Opinion: Cladding Crisis – Who Really Pays the Price?

I read the recent news about Sydney apartment owners being slugged with special levies of up to $220,000 to replace flammable cladding, and I couldn’t help but feel that familiar sinking feeling in my stomach. It brought back memories of my own experience a few years ago when I discovered my investment property was caught up in the cladding mess.

Our building, like so many others, had cladding that was considered completely compliant at the time of construction. The builder followed the rules. The supplier sold products that were stamped and certified. Council signed off on the development. And as buyers, we all made what we thought were safe, well-informed decisions, trusting that a building wouldn’t be approved if the materials weren’t up to scratch. But as it turns out, we were all walking blindfolded into a ticking time bomb.

When the regulations changed and suddenly that same cladding was declared a fire risk, the responsibility to fix it fell squarely on the shoulders of unsuspecting owners like me. We were lucky we could afford the special levy. It still stung (a lot!), but we made it work. Sadly, many others aren’t so fortunate.

The article highlights owners facing financial ruin, and it’s heartbreaking. But it also raises a tough question – who’s actually at fault here? The builder used what was legal. The supplier did the same. Council ticked their boxes. The government, keen to avoid liability, simply tells owners to replace it. And so, ordinary people are left carrying the burden for a problem they never created.

It’s overwhelming. I know that feeling of sitting in a meeting room full of anxious owners, staring down an enormous problem, wondering where to even begin. It’s easy to feel powerless in the middle of this chaos. But if there’s one thing I’ve seen time and time again, it’s that the outcome depends hugely on who you’ve got around the table.

When the right people are involved, people who are focused on finding practical, realistic solutions, real progress is possible. Sadly, I’ve also seen what happens when misinformation spreads and emotions boil over. Instead of addressing the issue head-on, some owners end up wasting precious time, energy, and money arguing amongst themselves, pointing fingers, or clinging to the hope that the problem will somehow just go away. But the truth is, it never does.

That’s exactly why having calm, experienced, and trusted people around the table matters so much. At Compass Strata, we use our experience and knowledge to help strata committees and owners navigate these complex, often stressful situations. We don’t sugar-coat the facts because no one benefits from false hope, but we also never lose sight of the human impact these issues have.

We know that behind every tough decision are real people, families, and often a lot of anxiety. That’s why we focus on asking the right questions, breaking down the legal and financial complexity, and offering clear, practical advice so owners can make informed, confident decisions.

I truly hope that no one ever finds themselves in such a situation, but if you do, perhaps we can offer some useful insights.

Disclaimer: This article is purely an opinion piece based on personal experience and general industry observations. We are not privy to the specific facts or details of the situation mentioned in the news article.