Many owners are unclear about what a strata managing agent does and whether they can make decisions on behalf of the owners corporation. The managing agent is appointed under a management agreement to carry out administrative tasks, but ultimate authority lies with the owners and the committee. Recent reforms impose new disclosure and reporting obligations on strata managers. This section also explains what insurance the owners corporation must take out and what owners should insure themselves.
The strata manager is the owners corporation’s agent. They carry out functions delegated to them by the management agreement - collecting levies, paying invoices, arranging repairs, calling meetings and maintaining records.
They provide advice but cannot make decisions on restricted matters such as setting levies, changing by‑laws or authorising major expenditure without a resolution of the committee or owners corporation. The manager must act in the best interests of the owners and cannot delegate their functions to others without consent.
No. Only the owners at a general meeting can decide levies. The manager prepares budgets and recommendations, but the owners corporation approves the levy amounts.
The 2025 legislation introduces several obligations:
Owners should:
If dissatisfied, the owners corporation may terminate the contract at the end of its term or by special resolution if the manager breaches the agreement. The 2025 reforms make it easier to replace managers by prohibiting unfair termination clauses
The owners corporation is legally required to insure the building for the full replacement value, including the structure and fixtures such as sinks, baths, built‑in cupboards and wall tiles. Insurance must also cover common property and public liability. The insurance premium is paid from the administrative fund. The corporation must also have workers compensation insurance if it engages staff.
Owners should take out strata contents insurance to cover personal belongings, furniture, appliances and internal fixtures not covered by the owners corporation’s policy. If you renovate and install upgrades, you may need additional cover for improvements. Owners who lease their lot should consider landlords’ insurance.
No. The strata building policy generally covers the structure and original fixtures. Damage to personal possessions or upgrades (e.g. floating floors) is the owner’s responsibility. Claims for damage caused by failure to maintain common property may be recoverable from the owners corporation, but you should have your own contents insurance for full protection.
If a claim relates solely to common property, the owners corporation pays the excess. If the claim relates solely to a lot, the lot owner pays. Where both common property and lot property are involved, the excess can be apportioned. Many schemes adopt a by‑law specifying who pays the excess for different scenarios; check your by‑laws.