Short-term rental accommodation (STRA) platforms like Airbnb and Stayz have transformed property management across New South Wales strata schemes. While owners corporations frequently seek to curb noise, security risks, and high visitor turnover, drafting overly broad by-laws can expose your scheme to significant legal risks.

Under Section 137A of the Strata Schemes Management Act 2015 (NSW), owners corporations have specific powers to restrict short-term letting. However, when a by-law overreaches, the NSW Civil and Administrative Tribunal (NCAT) can declare it invalid, harsh, and unconscionable.

What Section 137A Permits: Banning Commercial STRA

Under Section 137A of the Act, an owners corporation can pass a valid by-law banning short-term rental accommodation within the scheme provided the lot is not the host’s Principal Place of Residence (PPR).

Investor Lots vs. Owner-Occupied Homes

• Investor-Owned Lots: An owners corporation can lawfully prevent an investor or non-resident owner from operating a commercial, full-time holiday rental business out of their lot.

• Owner-Occupied Lots: If a lot is the host’s primary residence, Section 137A explicitly protects their right to let out the home or individual rooms while away on holiday or hosting temporary visitors.

Where Strata By-Laws Cross the Line

Attempts to stamp out “party houses” often lead committees to draft heavy-handed rules. A strata by-law crosses the legal line and risks being struck down by NCAT – if it attempts to restrict ordinary residential rights, including:

• Long-Term Residential Leases: Setting arbitrary restrictions on standard residential tenancy agreements or minimum stay periods exceeding statutory thresholds.

• Personal Guests and Visiting Family: Restricting the number of personal visitors or imposing time limits on how long family members can stay.

• House-Sitters and Pet Care: Banning house-sitters, home swaps, or carers looking after a property while an owner is traveling.

• Primary Residence Holidays: Restricting owner-occupiers from letting out their Principal Place of Residence while on holiday or away for work.

NCAT Rulings on Unenforceable and Oppressive By-Laws

Under Section 139(1) of the Act, a by-law must not be harsh, unconscionable, or oppressive. Furthermore, Section 139(2) explicitly dictates that no by-law can restrict the transfer, lease, or mortgage of a lot.

If an owners corporation enforces a blanket prohibition that encroaches on ordinary residential living, affected lot owners can apply to NCAT under Section 150 for an order invalidating the by-law. If NCAT finds the by-law exceeds statutory powers or illegally restricts leasing rights, it will declare the by-law invalid and order its removal from the strata register.

Protecting Your Scheme with Legally Sound By-Laws

Balancing resident peace and quiet with individual property rights requires precise legal drafting. Broad or template by-laws frequently fail under Tribunal scrutiny, exposing owners corporations to costly disputes and legal penalties.

Ensure Your Scheme’s Short Term Letting By-Laws Are Compliant

Unsure if your scheme’s short-term letting by-law would stand up at NCAT? Protect your committee and lot owners from unnecessary litigation.

Book a by-law review with our specialist NSW strata lawyers who will review, draft, and register custom by-laws tailored to your scheme’s specific needs.

is your short term letting bylaw compliant? Book a bylaw review now…

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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

As sunnier weather arrives across Sydney and NSW, balcony smoke drift becomes a primary trigger for strata disputes. Whether it’s tobacco smoke, vaping aerosols, or heavy charcoal BBQs drifting into open windows, smoke penetration rapidly undermines peaceful living and degrades resident health.

Where Does the Law Stand?

Under Section 153 of the Strata Schemes Management Act 2015 (NSW), residents are strictly prohibited from causing an unreasonable nuisance or hazard to others.

The Civil and Administrative Tribunal (NCAT) consistently treats persistent tobacco and vape smoke drift as a statutory breach. While ordinary domestic cooking is expected, heavy, recurring, or unmaintained BBQ smoke that floods an adjoining lot also crosses the line into an actionable nuisance.

Why Default Model By-Laws Fall Short

Relying on generic Model By-law 9 creates serious exposure for owners corporations. Standard templates lack explicit enforcement mechanics for modern issues like vapes, fail to set clear BBQ operational guidelines, and routinely lead to costly procedural delays at NCAT.

