McCormacks answers frequently asked strata questions from NSW owners and strata committee members.

Question 1 – A media company has offered to install monitors in our lobbies — how can we approve this?

A media company has offered to install monitors in our lobbies, to carry building notices, at no cost to the Owners Corporation, however there will be advertising displayed. Can the Strata Committee approve this and just inform owners, or must there be formal approval from Owners Corporation via a general meeting?

Answer: Between general meetings, the strata committee is the owners corporation and may make decisions on behalf of the owners corporation unless there is a specific matter in the Act that requires a general meeting. 

Such items include adding to or enhancing the common property (s108), and licensing common property to a third party (s112) – both requiring a special resolution.

On a leased, temporary basis, the installation of the monitors is unlikely to be classed as an enhancement to the common property.   Therefore, I would request a copy of the agreement that is to be put in place for the monitors and if there is a licensing of common property for the space the monitor will utilise then a special resolution may be required.

If neither of the above apply, then the strata committee is entitled to authorise the monitors in their own capacity.

August 2026 NSW LookUpStrata Magazine

Question 2 – Is there a requirement to have a planned maintenance schedule?

Should strata committees plan maintenance instead of reacting? Is there a requirement for strata managers or committees to have a planned maintenance schedule?

Answer: There’s no legal requirement for a preventative maintenance schedule, but adopting one is widely considered best practice.

I think an annual walkaround with the owners, the strata committee and the strata manager is a really great idea so you can begin to put a list of items together.

Question: If we organise a yearly on-site walkaround, should we discuss what’s needed, then develop a budget to hire local trades to do the work?

Answer: Building a relationship with local trades is a really positive initiative. You can begin scheduling out maintenance and small improvements over the course of 12 months or have a one-year and a three-year plan.

July 2026 NSW LookUpStrata Magazine

Question 3 – Do any strata laws prevent owners doing general gardening?

Do any strata laws stop a lot owner from doing general gardening tasks on common property if the committee approves?

Answer: General pottering is fine with strata committee approval, but agree the scope upfront and check your voluntary workers insurance covers the activity.

We often get asked about gardening and community gardens in particular, which are a trend in strata. In our experience, owners who take pride in their building and want to help keep gardens and common areas looking their best are typically welcomed by owners and the committee.

With the strata committee’s approval, owners can attend to the gardens on the common property, but within reason. We suggest you agree the scope of what can and cannot be done with the strata committee: tidying leaves and edges, no problem. Planting or removing plants, and making significant changes to the garden, may constitute changes or enhancements to the common property that may require resolutions of the owners corporation. If you’d like to do larger changes, you’ll need to take a proposal to the committee for discussion and approval.

Your building will have a voluntary workers insurance policy, which is compulsory under section 164 of the Strata Schemes Management Act 2015.

This covers persons undertaking work on the common property without monetary reward if there is an accident or injury. This should provide your committee with a level of comfort, too.

In summary, general pottering in the garden is fine, but check in with your strata committee and strata managing agent first.

June 2026 NSW LookUpStrata Magazine

Question 4 – Is there any value in reporting committee actions and achievements?

Our scheme is well-maintained and we all get on well, but we struggle to communicate that to owners. Is there any value in reporting on committee actions and achievements even when nothing major is going wrong?

Answer: Yes. Regularly communicating positive committee actions to owners builds trust, encourages engagement and pays off when things go wrong.

Always communicating the positives to owners is a really good initative. The committee can record actions in the strata committee meeting minutes. Place a note to owners at the top of the minutes saying this is what the strata committee has been doing on your behalf. If people see that things are actually happening and being done well, they might be encouraged to join the strata committee and make a contribution.

This will help you in the long run, because when things do go a little bit wrong or something big happens, the owners will have a lot of faith in the strata committee that they are doing the right things.

April 2026 NSW LookUpStrata Magazine

Question 5: Can funds from a special levy be transferred to the capital works fund?

Can funds from a special levy held in the administrative fund be transferred to the capital works fund to cover related expenses, and would this be treated as a loan?

A special levy of $110,000 was raised four years ago and deposited into the administrative fund. In the first two years, $80,000 of that levy was spent from the administrative fund. In the third year, $15,000 was spent from the capital works fund for expenses related to the special levy.

Should $15,000 of the remaining $20,000 in the administrative fund be transferred to the capital works fund to reimburse that spend? I believe this may be treated as an inter-fund loan under Section 76 of the Strata Schemes Management Act 2015.

Answer: Your situation is not uncommon. When a special levy is raised, there is typically a specific purpose and amount assigned to that levy, which is noted in the minutes and on the levy notice.

