The Elephant in the Room
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Episode 398: Strata at a Crossroads: Why the System Needs Urgent Change

Australia’s strata sector is at a tipping point.

With millions of Australians living in apartments and townhouses, recent Four Corners and 7.30 Report investigations have exposed deep issues: building defects, governance failures, opaque practices, and power imbalances between developers, strata managers, and owners.

In this episode, Kate McHugh, co-founder of the Strata Futures Stakeholder Engagement and Roundtable, unpacks the challenges facing strata management in Australia. Drawing on the Strata Futures Report, she explains how industry leaders, regulators, and owners came together to tackle the systemic problems holding the sector back.

We explore:

  • The financial and governance issues driving distrust in strata management

  • Why fragmented state laws are undermining transparency and accountability across strata schemes

  • The hidden risks behind rising strata levies, special assessments, and undisclosed commissions

  • The role of strata insurance in escalating costs for owners and why reform is overdue

Whether you’re an apartment owner navigating strata levies, a buyer researching strata insurance, an investor weighing risk, or a professional in strata management, this episode sheds light on what needs to change.

Listen now to learn how improving strata management can protect property values, deliver fairer governance, and build a more sustainable future for all Australians living in strata.

Episode Highlights:

00:00 – Welcome

02:09 – The Strata Sector's Challenges

04:14 – Governance and Regulation Issues

05:08 – The Round Table Initiative

11:54 – Sustainability in Strata

17:13 – The Six Pillars of Reform

26:07 – Understanding Strata Obligations

27:19 – The Importance of Maintenance and Governance Data

28:30 – Investing in the Strata Sector

29:08 – Personal Mission to Improve Property Decisions

30:18 – Challenges in Strata Education and Awareness

31:29 – Public Awareness and Training Initiatives

33:32 – Strata Management and Building Maintenance

37:00 – The Future of Strata Development

40:30 – Sector Collaboration and Task Force

44:14 – Final Thoughts and Call to Action

About our Guest:

Kate McHugh is the co-founder of the Strata Futures Stakeholder Engagement and Roundtable and co-author of the Strata Futures Report. With a background in governance, policy, sustainability, and stakeholder engagement, Kate works at the intersection of lived experience and systemic reform in Australia’s strata sector.

Partnering with former NSW Strata Commissioner John Minns and a wide network of industry and consumer leaders, Kate helped convene a cross-sector discussion to explore what’s broken—and what could be rebuilt. The outcome: a collaborative report outlining six key reform areas designed to make strata more equitable, transparent, and functional. Her work is helping push the conversation forward at a time when strata’s role in housing affordability, sustainability, and urban planning has never been more critical.

Connect with Kate:

Website: https://www.katemchugh.net/

LinkedIn: https://www.linkedin.com/in/katemchughh/

Resources:

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Chris Bates