The NSW Government is pressing ahead with further changes to the state’s strata laws as part of an ongoing program to modernise strata regulations, give confidence to people living in strata properties, better protect owners’ corporations against fraud, and meet the evolving needs of all stakeholders.

The latest reforms – introduced in April this year – form part of a broader overhaul of NSW strata legislation that has been progressively implemented since early 2025, with the Government seeking tighter oversight of strata managers and stronger protections for property owners in response to growing concerns around accountability and governance standards in strata schemes.

These developments come amidst allegations of major fraud against a former Coffs Harbour strata manager, Jessica Marrie Carah, who had transferred over $2 million from multiple strata schemes accounts into her own personal account. An investigation by NSW Fair Trading discovered 398 fraudulent transactions by Carah involving 66 strata plans between February 2024 and December 2024.

Previously employed with strata agency SMS Community & Strata Specialists, Carah has had her licence cancelled by the regulator and is permanently disqualified from working in the NSW property and strata industry.

According to the watchdog agency, the former strata manager and licensee in charge “acted unlawfully, improperly, unfairly or incompetently in the course of carrying on business as a holder of a Class 1 Agent - Strata Management licence”.

Fair Trading also added Carah to its ‘Name and Shame’ register, introduced earlier this year to publicly identify agents facing disciplinary action, helping owners, renters, buyers and sellers vet property professionals and make informed choices before engaging them.

A special taskforce, Strike Force Colebrook was set up by NSW Police as part of the criminal investigation into the alleged strata management fraud incident. While no criminal charges have been framed yet, the investigation is ongoing, according to an update by the police last month. Meanwhile, Fair Trading continues to work with other Government agencies on these investigations. While some strata plan accounts affected by the fraud have been reimbursed, other claims are being processed for reimbursement by insurance companies.

The agency has also invested $8.4 million in a dedicated Strata and Property Services Taskforce to tackle issues in the industry, and further strengthen compliance and enforcement action against misconduct, fraud or other offences by strata agents through unannounced inspections and targeted crackdowns on underquoting breaches.

NSW Minister for Better Regulation and Fair Trading Anoulack Chanthivong describes the enforcement action against Carah as “a crucial part of the Government’s work to lift standards, boost consumer confidence and restore trust in the strata sector”.

“Under regulations, a strata manager must hold separate trust accounts for an owners’ corporation and those funds must only be used as the client directs. With our recently established Strata and Property Services Taskforce targeting misconduct by strata managers, licensees in charge will be held accountable for meeting their obligations to review and approve all transactions from the trust,” Chanthivong explains.

Fair Trading Commissioner and Acting Strata and Property Services Commissioner Natasha Mann describes the incident as “disturbing”, adding that such people are being removed from the industry to protect consumers.

According to peak industry body Strata Community Association NSW, 17% of NSW residents – almost 1.5 million people – live across more than 91,000 strata schemes, making it imperative for the Government to take strong and punitive measures against instances of misconduct by property agents.

Changes introduced over the past year to make the strata industry fairer for people across NSW have included tougher disclosure rules for strata agents with increased penalties around conflicts of interest, stronger powers for regulators to intervene in maintenance disputes, and new protections aimed at preventing unfair contract arrangements. The reforms also introduce support measures for owners facing financial hardship and struggling with strata levies, alongside new accountability and transparency standards for building managers.

Upcoming reforms include mandatory training for strata committee members, and disclosure of exclusive supply networks in off-the-plan contracts for sale. The Government is also considering a phased transition from a commissions-based model to a direct fee-for-service structure for strata insurance, which is expected to enhance trust and transparency between strata managing agents and owners.

Image: NSW Government

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