In an ideal world, there would be an income item for the special levy and a matching expense line item for the associated expenditure, all within the same fund. However, this is rarely achieved, and your situation is not uncommon.

The Strata Schemes Management Act 2015 does not require special levy income to be isolated for that specific expenditure over multiple years. In this instance, the remaining $20,000 from the special levy may have been consolidated into general revenue and expenses in the administrative fund.

Therefore, it comes back to what expense the special levy covered – if it was capital in nature, the owners corporation is not wrong to pay this from the capital works fund. Likewise, if the expense was administrative, it should be moved to the administrative fund (no Section 76 resolution is required).

If the balance of the special levy funds were depleted by consolidation into general revenue, then a transfer of the expense from the capital works fund to the administrative fund may cause the administrative fund to go into deficit. The remedies available for this are to make a transfer under Section 76 to replenish the administrative fund or raise a special levy.

Summary

• If there are special levy funds remaining in the administrative fund then the expense should be put in the administrative fund on the accounting principle of income and expense matching.
• If the expense is administrative in nature, then it should be paid from the administrative fund. If special levy income has been depleted then a Section 76 transfer resolution or further special levy may be appropriate.
• If the expense is capital in nature and there are no special levy funds remaining then the expense should remain in the capital works fund.

April 2026 NSW LookUpStrata Magazine

Question 6: Do all the new changes in NSW strata legislation ultimately result in higher costs of strata living for owners?

Answer: Take a very laser-like view of your financials. I’m all for a well-maintained building because it will lead to lower long-term costs.

Some strategies to combat higher costs of strata living are getting preferred rates with your trades, making sure you’re putting your services out to competitive tender, and reviewing your budget to understand exactly where your money is going each year.

If you’re thinking, “we’re spending a lot on our mechanical services”, this should trigger the thought, “do we need to replace that? Is there an issue?”

Just take a very laser-like view of your financials.

April 10 2026 NSW LookUpStrata Magazine

Question 7: How can a smaller strata scheme introduce preventative maintenance and future-proofing without overcomplicating?

Our building does not have a clear long-term maintenance schedule or preventative plan. We always wait for things to break before we fix them. As a smaller strata scheme, what is a simple, scalable way for us to introduce basic preventive maintenance and future-proofing practices without creating an overly complex system or adding excessive administration?

Answer: Smaller schemes don’t need complex systems.

Smaller schemes don’t need complex systems, just a few simple best practice tips that keep you ahead of repairs and aligned with NSW’s direction toward stronger maintenance and better long-term planning.

Repairs and Maintenance Best Practice Tips:

1. There is no defence for failing to maintain common property. Section 106 of the Strata Schemes Management Act 2015 makes this clear. Good maintenance foundations protect asset value, extend the life of your building, and reduce risk, including the higher cost of postponing certain repairs.
2. Create and actively maintain a high-quality trades register. Build long-term relationships with reliable service providers who understand your building and deliver against a clear scope of works.
3. Treat your 10-Year Plan as an asset register. Know your major assets, their life expectancy and replacement value in today’s dollars. Identify your top 10 items and map out what needs to be funded over the next 5–10 years to stay ahead.

February 2026 NSW LookUpStrata Magazine

Question 8: In our building, many owners, particularly investors, prefer not to engage, limiting committee membership.

This makes rotating the pool of committee members almost impossible. Do you have any suggestions to remedy this?

Answer:  If someone’s retiring from the committee, mention that in the minutes and put a note at the top of the minutes to say we’re looking for volunteers.

It’s often the case that you’re going to have more owner occupiers on a strata committee than you are investors. I would argue that for many people, this is their single biggest investment and they really should look after that investment. One of the ways to do that is to be on the strata committee.

How do you get those people on the committee? Talking to people during the year. I understand it’s harder to talk to the investor owners, but you can also communicate through minutes. If someone’s retiring from the committee, mention that in the minutes and put a note at the top of the minutes to say we’re looking for volunteers. Also remind everyone that it may not be as much hard work as you imagine because tasks can be delegating to your strata manager.

January 2026 NSW LookUpStrata Magazine

Question 9: How can we encourage more balanced participation and fair decision-making when a few committee members dominate discussions?

There’s an ongoing power struggle within our NSW strata committee. A few dominant members make most of the decisions, while the rest of us feel excluded from having any meaningful input. What are some best practice steps or governance measures we can take to promote transparency, equal participation, and fair decision-making in our committee meetings?

Answer: Focus on transparent decision-making, respectful discussion at meetings, and constructive engagement with fellow owners.

