President / CEO Report – Winter 2022

As we bring you this issue of Inside Strata, it has been an incredibly busy time to reflect on in the strata industry.

Marking five years since the Grenfell Towers tragedy caused by flammable combustible cladding that took 72 lives in the UK, SCA compiled a Cladding State of Play Report detailing the actions, progress and programs undertaken by state governments to remove flammable cladding in Australia.

Breaking down state by state and compiling by ‘background, progression and next steps’, the report is an incredibly useful stepping off point to learn about what has happened in your particular state, or see the types of measures other states or territories are taking.

The report gained significant media attention, with stories in the Sydney Morning Herald and Nine News among others.

Following the report on not a few occasions people have remarked how they might make a specific policy ask in their state now, or they didn’t realise that their state was tracking behind others. SCA is engaging with governments around the country with the goal of removing cladding as quickly and cost effectively as possible, while protecting strata consumers.

The level of collaboration across each of the SCA states and territories was incredibly positive to see, and the similarities, as well as the differences, in each state’s approach really highlights the value of coordinating and sharing information on the big issues facing strata.

The SCA National Conference themed Liveable Future was a huge success with more than 550 delegates attending. With a renewed focus on sustainability not only at home, but around the world, the conference served up some incredible high level insights into what’s to come in the built environment space. Sessions focussed on working towards net zero, driving change, social trends, and innovative approaches to creating cities and communities.

We were able to share our exciting work in the sustainability space with our biggest audience yet. Working with SDG Align, SCA has created a resource that can help businesses identify their strengths and weaknesses when compared to the UN’s Sustainable Development Goals, and then create a plan to build on and improve their current practices. It’s free if you’re a member.

More importantly, the conference was an opportunity for the strata leaders across Australia to come together and share ideas, collaborate and celebrate the sector.

The flood events that have devastated the east coast of Australia have caused damage and insurance claims on a sustained level never experience previously in Australia. Strata managers in affected areas are doing an incredible job servicing their clients in the face of insurers stretched thin and the now all too familiar supply chain issues and difficulties sourcing labour the whole of Australia is experiencing.

With that as a backdrop, the new Albanese Government released the modelling and figures underpinning the reinsurance pool to cover buildings in Northern Australia from cyclone and other events. As SCA and insurance and broking stakeholders thought, the figures announced at the beginning of the year of savings in excess of 50 per cent were exaggerated at best, misleading at worst. The released modelling shows that savings will be more modest, in the order of approximately 15 to 20 per cent for high risk buildings, a meaningful saving that SCA will continue to work with the government to make sure they get right.

Still on the insurance front, SCA has been engaging heavily with two separate processes exploring disclosure, transparency and remuneration practices in strata insurance. Building on the SCA commissioned Deakin Insurance Report, SCA has highlighted the role strata managers play in the strata insurance space, how strata managers disclose insurance contracts and how service models work to the Treasury Department’s Quality of Advice Review, and the Steadfast commissioned Independent Review of Strata Insurance Practices paper undertaken by John Trowbridge.

A new government in Canberra has meant new waves of outreach, but with a federal election behind us, SCA is turning its attention to elections in Australia’s two biggest states over the next nine months, Victoria (November 2022) and NSW (March 2023). Building quality, sustainability and getting it right for strata consumers are topping each state’s agendas, where there are strong, ongoing relationships with government, but a pressing need to improve areas where there is rapid change. Stay tuned over the coming months for more updates from Victoria and NSW.

1 July 2022 marked the 1-year anniversary of the SCA (NSW) Professional Standards Scheme. Formally recognised by the NSW Government, the scheme outlines a clear and consistent message to consumers that SCA members are professional and are adhering to an endorsed set of standards including training, CPD, complaints handling and a Code of Ethics. A national PSS taskforce has been established as a working group to explore a national scheme.

In line with SCA’s ongoing goals to attract and retain talent, especially in today’s labour market, we can proudly announce the creation of a nationwide ‘Respect’ taskforce, comprising members from all states, territories and chapters. The taskforce will explore and provide practical solutions to issues challenging talent attraction and retention, such as workplace stress, bullying, work styles and systems.

ALISHA FISHER, AUSTRALASIA CEO  

CHRIS DUGGAN, AUSTRALASIA PRESIDENT