Strata managers demand more defect protections

Australia’s Strata managers have called for reform of apartment block defects’ rectification laws nationally, saying that unit owners are paying too high a price for fragmented and inadequate regulations.

Strata Community Association, the peak body for strata managers nationally – although with highly variable levels of engagement and professionalism in different states – says the country’s strata sector is under growing pressure as building defects continue to place financial and emotional burdens on owners.

From high-profile cases like Mascot and the Opal Towers debacles to countless untold stories, widespread less major but highly significant defects such as water ingress, unsafe cladding, and structural issues, developers are leaving strata owners to foot the bill for costly repairs.

“Building defects can lead to a devastating financial and emotional blow to owners,” says SCA National President Joshua Baldwin.

“People invest in these properties to create a home or secure their future, yet too often they’re left fighting legal battles, facing special levies, or seeing their property values plummet. This must change.”

SCA says it is advocating for key reforms to shift the balance of responsibility back to developers and builders, including mandatory developer bonds to ensure that financial safeguards are in place to cover defect rectifications, protecting owners from unexpected repair costs.

NSW currently has a 2% bond in place which will increase to 3% in July 2025. Victoria is introducing a similar scheme in July 2025 however the other states are yet to get on board with this essential consumer protection.

The SCA also wants warranty periods to be extended to better reflect the lifespan of key building components, such as fire systems and waterproofing.

And it calls for stricter accountability by introducing tougher licensing requirements, public defect registers, and personal liability for directors of development companies to prevent poor workmanship and fly-by-night operators. “We’ve seen progress in some states, but this needs to be a national priority,” Mr Baldwin continued. “Strata living is the future for millions of Australians, and they deserve to live in safe, high-quality homes — without fearing surprise costs from poor construction.”