What the New Strata Laws
Mean for You in 2025

Major changes are coming to strata living in NSW, with new laws designed to better protect owners and residents. These changes, introduced to Parliament in November 2024, will affect how your building is managed and maintained, and give you more say in important decisions.

Better Protection for Your Investment

Under the proposed changes, NSW Fair Trading will receive new powers to assist with common property maintenance matters, providing an additional pathway to help resolve maintenance concerns. These powers include the ability to investigate issues and work with owners corporations to address maintenance requirements, potentially offering an alternative to formal legal proceedings. This expansion of Fair Trading’s role aims to support both owners corporations and residents in maintaining their properties effectively.

The legislation enhances transparency through regular reporting requirements, with strata managers providing comprehensive activity records to owners corporations every six months.

This formalised reporting process helps strengthen the collaborative relationship between managers and owners corporations while ensuring clear documentation of work undertaken.

Additionally, under the proposed reforms, strata management agreements will fall under consumer protection legislation, promoting balanced and equitable contract terms for all parties involved.

Easier Approval for Sustainability Upgrades

The proposed legislation introduces streamlined processes for sustainability and accessibility improvements to benefit strata communities. This includes simplified approval pathways for accessibility features like ramps or handrails, supporting inclusive living environments. The new laws also encourage environmental initiatives by preventing appearance-based restrictions on sustainability infrastructure, while respecting heritage considerations. These changes help strata schemes balance property aesthetics with important community needs and environmental responsibilities.

More Support with Financial Matters

The new laws introduce clearer processes around levy payments and payment plans, balancing the needs of owners and owners corporations. The legislation extends the period before recovery action from 21 to 30 days and establishes formal guidelines for payment plans.

This creates a more structured approach that helps owners manage their obligations while ensuring owners corporations can maintain stable funding for building operations and maintenance.

The changes aim to support both individual owners and the financial health of the strata community.

Better Training for Your Committee

In a move to support and strengthen strata governance, committee members will be required to undertake formal training about their roles and responsibilities. The legislation expands committee members’ duties to align with company director obligations, emphasising the importance of acting honestly, fairly, and in the best interests of all owners.

Protection from Day One

Buying off the plan? You’ll have more protection under the new laws. Developers must provide independently certified maintenance schedules and budget estimates before the first annual general meeting. This means more accurate information about what it will cost to live in your new building.

Building Manager Duties

Building managers will operate under new statutory obligations that formalise their responsibilities to strata communities. The legislation introduces a clear duty to act in the owners corporation’s best interests and establishes penalties for breaches, with fines up to 100 penalty units for individuals or 200 for corporations.

The reforms also clarify who qualifies as a building manager, excluding voluntary or casual workers and strata committee members performing similar duties.

Building management agreements will face greater scrutiny, falling under Commonwealth unfair contract terms legislation. NCAT can terminate or vary a building manager’s agreement if their business operations are found to be unlawful.

What’s Next?

Most of these changes won’t start immediately – they’ll be introduced gradually to give everyone time to adjust. Your strata manager or committee should keep you updated about when specific changes take effect.

While there’s a lot to take in, the reforms should make it easier to maintain your building properly and resolve issues when they arise.

If you’re on a strata committee, talk to your strata manager about what these changes mean for your building.

Remember, a well-run strata scheme benefits everyone through better maintenance, clearer communication, and protected property values.

Read the Strata Schemes Legislation Amendment Bill 2024 and the explanatory notes.