The NSW Parliament is rolling out a series of major changes to strata and community land laws. These reforms aim to improve transparency, strengthen governance and give strata owners and residents more protection. 

With more people living in strata and pressure on housing supply, the government is overhauling how strata schemes are managed and maintained. The changes are being introduced in phases so owners, managers, and developers can adjust. 

Why Are the Laws Changing? 

The reforms deliver recommendations from the 2021 review of NSW strata laws. The government also listened to feedback from owners, residents, and the strata sector. The changes aim to: 

• Improve transparency 

• Increase protections for owners and residents 

• Make it easier to resolve disputes 

• Support sustainability and accessibility upgrades 

What’s Already Changed 

Key reforms in 2023: 

• Strata renewal process: The Land and Environment Court can now approve a renewal plan even with procedural defects, as long as it doesn’t cause substantial injustice. 

• Voting rules: In schemes with only two lots, the original owner’s vote is no longer reduced by two-thirds. 

• Committee flexibility: Committee members can be appointed at any general meeting, not just at AGMs. 

• Restrictions on proxies: New rules limit how company nominees and powers of attorney can be used to avoid proxy farming. 

What’s Coming From Mid-2025 

The most significant reforms in a decade take effect from mid-2025. 

For Developers: 

• The first AGM must be held within two months of the initial period ending. 

• Developers must provide certified maintenance schedules and disclose whether embedded utility networks are included in the building. 

• Buyers can rescind contracts if embedded networks weren’t disclosed upfront. 

For Strata Managers: 

• Must disclose more information about commissions, supplier relationships, and past advice to developers. 

• Required to provide at least three insurance quotes and report to owners corporations every six months. 

• Strata management agreements will now fall under consumer protection laws, ensuring fair contract terms. 

• Managers face fines up to $110,000 for breaches. 

For Strata Committees: 

• Mandatory training on their roles, duties, and legal obligations. 

• New duties to act honestly, fairly, and in the best interests of the scheme. 

• Members who don’t complete training can be removed. 

For Building Managers: 

• New statutory duties to act in the owners corporation’s best interests. 

• Management agreements subject to unfair contract terms legislation. 

• NCAT will have the power to terminate agreements for misconduct or unlawful behaviour. 

• Fines up to 100 penalty units (individuals) and 200 (companies) for breaches. 

For Owners Corporations: 

• Must consider sustainability initiatives each year. 

• Appearance-based objections to solar panels or sustainability infrastructure won’t be allowed unless the building is heritage-listed. 

• Approving accessibility infrastructure like ramps or lifts will only require a simple majority, not 75%. 

Financial Changes: 

• Stricter rules for levy payment plans and extending the grace period before recovery action from 21 to 30 days. 

Maintenance Disputes: 

• NSW Fair Trading will get new powers to investigate common property maintenance issues and work with owners corporations to resolve them, providing an alternative to costly legal action. 

What Should You Do Now? 

If you’re a strata owner, committee member, developer, building manager, or service provider, you’ll need to understand these changes and adjust your processes. 

• Strata committees should confirm whether their members have completed mandatory training. 

• Strata managers must review their disclosure procedures, insurance practices, and management agreements. 

• Developers should review disclosure obligations and maintenance schedule requirements for upcoming projects. 

• Owners should ask their managers about how these reforms affect their building and decision-making processes. 

Summary 

The NSW strata reforms represent a significant regulatory shift. The changes aim to: 

• Strengthen governance 

• Improve financial transparency 

• Support better maintenance and dispute resolution 

• Make sustainability and accessibility upgrades easier 

• Provide stronger protections for strata owners and residents 

For full details and commencement dates, visit the NSW Parliament or NSW Fair Trading websites.