The Strata Schemes Legislation Amendment Bill 2025 has been passed by the NSW Parliament, introducing a range of reforms aimed at improving conditions in strata communities. These changes will provide increased protections for owners and enhance oversight and regulation of owners’ corporations and strata agents.
The bill, which was initially proposed in November of the previous year, will bring about amendments that assist owners in repairing and maintaining common property, as well as offering more options for paying levies during times of financial stress.
According to Fair Trading Commissioner Natasha Mann, the growth in the number of strata schemes in NSW over the past decade has necessitated the implementation of these new laws. With the number of strata schemes increasing from around 70,000 in 2015 to over 87,000, targeted and proactive regulation is crucial to ensure proper training and supervision of practitioners and businesses in the property industry.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong states that these new protections will enable strata community owners to make informed decisions regarding the future of their property. The reforms will strengthen owners’ corporations’ protections against unfair contract terms and make it easier to terminate agreements with strata agents and building managers who engage in unlawful conduct.
Furthermore, the legislation empowers Fair Trading to enter into enforceable undertakings with owners of corporations who fail to fulfill their duties in maintaining and repairing common property. This ensures that the hard-earned money of individual owners is invested in the property to prevent it from deteriorating, posing safety risks, or incurring further damage due to neglect.
The reforms also address bill shock concerns by requiring developers to have initial levy estimates independently certified, with increased penalties for non-compliance. Owners’ corporations will be obligated to offer payment plans to owners facing financial hardship before pursuing debt recovery actions, and blanket rules to outright refuse payment plans are now prohibited.
New training requirements have been introduced for strata committee members to enhance their performance and interactions with owners’ corporations. Additionally, changes have been made to the approval processes for strata property infrastructure, prohibiting by-laws that restrict sustainable infrastructure like solar panels and electric vehicles based on external appearance. The approval threshold for accessibility infrastructure in common areas has also been lowered to a majority vote.
These reforms represent the third tranche of strata law reforms, following closely after the Strata Managing Agents Amendments Act 2024. To enforce these changes, a dedicated Strata and Property Services taskforce has been established within NSW Fair Trading, supported by an $8.4 million investment.
Minister Chanthivong believes that these changes will enhance transparency in strata purchases and improve the overall experience for building owners when they receive the keys from the developer.
