Australia’s strata sector is under growing pressure as building defects continue to place financial and emotional burdens on owners — and the Strata Community Association (SCA) is leading the charge to push the federal government for urgent reform leading into the election.
From the high-profile cases to countless untold stories, defects such as water ingress, unsafe cladding, and structural issues are leaving strata owners to foot the bill for costly repairs.
SCA National President Joshua Baldwin says enough is enough.
“Building defects can lead to a devastating financial and emotional blow to owners,” said Baldwin. “People invest in these properties to create a home or secure their future, yet too often they’re left fighting legal battles, facing special levies, or seeing their property values plummet. This must change.”
SCA is advocating for key reforms to shift the balance of responsibility back to developers and builders, including:
Mandatory developer bonds: Ensuring financial safeguards are in place to cover defect rectifications, protecting owners from unexpected repair costs. NSW currently has a two per cent bond in place which will increase to three per cent in July 2025. Victoria is introducing a similar scheme in July 2025 however the other states are yet to see reform.
Improved warranty protections: Extending warranty periods to better reflect the lifespan of key building components, such as fire systems and waterproofing.
Stricter accountability: Introducing tougher licensing requirements, public defect registers, and personal liability for directors of development companies to prevent poor workmanship and fly-by-night operators.
“We’ve seen progress in some states, but this needs to be a national priority,” Baldwin continued. “Strata living is the future for millions of Australians, and they deserve to live in safe, high-quality homes — without fearing surprise costs from poor construction.”
All strata buyers are encouraged to protect themselves by thoroughly reviewing strata records, inspecting financial health, and seeking professional advice before purchasing into a strata scheme.
