The United States of Strata Australia - Part 6

We are a nation that speaks 8 separate strata dialects, yet the basic strata concepts are the same across the nation. So are the issues that trouble us. As we seek to understand what unites us and what divides us, this week our focus is the Australian Capital Territory.

The ACT has a concentrated strata presence with 77,932 lots across 4,840 schemes. Here are some other highlights of the latest research about the ACT strata market:

1. 22% of the population live in strata (compared to 15% nationally).
2. 57% of ACT strata schemes contain 5 lots or fewer, yet 54% of all lots are in schemes larger than 50 lots.
3. 60% of residents are aged between 20 – 39.

What makes the ACT's strata laws distinctive?

1. Recent law reform: The ACT has implemented staged strata law amendments through legislation in 2020, 2023, and 2024. Changes include mandatory electronic voting, remote meeting provisions, and new disclosure requirements for rental certificates.
2. Developer licensing scheme: Responding to $50 million annual building defect costs, the ACT introduced the nation's first mandatory developer licensing under the Property Developers Act     2024. The scheme reverses the onus of proof for defects and requires specialist capability assessments.
 
3. Extended warranty periods: The ACT provides 6-year statutory warranties for structural elements and 2-year warranties for non-structural work. The Construction Occupations Registrar has powers to issue rectification orders up to 10 years after non-compliance.

ACT strata is characterised by a high proportion of residents living in strata housing and a young demographic profile. Recently, the territory has implemented various reforms addressing building defects, governance modernisation, and consumer protection. As we continue our exploration of Australia's diverse strata landscape, the ACT demonstrates how smaller jurisdictions can implement comprehensive legislative reform within relatively short timeframes.

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