For the professionalisation of strata management, there are only five things that matter. Ethics. Education. Experience. Examination. Entity.
Progress is being made on many fronts.
Strata managers across the country are grappling with the ethics of insurance commissions and related party transactions. Dr Nicole Johnston’s report, commissioned by the NSW Government, is comprehensive and instructive.
Education standards are rising. In NSW, a compulsory diploma in strata agency practice is now required for the top level of strata managers’ licence. WA announced this week a compulsory Cert IV course for strata managers.
Regarding the requirement for experience and examination, in states that have licensing and registration systems, standards are working.
It’s the last of the 5 E’s of professionalisation that’s fracturing. Without a strong national association of strata managers, there is no one to drive and deliver the other elements. That’s why most of the progress we are seeing towards professionalisation is coming from state governments. We don’t truly become a profession until we set and uphold our own standards.
Think of the Australian Medical Association, Law Societies, Chartered Accountants Australia, Engineering Australia, and the Australian Banking Association. These bodies set ethical standards, oversee education requirements, and define their unique body of knowledge. They stipulate the necessary practical experience for admission. Peers review education and scrutinise experience. They fiercely maintain standards, unafraid to name and expel those who do not measure up. It is inconceivable that these professions could exist, and do their good work, without a strong national body to guide them.
On this front, the professionalisation of strata management in Australia is going backwards.
There is no single national association. The real estate bodies are state-based, and strata is a sideline. SCA is also state-based, albeit with a singular focus on strata. It’s a federation of state bodies that are deeply divided on important issues. They are heavily dependent on suppliers to keep the lights on in each of the states and territories.
SCA members and suppliers are running out of patience, especially with SCA (NSW). Its competitor, REINSW, just saw its highest quarterly spike in membership ever. Even though not everyone loves being associated with realtors.
Since the ABC investigation, The Strata Trap, SCA NSW has taken three initiatives towards redemption. All laudable, but all lamentably executed. To wit -
1. Redrafting its notoriously confusing and one-sided standard form agreement. It remains unnecessarily complex and unfair.
2. The new Code of Ethics at clause 1 says, ‘Members must avoid actual or potential conflicts of interest’. So far so good, until you get to clause 2: ‘Members must disclose all actual or potential conflicts of interest.’ Confused? I am. Others are too.
3. And this week they did a complete backflip on their ‘milestone moment’ announcement of 02 September. On that date, they announced that, starting on 1 January 2026, members will begin a phased replacement of insurance commissions. New standard management contracts issued by members would not include an option to accept commissions on insurance products. This week, SCA (NSW) did a backflip on this, and said they were 'reaffirming their position that this would be a voluntary decision for members’. There was nothing voluntary about their first announcement.
And to top things off this week, SCA National released a new ad campaign: ‘What’s the one question you should ask your strata manager? Are you with SCA?’ How about asking this instead: ‘How do you live up to your professional standards?’
It gives me no joy to call out these bad decisions, but someone has to. SCA (NSW) are hurting my clients who are trying to get on with doing the right thing and lift standards. It is hurting managers nationally. It’s also hurting owners everywhere. They want to rebuild trust between managers and owners, not just see mere window dressing and self-indulgent backslapping at a never-ending series of awards and dinners.
If SCA (NSW) does not get its house in order immediately, the national federation will fail, and we will be set back years. Frankly, it’s probably too late. If members agree, then it’s time to decamp and invest your trust, and membership dollars, elsewhere.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
