Contents
Introduction
On the 1 July 2025, major reforms to the NSW strata laws came into effect. The reforms aim to protect owners corporations, improve the accountability of strata management services, ensure the maintenance of common property by the owners corporation and make living in strata schemes easier for residents.
Summary of Key Changes
1. Minor renovations
- A strata committee must provide written reasons to refuse a request for minor renovations within 3 months. Failure to respond within this timeframe will result in the minor renovation automatically being approved.
- Owners corporations must now keep a record of renovations that are approved for a period of 10 years.
2. Mandatory Sustainability considerations
- Sustainability must be an item on the agenda of each Annual General Meeting.
- By-laws that prohibit the installation of sustainability infrastructure (such as solar panels) due to its impact on the external appearance of a property are now banned. Heritage-listed properties are an exception.
- The costs of sustainable infrastructure must be considered when preparing estimates for the capital works fund.
3. Crackdown on unfair contract terns within strata complexes
- Standard form contracts for the supply of goods and services to an owners corporation (eg. strata and building management contracts, cleaning or gardening contracts) entered into, or varied or renewed on or after 1 July 2025 must not contain unfair terms.
4. Accessibility infrastructure
- Proposed changes to common property that enable persons with a disability to have access to their lot or common property no longer requires a special resolution, rather a majority vote is required.
5. Updated responsibilities for strata committee and chairpersons
- Several new measures of conduct are placed upon strata committee members, including to behave honestly and fairly, not to unreasonably affect another person’s enjoyment or use of their lot or common property, to only disclose information received as a committee member if permitted under current strata laws or required to carry out their role.
- A chairperson’s duties now include following the agenda at meetings, maintaining order of the meeting and encouraging fair, constructive and open discussion.
6. Stronger compliance for repairs and maintenance procedures
- A strata committee cannot delay in making repairs to a lot if it impacts the owners accessibility to the property.
- An owner has up to 6 years (increased form 2) to bring damages claims against an owners corporation in the event of a failure to maintain/ repair the common property.
- The first 10 year plan must consider the initial maintenance schedule prepared by the developer.
7. Changes to evidence requirements regarding service animals
- Residents only need to produce one form of evidence regarding their assistance animal if requested. The list of suitable evidence has been expanded.
8. Fee increases for inspections and access to inspection documents
- Inspection fees for non-owners are increased from $31 to $60 in the first hour, and from $16 to $30 for every half hour thereafter.
- Electronic access to records must be secure.
9. Biannual reporting for strata managers
- 12 month reporting intervals by strata managers is reduced to 6 months.
- The owners corporation cannot be required to pay for a strata manager’s professional indemnity insurance.
- Managing agents have defences against breach of duty claims if it can be proved that the owners corporation caused the breach, and that the agent took reasonable steps to prevent the breach.
10. Crackdown on embedded networks and utility contracts
- Contracts regarding the supply of hot water, gas and electricity through an embedded network now expires at the first AGM meeting if the agreement was made before the meeting, or three years after the start date of the agreement.
11. Developer accountability
- Developers face penalties up to 100 penalty units ($11,000) for failure to hold the first AGM on time or provide the required documents to owners 14 days before the meeting. A further $220 penalty applies for each day the meeting is overdue.
12. Uncollected goods
- Goods left behind on an owner’s lot are now covered by the Uncollected Goods Act 1995 giving owners corporations clear powers to dispose of goods, following compliance with the specified procedures.
13. Approval of Legal services
- Owners corporations must formally approve obtaining legal services. Approval may be for costs to a maximum amount or an unlimited amount for legal services. Exceptions apply, such as non-urgent legal services less than $3,000.
14. Common Property Rights By-Law
- A common property rights by-law cannot be amended or repealed without the consent of the owner benefited by the by-law. The owner, however, cannot unreasonably refuse to provide consent.
For further information regarding the new strata reforms contact us at pdclaw.au or visit NSW Government Guide to 2025 strata law changes (https://www.nsw.gov.au/housing-and-construction/strata/guide-to-2025-strata-law-changes).
If you have any questions or would like to discuss these reforms in further detail, contact the PDC team at (02) 4288 0150 or admin@pdclaw.au today!
Sarah Hilton
Sarah has practical experience and knowledge from working with the legal team across a range of areas of law, particularly in the areas of business sales and purchases and conveyancing transactions.
