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WA STRATA TITLES ACT 1985: Key Changes for Body Corporate Managers, Owners & Council of Owners

The WA Strata Titles Act 1985 outlines the compulsory adherences for the governance and operation of strata title schemes. On 1 May 2020, key changes to the Strata Titles Act were introduced. It is important that owners, council of owners and body corporate (strata) managers are aware of these changes.

Below is a list of some of the key changes to the Strata Titles Act

 1. By-laws

All by-laws need to be labelled as either “Conduct By-laws” or “Governance By-laws”.

2. Increase in penalty for breach of by-laws

The maximum amount that the State Administrative Tribunal (SAT) can impose by way of penalty is now $2,000.

3. All resolutions must be fair and reasonable

The SAT has the power to overturn a resolution of the Strata Company should it deem that the resolution is unfairly prejudicial or discriminatory, oppressive or unreasonable. This is even if the majority of owners support the resolution.

4. Financial Year End

 The financial Year End for all Strata Companies shall be 30 June. This does not apply to a Strata Company until the end of the 5-year transitional period, being 1 May 2025.

Should a Body Corporate or Strata Company wish to have a different year end, a Governance by-law must be adopted, however, this can be done via an ordinary resolution.

5. Voting

Votes can now be taken outside of a general meeting and can be electronic.

6. Quorums

This is now in the body of the Act which states that a quorum is 50% of those owners entitled to vote, meaning all arrears are paid as at the date of the notice of meeting.

7. Strata Managers

Strata Managers, or Body Corporate Managers, are now defined in the Act and must have a written contract with the Strata Company (Body Corporate). The contract must specify the functions that are to be performed and the remuneration to be received.

8. 10-year Plan

With the exception of schemes with less than 10 lots and a building replacement cost of less than $5,000,000, a 10 Year Maintenance Plan must be determined and adopted. This plan must be updated every 5 years and be for a duration of not less than 10 years.

i.fresh strata is a member of STIWA National Community Titles Institute Urban Development Institute of Australia i.fresh strata support Carbon Neutral Make Poverty History