What does the strata committee do?

What are strata committees? The behind-the-scenes decision-makers of everyday strata living. Essentially, they represent the owners corporation as their elected representatives. Like any community group, they include a chairperson, secretary and treasurer, with responsibilities ranging from managing finances and budgets to overseeing maintenance, repairs and creating by-laws.

At All Suburbs Strata Management, we bring over 40 years of experience in residential strata management in Greater Sydney, Nepean and the Central Coast. Here’s what you need to know about what a strata committee is, how it’s formed and what its responsibilities are.

A strata committee is elected by the owners corporation during a voting process to manage the day-to-day operations of the strata scheme and make decisions on their behalf. It also ensures compliance with relevant laws and regulations. The committee is formed at the first annual general meeting (AGM) and re-elected at each subsequent AGM. If a member needs to be removed due to failure to follow NSW strata laws, lack of due care and diligence, or serious misconduct, this must be done by general resolution at a general meeting.

Committee membership is open to owners, their nominated representatives, or occasionally tenants with written approval from the owner. The committee can have between one and nine members.

Strong governance ensures owners have a voice in decision-making and that their concerns are genuinely considered. This effective representation fosters transparency, accountability and a more cohesive community and it is important to note that the owners corporation has the power to overrule any decisions made by the strata committee.

Preparing and monitoring the strata scheme’s budget is a key financial responsibility of the committee. They must develop an annual budget outlining expected income and expenses, including estimated costs for maintenance, repairs, insurance, utilities and other shared expenses. The budget should be regularly reviewed and adjusted to maintain financial stability and avoid unexpected shortfalls.

Setting and approving levies is another important task managed by the strata committee. Levies need to be sufficient to cover maintenance, repairs and other operational costs. This also involves keeping track of payments and following up on overdue contributions to keep the finances on track. Funds are then allocated according to priority and urgency to ensure essential needs are met.

The committee must keep detailed, accurate transaction records, receipts and invoices and provide transparent access to financial statements and reports for owners. Compliance involves meeting legal requirements for record-keeping, audits and reporting.

Common property maintenance and repairs are overseen by the strata committee. Whether it’s an elevator, swimming pool or shared garden, all areas need to be maintained to a reasonable standard, with repairs completed promptly to ensure safety and security.

The committee oversees the entire process of repairs and maintenance, often working with the strata manager or building manager to gather and compare quotes for the best value. Once quotes are approved by the owners corporation or committee, they monitor progress to make sure the work meets the required standard.

Regular inspections and listening to resident feedback will help detect issues early while prioritising urgent repairs and planning for long-term maintenance keeps the scheme proactive and cost-effective. Keeping maintenance records current is also important for upholding transparency and providing proof of compliance.

By-laws—the rules that govern the use of common property and support harmony within the strata community—are set and enforced by the strata committee. They’re created in partnership with owners and tailored to address scheme-specific matters such as noise control, parking and guidelines for pet ownership. By-laws must be clearly written to avoid ambiguity and allow for fair and consistent enforcement.

Strata committees must make by-laws accessible to all owners and residents, usually via noticeboards or written communication, to reduce confusion and support voluntary compliance. Breaches can be reported to the committee or strata manager, followed by a fair, unbiased investigation. If the breach continues, the committee may issue a formal notice to comply under section 146 of the Strata Schemes Management Act 2015. All steps must be properly documented in case further escalation is required.

Committees should review by-laws periodically to ensure they reflect current needs and still comply with legislation. Should changes be necessary, they must be approved by a special resolution at an AGM, and then lodged with NSW Land Registry Services within six months. Committees should notify residents of any changes through notices, meeting minutes or welcome materials to ensure compliance and avoid confusion or disputes.

Ultimately, the owners corporation elects the strata committee and sets the limits of its authority, which makes sense given the committee represents them. The committee can also delegate certain responsibilities to the strata manager, who is not a committee member but acts under the authority of the owners corporation.

As professional strata managers, we play an administrative and advisory role to assist strata committees and owners corporations in fulfilling their duties.

If you’re looking for a reliable strata manager, ASSM has over 40 years of experience in strata management for residential, community, commercial and industrial properties.

Are you considering buying into a strata scheme or would you like to secure a professional and qualified team? Contact ASSM today.