UNDERSTANDING STRATA

Strata Schemes Management Act 2015

Strata Schemes Management Act

The Strata Schemes Management Act 2015 is designed to help strata committees, owners and residents live and work together for the benefit of the strata community. It includes 18 model by-laws that owners corporations can adopt or amend, to ensure they have all the normal things covered.

What the Strata Schemes Management Act 2015 Does

The Strata Schemes Management Act 2015 (SSMA 2015) is a key piece of legislation governing the management of strata schemes in New South Wales. It outlines the duties and powers of owners’ corporations, committees, and strata managers, ensuring that strata schemes are run smoothly, fairly, and legally. This legislation covers everything from governance and decision-making to financial management and dispute resolution.

To dive deeper into the Strata Schemes Management Act 2015, check out the official document on the NSW Legislation Website.

Key Parts of the Act for Owners and Committees

The SSMA 2015 provides specific guidelines for owners and committees in areas such as maintenance, levy collection, and decision-making. Some of the most important parts of the Act include:

The powers of owners’ corporations in managing shared property.
Committee responsibilities in maintaining the property and overseeing financials.
Guidelines for disputes, mediation, and tribunal involvement.

Meetings, By-laws and Decision-Making

One of the central aspects of the SSMA 2015 is its framework for meetings and decision-making. The Act sets out the rules for annual general meetings (AGMs), committee meetings, and decision-making processes within a strata scheme. It also governs the creation and enforcement of by-laws, which are essential for maintaining order within the building.

Understanding the rules of meetings and by-laws is crucial for committees and owners. For more information on how these processes work, visit NSW Fair Trading’s Strata Schemes page.

Financial Management, Levies and Capital Works

The Strata Schemes Management Act 2015 also covers the financial aspects of strata schemes, including the levy system, budget preparation, and the establishment of capital works funds. These funds are crucial for planning and maintaining the building over the long term. The Act requires owners’ corporations to maintain proper accounts and ensure the funds are used appropriately.

For a detailed look at levies, fees, and capital works funds, check out our Strata Levies Explained page and Strata Fees page.

Repairs, Maintenance and Defects

Under the SSMA 2015, owners’ corporations are responsible for the maintenance and repair of common property. This includes handling defects, engaging contractors, and ensuring that repairs are done in compliance with the building’s by-laws. The Act provides a framework for addressing maintenance issues in a timely and efficient manner.

Disputes, Mediation and Tribunal

The SSMA 2015 also provides a structure for resolving disputes between owners, committees, and strata managers. Mediation is often the first step, but the Act allows for escalation to a tribunal if necessary. Strata schemes are encouraged to resolve issues internally, but legal options are available for more serious matters.

If you’re interested in how mediation can help resolve issues in your strata scheme, check out our Mediation page.

How Strata One Keeps Buildings in Step With the Act

At Strata One, we ensure that your building stays compliant with the Strata Schemes Management Act 2015. We handle financial management, maintenance planning, and dispute resolution in full alignment with the SSMA 2015. Our experienced team provides regular updates and helps your owners’ corporation navigate the complexities of the Act.

For more on how we ensure compliance, visit our Strata Compliance page.

AFSS and Fire Safety FAQs

What is the purpose of the SSMA 2015?

The SSMA 2015 provides a comprehensive framework for managing strata schemes in NSW, covering everything from property management and financial duties to dispute resolution.

How often do we need to review the Act?

It’s essential for committees and owners’ corporations to regularly review their understanding of the SSMA 2015, especially when new legislative updates or compliance requirements are introduced.

What are the main responsibilities of a strata manager under the SSMA 2015?

Strata managers are responsible for ensuring the proper functioning of the strata scheme, which includes overseeing maintenance, compliance, and financial management in line with the SSMA 2015.

How are arrears on strata fees handled?

Owners often ask what happens when strata fees fall into arrears. In most NSW schemes, unpaid levies accrue interest after the due date. If amounts remain outstanding, the owners’ corporation may start recovery action, which can include reminder notices, referral to debt collection and, where necessary, legal proceedings. Our role is to apply the building’s policies consistently, keep the committee informed and work with owners early to minimise escalation.

Why do strata fees increase?

Another common question is why strata fees in NSW increase over time. In many cases, increases are driven by rising contractor costs, insurance premiums, new compliance requirements or the need to improve contributions to the capital works fund so longer-term projects can be funded without constant special levies. When we prepare budgets, we explain the main cost drivers in simple terms so owners can see how each component has been set.

Are my strata fees too high for this type of building?

Owners and buyers frequently want to know whether their contributions are reasonable for the age, size and facilities of the scheme. When we review a building, we compare its fees and planned spending with typical ranges for similar properties and look at the condition of common property and the strength of the capital works fund. Our general frequently asked questions content gives plain language responses about levies, budgets and running costs, and we build on this with scheme-specific advice so committees can explain why contributions are set at current levels.

Download a One-Page SSMA 2015 Committee Checklist

If you’re unsure whether your committee is fully compliant with the Strata Schemes Management Act 2015, we offer a one-page SSMA 2015 checklist to help you stay on track. Simply download the checklist to review your current practices and ensure compliance.

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