the strata company can grant or withhold this permission, ensuring that the structural integrity and aesthetic consistency of the scheme are maintained.

Jamie Horner | Empire Estate Agents JHorner@empireestateagents.com READ MORE HERE 18 www.lookupstrata.com.au

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Owner refuses plumbing inspection after suspicious major flood Our strata manager wants us to sign off on repairs without a plumbing inspection. The responsible owner has a troubling history and refuses to cooperate. Can we insist on an inspection?

One apartment in our large scheme experienced a major flood that damaged common areas and other lots. The owner attributed the substantial flooding to a fault in the washing machine. We understand the owner has had police visits in the past, and a hydroponic drug growing operation was found in the bedroom that had flooded.

We instructed the strata manager to organise a plumbing inspection. The owner refused to comply, and our strata manager has asked the council of owners to sign off on no plumbing report. I prefer the owner be responsible and abide by the rules and bylaws of this complex.

A strata company has several enforcement and remedy pathways available, depending on the source and cause of the flooding.

It is a bit unclear to me exactly what you are asking, but I’ve tried to address what I understand the issues to be.

Under the Strata Titles Act 1985 (WA) (the Act), various provisions may be relevant where the use of a lot causes damage, nuisance or unreasonable interference with other lots or common property.

20 www.lookupstrata.com.au

By-law 2 of Schedule 2 of the Act provides that an owner or occupier of a lot must not use the lot or permit it to be used in such manner or for such purpose as causes a nuisance to an occupier of another lot (whether an owner or not) or the family of such an occupier. By-law 12(a) provides that an owner or occupier of a lot must not use the lot for a purpose that may be illegal or injurious to the reputation of the building.

However, each strata scheme may have its own registered by-laws, which should be considered.

Section 47(1) of the Act provides that a strata company may: a. g ive a written notice to a person alleged to have contravened the scheme by-laws, or b. apply to the Tribunal under this section for an order enforcing scheme by-laws if: i. the contravention has had serious adverse consequences for a person other than the person alleged to have contravened the scheme by-laws; or ii. the person has contravened the particular scheme by-law on at least 3 separate occasions; or iii. the person has been given notice under section 47(1)(a) of the Act and has contravened the notice.

If an application is made to the Tribunal and the Tribunal is satisfied that a person has contravened the scheme by-laws, the Tribunal may, amongst other things, order the person to do 1 or more of the following: a. p ay a specified amount to the strata company by way of penalty for the contravention;

b. take specified action within a period stated in the order to remedy the contravention or prevent further contraventions; c. refrain from taking specified action to prevent further contraventions.

Section 83 of the Act further provides that an owner or occupier must not use, or permit the use of, a lot or common property in a way that unreasonably interferes with another person’s use or enjoyment of a lot or common property.

Depending on the circumstances, water escaping from one lot and causing damage to other lots or common property may also potentially give rise to actionable claims in nuisance or trespass.

The above is provided for general information purposes only and does not constitute legal advice. Ultimately, the applicable scheme bylaws, the nature and cause of the damage, and the available evidence will determine which rights and remedies may be available to the strata company or any affected owners. I recommend specific legal advice be obtained to determine what rights and remedies may be available in the particular circumstances.

Ben Sasson | Vogt Legal bsasson@vogtlegal.com.au

In some cases, there may also be other avenues available depending on the source of the problem. For example, different considerations may arise where the cause of flooding involves a utility conduit that constitutes a utility service easement for the purposes of section 63 of the Act.

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READ MORE HERE

Can sociocracy work within WA strata governance rules?

Can sociocracy (dynamic governance) be used in a strata company while remaining consistent with the Act? Can a governance method called sociocracy (dynamic governance) be used in a strata company in WA and remain consistent with the Strata Titles Act 1985 (the Act)?

Yes, but only as an internal decision-making process.

Sociocracy cannot replace the statutory governance structure set out in the Act. A strata company in Western Australia may choose to use sociocracy or “dynamic governance” principles to help guide how the council of owners collaborates, discusses issues, or reaches consensus. However, these methods cannot replace, override, or conflict with the governance structure set out in the Act and the Schedule 1 Governance By-laws.

What the Act requires

Regardless of any alternative governance model adopted internally, a strata company must still comply with the statutory framework, including:

These requirements are mandatory and cannot be displaced by adopting a different governance philosophy.

Where sociocracy can fit

Sociocracy can be used as an internal process to: • structure discussions • encourage consent-based decisionmaking • improve communication • help the council reach a majority position more collaboratively As long as the final decision is still made in the manner required by the Act (e.g., majority vote at council level, or the appropriate resolution at a general meeting), the use of sociocratic methods is permissible.

Where sociocracy cannot be used A strata company cannot:

• replace majority voting with “consentbased” decision-making • create governance circles that have authority beyond the council • delegate statutory powers in a way not permitted by the Act

• The strata company is the legal decisionmaker (section 14).

• adopt any process that prevents owners from exercising their voting rights under the legislation

• The council of owners carries out the functions of the strata company between general meetings (Schedule 1, by-law 8).

