The start of a new financial year is often associated with tax returns, business planning and, for many people, finally enjoying the 85-inch TV they picked up in the sales. But it is also an important milestone for strata schemes. Rather than viewing 1 July as just another date on the calendar, it is an opportunity to review the building’s financial position, upcoming maintenance and priorities for the months ahead.

At All Suburbs Strata Management, we have provided premier strata management services across Greater Sydney, the Nepean and the Central Coast for over 40 years. Financial management is one of the biggest responsibilities entrusted to an owners corporation, which is why we believe it deserves careful attention at every stage of the year.

As we enter the 2026/2027 financial year, it’s a good time to compare what was planned with what actually happened. Every budget is built on a series of assumptions. Comparing the forecast with the actual outcome helps determine whether those assumptions were accurate.

That comparison is also much easier because owners corporations are already required under NSW legislation to prepare annual estimates of income and expenditure. Rather than filing those figures away once the year ends, they can be used to identify areas where spending was consistently higher or lower than expected. Those patterns often provide the best insight when preparing the next budget.

Completed projects should also be reviewed, along with any works that were carried forward into the new financial year. If projects were deferred, it is worth understanding why. Was it due to funding, contractor availability, changing priorities or something else? The reason behind the decision is often just as important as the delay itself.

Unexpected costs also deserve closer attention. Every strata scheme will encounter them from time to time, but rather than simply recording them, consider whether they exposed weaknesses in the budget, maintenance program or financial reserves, or whether the scheme was able to absorb them without affecting other planned works. The purpose is not to assign blame. It is to understand what worked well and what information is now available to make better decisions in the year ahead.

Ultimately, if you’re part of an owners corporation or committee, the budget approved 12 months ago may no longer align with today’s costs. Costs do not stand still. Insurance premiums, utilities, contractor rates and material costs can all change from year to year. A budget may be realistic when it is prepared but no longer match current conditions.

Even when a budget ‘worked’ last year, it shouldn’t just be rolled over into the next. It still needs to reflect the building’s current operating costs and known expenses. If those obligations have changed, levy contributions may need to change too. That doesn’t necessarily mean something has gone wrong. It’s about making sure the scheme has enough income to meet its financial obligations.

Like the budget, the maintenance schedule is based on what’s known at the time. Throughout the year, inspections, repairs and contractor reports may change the understanding of the building’s condition. Completed works can also change future priorities. For instance, waterproofing completed this year may mean another project can reasonably be delayed, while a roof replacement may remove the need for ongoing patch repairs. On the other hand, concrete repairs may uncover additional defects that were not originally visible or accounted for.

Asset condition does not always follow predictions to the letter. Capital works plans provide an expected service life, but plenty can change along the way. Even two identical roofs installed at the same time may age differently due to exposure, weather, workmanship, previous repairs or usage. That’s why regular inspections are so important. A timetable should guide decisions, not replace them.

Coordinating projects where practical can help. Take repainting as an example. Repairing defects first will usually help the new coating last longer, while also reducing disruption and avoiding repeated access costs. The same principle applies to waterproofing before tiling, or completing any necessary roof repairs before installing solar panels.

A thorough review often results in updated priorities, but they need to be carried through the rest of the year. Regular meetings and ongoing communication help keep projects moving rather than allowing them to lose momentum. The same applies to financial reporting. It should be used to guide decisions, not simply received and filed away.

And remember, even with a well-thought-out budget and maintenance program, circumstances can change throughout the year.

A good working relationship with your strata manager can help. While they don’t make the decisions, they can coordinate the information, financial reporting, quotes, meeting papers and practical next steps so committees have everything they need to respond throughout the year, not only when something requires immediate attention.

A successful financial year is rarely the result of one good decision. It’s usually the result of lots of smaller decisions made consistently throughout the year.

At All Suburbs Strata Management, we have more than 40 years of experience working with residential, community, commercial and industrial properties. We help owners corporations review where they stand, plan for what comes next and keep their financial and maintenance priorities moving in the right direction throughout the year.

If your current strata manager is not meeting expectations, contact our experienced team to discuss your options. We can assist with a smooth and straightforward handover.