The Real Value of Transparent Communication in Strata

In summary

  • In a strata scheme, transparency comes down to whether owners can follow what is being decided, why it is needed and how the decision will be made. The volume of correspondence they receive matters far less.
  • Clear, timely communication can avoid disputes, help owners take part in decisions with confidence, and make difficult outcomes such as special levies, defect rectification and rising insurance premiums easier to accept.
  • Staged reforms to NSW strata law, introduced between February 2025 and April 2026, have strengthened disclosure, reporting and access to records, so schemes that already communicate openly may find the new requirements a natural fit.

Clarity over volume

Ask a group of owners what transparency looks like and many will describe a full inbox: copied on every email, sent every quote, consulted on even the smallest detail. Yet, the schemes owners describe as well run, are seldom the ones generating the most paperwork. What sets them apart is that owners can readily recall what is being decided, why it matters and how the decision will be reached.

Handled well, transparent communication shows owners how the strata committee is working on their behalf, how the strata managing agent is supporting the scheme, and how each decision sits within the obligations the owners corporation must meet. Most of it happens through routine processes. The notice of an annual general meeting lists the motions to be put to the vote, the proposed budget and the contributions sought for the administrative fund and capital works fund. Minutes record what was resolved. Between meetings, levy notices, committee updates and correspondence from the strata manager keep owners across what has been decided and why.

Timely explanation prevents disputes

Most strata disputes start because of a gap in information rather than in any wrongdoing. An owner who cannot see why levies have gone up, or why a leak has taken months to fix, may reach for a worst case assumption. Explaining the position early usually stops a grievance from starting or progressing further.

That might mean flagging major works well before they begin, setting out the case for a special levy alongside the alternatives considered, or letting owners know when a repair is held up by something beyond the committee’s control, such as an insurer’s assessment or a contractor’s availability. Owners will not always like the answer, yet they are far more inclined to accept it once they can see how it was reached, and an owner who knows the background tends to ask a question rather than lodge a complaint.

Informed owners contribute with confidence

Owners who understand their scheme’s position ask better questions and make well informed decisions. When they can see the balance of the administrative and capital works funds, what the 10-year capital works fund plan anticipates and what is driving a proposal, they can engage with the decision itself rather than react to it afterwards. They are also more inclined to attend meetings and vote, which helps a scheme reach a quorum and produces outcomes that reflect the community as a whole.

In New South Wales, the financial statements and budget circulated ahead of each annual general meeting (AGM) are designed to give owners the full picture. From 1 April 2026, 10-year capital works fund plans must also follow a standardised form, which makes the long-term maintenance outlook easier to follow. A lot in a strata scheme is a significant asset, and understanding this material is part of managing that investment well. Where a cost is unclear, asking the strata manager or seeking independent advice is a reasonable next step.

Understanding softens hard decisions

Open communication helps when the news isn’t always positive. Special levies, defect rectification, insurance premium increases and changes in strata law can be a challenge to deliver, but easier to accept when the explanation behind them is transparent.

In a well-run scheme, significant decisions come with explanatory material: what the issue is, which options were considered, what each decision would cost and, where appropriate, why one course is recommended. Meeting papers, minutes and updates from the strata manager can all provide this context. Seeing how the committee reached it decision gives owners confidence that the matter received proper consideration. Confidence comes as much from the process as from the result.

Good records support accountability

Accountability starts with a clear and accessible record. When minutes and supporting documents show who decided what, on what basis and with what information in front of them, it is hard to question how the scheme is being managed. This protects committee members as much as it serves owners, since a decision properly explained at the time is easy to stand behind later.

In New South Wales, owners have a statutory right to inspect the scheme’s records, and the 2025 reforms tightened the timeframes for making documents such as minutes and budgets available. Since 1 July 2025, the strata managing agent must also report to the owners corporation every six months on the work carried out on its behalf, including the meetings convened, the notices issued and the funds applied to repairs and maintenance. Together, these records build a history that helps owners understand past decisions, supports transparency and responsibility, and gives each incoming committee valuable context.

