Why Reviewing Matters
2025 is a milestone for many WA strata properties, marking the first time many schemes will be undertaking a mandatory review of their 10-year maintenance plans. These plans were introduced to forecast major works and help schemes save steadily for future needs.
But five years on, costs have shifted, new regulations have landed, and some schemes may now find themselves over-prepared – or significantly underfunded.
2025 is the time to look again at your maintenance strategy
Since 2020, WA law has required designated strata companies (those with 10 or more lots or a replacement value over $5 million) to have a 10-year maintenance plan and to review it at least once every five years. That makes 2025 the first major checkpoint for many schemes.
This review isn’t just a compliance exercise. Circumstances have changed dramatically since these plans were first created. Construction prices have risen, new building standards have been introduced, and issues that seemed minor in 2020 may now be serious risks.
Without an updated plan, schemes can be caught short—forcing owners to cover unexpected bills through special levies that can run into the tens of thousands of dollars.
When Levies Are Set Too Low
Underfunding is one of the biggest risks to a strata scheme’s financial health. If contributions don’t match the true cost of maintaining the building, essential works may be delayed or skipped altogether.
When problems inevitably surface, owners can face sudden special levies, sometimes exceeding $100,000, leading to disputes, financial hardship, and even forced sales.
“Around 1 in 4 strata buildings in Australia is considered to have an underfunded maintenance plan, leaving owners vulnerable to unexpected costs and accelerated deterioration of their properties.” – PICA Group, 2024
When Levies Are Set Too High
Overfunding can create a different kind of problem. Levies set too high without proper justification can make strata living unaffordable.
Across Australia, 10% of forced bankruptcies are now linked to unpaid strata levies, and in WA, advocacy groups have reported cases where owners have faced property seizure over small arrears. For those on fixed incomes, excessive levies can mean choosing between paying their share or meeting everyday living expenses.
Getting the Balance Right
A timely, balanced review ensures your scheme’s funding is realistic, neither leaving owners exposed to surprise costs nor pricing them out of their own homes. Ignoring this obligation isn’t just non-compliance, it’s a gamble with the financial stability of your community.
How to Review Your Plan in 2025
Check the basics
▢ Date of last review: If it hasn’t been updated since 2020, it’s due now.
▢ Scope of works: Does it cover all major building components (roof, lifts, plumbing, fire systems)?
Test the numbers
▢ Cost accuracy: Are cost estimates realistic in today’s market? Have they factored in inflation, labour, and new regulatory requirements?
▢ Reserve fund balance: Does the current fund match projected needs for the next five years?
Look for balance
▢ Too high: Are levies pushing owners into hardship? Up to 9% of annual levies go unpaid at any given time in some schemes—this can strain communities and lead to legal action.
▢ Too low: Are you likely to face sudden special levies? Ask what the plan’s worst-case scenarios look like.
Consider fairness and flexibility
▢ Hardship policies: Does your scheme have payment plans or options for owners who hit financial difficulty?
▢ Transparency: Are owners regularly updated on fund levels and upcoming works?
Engage with the bigger picture
▢ State reforms: WA’s Strata Titles Act is under review in 2025, with maintenance funding and hardship protections in focus. Owners can have a voice in shaping how strata works in the future.
