NSW · Strata

A Strata Committee's Legal Duties Under the Strata Schemes Management Act 2015

5 May 2026·7 min read·NSW
Two people reviewing strata records and financial documents at a table
TL;DR

A NSW strata committee makes day-to-day decisions on behalf of the owners corporation under the Strata Schemes Management Act 2015. Its core duties are to act in the owners corporation's interests, keep proper records and accounts, maintain and repair common property, manage the funds responsibly, and disclose any conflicts of interest. For the exact rules that apply to your scheme, check the current requirements with NSW Fair Trading or your strata managing agent.

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Joining a strata committee in New South Wales sounds like a community favour. In practice it is a position with real legal responsibilities. The moment you are elected, you take on duties under the Strata Schemes Management Act 2015, the law that governs how strata schemes are run in NSW.

Most committee members are volunteers. Few have a legal background. That gap is exactly why committees get caught out. This guide sets out the main duties a committee carries, in plain terms, so you know what is expected of you before you put up your hand.

One thing to keep in mind throughout. The Act sets the framework, but the precise rules, timeframes and thresholds can change and can depend on your scheme. For anything specific, confirm the current position with NSW Fair Trading or your strata managing agent.

Acting in the owners corporation's interests

The first duty is the simplest to state and the easiest to forget. A committee acts for the owners corporation, which is every lot owner in the scheme combined. Decisions should serve the scheme as a whole, not one owner, not a faction, and not the committee member making the call.

This matters most when a decision is contested. A new gate that suits the owners near the entrance may not suit owners at the rear. The committee's job is to weigh the scheme's overall interest, act in good faith, and make decisions for proper reasons. Acting honestly and reasonably is the standard members are held to.

Keeping proper records and financials

An owners corporation runs on its records. The committee oversees that the scheme keeps proper documentation, which generally includes minutes of meetings, financial accounts, the strata roll of owners, correspondence, and core documents such as the insurance policy and the registered by-laws.

Good records are not bureaucracy for its own sake. They protect the scheme. When an owner asks to inspect documents, when a dispute arises, or when a new committee takes over, clean and complete records are the difference between a smooth handover and a mess. They also make annual reporting at the AGM far easier. For how that reporting comes together, see our guide to the NSW strata AGM.

Maintaining and repairing common property

Common property is everything owned collectively rather than by an individual lot owner. Think of shared walls, the roof, common stairwells, lifts, gardens and external pipes. The owners corporation has a duty to maintain and repair common property, and the committee manages that work day to day.

This duty is active, not optional. Letting common property fall into disrepair can lead to safety issues, owner complaints, and orders through NCAT requiring the work to be done. The committee should plan for maintenance, respond to faults promptly, and keep a clear record of what has been done.

Managing the funds responsibly

An owners corporation holds money on behalf of all owners, raised through levies. There are generally two funds: the administrative fund for everyday running costs, and the capital works fund for major works over the longer term. The committee oversees how that money is collected, held and spent.

Responsible fund management means budgeting realistically, spending within what the owners have approved, keeping the accounts in order, and not letting the capital works fund run dry, which is what forces nasty special levies later. We cover that long-term planning in our guide to the capital works fund and 10-year plan.

Disclosing conflicts of interest

Conflicts of interest are part of strata life. A committee member might run a business that could do the scheme's gardening, or have a personal stake in a decision about a particular lot. The duty is not to avoid every conflict, which is often impossible, but to disclose it and manage it openly.

When an interest is on the table, the proper approach is to declare it so the rest of the committee and the owners can see the decision is being made in the scheme's interests, not for private gain. Hiding a conflict is what erodes trust and what gets decisions challenged. Confirm the exact disclosure rules that apply to your scheme with NSW Fair Trading.

Where the line sits with the strata manager

Many schemes engage a strata managing agent to administer the scheme. That does not transfer the committee's duties to the agent. The agent administers, the committee decides, and the duties stay with the elected owners. Understanding that split is one of the most common sources of confusion, which we unpack in strata manager vs strata committee. For the role in full, see our strata committee member guide.

When duties spill into disputes

Carrying these duties well does not stop every disagreement. Owners will sometimes challenge a decision or breach a by-law, and the committee then has to handle it fairly and in line with the Act. NSW has a clear pathway for that, from a direct conversation to NSW Fair Trading mediation to NCAT. We walk through it in resolving strata disputes in NSW.

How to carry these duties well

  • Read the Act and your scheme's by-laws so you know the framework you are working within.
  • Keep records as you go, not in a panic before the AGM.
  • Treat the capital works fund as a long-term obligation, not a balance to run low.
  • Declare conflicts early and openly.
  • When you are unsure, ask NSW Fair Trading or your strata managing agent before you act.

Your next step

The duties are manageable once you understand them. The trouble is that most committee members are never shown what they are. Archer Institute's Strata Members CPD course walks through the role, the duties under the Strata Schemes Management Act 2015, and good governance in plain English. It is online, self-paced, and built for volunteers who want to get it right.

Frequently asked

Questions, answered

Who does a strata committee answer to?+

The committee acts for the owners corporation, which is made up of all the lot owners in the scheme. Committee members are elected at the annual general meeting and make day-to-day decisions on the owners corporation's behalf. They are accountable to the owners as a whole, not to any single owner or to their own interests.

Can a strata committee member be held personally responsible?+

Committee members are expected to act honestly and in the owners corporation's interests. Acting carelessly, ignoring the rules, or putting personal interests first can expose a member to complaints and, in some cases, action through NCAT. The safest approach is to understand your duties, keep good records, and confirm anything you are unsure about with NSW Fair Trading or the strata managing agent.

What records does a strata committee have to keep?+

An owners corporation must keep proper records, including minutes of meetings, financial accounts, the strata roll, correspondence, and key documents like insurance and the by-laws. The committee oversees that this happens. Good records protect the scheme and make handovers, audits and disputes far easier to manage.

Does the committee have to disclose conflicts of interest?+

Yes. If a committee member or a connected person stands to benefit from a decision, that interest should be disclosed and managed properly so the decision is made in the owners corporation's interests. Hiding a conflict undermines trust and can lead to a decision being challenged. Confirm the exact disclosure rules with NSW Fair Trading.

How can committee members learn their duties properly?+

Most committee members are volunteers who learn on the job, which is where mistakes creep in. Archer Institute runs a Strata Members CPD course that explains the role, the duties under the Strata Schemes Management Act 2015, and good governance practice. It is online and self-paced, so members can work through it around their other commitments.

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