As of yesterday, 1 April 2026, the NSW strata landscape underwent its most significant legislative shift in years. While much of the industry has focused on developers, this new era introduces rigorous and mandatory standards that fundamentally change how schemes work. Every owners corporation, committee member, strata manager and developer must navigate these changes to ensure they remain compliant.
The Developer Crackdown: $11,000 Reasons to Comply
This reform specifically targets the handover phase of new buildings. To prevent developers from under budgeting levies to attract buyers, any multi-storey scheme holding its first AGM on or after 1 April must now provide:
- Independent Levy Certification: Initial levy estimates must be certified by an independent surveyor.
- Mandatory Maintenance Schedules: These must be presented using the official NSW Government standard form.
- Penalties: Developers who fail to provide these documents at least 14 days before the first AGM face a maximum penalty of $11,000, plus an ongoing $220 per day until they comply.
Not Just for Developers: Risks for Existing Schemes
It is a common misconception that established schemes are exempt. From 1 April 2026, existing owners corporations face immediate new obligations:
- Standardised 10-Year Plans: The next time your scheme reviews its 10-year Capital Works Fund plan, it must transition to the mandatory NSW Government standard form.
- Section 184 Updates: Every Strata Information Certificate issued from 1 April must now disclose Exclusive Supply Networks (embedded networks for power or data).
The Enforcement Shift: Penalty Infringement Notices
The most critical change is the expansion of NSW Fair Trading’s watchdog powers. The regulator is moving away from simple warnings toward active enforcement of the Statutory Duty to Maintain and Repair.
- Penalty Infringement Notices (On-the-Spot Fines): If an owners corporation ignores a formal Compliance Notice regarding building defects or fails to uphold an Enforceable Undertaking, they can now be issued on-the-spot fines. Compliance is no longer a suggestion; it is a statutory requirement with immediate financial consequences for the scheme.
Expert Guidance for a New Era: Avoid Non-Compliance with a Review
Navigating the complexities of the April 1 reforms can be challenging. Our expert strata legal team specialises in translating these new statutory requirements into clear, actionable strategies to ensure schemes remain compliant.
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
