On 15 October 2026, Landgate released the Phase Two Discussion Paper for the five-year review of WA's Strata Titles Act 1985. It covers 20 topics. The headlines are limits on proxies, easier by-law changes, a fixed position on short-stay letting, clearer levies and budgets, and much more disclosure from strata managers and councils.
Planning and Lands Minister John Carey said many of WA's roughly 350,000 strata properties suffer "significant relationship dysfunction" between council members, managers and owners. Strata Community Association WA called the package "a great first step."
We read the discussion paper so you don't have to. Below are the proposals most likely to change how a small scheme runs, and where LevyLite already helps.
These are proposals, not law
Consultation runs until 26 November 2026. Feedback goes into a final report to the Minister before any bill is drafted. Several proposals are offered as options ("one or more of the following"), so not all of them will survive. Nothing here is legal advice.
1. Proxies: one per person in small schemes
What's proposed: The paper responds to "proxy harvesting", where one person collects enough proxies to control decisions. The options include:
- a limit of one proxy per person in schemes of 20 lots or fewer, and no more than 5% of lots in larger schemes
- proxies valid for a fixed one year, unless revoked sooner
- an approved proxy form, and owners stating how their proxy must vote on each decision
- developer proxies revoked automatically once every lot has been sold and handed over
- disputes over proxy validity able to go to the State Administrative Tribunal
What it means for small schemes: This is the change most likely to affect a small scheme's AGM. In a 6-lot complex, the owner who turns up holding three neighbours' proxies would hold one. A proxy signed years ago would lapse. Whoever runs the meeting will need to know who holds which proxy, when it was given, and how it is directed.
How LevyLite helps
- Attendance recorded lot by lot at every meeting: present, virtual, proxy or apology
- Each proxy records who represented the lot, so you can see at a glance if one person is holding more than one
- Quorum calculated automatically from attendance and proxies
- Once the final rules are known, we'll update proxy tracking to match, including expiry dates and directed votes
2. By-laws changed by special resolution
What's proposed: Today, governance by-laws need a resolution without dissent. It fails if a single owner votes against it. The paper proposes dropping the split between governance and conduct by-laws, and letting all by-laws be made, amended or revoked by special resolution. It also proposes a modernised set of default by-laws in plain language, including smoke and vape drift on common property. That set would end the confusion for schemes created before May 2020 about which defaults apply to them.
What it means for small schemes: One holdout could no longer freeze the rules. That also makes a properly run meeting matter more: valid notice, a clear motion, and an accurate count of votes in the minutes.
How LevyLite helps
- Meeting notices and agendas sent to every owner, with delivery tracked
- Resolutions recorded as ordinary, special or unanimous, with votes for, against and abstaining
- Minutes and current by-laws kept in the document library, where every owner can see them in the owner portal
3. Levies and budgets owners can actually read
What's proposed: Owners told the review they didn't understand what their quarterly levies paid for. The paper proposes:
- minimum standards for levies, with itemised expenses
- a minimum standard for budgets, including how levies are spread across the financial year
- notifying owners when an item runs 20% or more over budget, with a breakdown of the costs
- a cost breakdown for any item worth 10% or more of the total budget
- letting strata companies offer payment plans to owners in genuine financial hardship
These rules would apply to strata companies, not just to professional managers, so self-managed schemes would need to meet them too. Mandatory independent audits of strata managers' trust accounts are flagged for future consideration.
How LevyLite helps
- Admin and capital works budgets built line by line from a chart of accounts, alongside last year's actuals
- Budget-vs-actual report with dollar and percentage variance for every line, so an item running 20% over stands out
- Levy notices that separate the admin fund and capital works fund contributions, on quarterly, half-yearly or custom schedules
- Arrears tracking and automated reminders, plus an owner portal where every owner can see what they owe and what they've paid
- Hardship payment plans and over-budget notifications are on our list as the rules firm up
4. Short-stay letting settled at the first AGM
What's proposed: Short-stay rental by-laws are governance by-laws, so whichever way a scheme starts out (allowing or banning Airbnb), changing it is almost impossible. The paper would require each strata company to decide its position on short-stay letting at its first AGM. It would also make it easier to recover extra costs caused by short-stay use, and to hold the lot owner liable for guests' damage to common property.
What it means for small schemes: In a 4-lot complex, one Airbnb is a quarter of the building. A clear, recorded decision protects owners who want quiet and owners who want to rent flexibly, and buyers will know where the scheme stands before they buy.
How LevyLite helps
- The decision is recorded as a resolution in the minutes, with a permanent history
- Damage to common property can be logged as a maintenance request with photos, quotes and invoices, so the costs are documented if you need to recover them
5. Multiple insurance quotes, every time
What's proposed: Feedback said strata companies were "only being presented with insurance quotes that gave their strata manager the best commission." The paper proposes a minimum number of quotes every time insurance is taken out or renewed. It also proposes spelling out what counts as "reasonable steps" to obtain insurance.
What it means for small schemes: This is an obligation on the strata company, so it applies whether or not you use a manager. Expect to need evidence that you shopped around at every renewal.
How LevyLite helps
- Insurance register with insurer, broker, premium, sum insured, excess and renewal dates, so you can compare year on year
- Valuations tracked against sum insured
- Competing quotes stored in the insurance folder of the document library, as evidence you shopped around
6. Commissions and conflicts out in the open
What's proposed for strata managers: They would have to disclose any benefit received in connection with their work, with a penalty for not doing so. They would also report their commissions and benefits to the strata company every year, and lodge a permanent annual return with government. Management contracts would need a clearer breakdown of fees, and the strata company would have to be told when charges fall outside the contract's scope.
What's proposed for council members: They would have to disclose commissions and other conflicts of interest. Schemes would get a way to remove a member who doesn't, and new members would receive government-written information about their duties. Separately, new conduct provisions would prohibit bullying and harassment by owners, occupiers, council members and managers.
What it means for small schemes: If you pay a manager, you should soon see much more clearly what you're paying for. (We broke down typical WA management fees in this guide.) If you self-manage, the council rules still apply to you. Declare it when a council member's brother-in-law is the plumber, and write down who approved what.
How LevyLite helps
- One flat subscription per scheme. No commissions, no percentage of levies, no out-of-scope charges
- Multiple tradesperson quotes recorded against each maintenance job, each approved or rejected on the record
- Trust accounting with bank reconciliation, and an audit log of every change
- Council members and their roles recorded per scheme
Have your say before 26 November
Most of the loudest voices in strata policy come from big complexes and the management industry. Small schemes have different realities, and the review is asking for them. Read the discussion paper and nine-page summary guide on Landgate, and send your feedback through the online form or to [email protected].
You can also hear the Minister explain the reforms on ABC Radio Perth. We'll update this post as the review moves toward a bill.
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