Strata, Body Corporates & Owners Corporations - What does it all mean?
In Australia, the term Body Corporate is used in Queensland, while Owners Corporation is the equivalent term in New South Wales. Although the terminology varies by state, both refer to the same legal structure—a strata-titled property with joint ownership of at least two lots (or units) and shared common property.
Essentially, when these conditions are met, the property can be strata titled, allowing for the formal establishment of a body corporate (QLD) or owners corporation (NSW). The term “strata” is widely used to describe this arrangement and relates to the strata titling process, where ownership and responsibilities are divided among multiple owners within the same property.
This structure is commonly used for apartment buildings, duplexes, townhouse complexes, and even industrial developments. It enables shared management of common areas, ensures compliance with relevant strata legislation, and supports community living through strata governance.
What is a Strata Manager?
A Strata Manager is a qualified individual or company appointed by the Body Corporate in Queensland, or the Owners Corporation in New South Wales, to assist with the day-to-day management of a strata titled property. Their role is to support the committee in overseeing the administrative, financial, and legislative responsibilities of the scheme.
Typically, a Strata Manager carries out many of the functions that would otherwise fall to the elected Secretary or Treasurer. This includes tasks such as issuing levy notices, managing financial records, coordinating meetings, maintaining compliance, and providing expert advice on strata regulations and best practice governance.
Importantly, appointing a professional strata management firm is a strategic decision that helps the committee run the scheme efficiently and in line with legal obligations. This is especially valuable for more complex schemes, investment properties, or committees seeking guidance on how to manage a strata committee effectively.
The appointment is formalised through an ordinary resolution passed at a general meeting, followed by an Administration Agreement that outlines the terms and scope of services. This ensures transparency, accountability, and clarity for all parties involved.
What is a Strata Managers Role?
A Strata Manager is engaged by the owners—known as the Body Corporate in Queensland or the Owners Corporation in New South Wales—to deliver essential administrative and financial management services for the strata community.
These services typically include tasks such as organising meetings, managing levies, preparing budgets, maintaining records, and ensuring compliance with relevant strata legislation. The specific scope of work is outlined in an official contract known as an Administration Agreement.
This agreement, approved by the owners at a general meeting, sets out the terms of appointment and the full list of services the strata management company is responsible for. For more details, please visit the Management Services section of our website, where you’ll find a breakdown of our core and additional services.
How much does Strata Management Cost?
Strata Managers are paid a fee that is agreed upon by the Body Corporate (in Queensland) or Owners Corporation (in New South Wales) at the time of their appointment. This fee is included in the scheme’s annual budget and categorised as an administrative fund expense.
Typically, the standard fee covers core strata management services, such as financial reporting, meeting coordination, levy collection, and record keeping. These services are outlined in the Administration Agreement between the owners and the strata management company.
However, additional fees may apply for services considered outside the standard scope. These may include attending tribunal or court proceedings, arranging insurance valuations, or obtaining multiple quotes for major repairs and maintenance.
To better understand the costs involved and what’s included, visit Management Services – TCM Strata.
Who are the Committee?
The strata committee, also known as the Body Corporate committee in Queensland or the Owners Corporation committee in New South Wales – is usually made up of unit owners within the scheme. These owners are elected to represent all lot owners and help manage the day-to-day running of the community.
Between general meetings, the committee makes operational decisions on behalf of the owners. This may include approving requests under the by-laws; such as pet applications, as well as handling repairs, maintenance, and other matters that affect common property.
The committee typically includes executive positions: a Chairperson, Secretary, and Treasurer, along with Ordinary Members. While not every position needs to be filled, having a diverse and active committee helps ensure that decisions reflect the interests of the wider community.
Ultimately, the strata committee plays a key role in the success of a well-managed scheme. To learn more about the responsibilities of a committee member, please visit our blog: Committee Members – Everything You Need To Know – TCM Strata.
What is Common Property?
Your building plans will define the strata ‘scheme land’, including the buildings and designated common property. Every owner within the Body Corporate (QLD) or Owners Corporation (NSW) shares ownership of the common property, which may include garden beds, lawns, access driveways, and facilities such as swimming pools or lifts.
Who maintains the common property? Your levy payments contribute towards the upkeep and repair of the common property and shared facilities.
The strata committee, acting on behalf of all owners, is responsible for overseeing this maintenance. To do so, they may engage qualified professionals such as gardeners, cleaners, or pool technicians to maintain shared spaces.
Importantly, maintaining common property ensures the safety, appearance, and long-term value of your community. Understanding your levy contributions helps you appreciate where your funds go and how they support daily operations.
Maintenance Responsibilities
In Queensland, maintenance responsibilities vary depending on whether the scheme is registered under a Standard Format Plan or a Building Format Plan.
Under a Standard Format Plan (e.g. standalone villas or townhouses with private yards), owners are typically responsible for maintaining their own roof, exterior walls, and everything within their lot boundaries.
Under a Building Format Plan (e.g. apartment blocks with a shared roof), the Body Corporate is usually responsible for maintaining the building’s roof, structural walls, and shared services.
Therefore, it’s essential to know what type of plan your scheme follows. This will determine whether you or the Body Corporate / Owners Corporation are responsible for handling certain maintenance or repair works.
Would you like to learn more? We have a library of useful fact sheets on our website. Visit Publications – TCM Strata
Who Determines the Levy Totals?
Each year, all owners have the opportunity to review and vote on the proposed strata budget. This budget determines the levies payable by each owner and outlines how funds will be allocated to support the running of the scheme.
The budget includes contributions to the administrative fund and the sinking fund (also known as the capital works fund in New South Wales). These levies cover day-to-day expenses, long-term maintenance, and future capital works for the property.
The Strata Manager, in collaboration with the committee, drafts the proposed budget ahead of the Annual General Meeting (AGM). During the AGM, the budget is discussed, and owners can suggest changes or ask questions. Ultimately, the budget is approved by a majority vote of owners in attendance or via proxy.
What Laws and Regulations Apply?
Each state in Australia has its own strata legislation, which outlines the rules and responsibilities of Bodies Corporate and Owners Corporations. It’s important for owners, committee members, and residents to understand the relevant legislation that applies to their property.
Queensland
In Queensland, strata communities are governed by the Body Corporate and Community Management Act 1997. (BCCM Act). This legislation sets out the rights and responsibilities of lot owners, committees, and Strata Managers.
Here is the link to the BCCM Act 1997 (Queensland Legislation): Body Corporate and Community Management Act 1997
New South Wales
In New South Wales, Owners Corporations operate under the Strata Schemes Management Act 2015 No. 50, (SSMA Act) which provides the legal framework for managing strata schemes in the state.
Here is the link to the SSMA Act 2015 (NSW Legislation): Strata Schemes Management Act 2015 No 50 – NSW Legislation
Are you eager to learn more? Under our FAQ menu you will find our Blog and Publications, which cover a wide variety of strata related topics. If you have a specific question, please feel free to Contact Us – Our friendly team is here to assist you.