This is probably one of the hardest parts about strata living. We’re in a democracy, and owners elect certain people to represent them. Some of those people are more energetic or have stronger views about the direction the building should take, which can lead to tension in decision-making.

I’d suggest holding regular strata committee meetings where decisions are properly discussed and recorded. It sounds like this person is already on the committee but feels sidelined. If that’s the case, the next annual general meeting (AGM) is an opportunity to speak with other owners and express your views. You might encourage others who share your perspective to join the committee.

Unfortunately, committees can sometimes become factional, which makes things difficult. That’s part of the political nature of owners corporations. The best you can do is to focus on transparent decision-making, respectful discussion at meetings, and constructive engagement with fellow owners. If that doesn’t lead to change, use the AGM as a chance to talk to others about how the committee might work more collaboratively in the future.

November 2025 NSW LookUpStrata Magazine

Question 10: Should strata managers challenge a committee on poor governance and non-compliance?

Should a stratta manager take a stronger role in challenging a committee on poor governance or non-compliant decisions, even if it risks conflict?

Our strata manager is responsive but avoids challenging the committee on questionable decisions or governance issues. Should a strata manager take a more proactive role in advising the committee and ensuring compliance with legislation, even if it creates tension?

Answer: If the strata manager is providing frank advice that complies with the Act, that will earn the respect of everyone.

The strata manager probably knows that the strata committee is the one effectively responsible for recommending renewal of their agreement, and sometimes there’s a reluctance to stand up to the committee.

It’s great that the strata manager is responsive. That’s probably one of the biggest criticisms you hear about strata managers, that they’re not responsive, that they don’t reply because they’ve got so much going on.

I form the view that you’re better off standing up to a committee in the long run. Nine times out of ten, if you tell the committee what the law is, how they should be doing things in line with best practice, and help find compliant solutions that achieve their objectives, they’re going to respect you more. You’ll earn the respect of both the strata committee and the owners more than if you simply bend the knee to the committee.

I would encourage this person to reinforce to the strata manager that they have the support of the owners as well. If the strata manager is providing frank advice that complies with the Act, that will earn the respect of everyone.

November 2025 NSW LookUpStrata Magazine

Question 11: What does best practice look like in 2026?

Strata living is evolving fast, and committees can no longer afford to take a reactive approach to building management. Tighter compliance requirements, changing legislation, and rising owner expectations mean that proactive, best practice management has become essential to maintaining both the value and harmony of strata communities.

In LookUpStrata’s webinar, NSW: Bringing best practice to your strata building – large or small, Hugh McCormack from McCormacks Strata Management explored what best practice truly means in 2025. Drawing on decades of experience managing some of Sydney’s most complex and high-performing schemes, Hugh outlined how clear governance, preventative maintenance, and consistent communication form the backbone of a successful strata building.

The discussion focused on what committees, managers and owners can do to build resilience, reduce risk, and improve decision-making.

Answer: Why best practice matters

Hugh McCormack began by explaining that every building develops a culture, and best practice is what shapes that culture into something constructive. Strata committees that operate transparently and professionally not only make better decisions but also earn the trust of their owners. That trust, he said, makes it far easier to navigate major projects or levy increases when they arise.

He also noted that a focus on quality governance attracts engaged owners who want to contribute. When people see that their committee is well run, they are more likely to join it and share the workload. This is a crucial factor in the long-term sustainability of any scheme.

Watch the video.

Governance and committee operations

Good governance was identified as one of the defining features of best practice buildings. According to Hugh, effective committees:

• Actively recruit members with a mix of relevant skills, from accounting and finance to trades and project management.
• Rotate key roles such as chairperson every three to five years to encourage fresh perspectives and prevent burnout.
• Hold regular, structured meetings — ideally quarterly — with clear agendas, action items, and accountability for follow-up.

He emphasised the importance of documenting committee processes, from approval limits to communication protocols. “When you agree on how you’ll operate and record it, everyone is on the same page,” he said. “It removes ambiguity and protects individuals legally.”

Hugh also recommended creating an executive summary at the top of meeting minutes, written in plain language, to improve engagement with owners who may not read the full document. This is a great way to summarise the key takeaways and let people know what’s happening in their building.

Maintenance and managing trades

Preventative maintenance was another key theme. Hugh reminded attendees that there is no defence for not maintaining common property and encouraged committees to be proactive rather than waiting for things to break.

He advised developing a preventative maintenance schedule supported by a clear contracts register showing key service dates and renewal periods. Committees should also build strong relationships with trusted tradespeople. When you treat your trades well, they are more likely to be there for you when it matters, such as in emergencies or late on a Friday afternoon.

