As we look ahead to mid-2025, there will be more significant changes to strata laws in New South Wales, designed to further enhance transparency, accountability, and the overall quality of strata living. Understanding these changes is crucial for all who work and live in strata.

Who Will the New Strata Laws Effect?

• strata managers
• developers
• building managers
• lot owners
• strata committee members: general committee members, the secretary, chairperson and treasurer
• Also apply to community land schemes

Following is a breakdown of the key reforms planned for mid-2025 that every person working and living in strata will need to be aware of:

1. Increased Transparency and Disclosure:

• Managing Agent Accountability:
  • From mid-2025, strata managing agents will be required to disclose any affiliations with suppliers and developers. This aims to eliminate potential conflicts of interest and ensure decisions are made in the best interests of the strata scheme.
  • Detailed breakdowns of insurance quotes will become mandatory, providing owners with greater clarity on how their levies are being used.
• Off the Plan Purchasers:
  • Developers must supply independently certified maintenance schedules and budget estimates. This ensures buyers are aware of potential future costs.

2. Strengthened Governance and Accountability:

• Strata Committee Training:
  • Committee members will be required to undergo mandatory training, equipping them with the knowledge and skills necessary to effectively manage strata schemes.
  • Their duties will be aligned with company director obligations, promoting a higher standard of governance and accountability.
• Building Managers Duties:
  • Building managers will also have statutory duties imposed upon them. This will increase accountability for the way that buildings are managed.

3. Improved Financial Management:

• Levy Payments and Recovery:
  • Clearer processes for levy payments and payment plans will be introduced, with extended periods before recovery action is taken. This aims to provide greater flexibility for owners while maintaining the financial stability of the strata scheme.
• Unfair contract terms:
  • Unfair contract terms will be prohibited in contracts for goods and services received by strata schemes.

4. Streamlining Approvals for Sustainability and Accessibility:

• Upgrades Made Easier:
  • The approval process for sustainability and accessibility upgrades, such as solar panels, electric vehicle charging stations, ramps, and handrails, will be streamlined. This will encourage initiatives that enhance environmental sustainability and inclusivity within strata communities.

5. Enhanced Protection for Owners:

• NSW Fair Trading’s Role:
  • NSW Fair Trading will have expanded powers to assist with common property maintenance matters, providing greater support to owners in resolving disputes.
• Original Owners Multi Storey Schemes:
  • Changes to the requirements of original owners of multi storey strata schemes, will provide increased protection to subsequent owners.

These reforms represent a significant step towards a more transparent, accountable, and equitable strata living environment. It’s essential for every person that lives and works in strata to stay informed about these changes and understand how they may impact their strata scheme.

For more information visit NSW Government