When do the new laws apply?
The reforms are being introduced in stages.
- The first set of changes began on .
- Further changes will roll out later in 2025.
This staggered approach gives strata schemes time to adjust to the initial changes before focusing on the next stage.
Who is affected?
The reforms apply to:
- All NSW strata schemes
- Community land schemes
They introduce measures to support residents, including:
- Easier installation of accessibility infrastructure
- Clearer rules for proving an animal is an assistance animal
- Faster approvals for minor renovations
Additional reforms from 1 July include:
- New duties for strata committees and chairpersons
- Mandatory sustainability considerations
- Protections from unfair contract terms
- Stronger oversight of strata management services
- Higher penalties for developers
- Various updates to strata law
These changes also affect:
- Strata managing agents
- Developers
- Contractors/service providers (e.g., cleaners, gardeners, building managers)
- Tenants with assistance animals (only one form of evidence is now required)
It’s important to also prepare for the later 2025 reforms, such as stronger obligations to repair and maintain common property.
Preparing for the changes
Strata committees should work with their manager (if appointed) to:
- Review renovation request processes (automatic approval after 3 months if no response)
- Add sustainability as a standing item at AGMs
- Check new/renewed contracts for unfair terms
- Prepare for accessibility requests (majority vote now sufficient)
- Update record inspection fees in line with new law
- Review by-laws for conflicts with new legislation
- Inform committee members of their new duties (fair, honest, responsible conduct)
Key changes from 1 July 2025
Minor renovations
- Committees must give written refusal within 3 months or the request is automatically approved.
- Applies only where by-laws allow committees to decide.
- Owners corporations must keep renovation records for 10 years.
Sustainability
- By-laws banning sustainability infrastructure are no longer valid (except for heritage buildings/areas).
- Sustainability must be considered at every AGM.
- Capital works fund estimates must now include sustainability costs (e.g., solar panels, meters, eco-materials).
Unfair contracts
- From 1 July, unfair terms in standard form contracts are banned.
- Applies to contracts signed, renewed, or varied after the law starts.
- Examples of banned terms: one-sided responsibilities, termination rights, penalties, or unilateral changes.
Accessibility infrastructure
- Only a majority vote is needed to approve changes to improve disability access (was previously a special resolution).
New committee and chairperson duties
Committee members must:
- Act honestly and fairly
- Respect others’ use/enjoyment of property
- Comply with strata laws
- Keep information confidential unless legally permitted
Chairpersons must:
- Follow agendas
- Maintain order at meetings
- Encourage fair and open discussion
Repairs and maintenance
- Corporations cannot delay urgent repairs due to legal disputes.
- Owners now have 6 years (up from 2) to claim damages for failure to repair common property.
- Maintenance responsibility must be clearly allocated when changes to common property are approved.
Assistance animals
- Residents need to provide only one form of evidence if requested (e.g., ID card, government pass, health practitioner statement).
- By-laws must be updated if inconsistent with this change.
Record inspection fees
- Increased to $60 for first hour and $30 for each additional half-hour (applies to non-owners).
- Secure electronic access now required.
Strata management services
- Strata agents must provide six-monthly reports.
- Contracts cannot require corporations to cover agent indemnity insurance or set liability caps unless covered by a professional standards scheme.
Utility contracts & embedded networks
- All utility contracts (electricity, water, gas, EV charging, etc.) are capped at 3 years or until the first AGM if signed beforehand.
Developer accountability
- Higher penalties for late AGMs or missing documents (up to $11,000 + daily fines).
Legal services, goods, and by-laws
- Owners corporation approval required for most legal services above $3,000.
- Consent needed before removing goods left on a lot.
- Consent required from an owner before granting, amending, or revoking special privileges (e.g., exclusive common property rights).
Duplexes (two-lot schemes)
- Must hold an AGM each year.
- Same reforms apply, including sustainability, accessibility, contract protections, and assistance animal rules.
- Both owners must agree for accessibility resolutions to pass.
Changes starting later in 2025
Maintenance & repairs
- NSW Fair Trading gains stronger powers to enforce maintenance obligations.
- New standard forms for 10-year capital works plans and initial maintenance schedules.
Committee governance
- Mandatory training for committee members.
Financial hardship support
- Strata levy notices must include support information (e.g., National Debt Helpline).
- Committees can approve payment plans (not just full corporation).
- Corporations must consider hardship requests fairly and give 30 days’ notice before debt recovery.
- Overdue payments will first be applied to levies, then interest and costs.
Developer obligations
- Initial maintenance schedules and levy estimates must be independently certified.
- Higher penalties for non-compliance.
Building managers
- New duty to act in the best interests of the owners corporation.
Property sales & embedded networks
- Sale contracts must now disclose embedded network arrangements.