Block Aid 2026: How Far Has Strata Regulation Come Since '94?

This article revisits a 1994 CHOICE Magazine investigation into Australia's strata management industry, examining what regulatory progress has occurred in the three decades since. The original exposé revealed that outside NSW and the Northern Territory, anyone could become a strata manager without licensing or qualifications - opening the door to operators with no accountability and nothing to lose.

A patchwork of progress

The regulatory landscape has diverged significantly across Australian states. NSW has implemented the most comprehensive protections through a two-tier licensing system requiring; Certificate IV qualifications, professional development obligations and an enforcement authority. Victoria, the ACT and Queensland have introduced registration requirements, yet South Australia, Tasmania and historically Western Australia have lacked meaningful regulatory frameworks until recently.

Insurance commission scandals persist

A persistent problem highlighted in both 1994 and the present day concerns insurance commissions. Recent scandals mirroring the Alliance Strata Management affair prompted NSW to mandate disclosure of commissions, broker fees, and supplier relationships from February 2025. This transparency requirement remains inconsistent across other jurisdictions.

What this means for South Australian owners

South Australian owners are protected by two key laws - the Community Titles Act 1996 and the Strata Titles Act 1988 - which require trust account safeguards and provide access to dispute resolution through SACAT (the South Australian Civil and Administrative Tribunal) the state's main body for resolving strata and community title disputes.

That said, there are real gaps: SA has no mandatory qualification requirements or professional indemnity insurance for strata managers. Until that changes, owners need to take a more active role in protecting themselves. One useful check is whether their manager holds SCA (Strata Community Association) accreditation - a voluntary program that recognises managers who meet certain professional and conduct standards. Beyond that, it's worth asking for full commission disclosures, making sure a proper contract is in place and staying engaged with how their scheme is being run.

The case for national reform

While NSW has substantially addressed the 1994 concerns, reform remains incomplete nationally. The escalating importance of competent scheme management - given rising apartment living proportions and building defect implications - argues for comprehensive legislative modernisation before further scandals occur.

If you want to discuss this further or are keen to switch strata management providers, give us a call on 1300 792 255 or email hello@acaciacollective.com.au.