The Strata Community Association (SCA) has intensified calls for federal intervention as widespread building defects plague strata communities across Australia, leaving owners grappling with soaring repair costs and legal battles.
From water ingress and structural failures to flammable cladding, these issues are undermining confidence in strata living, prompting urgent demands for systemic reform ahead of the next election.
SCA National President Joshua Baldwin condemned the status quo, stating: “Building defects can lead to a devastating financial and emotional blow to owners.
“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.”
The SCA is advocating for a national framework to shift accountability onto developers and builders. Central to their campaign are three pillars:
Mandatory Developer Bonds
Following NSW’s existing 2 per cent bond scheme (set to rise to 3 per cent in July 2025) and Victoria’s upcoming model, the SCA is pushing for all states to adopt financial safeguards.
These bonds would act as insurance for defect rectifications, shielding owners from unexpected costs when builders or developers default.
Extended Warranty Protections
Current warranty periods often fall short of covering critical components like waterproofing and fire safety systems, which account for over 66 per cent of serious defects in NSW strata buildings.
The SCA seeks warranties aligned with the lifespan of these systems to reduce long-term risks.
Stricter Accountability Measures
Tougher licensing requirements, public defect registers, and personal liability for directors of development companies form the backbone of the SCA’s plan to curb poor workmanship.
These measures aim to prevent “fly-by-night” operators and improve transparency in financial dealings between strata managers and suppliers.
While NSW has introduced reforms such as the Design and Building Practitioners Act 2020 and real-time disclosure requirements for strata managers, other states lag behind.
Western Australia’s SCA branch has separately urged its government to establish a dedicated strata commissioner’s office to streamline dispute resolution and oversight.
Research underscores the urgency: 53 per cent of NSW strata buildings surveyed in 2023 had serious defects, up from 39 per cent in 2021.
Nationally, studies reveal 97 per cent of NSW apartment buildings, 74 per cent in Victoria, and 71 per cent in Queensland suffer from at least one defect.
Waterproofing failures alone affect 42 per cent of defective NSW buildings.
The SCA urges prospective buyers to scrutinise strata records, assess financial health, and seek professional advice before purchasing.
“Strata living is the future for millions of Australians,” Baldwin emphasised.
“They deserve safe, high-quality homes without fearing surprise costs from poor construction.”
As the election approaches, the SCA’s campaign seeks to unify state-level efforts into a cohesive national strategy, ensuring that strata communities — home to one in six Australians — are no longer left footing the bill for systemic failures.
