SCA Leads the Charge Financial Transparency – Where Is the Money Going? 

The Strata Community Association (SCA) is leading a national effort to drive real progress in financial transparency and accountability across the strata sector. With one in five Australians now living in strata titled properties and more than 2.9 million strata lots nationwide, how strata is governed and perceived has never been more important. 

Unfortunately, the industry faces a crisis of confidence. A major barrier to progress is the negative perception held by many owners and residents. Strata is often seen as expensive, opaque, and lacking accountability. Whether based on experience or assumption, these perceptions damage sentiment across the industry as a whole. 

Owners may feel uncertain about where their money is going, frustrated by complex fee structures, and disconnected from financial decision making. Irregular reporting, unexplained levies, and poor communication create a lack of clarity, leading many to believe that strata is poorly managed, even when there is no evidence to support these claims. 

While most strata schemes are professionally and responsibly managed, public perception does not always reflect reality. That is why SCA believes that progress must not only improve systems but also rebuild confidence and trust among those living, working, and investing in strata communities. 

Strata schemes collectively manage billions of dollars. These funds support essential responsibilities, including insurance, day-to-day maintenance, and long-term capital upgrades that are critical to maintaining property standards. 

When owners cannot clearly see how their contributions are being used, it creates space for doubt, mistrust, and resistance. Negative perceptions thrive in the absence of transparency and open communication. 

SCA is advocating for national improvements to financial standards that replace confusion with clarity, and scepticism with trust. 

To rebuild confidence and strengthen financial governance, SCA is calling for a series of practical and achievable changes. These include real-time financial reporting, so owners have regular access to accurate and current information. Quarterly or real-time reporting helps owners understand how their money is being spent and identify concerns early. 

High-value strata schemes should be audited regularly by independent professionals. Independent audits ensure financial accuracy, prevent problems before they escalate, and demonstrate responsible oversight. All supplier contracts should be fully disclosed and clearly itemised. This eliminates hidden fees and prevents misunderstandings about how and why money is spent. 

Major service contracts should go through transparent and competitive tender processes. Competitive procurement promotes value for money, prevents inflated pricing, and enhances owner confidence. SCA also supports mandatory long-term financial planning across all strata schemes. A proactive approach ensures communities are prepared for major expenses, reducing the likelihood of surprise levies. 

Improving financial systems is only part of the solution. Real progress also requires strong accountability measures and consistent enforcement. SCA is calling for clear penalties for financial misconduct, increased powers for regulators to act when needed, and mandatory financial training for committee members and professionals. Owners must not only be informed but also confident that there are consequences for poor management and safeguards to protect their investments. 

SCA encourages all owners to actively engage with their strata financials. If reports are unclear, levies seem excessive, or spending appears irregular, these may be early signs of deeper issues. Some of the most common sources of negative perception arise when communication is infrequent or overly technical, financial reports are difficult to access or interpret, or owners feel excluded from important decisions. Well-informed and engaged owners are essential to driving better outcomes and creating a more transparent culture within their communities. 

SCA is also inviting the industry to consider making independent audits mandatory for all strata schemes, regardless of size. While smaller schemes may have simpler finances, they are not immune to poor management or negative perceptions. A consistent national standard would provide assurance and fairness to all owners. 

SCA is committed to leading the future of the strata sector. But progress is about more than systems and structures. It is about rebuilding trust in a system that affects millions of Australians every day. Financial progress means creating a system that is not only functional and fair but also understood and trusted by the communities it serves. 

Perceptions will not shift overnight. But with higher standards, better communication, and broader inclusion, the strata sector can move from being seen as complex and unaccountable to being recognised as professional, transparent, and community focused.