Raising the Bar: How Compliance and Competence are Redefining Professionalism in Strata Management

In June 2025, the Strata Community Association (SCA) unveiled a refreshed Code of Ethics setting a new benchmark for integrity, professionalism, and accountability across the strata sector.

The Code provides a framework that ensures there is accountability, integrity, professionalism, compliance and risk mitigation in the delivery of services in strata as well as the management of strata communities.

This article explores the real-world impact of two core principles at the heart of the new Code: ‘compliance with law and regulation’ and ‘competence and diligence’ — and why they matter more than ever for thriving, wellmanaged strata communities.

Compliance first: setting the standard for legal accountability

While the SCA Code of Ethics sets out a broad range of professional standards, one principle stands out as non-negotiable: full compliance with all relevant laws, regulations, and legislation. SCA members are expected to go beyond a surface-level understanding, ensuring their actions align with legal requirements across the board, from strata and property law to privacy, contract, environmental, WHS, consumer protection and even criminal law. This also includes state-specific rules impacting strata and community titles.

The Code is clear: members must act swiftly to address any legal or contractual breaches, maintain transparency through proper disclosures and cooperate fully with regulatory bodies. In short, legal compliance isn’t just a rule, it’s the foundation of ethical practice in strata management.

Lead legally, act ethically: The power of compliance

When SCA members uphold their legal obligations, they don’t just follow the rules, they lead by example. Compliance fosters a culture of ethics, integrity, and accountability across teams, stakeholders and the wider community. It builds trust and ensures responsibilities are carried out transparently and professionally.

On the flip side, non-compliance carries serious consequences: legal risks like fines, penalties, or prosecution, including enforceable undertakings. It can also trigger reputational damage, erode community trust and result in financial loss, as negligence claims may impact your professional indemnity insurance.

By committing to professional standards and legislative requirements, members help create safer, more confident strata communities, backed by a reputation for ethical conduct and genuine professionalism.

Why it pays to be compliant

Staying compliant isn’t just about ticking boxes, it’s a strategic advantage. It reduces legal and financial risk, builds trust, a strong professional reputation and brings clarity to operations, cutting down confusion and conflict within the scheme. Simply put, compliance creates smoother, safer and more successful strata communities.

Competence and diligence: Getting it right, every time

Competence and diligence aren’t just formalities, they’re the foundation of good, ethical practice in strata management. These two qualities speak to how well a member can carry out their duties and how committed they are to doing it properly, every time.

Competence is about having the right knowledge, skills, and understanding of the laws, regulations, and day-to-day realities of managing strata and community titles.

Diligence is the follow-through — being attentive, thorough and consistently delivering high-quality work.

To meet these obligations, members should:

• Only take on work they’re qualified and experienced to handle;
• Stay up to date with changes in legislation and industry standards; and
• Apply care, attention and professional judgement in everything they do.

Why It matters

When a member acts with competence and diligence, things run smoothly. Clients feel confident, decisions are made with care and issues are handled before they become problems. But when someone lacks the right knowledge — or doesn’t pay enough attention — mistakes happen. And in this space, mistakes can be costly: resulting in legal action, reputational damage, fines or penalties.

Strata and community title schemes are complex and the people who live in them rely on professionals who know what they’re doing. That’s why getting it right matters.

What you gain

Doing the job well doesn’t just protect you, it benefits everyone:

• Fewer errors, smoother operations
• Lower risk of legal issues or disputes
• A strong reputation that earns trust and attracts clients

At the end of the day, competence and diligence aren’t just nice-to-haves, they’re how great strata professionals stand out.

Conclusion

The updated SCA Code of Ethics marks a turning point for the strata sector, setting clear expectations around legal compliance, competence and ethical conduct. By embedding these principles into everyday practice, members not only protect themselves from legal and reputational risks – they help build stronger, more transparent and better-managed communities. Compliance and diligence are no longer optional; they’re essential for earning trust, delivering value and driving long-term success. As the industry evolves, so too must its professionals. Those who lead with integrity, skill and accountability will set the standard — and shape the future — of strata management in Australia.

To learn more, visit gracelawyers.com.au or call us on 1300 144 436