If a sociocratic practice conflicts with the Act or the Schedule 1 by-laws, the statutory requirements prevail.

• Council decisions must be made by a majority vote of council members present and entitled to vote (Schedule 1, by-law 10).

• Owners at a general meeting make decisions by ordinary, special or unanimous resolution, depending on the matter.

22 www.lookupstrata.com.au

Luke Downie | WA Strata Consultant luked0876@gmail.com READ MORE HERE

Why does our balance sheet show a large amount outlaid to fobs but not reimbursed?

Why is a large amount of fob and key spending sitting outlaid on our ledger without being reimbursed by owners?

I’ve been reviewing our administrative budget and noticed that the recovery amount for fobs and keys is less than the total expense, leaving an amount sitting on the admin ledger. My understanding is that these costs should be fully recovered from the individual owners who purchase them, so I’d expect the YTD balance to be zero.

When I raised this with our strata manager, they explained that the shortfall is because the office holds a stock of fobs for owners to purchase, and a number were issued to cleaners, caretakers and fire services contractors.

All owners already have their own keys and fobs. Our maintenance person is also an owner who lives onsite, so I’d be surprised if any contractors were issued keys or fobs permanently.

Is this a legitimate reason for the shortfall, and is it appropriate for these costs to be partially funded through general levies?

24 www.lookupstrata.com.au

Fob and key costs for contractors are a legitimate administrative expense.

The variance between total expenditure and owner recoveries may reflect devices held for operational use.

Generally, where replacement or additional keys, fobs, remotes or access devices are provided to individual owners or occupiers, it is common practice for the strata company to recover the associated cost from the person requesting the item.

However, it is not unusual for the strata company to maintain a stock of access devices for operational purposes. This can include fobs or keys issued to cleaners, caretakers, contractors, fire service providers, security personnel, and other parties who require access to common property to perform services on behalf of the strata company.

Where access devices are retained or issued for the benefit of the strata company as a whole, the associated costs are generally considered an administrative expense of the scheme and may appropriately be funded through the administrative fund. In those circumstances, it would be expected that the cost would not be recovered from an individual owner.

Accordingly, the existence of a difference between the total expenditure on fobs and keys and the amount recovered from owners does not necessarily indicate an error. The variance may reasonably reflect devices held in stock or issued for operational and maintenance purposes on behalf of the strata company.

If the council or owners wish to understand the balance better, they may request a breakdown showing the number of devices purchased, those sold to owners, those

currently held in stock, and those allocated for common property operations. This would provide transparency regarding how the expenditure has been applied.

Rick Blampey | SVN Perth rblampey@svn.com.au READ MORE HERE

Can an owner join an AGM on Zoom with camera and microphone off?

Can an owner attend an AGM via Zoom with their and microphone off, communicating only by text?

At our physical AGM, one lot owner chose to Zoom into the meeting. They had their camera and microphone off. We could only see text messages. Is this permitted? It could have been anyone on the other end of the connection with access to the Zoom meeting details.

The chairperson must be satisfied that the attendee’s identity and their entitlement to vote can be verified.

The short answer is yes, potentially, but there are important considerations around identity verification and the integrity of the meeting.

26 www.lookupstrata.com.au

section 131 of the Strata Titles Act 1985 (WA) (the Act) expressly permits a person, including a proxy holder, to attend and vote at a strata company meeting by telephone, video link, internet connection or similar means of remote communication, provided any requirements of the scheme by-laws are met. A person attending remotely is taken to be present at the meeting for all purposes.

Importantly, neither the Act nor the associated regulations require an attendee participating electronically to have their camera switched on or to communicate verbally.

The legislation is technology-neutral and focuses on a person’s ability to attend and participate via an approved form of remote communication.

However, this does not mean that a strata company must accept any unidentified participant. The chairperson has an obligation to ensure the integrity of the meeting, including confirming that those attending and voting are entitled to do so. This becomes particularly relevant where an attendee joins with both camera and microphone disabled and communicates only through a chat function.

The Act also requires voting systems, whether electronic or otherwise, to be conducted in a manner that protects the integrity of the voting process. Likewise, meeting notices must specify the acceptable methods of voting and participation.

In practical terms, if the chairperson is satisfied that the participant is the lot owner, proxy holder or authorised representative, perhaps because they joined from a known email address, responded to verification questions, or had previously identified themselves, there is unlikely to be an issue with them participating by text only.

Conversely, where there is genuine uncertainty regarding the participant’s identity, it would be prudent for the chairperson to request additional verification. This may include asking the participant to briefly activate their camera, confirm their identity verbally, or provide another form of authentication before being permitted to vote.

As electronic attendance becomes increasingly common, strata companies may wish to adopt meeting protocols or bylaws that clearly set out identity verification requirements for remote attendees. Doing so can reduce the risk of disputes and provide certainty for owners, council members and meeting chairs alike.

While the legislation permits remote attendance, the overriding principle remains that the chairperson must be reasonably satisfied that the person participating and voting is entitled to do so.

Amy McCaffrey | Cygnet West Amy.McCaffrey@cygnetwest.com READ MORE HERE

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