Strata Management Duties and Responsibilities

The ACT differs from other states and territories. It has two distinctly different unit types referred to as A Class and B Class—with the ownership and accompanying responsibilities varying between each.

A Class

An A class unit typically refers to multi-storey unit blocks which rise vertically. The boundaries of an A Class unit are defined as the midpoint of the floor, ceiling and walls. The individual unit is responsible for maintaining anything within this boundary, including any infrastructure which services only that Unit. 

B Class

Conversely, B class units refer to townhouses or standalone units that sit within their parcel of land. The boundaries of a B Class unit are defined by the property boundary as marked on the Units Plan. The individual unit is responsible for maintaining everything within this boundary, including the air space above and the subsoil beneath.

An Owners Corporation, formerly referred to as Body Corporate, is the legal entity created upon forming a Strata Title/Units Plan and comprises all the owners. Upon purchasing a unit/lot, an owner automatically becomes a part of the Owners Corporation. 

The Owners Corporation is responsible for managing the Units Plan as per the provisions set out in the Unit Titles (Management) Act 2011; however, most Owners Corporations appoint a professional strata management agency for this purpose. 

An Executive Committee is a group of voluntary owners, typically between 3 and 7, who are elected at each annual general meeting (AGM) to administer the functions of the Owners Corporation in the interest of all the owners

The Executive Committee is subject to a Code of Conduct. It will often have limitations imposed by the Owners Corporation regarding any decisions made on behalf of the Owners Corporation.

The strata manager will (typically) attend to:

  • Financial management, including levy collection and preparation of draft annual budgets;
  • Convening meetings of the Owners Corporation and Executive Committee including minute taking;
  • Routine maintenance and payment for such;
  • Insurance claims and renewals;
  • General communication, including Owners applications; and

Compliance with Owners Corporation Rules.

A strata manager is an employee of a strata management agency, engaged by the Owners Corporation (at the AGM or a general meeting) to administer the Act’s requirements, under the direction of the Executive Committee and Owners Corporation. 

A Strata Managers role varies from client to client based on the delegations in each case; however, they are responsible for providing advice and guidance to the Executive Committee and Owners Corporation regarding their responsibilities under the Act.

The strata manager will (typically) attend to:

  • Financial management, including levy collection and preparation of draft annual budgets;
  • Convening meetings of the Owners Corporation and Executive Committee including minute taking;
  • Routine maintenance and payment for such;
  • Insurance claims and renewals;
  • General communication, including Owners applications; and
  • Compliance with Owners Corporation Rules.

There are various means by which the Owners Corporation can make a decision. 

Annual General Meeting (AGM)

The Owners Corporation is required to hold an AGM each year following the end of their financial year. The financial year will vary for each Owners Corporation as it is not in line with the fiscal year. The AGM is responsible for approving finances, setting budgets and levy contributions, confirming insurances, electing an Executive Committee, authorising Rules Amendments and several other requirements set by Regulation. 

All owners are encouraged to participate in the AGM and contribute to the decisions implemented for the coming year. Owners must be financial (meaning all levies are paid up to date) to be able to vote at the AGM—except for the rare occasion where an unopposed resolution is required. 

Executive Committee

The Executive Committee is elected as representatives of the Owners Corporation at each AGM. It can have the ability to make decisions on behalf of the Owners Corporation, within any parameters set by the Owners Corporation and as defined by the Unit Titles (Management) Act. 

The Executive Committee remains unable to make some decisions, such as the appointment of a strata manager or amendments to Rules. Such items are referred to the Owners Corporation at the AGM or a specially convened meeting.

General Meeting

In some cases, matters requiring a resolution of the Owners Corporation cannot be delayed until the AGM, a General Meeting will be convened to address necessary business. 

As with the AGM, all owners are encouraged to participate in the GM and contribute to the decisions of the Owners Corporation. Owners must be financial (meaning all levies are paid up to date) to vote at the AGM. 

The Owners Corporation is funded by the Administrative and Sinking Fund levy contributions at each AGM. 

Administrative Fund

The Administrative Fund is used for day to day expenditures of the Owners Corporation, including but not limited to insurance premiums, management fees, utilities (gas, electricity & water), garden maintenance, cleaning of common areas, repair and maintenance (plumbing, electrical, general repair) and contract maintenance (lifts, HVAC, Garage Doors). 

The budget for the Administrative Fund is set using knowledge of existing expenditures as well as forecast amounts for contingent matters which may arise through the course of the year. 

Sinking Fund

The Sinking Fund is reserved for capital expenditure and expenditure as outlined in the approved Sinking Fund Forecast.

As with any tax invoice, payment is due on the date defined within the invoice. If left unpaid after the due date, it is subject to 10% pa interest charges as prescribed by the Act, and in some cases, additional service fees for the implementation of arrears recovery procedures. 

Signature Strata issues an initial notice and a first reminder free of charge on behalf of the Owners Corporation, after which charges are applied as specified in the initial notice. 

An owner is responsible for knowing the amount of their levy and the due dates. This is published in the AGM Minutes. A tax invoice is also issued for payment at each agreed interval, i.e., quarterly or half-yearly.

An emergency could be defined as an event with the reasonable potential to cause significant damage or disruption to the assets of the Units’ Plan or the use of those assets by the unit occupants.

Examples of an emergency are the expulsion of water into common areas, development-wide loss of power, security failure, failed lifts or garage doors, and of course, fire and flood. 

If you have locked yourself out of the unit, this is not an emergency, and the Strata Manager cannot provide access. It is the responsibility of the affected individual to contact an authorised locksmith to provide access. 

If you are a tenant, use the details provided by your property manager.

The Owners Corporation takes out insurance over the building, including public liability over the common areas. 

Owners/Occupiers are responsible for insuring their contents and taking out public liability insurance for the areas within the unit. Landlords are also responsible for taking out a landlord's policy should they choose to.

The unit owner is responsible for maintaining everything within the unit’s boundary and anything that services only the individual unit—i.e. pipes from the junction to the unit or electrical services. 

More specifically, the A Class is the midpoint between walls, ceilings and floors. And, for the B Class, the boundary of the unit is as defined on the registered plan.