NAT: Navigating Critical Risks in Strata: Why Every Stakeholder Should Watch This Webinar

Strata communities across Australia are facing growing challenges — and understanding these critical risks has never been more important. In a recent national webinar hosted by LookUpStrata, Dr Nicole Johnston from Strata Knowledge presented a compelling, research-driven session on the systemic issues impacting strata schemes and what can be done to address them.

If you haven’t already, we strongly encourage you to watch the full recording — it’s a must-see for anyone living in, working with, or managing strata-titled properties.

NAT: Navigating critical risks in strata: Protecting your investment and community

Nicole Johnston is one of Australia’s leading strata researchers, with a deep background in governance, law reform, and applied strata risk analysis. In this session, she tackled three of the most pressing issues affecting lot owners, committee members, and strata professionals today.

What Was Covered

Dr Nicole Johnston focused on three major critical risk areas in strata, supported by current research and real-world examples:

1. Building Care Inaction

A persistent issue in Australia and globally, building care inaction stems from a mix of poor financial planning, lack of skills, maintenance reactivity, and decision-making delays. Nicole described:

1. The legacy of building defects and the long-term consequences of neglect.
2. Widespread fund mismanagement (such as levy manipulation and ‘sinking fund hoarding’).
3. A tendency to defer works until crises arise — often resulting in inflated costs and safety concerns.
4. A lack of clear boundaries, documentation, and professional guidance — leading to disputes and delays.

Key takeaway: Strata schemes need to treat maintenance as a legal, safety, and community priority — not a discretionary spend. Historical data should be documented, and professional project managers engaged early.

2. Conflicts of Interest

While often acknowledged, conflicts of interest are still under-addressed ethically, even when disclosure obligations are technically met.

Nicole explained that conflicts of interest are inherent in the strata industry and not inherently wrong — it’s how they are managed that truly matters. The legal threshold for a conflict is surprisingly low. The temptation to prioritise personal interests over duty can constitute a conflict. While disclosure is often required by law, she emphasised that compliance alone is not sufficient to address the ethical dimensions or risks that may arise.

Nicole outlined the Five E’s of Conflict Management:

1. Explore legal and ethical duties
2. Evade conflicts where possible
3. Escape conflicted situations
4. Expose via clear disclosure
5. Execute your role ethically despite exposure

Key takeaway: Complying with the law is the baseline — not the end goal. Ethical behaviour and proactive transparency are what differentiate high-trust strata service providers.

3. Poorly Considered Regulatory Reforms

Nicole challenged whether Australia is becoming over-regulated — and if so, whether that regulation is solving the right problems. She argued that there is an imbalance in the current regulatory landscape, with excessive emphasis placed on procedural matters—such as proxy rules, while critical areas like life safety and maintenance are often addressed with far less specificity.

Law reform in the strata sector tends to be reactive and fragmented, lacking consistent evaluation or shared learning across jurisdictions. As a result, many reforms, though well-intentioned, can lead to unintended consequences, increasing costs for owners without necessarily delivering better outcomes.

Nicole called for:

1. More meaningful, safety-focused regulation that addresses real risks — not just procedural compliance.
2. More government support for independent research and evaluation
3. A shift toward compliance frameworks that encourage best practice, rather than relying on penalties

Based on comments provided in chat during the session, these suggestions were supported by the live session’s audience.

Key takeaway: Reform is necessary, but without evaluation, coordination, and enforcement, it can become burdensome and ineffective.

Why You Should Watch the Full Recording of the Critical Risks in Strata Webinar

Dr Johnston’s presentation goes far beyond surface-level complaints — she presents clear patterns, systemic issues, and practical recommendations that committee members, lot owners, and strata professionals can implement right now.

Practical Recommendations

• Make Maintenance a Standing Agenda Item: Every committee meeting should include a review of maintenance priorities and progress — not just annual budgeting.
• Use Capital Works Forecasts as Living Documents: Update capital works forecasts/10 year maintenance plans regularly to reflect actual works and evolving conditions, rather than treating them as static, budget-only tools.
• Engage Project Managers Early and Often: Don’t wait for a crisis. Build relationships with professionals who can monitor and advise throughout the life of the building.
• Clarify Boundaries with Visual Plans: Ensure every owner knows their responsibilities by having clear, accessible boundary diagrams for your scheme.
• Develop Ethical Policies for Conflicts of Interest: Go beyond legal disclosure. Nicole suggested committees pass motions to prohibit affiliated entities from being recommended or used without independent review.

Whether you’re a long-time strata committee member, a first-time apartment buyer, or a strata manager seeking to improve governance outcomes, this webinar delivers:

• Evidence-based insight
• Actionable takeaways
• Thought-provoking challenges for the sector

And importantly, Nicole shares ways strata communities can take part in ongoing research and shape the future of strata governance in Australia.

Future Ways to Contribute and Keep the Critical Risks in Strata Conversation Going

NSW Owners and Strata Managers: Take Part in Research

Nicole is currently conducting two research projects funded by NSW Fair Trading:

1. Strata Management Agreement Review – Help develop a model strata agreement.
2. Conflicted Relationships Study – Participate in scenario-based surveys about ethical risk.

For more information on these research projects and how to get involved, interested participants can email: [email protected]

Strata Impact Conference – August 2025

Looking to keep the conversation going? Join Nicole and other industry leaders at the Strata Impact Conference, 14–15 August 2025 at the Langham, Gold Coast.

Early bird rates are available until 11 July. Find out more and register for the event here: Strata Impact Conference

Final Thoughts

Strata is evolving — fast. With mounting maintenance needs, shifting legal frameworks, and increasing governance complexity, it’s more important than ever that strata communities are equipped to manage risk wisely and ethically.

Dr Nicole Johnston’s webinar is a vital resource for anyone seeking to protect their property, enhance governance, and contribute to a stronger strata sector.

Watch the full session here: Navigating Critical Risks in Strata

Presentation slides

Download the slide pack from the presentation here: Navigating Critical Risks in Strata

Presenter

Dr Nicole Johnston
Strata Knowledge
E: [email protected]
LI: Nicole’s LinkedIn Account

Resources Mentioned

• Strata Impact Conference
• Current research – invitation to participate: Evaluating current strata management agreements and practices in NSW Contact Nicole via email for more information
• Current research – invitation to participate: Investigating the conflicted relationships and practices in the NSW strata management industry Contact Nicole via email for more information

This post appears in Strata News #750.

Have a question or something to add to the article? Leave a comment below.

Read next:

• NAT: What proactive maintenance measures can prolong building life and reduce costs in strata?
• NAT: Owners Expect More from Strata Managers – Consumer Call for More Proactive Service and Leadership

Visit Strata By-Laws and Legislation OR Strata Topics by State pages.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.