Phase Two Strata Laws on the Horizon: Proposed Changes

A Second Phase of Reform

New South Wales is gearing up for significant changes in strata law, as the second phase of recommendations from the statutory review is set to be implemented. The proposed changes, introduced to the NSW Parliament on 20 November, 2024, aim to address a range of issues affecting strata communities across the state.

Key Proposed Changes

While specific details may vary, the proposed changes are expected to cover a broad spectrum of areas, including:

Accountability for Developers

  • Enhanced Developer Responsibility: Developers will be held more accountable for the accuracy of initial maintenance schedules and levy estimates provided for new strata developments.

Improved Strata Management

  • Stricter Oversight: Increased oversight of strata management agreements to ensure transparency and fairness.
  • Building Manager Duty: Introduction of a statutory duty on building managers to uphold specific obligations.

Protecting Owners’ Rights

  • Fair Contract Terms: Safeguarding owners corporations from unfair contract terms in standard form contracts.
  • Stronger Committee Governance: Imposing new duties on strata committee members to improve governance and decision-making.
  • Common Property Maintenance: Reinforcing owners corporations’ obligations to maintain and repair common property.
  • Enforcement Powers: Granting NSW Fair Trading additional powers to enforce common property maintenance obligations.

Sustainability and Accessibility

  • Sustainability Focus: Encouraging sustainable practices by requiring owners corporations to consider sustainability in annual general meetings and levy estimates.
  • Embedded Network Protections: Enhancing protections for owners and owners corporations regarding embedded networks.
  • Accessibility Improvements: Facilitating the installation of support infrastructure for owners with additional needs.

 Other Enhancements

  • Clarity and Efficiency: Implementing various changes to streamline strata law processes and improve clarity.
  • Financial Hardship Support: Providing assistance to owners facing financial difficulties.

Impact on Strata Owners and Committees

These proposed changes are likely to have a significant impact on both strata owners and committees. Strata owners can expect increased protection and greater involvement in decision-making processes. Strata committees, on the other hand, may face additional responsibilities and regulatory requirements.

What’s Next?

As the proposed changes progress through the legislative process, it’s crucial for strata managers, strata owners and committees to stay informed. By understanding the implications of these reforms, you can better prepare for the future and ensure the smooth functioning of your strata communities.

More Information

For more information and insights on the proposed strata law changes visit NSW Government changes to strata laws


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata Law

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

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