The NSW Fair Trading & Netstrata agreement was a [very] bad deal
Just strata sayin …
NSW Fair Trading has been criticised over the McGrath Nicol Netstrata Report, which was late, sanitised, inconclusive, and missing what many expected to know. And, rightly so.
However, those disappointing outcomes were entirely predictable from the terms of the agreement made between NSW Fair Trading and Netstrata.
If you don’t know much about that deal, read my article Wanna Know What Netstrata & NSW Fair Trading Agreed which explains it all.
But here are a few key features of that deal that created the inevitable outcome/s.
First, Netstrata paid for the report. So, hello …
Second, the investigation covered only two and a bit years, from January 2022 to March 2024 and a small selection of buildings nominated by Netstrata. So, look over here …
Third, everything [information, findings and the actual report] was confidential. So, like the secret NASA UFO files …
Fourth, Netstrata wasn’t bound by any of the report findings. So, they’ve had a ‘cheap’ practice run …
Those things mean that my and the strata stakeholders’ complaints about the McGrath Nicol report shouldn’t be made against Netstrata, but rather against NSW Fair Trading.
After all, Netstrata is doing what it’s allowed to do and what it negotiated for in 2024. And, it's what I’d [and anyone else] would advise them to do and probably what you’d do too.
Plus, it’s in Netstrata’s commercial best interests, and they’re allowed to be business like.
However, NSW Fair Trading made that agreement on those terms when it knew of the ABC News reporting, had multiple complaints about Netstrata from strata buildings, owners and others, knew what many strata commentators were saying, and was legally [well] advised.
And, NSW Fair Trading could have [and probably should have] just investigated the Netstrata complaints itself, rather than outsourcing that and without the agreed restrictions.
I know NSW Fair Trading said, at the time, that the deal meant Netstrata was funding things and secured Netstrata’s cooperation.
But getting Netstrata to pay some of the investigation costs is starting to look like a very very bad deal when a year or more later when NSW Fair Trading is exposed to the costs blow out, they lost time debating things with Netstrata, most of the findings can’t be released, they can’t start and haven’t yet started any enforcement actions and is suffering serious credibility issues.
And, in the meantime, Nestrata is spinning the investigation and report as positive for them, and their business operations have been largely unaffected.
So, it looks to me like this was a very bad deal for NSW Fair Trading and strata citizens.
Conversely, it was a very good deal for Netstrata.
Additionally, it has given everyone else a playbook for outmaneuvering strata regulators.
Which makes me wonder who was in charge of strata title matters at NSW Fair Trading and negotiated that deal during early 2024?
Just strata saying ...
June 06, 2025
Francesco ...
... such deserved cynicism ...