NSW Strata Legislation Updates You Should Know – How Strata Plus Will Help Your Strata Scheme Get Ready

The NSW Government has rolled out significant NSW Strata Legislation reforms and it’s reshaping how owners corporations, committees, strata managers and building managers operate across Sydney and New South Wales.

These new legislation changes introduce new expectations around maintenance compliance, levy collection, financial hardship support, and building manager disclosure, changes that every scheme will need to prepare for before 27 October 2025.

Getting ahead now means avoiding costly compliance issues later.

In this article, we’ll walk you through the key reforms, what they mean for your building, and how Strata Plus is helping schemes across NSW stay proactive, compliant, and confident through every step of the transition.

1. Stronger Compliance Powers for Repairs & Maintenance

One of the most significant changes is that NSW Fair Trading will gain stronger investigative and enforcement powers to ensure owners corporations meet their legal duty to repair and maintain common property.

What’s changing

If a breach is found, Fair Trading can:

• seek an enforceable undertaking (a formal written commitment by the owners corporation)
• Record conversations and interactions during investigations
• issue a compliance notice (requiring specific actions such as ‘fixing damage to a property’, or ‘use licensed professionals’)
• Create official records and documentation
• Applying to NCAT (Tribunal) for orders, including compulsory appointment of a strata managing agent.
• Initiating court prosecutions where appropriate with the NSW Government
• issue a penalty infringement notice if the above aren’t complied with

What your scheme should do

• Review your current repair & maintenance register and processes: is there anything outstanding? Is common property clearly documented and managed?
• Use tools such as the “Strata building health check” (or ask us – Strata Plus – we can guide you) to identify weak spots.
• Ensure your annual capital works fund and maintenance planning reflect the duty to keep the building safe and maintained.
• Ensure your strata committee and strata managing agent (if any) have clear processes for repair notifications, escalation and documentation.

Why this matters

If your scheme falls behind on repairs, you now face much higher risk of regulatory action from Fair Trading. Being compliant and transparent is no longer optional. In the Sydney market especially, reputation, building safety and owner confidence matter. As your strata manager, Strata Plus will assist in monitoring, flagging and managing the repair cycle proactively.

2. Helping Owners in Financial Hardship – Levy Notices & Support

Another change is aimed at giving owners in financial difficulty clearer support and earlier intervention.

What’s changing

• Starting 27 October 2025, every levy notice must be accompanied by a  Financial Hardship Information Statement (or include the information) which provides contact details for the National Debt Helpline (a free, confidential service) and other financial help.
• Owners corporations should familiarise themselves with this statement and ensure their notice templates include the required information.

What your scheme should do

• Update your levy notice template now (or in your next round) to include the Financial Hardship Information Statement or the relevant information. If you are a Strata Plus client we can assist with this for your scheme.
• Let your owners know: if they are under financial pressure, the committee, with the help of your Strata Manager can explore options early rather than waiting for recovery action.
• Strata Plus will assist by providing the updated template and help you roll it out for notices issued on or after 27 October 2025. 

Why this matters

Ignoring hardship risk means many owners may fall behind, creating collection issues, stress for the committee and potentially worse outcomes (legal action, debt). Being proactive supports owner retention, good governance and a smoother scheme operation.

3. Standardised Payment Plans for Overdue Levies

For owners who are behind on levies, the reforms introduce a new standardised pathway for payment requests and protections.

What’s changing

• From 27 October 2025, an owner requesting a payment plan must use a standard form: “Request for a payment plan for overdue contributions”. 
• Payment plans are valid for up to 12 months initially, and another plan may be agreed after it ends-but they cannot cover future contributions (only overdue levies). 
• Owners corporations/committees must:
  • Consider every request for a payment plan (they cannot simply pass a motion refusing all).
  • Provide a written response within 28 days.
  • If refusing, provide written reasons explaining how the request was considered and why it was refused.
  • Not charge the owner a fee for making or being on a payment plan.
• The scheme may refuse a payment plan reasonably, for example if approving it would result in: the capital works fund or administrative fund going into deficit; or insufficient funds to satisfy duties (e.g., for maintenance, a compliance notice).
• Additional rules:
  • Payments under a plan must be applied first to overdue levies (by due date), then interest, then any costs of recovery (unless otherwise ordered).
  • Recovery action cannot commence if a valid payment plan is in place and being adhered to.
    If the scheme intends to take recovery action (e.g., debt recovery) it must give the owner at least 30 days’ notice.

What your scheme should do

• Ensure you have the standard form ready.
• Educate your committee and treasurer about the process: how to process requests, timeframe, how to document reasons if refusing.
• Update your policy or bylaws (if applicable) to reflect the new rules.
• Make sure your bookkeeping systems can apply payments in the correct order (levies → interest → costs).

Why this matters

These changes promote fairness and transparency in how overdue levies are handled. Schemes that don’t adapt risk unfair refusal of payment plans (and potential appeal to Fair Trading or the Tribunal) and conflict with owners.