Loyalty and trust, Hugh added, often deliver better long-term outcomes than switching contractors purely on price. However, he suggested testing the market periodically to ensure competitiveness while maintaining those relationships.

The value of planning ahead

Hugh encouraged schemes to review their 10-year capital works plan every year rather than treating it as a static document. The maintenance plan doesn’t need to be complicated. It’s a great idea to focus on your top five or ten major assets. By keeping the plan simple and up to date, committees can make informed financial decisions and avoid being caught off guard by unexpected expenses.

He also highlighted the connection between proactive maintenance and cost control. If you maintain your building properly, it costs less in the long run. The challenge is convincing owners that preventive investment now will save them significant money later.

Bylaws and consistency

Another marker of a well-run building is consistent and fair bylaw enforcement. Hugh said best practice committees communicate clearly about bylaw expectations and apply them equally to everyone.

Start with the basics, such as a clean car park. The state of the common property can tell you a lot about a building’s culture. Do the small things right and apply them consistently, and you’ll see better results across the board.

He also reminded committees to document bylaw procedures and give residents a reasonable time to comply before escalating matters to mediation or NCAT. Consistency over time, he said, creates a positive culture of compliance.

Trends shaping NSW strata management

In closing, Hugh outlined several major reforms on the horizon for NSW strata schemes:

• Levy recovery reforms: New consumer-focused rules mean payment plans will become more common, and recovery costs can no longer be charged directly to owners in arrears.
• Mandatory strata committee training: Coming soon through NSW Fair Trading to ensure all members understand their obligations.
• Standardised 10-year capital works plan format: Requiring a more consistent approach across schemes.
• Updated fire safety regulations: Set to increase compliance costs from 2026.

While these changes may increase short-term expenses, Hugh stressed that they ultimately improve transparency and protect the long-term value of strata assets.

Takeaways for committees and strata managers

Hugh’s closing message was simple: not every building can implement every best practice immediately, but starting small makes a difference.

For committees:

• Hold regular meetings and document decisions properly.
• Build relationships with reliable trades and reward consistency.
• Keep communication open and proactive, even when nothing major is happening.
• Review financials and capital plans regularly to avoid surprises.

For strata managers:

• Support committees with timely information and frank, compliant advice even when it’s not the easiest or most comfortable path to take.
• Encourage consistent communication and record-keeping.
• Educate committees about compliance and risk management to prevent reactive decision-making.

Best practice isn’t about perfection. It’s about continuous improvement.

Watch the webinar:

This NSW-focused webinar offered a practical, honest look at what it takes to run a successful strata building in today’s environment. From governance to maintenance and bylaw enforcement, Hugh McCormack’s insights gave attendees a roadmap for more transparent, resilient, and future-ready communities.

If you joined the session, rewatch the recording to revisit the strategies shared. If you missed it, this is a must-see presentation for every committee member or strata manager looking to raise standards and lead their building with confidence.

Updated April 2026

Question 12: Are windows strata responsibility?

In a fire zone, are repairs to windows and special gauze screens the responsibility of the owners corporation or the lot owner?

Our unit is located in a designated fire zone that requires special gauze screens on the windows. Are repairs to the windows and these screens the responsibility of the owners corporation, or should the lot owner bear the cost?

Answer: If these gauze screens were original or installed by the owners corporation for fire protection, most likely the screens are the responsibility of the owners corporation to repair and maintain.

In NSW, the structure, windows, doors and screens that form the boundary of the lot are typically common property where they were original to the building. If these gauze screens were original or installed by the owners corporation for fire protection, it is most likely the screens are the responsibility of the owners corporation to repair and maintain.

However, you should review the strata plan and bylaws to ensure there are no notations or bylaws stating otherwise.

Updated April 2026 NSW LookUpStrata Magazine

Question 13: How should an owners corporation process a payment ordered by NCAT to a lot owner?

Our owners corporation was involved in an NCAT matter with a lot owner. The tribunal found in favour of the lot owner and ordered the owners corporation to pay them a specified amount.

What is the correct process for making this payment? Should we pay it directly from the owners corporation’s general account, or treat it as a separate special payment that requires specific authorisation?

Answer: A special levy needs to be raised for the amount of the costs and levied to all owners, with the exclusion of that owner.

No, the payment cannot be simply paid out of regular funds held in the owners corporation administrative or capital works fund because, in effect, the successful owner would be contributing to the costs in an action that they were successful.

Section 104 of the Strata Schemes Management Act 2015 requires that a special levy be raised for the amount of the costs and levied to all owners, with the exclusion of that owner. Like any levy, the special levy must be passed at a general meeting of the owners.

Updated March 2026 NSW LookUpStrata Magazine