Overview

Strata Company bank accounts, whilst mainly free of transaction fees, do not pay interest. Therefore, some Strata Companies may select to transfer surplus funds into an Interest Bearing Account.  

ESM banks with Macquarie Bank Ltd. We have negotiated reduced banking fees based on the volume of Strata Companies we represent.

Interest is generally paid on bank balances above $10,000.

ESM charges the Strata Company an hourly fee to set up the investment account in the first instance ($110 per hour).

The only bank fees that apply to each Strata Company are the Monthly Bank Account keeping fee of $7.70 (which is included in your Strata Management Agreement fee).

Strata Companies must lodge tax returns on income, which comes with an expense. This could be approximately $200 per year.

A Strata Manager is not licensed to prepare BAS or tax documents, so the task is outsourced to a licensed tax accountant. The cost of the preparation may exceed the interest earned on the balance, effectively meaning that there is no net gain in the Strata Company maintaining an Interest Bearing Account.

Formal notification of the intention to invest is resolved by the Strata Company at a general meeting (Annual or Extraordinary) or Council meeting.

The Strata Manager completes an Authority to Transfer Funds and Open New Accounts form and passes them to the CS&S Accounts Team member along with a copy of the authorisation notice (minutes).

As each strata company is different, this is something you should discuss with your fellow Councillors. If you want to proceed, contact your Strata Manager, who can provide you with details that are specific to your scheme.