In Sydney’s strata market, good governance around levy collection reinforces owner trust and scheme stability and helps maintenance peace within strata communities. 

4. Clarifying Building Manager Role & New Duties

For schemes with building managers (or that intend to appoint one), there are new rules about who is a building manager, and what duties they must fulfil.

What’s changing

• The reforms clarify who is not a building manager – e.g., someone engaged only to do repair or maintenance services (electrician/gardener/plumber) and whose terms of service are limited to repairs and not the broader management/control of common property.
• For those appointed as building managers: new duties include:
  • Act in the best interests of the owners corporation (unless doing so would be unlawful) and act with due diligence.
  • Promptly bring to the owners corporation’s attention any maintenance, repair or safety issue with common property (including issues they become aware of or ought reasonably to be aware of).
  • Propose how a problem should be addressed (e.g., recommend that a plumber attend to the leaking pipe).
  • Disclose any benefits or connections when suggesting a contract for goods or services: e.g., if the building manager receives a referral fee or is connected with the service provider, they must give written notice of the benefit, monetary value or how it’s calculated, and nature of any relationship.
• Candidate building managers must provide written notice to the owners corporation if they may receive a benefit that affects the fees they will charge under the agreement. 
• From 27 October 2025, schemes will also have new ground to apply to the Tribunal to vary or end a building manager agreement (or strata management agreement) if the building manager acts unlawfully in their role.

What your scheme should do

• If you already have a building manager: check that they are aware of the new duties and that their agreement is updated / reflects the new disclosure requirements.
• If you are about to appoint a building manager: ensure the candidate provides written disclosures regarding benefits and relationships, and that the agreement reflects the new regime.
• Strata Plus (as your strata managing agent) can review your building manager agreement, assist in drafting the required disclosures, and advise your committee on the governance obligations.
• Educate your committee about the new ground to apply to the Tribunal: this gives your scheme more power to act if the building manager fails in their duties.

Why this matters

In practice, clearer duties and disclosure requirements protect owners and the scheme from conflicts of interest, poor oversight and unmanaged risk. Especially in larger Sydney strata schemes, proper building management can make a big difference to building performance, safety, maintenance costs and owner satisfaction. 

5. Why Timing & Preparation Matter for Sydney Schemes

Because many of these reforms start from 27 October 2025, there’s no better time to act. Some preparations can already be done which will give your scheme a head start (and reflect well in the eyes of owners and potential buyers). 

Key actions now

• Review your levy notice and ensure you’ve got the Financial Hardship Information Statement ready for future notices.
• Update your standard forms for payment-plan requests, and ensure your committee/treasurer process is ready for the new payment-plan rules.
• Review your repairs & maintenance program, identify any backlog or risk areas, update your maintenance plan and documentation.
• Review any building manager agreements or appointment processes for building managers, ensure disclosure clauses, candidate screening and reporting are up to date.
• Consider adding an agenda item at your next general meeting to ensure your scheme is ready for the changes and aligns with best-practice governance.

What happens if you wait?

Ignoring or delaying these preparations may leave your owners corporation exposed to regulatory risk (e.g., enforcement by Fair Trading), increased owner complaints, potential financial stress for owners (and hence collection problems), reputational damage, and operational inefficiencies. By acting early, you reduce risk and position your scheme for better management and owner confidence.

How Strata Plus Supports Sydney Owners Corporations & Strata Committees

At Strata Plus we specialise in strata management for Sydney and NSW schemes, and we’re fully across these reforms. Here’s how we help:

• We keep you up-to-date on legal and regulatory changes (including NSW strata legislation) so your scheme does not miss anything.
• We review your policies, templates and processes (levy notices, payment-plan forms, building manager agreements, repair & maintenance registers) and update them to reflect the changes.
• We provide strata committee training / briefing sessions so your committee understands their duties, obligations and best-practice processes under the new regime.
• We assist with repair & maintenance planning, coordinate service providers, monitor compliance and help you document the common property condition, so you’re prepared should Fair Trading investigate.
• We help owners corporations communicate effectively with lot-owners, maintain owner satisfaction, and handle hardship cases sympathetically while protecting the scheme’s financial position.
• Our team understands the local market, building types, regulatory environment and owner-behaviour – meaning you get a partner who works with you, not just for you.

The upcoming reforms to NSW strata legislation present a real opportunity for owners corporations and strata schemes in Sydney to elevate their governance, compliance and owner satisfaction. But it requires timely action.

From stronger compliance powers for repairs and maintenance, to financial-hardship support, standardised payment plans and clarified building manager duties – your scheme must be ready. As your strata manager partner, Strata Plus is here to guide you, streamline processes, update documentation, train your committee and support your owners.

Let’s get ready for the future of strata together.

Ready for strata reforms?

Contact Strata Plus today for a free management quote and let us help you get ready for the upcoming industry changes. 

Helpful numbers: 

NSW Fair Trading: 13 32 20

National Debt Helpline: 1800 007 007

Free Strata Mediation: Visit nsw.gov.au/strata-levies-help

Language Assistance: 13 14 50