With heightened statutory compliance expectations placed on committees, having legally watertight, custom-drafted by-laws is essential to uphold building standards and secure swift tribunal enforcement.

Action Plan for Strata Committees

• Address Issues Early: Initiate direct, informal communication before disputes escalate.
• Build an Evidentiary Trail: Instruct affected residents to log dates, times, duration, and wind direction.
• Implement Custom By-Laws: Replace outdated default rules with tailored, enforceable restrictions specific to your building’s footprint.

Is Your Building Protected for Summer?

Generic, off-the-shelf rules leave your committee exposed to procedural roadblocks and unresolved resident conflict. Protect your building’s peaceful enjoyment with bespoke rules designed to hold up under legal scrutiny.

Ensure your strata scheme has an enforceable, custom by-law.

Cigarettes, Vapes & BBQs: Protect Your Scheme with an Enforceable Smoke Drift By-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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Spring is traditionally the busiest time of year for New South Wales strata schemes. As the warmer weather arrives, buildings naturally shake off winter, and committees turn their attention to sprucing up the property, tackling deferred projects, and preparing for the upcoming AGM season.

Perhaps it is a slow-developing waterproofing leak on a balcony wall discovered during spring inspections, or a patch of rising damp in the basement. A committee looks at the budget, votes to defer the fix until next financial year, and breathes a temporary sigh of relief.

Except under NSW strata law, that relief is an illusion.

The Non-Negotiable Duty of Section 106

Under Section 106 of the Strata Schemes Management Act 2015, an owners corporation carries a strict, statutory duty to properly maintain and keep common property in a state of good and serviceable repair.

This is not a discretionary checklist item or a matter for committee vote. An owners corporation cannot lawfully vote to opt out of repairs simply because funds are constrained or a major capital works project is looming. Delaying or ignoring common property repairs transforms an administrative delay into an actionable breach of statutory duty, exposing the scheme to substantial legal liability.

The Extended Six-Year Risk Window

The expansion of the limitation period under Section 106 means lot owners now have up to six years from the date they first become aware of a loss to commence legal proceedings against an owners corporation.

This extended window fundamentally alters a building’s risk profile:

• The Long Tail of Historical Liabilities: Unresolved maintenance requests buried in past records or chronic balcony leaks reported years ago do not expire when a committee changes over. They remain active legal exposure.

• Compounding Damages: Over six years, minor defects cascade into major structural damage, interior destruction, and significant claims for alternative accommodation or lost rental income—all of which the owners corporation may be legally mandated to pay.

• The Erosion of Committee Defences: Committees often operate under the false security that silence from an owner equates to acceptance. The six-year runway gives owners ample time to seek formal legal counsel and pursue high-value compensation in the Tribunal.

Protecting the Owners Corporation This Spring

Spring cleaning should extend far beyond gardens and foyers. To mitigate long-term exposure and protect the building’s financial health, strata managers and committees must take a rigorous approach to governance:

• Audit and Prioritise Maintenance Registers

• Tighten Renovation Oversight

• Review Service and Contractor Contracts

Safeguard Your Building Today

Navigating historical maintenance backlogs, complex Section 106 exposures, contracts, service agreements, and building by-laws requires specialised legal precision, so contact our expert strata team this spring for practical guidance tailored to your scheme’s obligations.

Speak With Our Strata Lawyers for Maintenance Delays & Section 106 Compliance

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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

With NSW strata law reforms introducing mandatory committee training from 1 October 2026, owners corporations across the state face an immediate compliance challenge.

While NSW Fair Trading’s new 1 hour online course is designed to upskill committee members, the legislation includes a strict statutory trap: any committee member who fails to complete the module within 3 months of appointment automatically vacates their position.

Our main concern for clients isn’t just an empty committee position – it is the legal fallout when an untrained member unknowingly continues to vote.

The Hidden Exposure: Decisions Made in Good Faith Can Still Fail

Imagine your scheme holds a committee meeting to approve a major building remediation contract or issue a notice to comply with a by-law. If one of the voting committee members missed their 90 day training cutoff, they legally ceased to be a committee member before that meeting took place.

