On 25 May 2026, the Professional Standards Council of New South Wales (Council) approved an application from the Strata Community Association (NSW) (SCA (NSW)) for a new professional standards scheme. This is the second scheme approved for SCA (NSW) and will operate in NSW only.
The Council notes that approval of a scheme does not indicate that an association has reached a particular level of professionalism, or that it is now comparable to other established professions. The approval of a scheme reflects the Council’s assessment that the scheme will improve occupational standards and protect consumers, consistent with the objects of the Act.
Duration of scheme
Subject to gazettal requirements, the scheme will be in force from 1 July 2026 for a period of 3 years, unless extended. SCA (NSW) initially applied for a scheme of 5 years duration, but the Council considered a 3-year scheme to be appropriate for the reasons set out below.
Statutory considerations
In approving the scheme, the Council had regard to the matters set out in section 10 of the Professional Standards Act 1994 (NSW) (Act), including:
- all comments and submissions provided to the Councils in response to public notification of the scheme
- the position of persons who may be affected by limiting the occupational liability of members of SCA (NSW)
- the nature and level of claims relating to occupational liability made against members of SCA (NSW)
- the risk management strategies of SCA (NSW), and the means by which those strategies are intended to be implemented
- the cost and availability of insurance against occupational liability for members of SCA (NSW), and
- the standards determined by SCA (NSW) in relation to insurance policies.
Public submissions and survey responses
The Council would like to thank all those who provided comments or made submissions during the public notification period of the scheme. The Council would also like to thank and acknowledge SCA (NSW) for its positive and constructive engagement with issues raised during this process, including agreeing to undertake further actions in response to consumer feedback.
The Council acknowledges the significant public interest in, and concerns regarding, the professional standards of strata managers. The Council had particular regard to the concerns of strata owners and strata owner associations in relation to conflicted remuneration practices in the industry.
These issues include (but are not limited to) the payment of commissions to strata managers, undisclosed payments by service providers to strata managers, and undisclosed related-party transactions.
Improving standards and protecting consumers
The Council notes the strata management sector remains susceptible to these consumer risks. However, the Council considers that refusing to approve the scheme would not address these concerns nor advance the objects of the Act. Relevantly, these objects are ‘to facilitate the improvement of occupational standards of professionals and others’ and ‘to protect the consumers of the services provided by professionals and others’ (section 3).
The professional standards scheme will:
- Ensure risk management strategies designed to better protect consumers are in place and regularly reviewed, including the Code of Ethics, complaint management system, disciplinary process, continuing professional development and other measures.
- Assist in improving professional standards in the industry over time, as strategies are developed and refined to address the risks identified and addressed through risk management plans and enhanced reporting requirements.
- Provide a level of independent oversight of SCA (NSW) through additional reporting obligations, including on actions undertaken to address issues raised by consumers in the public notification process.
- Place downward pressure on insurance costs through the liability cap and improved risk management practices.
Without the scheme, consumers would not benefit from these factors.
In addition, the Council considered that the following relevant matters weighed in favour of approving the Scheme:
- The Council considers, supported by some submissions, that SCA (NSW) has made genuine efforts to improve professional standards and consumer protection since implementing its first scheme, and particularly over the past two years.
- SCA (NSW) actively responded to the Netstrata matter, including changes to its Board membership and senior management.
- SCA (NSW) has undertaken to implement further measures to enhance consumer protection, some of which were agreed during the application consultation process in response to submissions received by the Council from consumer groups.
- SCA (NSW) has engaged positively and constructively with the Professional Standards Authority on the implementation of its risk management strategies over the course of the current scheme.
- The role of NSW Fair Trading as the primary regulator of the sector, providing a higher level of consumer protection than other jurisdictions.
- The ongoing reform process being implemented by the NSW Government should significantly enhance consumer protection and complement the objectives of the scheme and the Act.
- There is no evidence that the application of the liability cap has had any detrimental impact on consumers.
Notwithstanding these matters, the Council acknowledges that there is public concern regarding the level of professionalism and consumer risk in the industry.
In considering its decision, the Council noted the significant reform of the sector by the NSW Government. Some legislative changes have recently been implemented, some are ongoing, and more may be announced in response to the Productivity and Equality Commission recommendations on conflicted payments in the strata industry. The Council also notes that SCA (NSW) will be implementing further changes as a result of the scheme.
Given this changing environment, the Council considered that the scheme should be approved for a period of 3 years rather than the 5 years initially sought by SCA (NSW). The Council considered this to be the appropriate term, as it will enable the Council to assess the effect of the above changes within a shorter timeframe.
The Council will continue to monitor the operation of the Scheme over the three-year period and can formally review the operation of the scheme at any time.
The Council looks forward to continuing to work with SCA (NSW), consumer groups and the NSW Government to improve standards in the strata management sector.