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Strata at a Crossroads: Why the System Needs Urgent Change

Strata at a Crossroads: Why the System Needs Urgent Change

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 Australia’s strata sector is under pressure — and it's no longer a niche issue. Following high-profile investigations by Four Corners and 7.30 Report, strata governance failures, building defects, and financial blowouts are now front and centre. With more Australians living in apartments and townhouses than ever before, what happens next in this space will impact millions. In this episode, Kate McHugh, co-founder of the Strata Futures Stakeholder Engagement and Roundtable, joins us to unpack what’s driving the crisis—and what needs to change. Drawing from her work on the Strata Futures Report, Kate outlines the six key reform pillars that emerged from cross-sector collaboration, covering everything from governance and professional standards to owner advocacy and sustainability. We explore how opaque commissions, underfunded capital works, power imbalances, and a fragmented regulatory system are eroding trust in strata—and why many apartment owners are left feeling blindsided by defects and skyrocketing levies. Kate also shares what it would take for the sector to turn itself around—before government intervention does it for them. Whether you're a strata owner, buyer, investor, or professional, this episode offers critical insight into the future of high-density living in Australia. 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 Mentions Strata Futures - https://www.katemchugh.net/strata-futures About the 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 Visit our website: https://www.theelephantintheroom.com.auIf you have any questions or would like to be featured on our show, contact us at:The Elephant in the Room Property Podcast - questions@theelephantintheroom.com.au Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.auWork with Veronica: https://www.veronicamorgan.com.auLooking for a Mortgage Broker? alcove.com.auWork with Chris: chrisbates@alcove.com.au Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word, and join us for more insightful discussions in real estate. Your journey starts now! Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcastSubscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765 If you enjoyed today’s podcast, don’t forget to subscribe, rate, and share the show! There’s more to come, so we hope to have you along with us on this journey! See you on the inside, Veronica & ChrisSee omnystudio.com/listener for privacy information.
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