Introduction

In an effort to enhance transparency and improve the governance of strata schemes, the New South Wales government has instituted new annual reporting requirements. This legislative update introduces a systematic approach to maintain updated records of strata schemes, aiding both the schemes’ management and potential buyers in the property market. In this article, we explore these new reporting requirements for NSW strata schemes and share some practical tips to help you remain compliant. 

New Annual Report Requirement for Strata Schemes

Starting from May 1, 2022, strata schemes in New South Wales are required to submit an annual return to the Department of Fair Trading. This new requirement is part of an amendment to the Strata Schemes Management Act 2015, which mandates that strata schemes file their return within three months following each Annual General Meeting (AGM). Additionally, a fee of $3 per lot is to be paid.

What Needs to Be Reported?

The annual report must include the following details:

• Strata plan number, registration date, address, and the number of lots.
• The date of the most recent AGM.
• Whether an Annual Fire Safety Statement has been issued, along with its issue date.
• Contact details for the owners corporation secretary, chairperson, strata managing agent, building manager, and emergency contact for the strata scheme.
• Details concerning the strata renewal committee.
• Implementation and the Strata Hub

The process for submitting these details is expected to be clarified in the coming months. The NSW Government has introduced the “Strata Hub,” an online portal set to launch in May 2022. This hub will centralise all information about residential strata buildings, making it accessible to buyers and owners. The data provided in the annual returns will feed into this portal, potentially being made publicly available or shared with various government departments.

Compliance and Penalties

The initial deadline for submitting the first annual report is September 30, 2022, for owners corporations that have held their AGM on or before June 30, 2022. Those that have not yet held an AGM by this date are granted an extension of three months from the date of their first AGM. Failing to meet these deadlines can result in fines up to $5,500.

Furthermore, there is an ongoing obligation to update any incorrect information provided and to notify Fair Trading of any changes in key personnel or the establishment of a strata renewal committee. These updates must be made within 28 days after recognising the discrepancy or change. Non-compliance with these update requirements can lead to additional fines up to $2,200.

Owners corporations must take these new obligations seriously to avoid financial penalties and ensure they remain compliant with the updated regulations under the Strata Schemes Management Act.

Practical Tips for Complying with Strata Annual Reporting Requirements 

To ensure compliance with the new reporting requirements for strata schemes in NSW, here are some practical tips that can help streamline the process and avoid potential fines:

Designate the Correct Reporter

Ensure that the scheme’s secretary, chairperson, or strata manager is responsible for completing the reporting. These roles are typically best informed about the details of the strata scheme and are most qualified to handle official communications.

Utilise the Correct Reporting Channel

All reporting should ideally be done online through the Strata Hub via a MyService NSW account. If you do not have an account, create one at Service NSW’s website. For those unable to report online, submissions can be made in person at a Service NSW Centre. Assistance can be sought by calling 13 77 88 for the nearest location.

Prepare Necessary Information

• Basic Strata Details: Have your strata plan number, the registered address, the number of lots, and the date of the last AGM on hand.
• Contact Details: Gather and prepare the contact details of key strata administration personnel including the secretary, chairperson, managing agent, building manager, and emergency contact.
• Strata Financials: Ensure all financial details related to the administration fee and other relevant financial information are readily available.
• Building Details: Know the specifics of your building such as the number of floors, fire safety compliance status, and any other pertinent details that may be required.

Handling Incomplete Information

If certain required information is not available or cannot be discovered, the reporting form allows for these fields to be marked as ‘not found or undiscoverable’. This should be used sparingly and only when all reasonable efforts to obtain the information have failed.

By following these tips, strata schemes can ensure they meet the requirements set forth by the Department of Fair Trading and maintain good standing. Always remember that staying proactive and organised is key to managing strata reporting efficiently.

Reporting Multiple Schemes? This is What You Can Do.

For strata managers handling multiple schemes, the integration of strata management software with the Strata Hub via an API can streamline the reporting process significantly. Here’s a breakdown of the key steps and features available for reporting multiple schemes:

Software Integration for Reporting

Strata managers can directly report from their strata management software if it’s integrated with the Strata Hub using the reporting API. To utilise software integration, strata managers should coordinate with their software providers to ensure compatibility and integration with the Strata Hub.

Thereafter, strata managers need to register on the Strata Hub and complete the proof of identity process. Despite the automation, strata managers must manually complete privacy declarations, review the information, and process payments for each scheme on the Strata Hub. This ensures adherence to privacy, security, and payment processing standards.

Manual Reporting Option

Strata managers not using software integration can manually enter information for each scheme individually on the Strata Hub’s annual reporting page.

Downloading Scheme Lists

Strata managers can download a list of their schemes from the Strata Hub to monitor annual reporting deadlines. In order to access this list, you may log in to the Strata Hub, navigate to the ‘My strata schemes’ dashboard, and download a list. Sort and cross-check this data with internal records to track AGM dates and reporting deadlines.

Bulk Operations

The bulk upload feature allows entering annual reporting data for multiple schemes in one session, but privacy notices and declarations must still be completed individually.

Payments of the administrative fee ($3 per lot) must be made individually for each scheme, allowing precise financial management but precluding a single bulk payment option.

Strata managers can update reported information for multiple schemes via API, requiring coordination with their software providers for API implementation.

By leveraging these tools and processes, strata managers can efficiently handle the reporting requirements for multiple schemes, ensuring compliance with NSW regulations and optimising their operational workflow.

Key Takeaways

For strata schemes in New South Wales, adhering to the new reporting requirements is not just about compliance; it’s about participating in a system that enhances the integrity and transparency of property management state-wide. By ensuring that all required information is accurately and promptly submitted, strata schemes can avoid the risks of penalties and contribute to a more informed and efficient property market. Should you need further assistance or have questions about navigating these new requirements, we are right by your side. Let’s ensure your strata is fully compliant.