NSW Strata Law: Key Updates from the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025

The Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 (NSW) introduces the final milestone, major wave of reforms to the Strata Schemes Management Act 2015 and Strata Schemes Development Act 2015. These changes, introduced on November 19, 2025, focus on governance, financial integrity, and modernising strata living.

Below is a summary of the most impactful proposed reforms that owners corporations, strata committees, and strata managers must be aware of.

The changes proposed by the Bill are sweeping, affecting everything from your by-laws to your financial governance.

1. Financial Integrity & Consumer Protection

The Bill significantly enhances accountability and protects lot owners from unfair charges and undisclosed fees.

• Mandatory Hardship Plans: Owners corporations (OCs) must offer payment plans to owners facing financial hardship before commencing legal action for overdue levies. Blanket resolutions refusing all payment plans are banned.
• Insurance Commission Ban: Strata Managers (SMs) are banned from receiving commissions on insurance products if they were not actively involved in obtaining the best deal for the OC. All insurance quotes must be itemised to disclose agent/broker payments.
• Cap on Resident Fees: Fees charged for services like replacement access cards or keys must be limited to the OC’s reasonable cost of providing that service, ending excessive charges.
• Certified Developer Estimates: Initial levy estimates for new schemes must be independently certified to prevent developer ‘bill shock’ after the first Annual General Meeting.

2. Modern Living & Sustainability

The reforms simplify the adoption of necessary modern infrastructure.

• EV Charger Right: Lot owners gain a simplified right to install Electric Vehicle (EV) charging stations in their dedicated parking spaces. OCs cannot unreasonably block EV charging or other sustainability measures (like solar panels) merely due to external appearance.
• Accessibility Vote: Resolutions for installing or altering accessibility infrastructure for residents with disabilities now only require a simple majority vote, lowering the threshold for essential upgrades.

3. Governance & Compliance Overhaul

New powers for Fair Trading and changes to management tenure aim for greater transparency.

• Public Compliance Records: NSW Fair Trading will be empowered to publicly publish compliance actions (e.g., notices) taken against OCs that fail to meet their mandatory common property repair and maintenance duties.
• Building Manager Term Limit: The maximum term for a Building Manager’s agreement is reduced from 10 years to 3 years, aligning with SMs contracts. NCAT gains power to terminate these agreements for breaches of prescribed duties.
• Two-Lot Scheme Exemptions: Small schemes (e.g., duplexes) are exempted from various requirements, including holding general meetings, forming a strata committee, and filing annual reports, reducing regulatory burden.
• Two-Quote Rule: OCs must obtain at least a second quote for proposed works exceeding $30,000.

Key Action Items for Strata Professionals

• Update Policies: Revise levy arrears and debt recovery policies to include the mandatory hardship payment plan offer.
• Review By-laws: Check and update by-laws to accommodate the new rights regarding EV charging and sustainability installations.
• Ensure Disclosure: Strata managers must update reporting procedures to comply with the new itemisation and commission disclosure requirements for insurance.
• For more information visit NSW Government

Avoid Non-compliance

These changes proposed by the Bill are sweeping, affecting everything from your by-laws to your financial governance.

To ensure you avoid non-compliance, book in a compliance review and/or team training session on the new legislative requirements here with our specialist team of strata lawyers.