July 2025 Strata Reforms

Major strata reforms take effect from 1 July, here’s what you need to know

From 1 July 2025, significant reforms to strata legislation in NSW will begin rolling out. These changes are designed to improve governance, fairness, and livability across the state’s growing number of strata and community schemes.

The changes starting on 1 July 2025 apply to all NSW strata schemes and also apply to community land schemes. Owners corporations, strata committees, managing agents and service providers must understand the implications and prepare accordingly.

When Do the New Laws Start?

• Stage 1 reforms begin: 1 July 2025
• Further changes will roll out: Late 2025

Who Needs to Be Aware of the Changes?

• Strata committees, owners, residents
• Strata managing agents
• Building managers
• Developers
• Contractors and suppliers to strata schemes
• Tenants with assistance animals

Key Changes Starting 1 July 2025

1. Minor Renovations Automatically Approved

What’s changing:

If a committee doesn’t respond with a written refusal within 3 months, a minor renovation request is deemed automatically approved, only if a by-law delegates renovation approvals to the committee.

Action required:

• Committee: Ensure a by-law delegates this authority, establish a tracking process, and record approvals for 10 years.
• Strata Manager: Assist with monitoring and documentation, and notify committee of pending deadlines.

2. Sustainability Must Be Considered at Every AGM

What’s changing:

By-laws that prohibit sustainability infrastructure based on appearance will be banned (unless heritage-listed). Sustainability must be a standing AGM agenda item.

Action required:

• Committee: Review and update by-laws, support sustainability planning.
• Strata Manager: Include sustainability on AGM agendas, update capital works planning estimates.

3. Unfair Contract Terms Banned

What’s changing:

Contracts entered into, renewed or varied after 1 July must not contain unfair terms—such as one-sided cancellation rights or penalty clauses. Examples of contracts for the supply of goods or services include strata management contracts, building management contracts, and cleaning or gardening contracts.

Action required:

• Service provider: Ensure their own contracts comply with unfair terms legislation
• Committee: Understand what constitutes unfair terms when reviewing service contracts
• Strata Manager: Ensure strata management contracts comply with unfair terms legislation

4. Accessibility Infrastructure – Majority Vote Now Sufficient

What’s changing:

Changes to common property for disability access now require a simple majority vote (not a special resolution).

Action required:

• Committee: Prepare a fair and transparent review process for accessibility requests.
• Strata Manager: Update voting procedures and support the facilitation of accessibility upgrades.

5. New Legal Duties for Committee Members and Chairpersons

What’s changing:

Committee members must act honestly, fairly and lawfully, with due care and diligence. Chairpersons must support agenda structure and fair discussion.

Action required:

• Committee: Familiarise with and uphold conduct standards.
• Strata Manager: Provide briefings or training where needed.

6. Stronger Repair & Maintenance Obligations

What’s changing:

Urgent repairs must proceed if access or safety is affected—even during legal disputes. Owners now have six years (up from two) to bring claims if the owners corporation fails to maintain common property. If the OC changes common property via special resolution, the motion must specify who is responsible for ongoing maintenance (the OC or the lot owner). The first 10-year capital works fund plan must take into account the developer’s initial maintenance schedule provided at the first AGM.

Action required:

• Committee: Prioritise safety-related repairs, define maintenance responsibilities, and check that the 10-year plan incorporates the developer’s schedule.
• Strata Manager: Action repairs promptly, assist with drafting motions, and ensure the capital works plan reflects these requirements.

7. Simplified Process for Assistance Animals

What’s changing:

Only one form of recognised evidence is required (if requested by the owners corporation).

Action required:

• Committee: Review related by-laws and ensure fair, consistent assessment practices.
• Strata Manager: Update procedures and communicate requirements to applicants.

8. Record Inspection Fees Increasing

What’s changing:

Fees for third-party access to records will rise to $60 for the first hour and $30 per half hour thereafter. Owners are exempt.

Action required:

• Strata Manager: Update fee schedules and ensure secure electronic access
• Committee: Approve any updates as required under delegation

9. New Requirements for Strata Managing Agents

What’s changing:

Agents must report to the owners corporation every six months. Contracts cannot transfer professional indemnity costs to the Owners Corporation or limit agent liability unless covered by a professional standards scheme.

Action required:

• Committee: Review reports and approve any new or renewed agreements.
• Strata Manager: Provide biannual activity reports on the work undertaken under delegated authority on behalf of the owners corporation, and ensure agency agreements meet the new standard.

10. Greater Protections in Utility Contracts and Embedded Networks

What’s changing:

New contracts must expire at the first AGM (if made before it) or within three years, and comply with disclosure requirements. This applies to services like electricity, waste, stormwater, and EV charging.

Action required:

• Utility Providers: Ensure contracts expire at first AGM or within 3 years max and comply with disclosure requirements
• All Service Providers: Ensure their own contracts comply with unfair terms legislation
• Committee: Understand contract terms when approving utility services

11. Increased Penalties for Developer Non-Compliance

What’s changing:

Developers face higher penalties for failing to hold the first AGM on time or for withholding required documents.

Action required:

• Developer: Ensure compliance with obligations.

12. Clearer Rules for Legal Services, Uncollected Goods, and Exclusive-Use By-Laws

What’s changing:

The owners corporation must approve legal service costs, noting exceptions for non-urgent services under $3,000. Consent is required from the owner to remove uncollected goods from common property or to revoke exclusive-use by-laws.

Action required:

• Committee: Seek and document owners corporation consent where required.
• Strata Manager: Coordinate approvals and manage compliance processes.

What About Duplexes and Two-Lot Schemes?

Two-lot schemes, often without a strata manager, must also comply. They should especially take note of changes around:

• Sustainability and accessibility
• Fair contract terms
• Assistance animals

Changes Still to Come (Late 2025)

Looking ahead, additional reforms will include:

• Stronger obligations to repair and maintain common property
• New disclosure requirements around embedded energy networks
• Support for owners in financial hardship
• Enhanced building manager conduct rules

What You Should Do Now

If you’re on a committee:

• Meet to discuss and allocate tasks.
• Review renovation and sustainability processes.
• Check contracts for unfair terms.
• Update your AGM agenda and by-laws.
• Ensure all committee members understand their new responsibilities.

More Resources

Full breakdown of the changes from NSW Fair Trading

S+ Strata Reforms Explained