Compliance Alert: Is Your Strata Scheme Up to Date?

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The legislative landscape for strata schemes in New South Wales has been fundamentally reshaped by a rolling series of reforms introduced throughout 2025 and into 2026.

For many strata committees and owners corporations, the challenge isn’t just a single deadline; it is keeping pace with a progressive series of reforms designed to foster greater transparency, accountability, and building safety.

We believe that compliance shouldn’t feel legally overwhelming. Instead, it is an opportunity to strengthen your building’s governance and ensure your community operates as harmoniously as possible.

If your scheme is still operating under the assumption of ‘business as usual’, you may inadvertently be carrying hidden legal and financial risks.

The 2025-2026 Reform Roadmap

These changes have been introduced in strategic waves, each addressing different critical areas of strata management:

  • Mid-2025 – The Foundations: Reforms focused on defect management, repair obligations, and streamlined renovation approvals, alongside enhanced accountability for building managers.
  • Late 2025 – Financial & Enforcement focus: Introduction of stronger Fair Trading investigation powers, mandatory financial hardship protections for lot owners, and stricter rules for debt recovery and levy notices.
  • April 2026 – Transparency & Handover: The focus shifted to new developments, requiring standardised 10-year Capital Works Fund Plans, independent certification of levies for multi-storey buildings, and mandatory disclosure of embedded networks.

Why Your By-Laws Need a Review

While these reforms introduce new legal obligations, your building’s by-laws are the mechanism through which these laws are applied on the ground.

If your by-laws haven’t been reviewed in the last 12–24 months, you are likely operating under rules that are outdated, inconsistent with current legislation, or difficult to enforce. A by-law review is not merely a ‘clean-up’ exercise; it is your most effective tool to:

  • Ensure Enforceability: Many older by-laws now conflict with current legislation, rendering them legally unenforceable.
  • Modernise Your Rules: From regulating smart home technology and surveillance privacy to managing EV charging and assistance animals, your by-laws must reflect the realities of modern strata living.
  • Operational Alignment: A review synchronises your internal governance with the 2025–2026 standards, ensuring your committee has the clear, legally sound authority to act on maintenance, financial hardship, and building safety.

Your Compliance Checklist

As we navigate the next phase of reforms later this year (including mandatory committee training and expanded off-the-plan disclosures), use this checklist to assess where your scheme stands:

  • Audit Your Governance: Are your current by-laws aligned with the 2025/2026 legislative changes, or are they relics of the past?
  • Standardise Your Paperwork: Have you transitioned to the new mandatory NSW Government forms for 10-year plans and Initial Maintenance Schedules?
  • Update Financial & Safety Protocols: Do your levy notices include the mandatory financial hardship disclosures, and are your maintenance logs ready for increased scrutiny.
  • Are Your By-laws a Liability? Click here for full overview of the new laws: 
    2025-2026 Changes to Strata Laws 
Our goal is to make these legal complexities feel manageable, so owners corporations, committee members and strata managers can focus on what matters: the wellbeing of your community.
 

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, disputes, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

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