What NSW's Strata Shake-Up Means for South Australian Owners

New South Wales has just delivered the most significant overhaul of strata laws in a decade. It's a direct response to a sector-wide scandal that exposed hidden fees, undisclosed commissions, and a fundamental conflict of interest baked into the way most strata management companies operate.

It's welcome news for NSW apartment owners. But if you own property in a strata scheme in South Australia, you might be wondering: what does any of this have to do with me?

More than you'd think — and less than you deserve.

What triggered the reforms

In early 2024, the ABC's Four Corners program aired an investigation that sent shockwaves through the Australian property sector. Strata management firms — primarily in NSW — were found to be charging insurance commissions at multiples of the industry standard, accepting undisclosed kickbacks from contractors, and operating in ways that clearly prioritised company profit over the interests of the owners they were supposed to serve.

The public response was overwhelming. Thousands of apartment owners across Australia came forward with their own experiences. It became clear quickly that the problems weren't isolated — they were structural.

The NSW Government moved decisively. New legislation introduced mandatory disclosure of commissions, restrictions on what strata managers can charge and receive, stronger enforcement powers for Fair Trading, and a suite of governance reforms that took effect through 2024 and 2025.

So what's changed in South Australia?

In short: not much. Not yet.

The reform activity has been almost entirely concentrated in NSW, which has the country's largest and most scrutinised strata sector. South Australia has its own strata legislation — the Community Titles Act 1996 — but it hasn't undergone the same level of reform, and the regulatory protections for SA strata owners remain comparatively limited.

That means the same conditions that enabled the problems uncovered in NSW exist here too. Hidden commissions aren't illegal in SA. Disclosure requirements are less stringent. And the conflict-of-interest problem at the heart of traditional strata management — where the manager answers to shareholders rather than the owners they serve — is just as present.

The conflict-of-interest problem regulation can't fully solve

The NSW reforms are meaningful. Requiring strata managers to disclose commissions, banning certain fee arrangements, giving regulators more teeth — these are all good things.

But they address the symptoms of the problem, not the cause.

The underlying issue is structural: most strata management companies are owned by shareholders whose interests don't align with the owners they manage. When those two sets of interests diverge — and they do, regularly — the manager has an incentive to favour profit over service.

Regulation can limit how that plays out. It can't eliminate the incentive itself.

What SA owners can do now

You don't have to wait for legislative reform to protect your community's interests. A few practical steps worth taking:

Ask your strata manager what commissions they receive. On insurance, on contractor referrals, on any service they arrange on your behalf. A good strata manager will answer clearly. Evasion is a signal.

Review your management agreement. Understand what fees are fixed, what's variable, and what services are included vs. charged separately.

Use the free assessment tool. We've built a simple 10-question check that gives you an honest picture of whether your current strata manager is meeting the standard your community deserves. It takes about two minutes.

Know that alternatives exist. The traditional strata management model isn't the only option. Member-owned structures — where the company is owned by the body corporates it serves — remove the conflict of interest entirely, rather than trying to manage around it.

South Australia will catch up to NSW eventually. Regulatory change in this sector tends to follow public pressure, and that pressure is building nationally. But the question of whether your strata management is working in your community's interests is one you can answer right now — without waiting for the law to require it.