When you pay strata levies or contribute to a capital works fund, those funds don’t simply sit in a general bank account. They’re held under strict legal controls in what’s known as a trust account — a dedicated, regulated account that protects owners’ money and ensures it’s used only for authorised strata expenses.

At Metro Strata, we treat the stewardship of client funds as one of our highest responsibilities. Below, we explain exactly how strata trust accounts work, the legislation that governs them, and how we go beyond compliance to safeguard and optimise your money.

The Legal Framework for Strata Trust Accounts

All licensed property and strata managing agents in NSW must comply with the Property, Stock and Business Agents Act 2002 and the associated Property and Stock Agents Regulation 2022. These laws define how client funds must be received, held, reported, and disbursed.

Section 86 of the Act is particularly important. It requires that:

• All money received on behalf of a client must be held exclusively for that person.
• Funds can only be paid out or transferred as directed by the client or as authorised under the strata plan.
• Until disbursed, all money must be deposited into a trust account at an authorised financial institution in New South Wales, approved by the Commissioner for Fair Trading.

Trust accounts must also clearly identify themselves by including the licensee’s name and the words “Trust Account” in their title. This makes them easy to distinguish from general business accounts and allows for regulatory tracking.

When a new trust account is opened, the licensee must notify both the NSW Fair Trading Commissioner and the authorised financial institution in writing. Similarly, when an account is closed, the licensee must provide notice to the Director-General within 14 days. This strict reporting framework ensures every dollar can be traced from contribution to expenditure.

Why Trust Accounts Matter for Strata Owners

In strata management, trust accounts protect more than just money—they protect confidence. Every owner contributes levies to a collective pool that funds building maintenance, insurance, and administration. A trust account keeps these funds:

• Segregated — they’re not mixed with the strata manager’s operating funds.
• Transparent — detailed transaction histories and reconciliations are available for owners and auditors.
• Audited — annual trust account audits ensure compliance with state legislation.
• Secure — access and authority are limited, with two-step verification for all transfers.

Every payment made — whether to insurers, contractors, or service providers — is logged, traceable, and backed by documentation. This creates accountability at every stage of financial management.

Why Metro Strata Partners with Macquarie Bank

While NSW law mandates that client funds be held in trust, how those accounts are managed makes a big difference. After extensive evaluation of authorised financial institutions, Metro Strata selected Macquarie Bank as our preferred banking partner. Here’s why:

• System integration: Macquarie’s platform integrates seamlessly with our strata management systems, enabling fast, accurate BPAY transactions, real-time reconciliation, and reduced administrative errors.
• Client-focused features: Their banking infrastructure supports multiple payment options, direct debits, and owner portals for easier levy payments.
• Industry expertise: Macquarie Bank is a leader in strata and property trust account management, offering compliance-ready reporting and dedicated support for managing agents.
• Competitive returns: Macquarie provides attractive rates on interest-bearing investment and term-deposit accounts, helping Owners Corporations maximise the value of surplus funds.

Our partnership with Macquarie ensures that every transaction is handled securely, efficiently, and in compliance with NSW trust-accounting regulations.

Metro Strata’s Monitoring and Oversight Practices

Beyond legal compliance, Metro Strata employs a rigorous internal oversight system to ensure your funds are always managed correctly and performing optimally. Our processes include:

• Daily account monitoring to verify all receipts and payments.
• Monthly reconciliations of every trust account to maintain financial accuracy.
• Quarterly internal audits by our finance team to confirm compliance ahead of formal external audits.
• Regular performance reviews to identify opportunities for better returns on surplus balances.

We believe that proactive monitoring not only ensures compliance but also maximises the efficiency and transparency of every dollar entrusted to us.

The Financial Institution’s Responsibilities

In NSW, banks and financial institutions authorised to hold trust funds also play an active regulatory role. They must:

• Report to NSW Fair Trading the number of trust accounts opened and closed each month.
• Provide monthly statements listing all active accounts and their balances.
• Immediately notify the Director-General if an account becomes overdrawn or if any irregularities occur.

This dual-layered oversight — between licensed agents and their banks — ensures accountability on both sides of the financial relationship. It’s a key reason strata trust accounts in NSW are among the most tightly regulated in Australia.

Transparency for Owners

All owners within a strata scheme managed by Metro Strata have access to detailed financial reporting. Through our online client portal, you can view levy payments, invoices, and account statements in real time. Annual audit reports are also shared at general meetings, ensuring every transaction is fully documented and transparent.

This openness gives owners confidence that their funds are not only secure but being used efficiently and in line with resolutions passed by their Owners Corporation.

Final Word

Trust accounts are more than a legal requirement—they’re a cornerstone of responsible strata management. At Metro Strata, we combine rigorous compliance with proactive financial stewardship, ensuring your funds are both safe and productive.

Whether you’re a committee member wanting clarity on financial processes or an owner curious about how levies are managed, our team is here to help.