Co-Regulation: Enhancing Australia’s Strata Sector

Strata living is on the rise in Australia, bringing with it an increasing demand for smart, effective regulation and a growing need for the professionalism of strata managers.

The current system of regulating strata managers is delegated to state and territory governments, making it a complicated space to navigate. The rules governing strata management can vary drastically from state to state, which makes it difficult to ensure consistent standards and efficient management.

As the peak body representing the strata industry in Australia, SCA has been advocating for a co-regulation model that balances government oversight with industry expertise. SCA believe this approach would streamline operations and deliver better outcomes for all stakeholders – whether owners, managers, or tenants.

What is a Co-Regulation Model?

Co-regulation is a collaborative approach to regulation whereby a professional association is incorporated into the governmental framework, sharing responsibility for enforcing rules and standards. Instead of leaving it all up to government agencies, industry associations take an active role in managing compliance, handling disputes, and ensuring quality across the board, all the time delivering the results to government agencies who enforce regulation.

For the strata sector, this could mean that SCA would work alongside state and territory governments to keep the industry running smoothly and enhance its professionalism. This approach combines the flexibility of industry-led regulation with the stability of government oversight, allowing for quicker adaption to the evolving needs of strata
communities.

Our Advocacy

SCA has been leading the charge for the implementation of a co-regulatory model for some time now. Through consistent, ongoing conversations with government and key players in the industry across all jurisdictions, a clear case has been made for the benefits of this shift.

The key argument focuses on co-regulation as a more efficient and cost-effective approach compared to other regulatory models. It would ensure a high level of compliance, provide consistent oversight, and deliver uniform standards across Australia.

Specific Achievements?

While co-regulation isn’t a quick fix for the challenges facing the strata industry, SCA is committed to driving this transition. Ongoing advocacy efforts are focused on building the relationships and frameworks necessary to implement the model as smoothly as possible.

By continuing to work closely with governments and demonstrating the industry’s capability to regulate itself effectively, there is confidence that co-regulation is within reach. Although it will require significant coordination and resources, the benefits will far outweigh the challenges.

Looking Ahead

Australia’s strata sector is growing, and so is the need for smarter, more effective regulation. Co-regulation offers a way to keep up with the pace of change while ensuring that strata communities are well-managed and well-protected.

As the peak body for the strata industry, SCA will continue to advocate for a co-regulatory model that brings together the best of both worlds – industry expertise and government oversight. Confidence remains high that this approach will foster a system that’s efficient, adaptable, and future-proof for the benefit of all strata stakeholders.