The SM doesn’t usually copy the EC on the tax return, but all owners should see the tax agent’s fee and any tax paid in the annual accounts.
Whether you get interest depends on whether the SM holds your funds in their trust account or an individual trust account for your Strata Plan.
If it’s in their trust account, any interest is on-paid by law to … guess who … Fair Trading.
Our (large) SM used to do this until several years ago. The interest on-payment is actually at a “deemed” rate, so I guess when interest rates fell, and SMs were no longer making a “profit” (on top of management fees and undisclosed insurance commissions), maybe even making a loss, they changed all their clients to individual trust accounts. Or maybe they just decided that was the fair thing to do after all those years.
When the SP earns interest, it has to submit a tax return.
Our tax return cost $165. At the RBA cash rate of 2.75%, if your SP’s accumulated funds are over $8,571 then it’s better to have an individual trust account. [165/0.0275/0.7]
If your SP’s accumulated funds are not over $8,571 then you should probably review your 10-year Sinking Fund Plan.
You should probably also instruct your SM to open an individual trust account.
If they don’t want to, then get a new SM.