Can requesting the Delegated Functions Report directly reduce the strata managing agent’s fee?

With effect from 1 July 2025, one of the amendments to the Strata Schemes Management Act 2015 (NSW) (SSMA) requires strata managing agents in NSW to provide the owners corporation with records specifying the delegated functions exercised by the strata managing agent every six months, per section 55(2) of the SSMA, rather than annually as was previously required.

Under section 55(1) of the SSMA, a strata managing agent must immediately record the exercise of any function delegated by the owners corporation or an officer of the owners corporation. The functions that may be delegated to a strata managing agent are those prescribed under sections 52 and 54 of the SSMA.

The increase in the frequency of the reporting requirement may have contributed to the increase in the administrative fee charged by the strata managing agent, as the strata managing agent is now required by law to prepare and provide the report twice as often. Even if the owners corporation requests the report directly, the strata managing agent remains obliged under section 55(2) of the SSMA to provide the report every six months.

You could review the strata management agency agreement with your strata managing agent about the fees charged for producing the records.

Following this review, the owners corporation may wish to negotiate amendments to the agreement with the strata managing agent regarding the associated costs. Such amendment must be signed by the strata managing agent in writing and approved by a resolution at a general meeting of the owners corporation.