Managing strata properties in Western Australia often involves navigating a range of legal documents and compliance requirements. One area that can cause confusion is the term “Strata Management Statement”. While this terminology appears in older documentation and commentary, it no longer reflects the current legal framework. At Perth Strata Co., we help owners and developers cut through this complexity and understand what applies today.
What Was a Strata Management Statement?
Before reforms to the Strata Titles Act 1985 (STA) commenced on 1 May 2020, developers could lodge a Management Statement (Form 25) at the time of registering a strata or survey-strata scheme. This was a mechanism for recording the scheme’s by-laws and for dealing with staged subdivisions.
If no management statement was lodged, the default governance and conduct by-laws contained in Schedules 1 and 2 of the Act applied automatically. In practice, “Strata Management Statement” was never formally defined under the Act but became a colloquial way to describe these early management documents.
What Has Replaced It?
The 2018 amendments to the Strata Titles Act, which took effect on 1 May 2020, replaced management statements with a simplified and more transparent system of Scheme By-Laws.
Today:
- Scheme By-Laws are lodged as part of the scheme documents when registering a strata plan.
- If no scheme by-laws are lodged, the default Schedule 1 (Governance) and Schedule 2 (Conduct) by-laws automatically apply.
- Any amendment, repeal, or addition to the by-laws must be lodged at Landgate within three months, accompanied by a consolidated set of by-laws.
This system ensures every scheme maintains a single, current record of its rules. It resolves historic issues where by-law changes were scattered across multiple documents, creating uncertainty about which rules actually applied.
Landgate’s Three Options for By-Law Lodgement
According to Landgate’s STR-07 Scheme By-Laws guide, all schemes now operate under one of three options.
Voluntary Consolidation
For schemes registered before 1 May 2020 that choose to consolidate their existing by-laws into one document.
New Scheme
For schemes registered after 1 May 2020, where the scheme by-laws differ from the default schedules. These must be lodged as a consolidated set.
Application to Amend
For existing schemes that are making, repealing, or amending by-laws. Each application must include a consolidated set reflecting the changes.
This framework eliminates the need for a separate “management statement.”
Transitional Arrangements for Older Schemes
For schemes established before 1 May 2020, previously registered management statements and by-laws continue to operate, provided they are not inconsistent with the amended Act. However, once a scheme makes its first amendment after 1 May 2020, it must lodge a consolidated set of scheme by-laws that reflects the current rules, including classification as either governance or conduct by-laws.
This transitional process ensures that older schemes remain valid but progressively migrate to the new, consolidated system.
Why This Matters for Owners and Developers
Continuing to rely on the term “Strata Management Statement” can cause confusion and, in some cases, create compliance risks. Issues may arise if:
- Outdated documentation is treated as the current authority.
- Cost-sharing responsibilities for shared facilities are unclear.
- By-law changes are not registered within the three-month deadline.
Developers in particular must ensure that any bespoke arrangements for mixed-use or staged projects are properly incorporated into the scheme’s by-laws at registration.
How Perth Strata Co. Can Help
At Perth Strata Co., we provide expert advice and strata management to ensure your strata scheme is fully compliant with current legislation. Our team can:
- Review historic management statements and advise on their current legal effect.
- Draft and register consolidated Scheme By-Laws in line with Landgate requirements.
- Assist with governance in mixed-use and staged developments.
- Ensure all by-law changes are approved, classified, and lodged correctly.
With our guidance, you can be confident your property is managed under the correct legal framework, reducing disputes and protecting the value of your asset. Contact us today!
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