NSW Strata Laws Undergo Major Overhaul: What Owners and Developers Need to Know

New South Wales is implementing significant amendments to its strata legislation, aiming to enhance transparency, owner protection, and developer accountability. These reforms, rolled out in stages, are designed to foster greater trust in the strata sector and support its crucial role in the state’s housing market, particularly in affordable housing.

• Owners corporations must now offer payment plans for overdue levies before pursuing debt recovery.
• Financial hardship information must accompany strata levy notices.
• Building managers face new obligations and penalties, including disclosure of conflicts of interest.
• NSW Fair Trading gains expanded powers to issue compliance notices for common property repairs.
• Future stages will introduce increased long-term planning, stronger developer accountability, mandatory training for strata committee members, and disclosure of embedded networks.

The latest stage of strata reforms, effective from 27 October 2025, introduces crucial changes for owners and owners corporations. A key development is the requirement for owners corporations to offer payment plans to owners falling behind on strata levy payments before initiating debt recovery actions. This is complemented by the obligation to provide a Financial Hardship Information Statement with each levy notice, offering support to those facing financial difficulties.

Furthermore, building managers are now subject to new duties and penalties, mandating them to act in the best interests of their clients and disclose any conflicts of interest or benefits received. This aims to improve the professionalism and transparency in strata management services.

NSW Fair Trading’s powers have also been broadened, enabling them to issue compliance notices and enter into enforceable undertakings with owners corporations that fail to maintain common property. This provides a vital alternative pathway for owners seeking to compel repairs, reducing the need for costly litigation.

Further significant changes are anticipated in 2026. These include enhanced long-term planning requirements for owners corporations, aiming for more sustainable and forward-thinking management of strata schemes. Developer accountability is also being strengthened, with new obligations for providing essential handover documents, such as initial maintenance schedules and financial projections, for new strata schemes.

To improve governance and expertise within strata communities, mandatory training requirements for strata committee members will be introduced. Additionally, exclusive supply networks, often referred to as embedded networks, will need to be disclosed in off-the-plan contracts of sale, ensuring buyers are fully informed about these arrangements.

These ongoing reforms underscore a commitment to modernising strata regulation in NSW, providing greater confidence and security for the state’s many strata residents and stakeholders.

• Residential Focus: Latest stage of strata amendments drop, Holding Redlich.
• Residential Focus: Another pass at reforming the Strata Schemes Legislation, Holding Redlich.