Statement of Regulatory Intent - Disclosure obligations for strata managing agents

Purpose

This statement of regulatory intent sets out the compliance and enforcement approach of NSW Fair Trading to the disclosure obligations for strata managing agents under section 57 and 60 of the Strata Schemes Management Act 2015 (the Act).

This statement was approved by the Commissioner for Fair Trading on 13 October 2025.

Background

Section 57(2) of the Act provides that strata managing agents must not, in connection with the provision of services as a strata managing agent or the exercise of functions as a strata managing agent, request or accept a gift or other benefit from another person for themselves or for another person. However, section 57(3)(c) of the Act allows agents to accept training services that are provided to, or paid for, them if it is in line with the terms of the agency agreement or has been otherwise approved by the owners corporation.

Section 60(1)(a) and (b) require strata managing agents to disclose at the Annual General Meeting (AGM) information about commissions or training services that:

• have been provided to, or paid for, the agent (other than by the owners corporation) in connection with the agent’s exercise of functions for the scheme during the preceding 12 months,
• are likely to be provided to or paid for the agent in the following 12 months.

Since 3 February 2025, amendments to the Act increased strata managing agents’ disclosure obligations. The amendments did not change the abovementioned provisions, but section 57(3A) was added to clarify that where a commission or training service is not in line with the agency agreement, approval under section 57(3)(b) and (c) is to be by resolution in a general meeting.

Fair Trading’s enforcement approach

NSW Fair Trading takes a risk-based approach to compliance and enforcement of strata managing agents’ obligations under the Act. The disclosure obligations in the Act are meant to ensure owners corporations have full transparency about their strata managing agents’ related entities, benefits agents obtain because of their role and other potential conflicts of interest. NSW Fair Trading’s approach aims to focus on matters that have the greatest risk of undermining the intention of the disclosure obligations and harming consumers.

NSW Fair Trading will not take enforcement action for a failure to have approval to undertake training against strata managing agents where they complete training that is not approved under the agency agreement, or otherwise approved by the owners corporation, as required by section 57 of the Act if it is:

• delivered by Government agencies (e.g. NSW Fair Trading) or professional/industry associations, or
• paid for by the agent themselves.

NSW Fair Trading expects a strata managing agent that receives free or subsidised training from a strata scheme’s supplier to comply with the requirements of section 57 of the Act.

In relation to section 60(1)(a) and (b) of the Act, NSW Fair Trading will not take enforcement action against strata managing agents that do not disclose training at the AGM if it is training provided by Government agencies (e.g. NSW Fair Trading).

NSW Fair Trading expects strata managing agents to disclose at the AGM all other training that they complete that relates in any way to their work as a strata managing agent. This includes where:

• third parties pay for, or provide for free, training to a strata managing agent,
• the strata managing agent pays for training from a third party.

Further, where an agent pays for training, NSW Fair Trading considers the agent to be connected to the training provider under section 7(e) of the Act as the agent has engaged the provider. This means that the disclosure obligations about connected suppliers (e.g. in section 60 of the Act) will apply.

NSW Fair Trading reserves the right to vary its approach as appropriate to the circumstances, particularly in cases that may involve a significant risk of harm or consumer detriment.

NSW Fair Trading will continue to take enforcement action against other regulatory obligations under strata laws.

More information

More information can be found at Disclosure requirements for strata managing agents.