What a strata property can charge won’t always match what the strata manager invoices — and that gap can catch some owners off guard.
The Legislative Cap and How It Works
When a conveyancer (also known as a settlement agent in some states) requests a status certificate from a strata company, the maximum fee the strata can charge is set under the relevant strata legislation or regulations. For example, in Western Australia, the Strata Titles (General) Regulations 2019, regulation 86, currently caps the fee at $140 per certificate if the strata is not registered for GST.
If the strata is registered for GST, it may charge $140 plus GST ($154) for each certificate, with the GST collected and later remitted to the ATO. This means:
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GST-registered strata properties charge a GST-inclusive amount to the conveyancer and account for the GST in their BAS.
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Non-registered strata companies charge only the GST-exclusive figure, as they are not permitted to collect GST.
The Strata Manager’s Fee Structure
While the legislation dictates what the strata can charge, it does not require the strata manager to set their fee at the same figure. In practice, most strata management firms apply a standard fee for preparing a status certificate — for example, $140 plus GST ($154) per certificate — regardless of the GST registration status of the building they manage.
From the manager’s perspective, the value of the service is the same whether the client is GST-registered or not, so the fee remains unchanged. This typically results in:
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GST-registered strata companies breaking even — the income from the conveyancer matches the amount paid to the manager, including GST.
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Non-registered strata companies being out of pocket by the GST portion, as they cannot claim it back.
Voluntary Fee Reductions — A Courtesy, Not a Requirement
Some strata managers choose to reduce their fee for non-registered buildings so that the total aligns with the legislated cap without adding GST. For example, they may charge $140 inclusive of GST, effectively lowering their own income to prevent their client being out of pocket.
While this is a considerate practice, it is not required under legislation. Unless a management agreement specifies otherwise, a strata manager is entitled to apply their standard fee structure, even if it means the strata company pays more for the certificate than it can legally charge.
Why This Causes Confusion
It’s common for strata managers and council members to assume that if a strata company is registered for GST, both the income (from the conveyancer) and the expense (to the strata manager) will be GST-inclusive, and if it’s not registered, both will be GST-exclusive. In reality, only the income side is determined by the legislative cap. The expense side is set by the strata manager’s pricing policy.
Quick Takes
- Legislation caps what a strata company can charge for a status certificate — not what a strata manager can invoice.
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GST-registered buildings generally break even on certificate transactions; non-registered ones may not.
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Fee alignment between income and expense is not mandatory unless set out in the management agreement.
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Voluntary reductions for non-registered buildings are goodwill gestures, not compliance requirements.
If you've got any queries on the above matter, please reach out to our admin team.
Links:
- Do we Have To Do a Tax Return For Status Certificate Fees?
- Timing Status Certificate Fees to Minimise Tax Issues
The above content is of a general nature and should not be relied upon as professional advice. Ascend encourages readers to seek advice from suitably qualified professionals in relation to their specific circumstances and not to rely solely on the information provided above. Please contact our office for more information.
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