Access is only the first step

Access lets owners see what is happening. Understanding lets them make sense of it.

Providing information matters, but access on its own does not always guarantee understanding. An owner can receive every notice, report and statement and still be unsure why a matter is significant or what it means for their building. A lengthy report may meet a disclosure requirement while leaving owners no better informed. Genuine understanding calls for one further step: helping owners see why the information matters and how it relates to their community.

A large part of that is knowing who does what. The owners corporation, the strata committee, the strata managing agent and, in larger schemes, the building manager each have distinct responsibilities, and knowing who decides, who instructs and who carries out the work gives context to everything. It also helps owners tell apart the matters the scheme is legally required to address, such as maintaining common property, insuring the building and meeting fire safety obligations, from those that are proactive risk management or simply good practice. That distinction sets realistic expectations.

The recent reforms to NSW strata law reflect the same thinking. Introduced in stages between February 2025 and April 2026 with more to come, they require strata managing agents to disclose commissions and related-party relationships more fully, to report to owners corporations every six months, and to include financial hardship information with levy notices, alongside tighter rules on access to records. Mandatory training for strata committee members is also to follow for new or reappointed members from 1 October 2026. The intent is clear: owners should be able to see, and understand their owners corporation’s obligations and how their scheme is run. Schemes that already communicate openly may find these requirements a natural fit.

The real value

Sharing information openly does not make difficult conversations go away. Levies still have to be raised, repairs still have to be funded and legal obligations still have to be met. Open communication can, however, give owners confidence that decisions are made openly, fairly and with the best interests of the whole owners corporation in mind.

In strata, trust is shaped less by the decisions themselves than by the way they are communicated. Owners who understand the reasoning, the process and the responsibilities involved are better placed to take part in the governance of their community. This is the real value of transparent communication: the understanding that information creates, which a good strata manager brings to every conversation.

How ASM Strata Management helps

At Australian Strata Management, clear communication is part of our service rather than an extra. We keep owners informed in plain language, make the information that matters easy to find, and help explain the context behind committee decisions so they are understood rather than simply announced. Your local ASM Strata Management team knows your building, your council area and the NSW legislation, and is ready to support your committee.

FAQs

Does transparency mean owners should receive every document?

Not always. The aim is understanding. Owners can inspect their scheme’s records, but day to day a clear summary with the reasons attached serves most owners better than a stream of attachments.

How do NSW strata laws support transparent communication?

Owners receive notices, budgets and minutes for meetings and can inspect the scheme’s records. Since 2025, strata managing agents must also disclose commissions and related-party interests more fully and report to the owners corporation every six months on the work done for the scheme.

Who is responsible for communicating with owners?

The strata committee makes decisions within its authority, while the strata managing agent typically issues notices, minutes, levy notices and reports on its behalf. The exact split depends on the management agreement.

What should our committee do if owners keep misunderstanding decisions?

Set out the reasoning and the options considered alongside each decision, keep records current and easy to access, and ask your strata manager to help present financial and technical information in plain language. Opportunities to present outcomes to the AGM is also a supportive measure.

Glossary of terms

Strata scheme: A property of individually owned lots and shared common property, governed in NSW by the Strata Schemes Management Act 2015.

Owners corporation: The collective body of all lot owners in a strata scheme, responsible for the common property, the scheme’s funds and its legal obligations.

Strata committee: The owners elected to make day-to-day decisions on behalf of the owners corporation.

Strata managing agent/strata manager: The licensed agent appointed to carry out the owners corporation’s administrative, financial and compliance functions.

Administrative fund: The fund that covers a scheme’s recurring expenses, such as insurance, cleaning and routine maintenance.

Capital works fund: The fund set aside for major or long-term works, guided by the scheme’s 10-year capital works fund plan.

Special levy: An additional, one-off contribution raised when the scheme faces costs its budget does not cover, such as urgent or unexpected works.

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