Strata schemes come with a unique set of administrative and financial responsibilities, and one of the most critical areas that strata managers need to stay on top of is strata accounting. Whether you’re managing a small residential building or a large mixed-use development, accurate financial management is key to staying compliant and maintaining trust among lot owners.
In this guide, we break down the basics of strata accounting, who’s responsible for what, and how a specialist strata accountant can help ensure everything runs smoothly, especially when it comes to strata BAS lodgement and tax for strata plans.
What Is Strata Accounting?
Strata accounting refers to the specialised financial management and compliance obligations of strata schemes (also known as owners corporations or body corporates, depending on the state). Unlike typical business or personal accounting, strata accounting must account for shared ownership, levies, and statutory reporting tied to the scheme as a legal entity.
Common accounting responsibilities for a strata scheme include:
- BAS preparation and lodgement (where GST is registered)
- Annual tax return preparation and lodgement, even for not-for-profit schemes
- Maintaining financial records, including income from levies, interest, or rents
- Budgeting and forecasting for maintenance and administrative funds
- Annual financial reporting for presentation to owners
Many strata plans are registered for GST and are legally required to lodge Business Activity Statements (BAS) regularly. According to the Australian Taxation Office (ATO), even not-for-profit strata schemes may need to lodge a tax return if they generate assessable income (e.g., interest or rental from rooftop telecommunications)1.
Who Is Responsible for Strata Accounting?
Strata managers often oversee a wide range of responsibilities, but when it comes to BAS and tax, the role of a registered tax agent becomes essential. While strata managers are usually responsible for preparing budgets, issuing levy notices, and managing daily financial records, only a registered tax agent can lodge BAS and tax returns on behalf of the scheme.
This is where working with a specialist strata accountant comes in. Unlike generalist accountants, strata accountants understand the complex reporting needs, legislative frameworks, and nuances of managing owners’ corporation finances.
Why Accuracy and Compliance Matter
Strata managers already juggle contractor coordination, owner communications, meetings, and legislative updates. Adding financial compliance to the mix can be overwhelming, and errors can be costly.
Here’s what’s at risk without proper accounting support:
- Late or incorrect BAS lodgements may result in penalties and interest from the ATO
- Inaccurate levy tracking can cause budgeting shortfalls and owner disputes
- Non-compliant financial reports can undermine transparency and trust
- Missed tax obligations could trigger an audit or financial scrutiny
When you’re managing the finances of someone else’s property investment, there’s no room for error. That’s why strata accounting shouldn’t be an afterthought.
The Value of Working With a Specialist Strata Accountant
Engaging a qualified accountant who specialises in accounting for strata managers ensures your scheme’s financial obligations are met efficiently and accurately.
Here’s how a strata accountant supports your role:
- Expert BAS and tax lodgements: Ensuring lodgements are accurate, timely, and compliant with current tax laws
- Clear, audit-ready financials: Providing reports that owners and auditors can trust
- Knowledge of strata-specific tax rules: Including GST implications, levy treatment, and reporting thresholds
- Proactive support: Helping strata managers prepare for AGMs, budgeting cycles, and financial audits
A trusted strata accountant becomes an extension of your team, handling compliance while freeing you up to focus on running the scheme effectively.
Get Professional Support for Your Strata Accounting Today
Strata managers have enough on their plates—strata accounting doesn’t need to be one of them. Let a dedicated, experienced strata accountant take care of your scheme’s BAS, tax returns, and financial reporting.
Need help managing your strata plan’s finances?
Contact Schofields Accountants today to speak with a specialist and make sure your next BAS and tax lodgement is done right.
