Strata committees play an essential role in managing buildings across New South Wales. While members often volunteer their time, the responsibilities they take on are far from casual. Every decision made by a committee has legal weight, and failing to meet obligations can put both the building and its owners at risk.
At Progressive Strata, we work alongside committees every day. Here is an overview of the core legal duties committees must understand to protect their schemes and operate effectively.
The Strata Schemes Management Act 2015 (NSW) sets out the responsibilities of owners corporations and their committees. A committee is elected to act on behalf of the owners corporation, which means its decisions carry the same legal obligations. Members must act in the best interests of all owners and ensure the scheme remains compliant with the law.
Committees are responsible for ensuring that common property is kept in good condition. This includes structural elements, roofs, plumbing, electrical systems, and shared facilities.
Decisions should benefit the collective group, not individual members. Acting with integrity and avoiding conflicts of interest is a fundamental duty.
Committees must prepare budgets, set levies, and keep accurate financial records. Owners have the right to clear and transparent reporting.
Minutes of meetings, financial reports, correspondence, and resolutions must be maintained. Accurate records protect the committee and provide accountability.
Committees must maintain appropriate building insurance and ensure compliance with fire safety and other regulations. Neglecting these obligations exposes the scheme to significant risk.
Committees are expected to manage conflicts in line with the law and established procedures. Avoiding bias and ensuring proper processes are followed is part of the role.
Committees that fail to meet their obligations can face penalties through NCAT or other legal channels. Beyond fines or legal costs, non-compliance creates mistrust among owners and undermines the value of the property. By contrast, committees that operate within the law provide stability and protect the interests of every owner.
Many committee members step into the role without detailed knowledge of the legislation. This can lead to mistakes, particularly in financial management, record-keeping, or compliance with building standards. Conflicts of interest can also create difficulties if not addressed properly. Volunteer fatigue adds another challenge, as committees often juggle complex responsibilities without professional support.
At Progressive Strata, we provide the structure and guidance committees need to meet their obligations with confidence. Our secretarial services ensure accurate records and notices. Through reporting, committees receive clear financial information. Our insurance management keeps buildings compliant with cover requirements, while our meetings support ensures AGMs and EGMs are run in line with legislation.
With over 20 years of experience, we help committees navigate the complexities of strata management so they can focus on making sound decisions for their communities.
Serving on a committee is a responsibility that carries significant legal obligations. Understanding those obligations is the first step in protecting both the building and its owners. With professional support, committees can meet these requirements while operating efficiently and fairly.
If your committee is seeking guidance or support, contact Progressive Strata today.