Effective 27 October 2025, several key reforms to the Strata Schemes Management Act 2015 have commenced. These changes aim to strengthen governance, accountability, and fairness across NSW strata and community schemes.
1. Planning and Enforcement
New powers for Fair Trading
Fair Trading will now have expanded powers to ensure Owners Corporations meet their legal responsibilities to repair and maintain common property.
Available enforcement actions include:
Seeking an enforceable undertaking from the Owners Corporation
Issuing compliance notices
Issuing penalty infringement notices
Applying to NCAT for an order
These measures are designed to improve compliance and maintain building standards.
2. Debt Recovery and Payment Plan Reforms
The Strata Schemes Legislation Amendment Act 2025, passed on 18 February 2025, introduces major changes to the Strata Schemes Management Act 2015 and the Community Land Management Act 2021.
While some provisions began on 1 July 2025, most take effect from 27 October 2025, with further changes starting 1 April 2026.
The key focus of these reforms is fairness, transparency, and accountability in debt recovery and payment plans.
Key Updates
Levy Notices
Payment Plans
Owners Corporations and lot owners can enter payment plans for overdue contributions.
Plans are limited to 12 months, with the option to extend through a new agreement.
Owners Corporations cannot refuse a payment plan unless specific, reasonable grounds apply (as defined in Regulations).
Lot owners must submit payment plan proposals using the prescribed form.
Owners Corporations must respond within 28 days in writing, with reasons if refused.
No additional evidence or fees can be required.
Lot owners may appeal a refusal to the Tribunal.
Debt Recovery Actions
Owners Corporations can recover costs and interest only after offering a payment plan and obtaining a Tribunal or Court order.
No recovery action (for levies, interest, or costs) may occur while a payment plan is being followed.
Payment Allocations
Payments are to be applied:
As directed by the lot owner or a Court/Tribunal; or
By default, in this order:
Levies (oldest first)
Interest
Costs
Debt Recovery Proceedings
3. Building Managers
The reforms also clarify the definition and duties of building managers.
Key points:
Clearly defines who is and is not a building manager — individuals engaged for specific, limited tasks are not considered building managers.
Building managers now have a duty to act in the Owners Corporation’s best interests, and to act promptly and diligently.
They must disclose any financial interests, benefits, or relationships linked to contracts they recommend.
NCAT may terminate a building manager’s agreement if they act unlawfully in their role.