Significant reforms to New South Wales’ strata laws come into effect from 27 October 2025, with another round of updates scheduled for 1 April 2026. These changes are designed to improve transparency and accountability across all strata schemes, from levy management to building maintenance and manager responsibilities. Here’s a clear breakdown of what’s changing and how it may affect you as an owner, investor, or strata committee member. Fairer Handling of Levies and Financial Hardship From 27 October 2025, every levy notice must now include a Financial Hardship Information Statement prepared by NSW Fair Trading. This outlines the rights and support available to owners who may be struggling to pay their levies, and it’s available in 10 community languages. Other important updates include: Owners can now request payment plans for overdue levies of up to 12 months. Strata committees can’t refuse to consider a payment plan request. No fees can be charged for setting up or managing a plan. While a valid plan is being followed, no debt recovery action can be taken. At least 30 days’ notice must be given before any recovery action begins. These reforms aim to provide greater compassion and flexibility for owners facing financial hardship. Clearer Definition and Duties for Building Managers The reforms also clarify who is and isn’t considered a building manager. Service providers like cleaners, gardeners, or plumbers and committee members doing volunteer work are not classified as building managers. Formally appointed building managers now have new obligations to: Act in the best interests of the owners corporation. Exercise due diligence in safety, repairs, and maintenance. Disclose any benefits, relationships, or financial interests that could influence their fees or decisions. If a building or strata manager is found to be acting contrary to the law, the NSW Civil and Administrative Tribunal (NCAT) can now vary or terminate their contract. Stronger Enforcement Powers for NSW Fair Trading NSW Fair Trading has been given more authority to ensure that owners corporations properly maintain and repair common property. Their new powers include: Requiring access to documents and written responses. Conducting inspections and recording interactions. Issuing compliance or penalty notices. Applying to NCAT to appoint a strata manager if serious issues are found. This step aims to ensure safety, quality maintenance, and accountability across all strata buildings. What’s Coming in 2026 From 1 April 2026, further reforms will roll out, including: Standardised 10-year capital works fund plans. Developers of new schemes must prepare a certified maintenance schedule and levy estimates. Section 184 certificates (used in strata sales) must now include embedded network details. Mandatory training for strata committee members (expected later in 2026). These measures aim to professionalise strata management and support better long-term maintenance planning. What This Means for You If you’re part of a strata community, here’s how to prepare: Strata committees and managers: Review management agreements, update levy notices to include hardship information, and ensure compliance with payment plan rules. Building managers: Check your disclosure processes and confirm that all agreements meet new standards. Owners: If you’re facing financial challenges, know that you have new rights and protections under the updated laws. Want to Learn More? You can read the full details from NSW Fair Trading here: https://www.nsw.gov.au/housing-and-construction/strata/guide-to-strata-law-changes-for-strata-committees-and-owners These reforms mark an important shift toward fairer, more transparent strata management in NSW. Whether you’re an owner, investor, or committee member, now is the time to review your processes and ensure you’re ready for the changes ahead.