This creates immediate legal vulnerabilities:

• Quorum Breaches: If that individual’s presence was required to make up a voting quorum, the entire meeting was unlawfully constituted.
• Overturned Resolutions at NCAT: Dissenting lot owners gain immediate grounds to apply to the Civil and Administrative Tribunal (NCAT) to set aside decisions, contracts, or by-law enforcement actions.
• Governance Gridlock: If multiple members miss the deadline simultaneously, the committee can fall below its statutory minimum size, stripping the scheme of its power to act until a costly EGM is called to elect replacements.

Practical Safeguards for Strata Managers and Committees

Rather than waiting for a challenge at NCAT, committees should protect their decision-making framework now:

• Track Compliance Timelines: Log the exact appointment dates and 90 day deadlines for every committee member upon election.
• Review Quorum Thresholds: Verify that meeting minutes only count compliant members toward meeting quorums and votes.
• Handle Casual Vacancies Correctly: If a position on the committee is automatically vacated by law, ensure replacement steps strictly adhere to statutory procedures before further votes are taken.

Be Prepared: Protect Your Scheme’s Decision-Making

Is your strata committee properly prepared for the 1 October rules? Don’t let an administrative oversight compromise your committees’ legal decisions.

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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Following updates to the Strata Schemes Management Act 2015 and associated regulations, the process for managing levy collection payment plans has changed significantly.

To help strata managers and committees stay compliant, avoid procedural mistakes, and handle owner queries effectively, we have answered the most common questions regarding the statutory payment plan rules below.

Why Were These Payment Plan Rules Introduced?

The NSW Government introduced stricter payment plan regulations to address growing financial distress among scheme owners and reduce levy-related insolvencies.

Nationally, unpaid strata levies represent the second leading cause of personal bankruptcy, surpassed only by debt owed to the Australian Taxation Office (ATO). By standardising the payment plan process, the legislation aims to give lot owners a structured pathway to resolve levy arrears before legal action or bankruptcy proceedings commence.

Common Payment Plan Q & A’s

1. Does the committee have to deal with a request for a payment plan?

Yes. The committee must meet and vote at a minuted meeting, or pass a resolution to make a decision, on a payment plan request received from a lot owner within 28 days of receiving a completed request form.

• Consequences of inaction: Failure to deal with a request for a payment plan could provide a lot owner with a defence to legal action to recover overdue levies and make recovery of unpaid levies more difficult for an owners corporation.
• Written response requirement: The owners corporation must give the lot owner a written response to the request within 28 days and, if the request is refused, the response must include the reasons for the refusal, including an explanation of how the reasons apply in the specific case (see point 2 below).
• Right of appeal: A lot owner can appeal to NCAT any refusal to approve a payment plan or a failure to deal with a request

2. Can the committee refuse a payment plan because a lot owner has defaulted previously?

No. The regulations set very specific reasons for refusal of a payment plan and they do not include a previous default. The reasons an owners corporation or strata committee can reject a payment plan are set out below:

(a) If entering into the proposed payment plan would cause insufficient funds to be in:

          (i) The capital works fund, or

(ii) The administrative fund.

(b) Insufficient funds has a specific definition – for a fund it means:

(i) The fund would be in deficit, or

(ii) There would be insufficient funds in the fund to comply with an undertaking accepted by the Secretary under the Act, section 188T(3), or a compliance notice given by the Secretary under the Act, section 188X(1), or an order made under the Act or another Act, or

(iii) For the capital works fund there would be insufficient funds to enable the owners corporation to comply with its duty under the Act to maintain and repair common property, or

(iv) For the administrative fund there would be insufficient funds to pay expenses.

3. Can the committee enquire about why the lot owner requires a payment plan?

No. The owners corporation can only consider those points raised above. They cannot make a judgment call on whether or not a particular owner is more or less deserving of a payment plan, they can simply consider whether or not the owners corporation can afford to carry the debt for the time the payment plan is in existence.

The regulations state:

17K (2) The owners corporation must not ask the owner to give information or evidence in support of a request other than the information set out in the prescribed form.

4. Can future levies be included in the payment plan or can failure to pay them mean that the payment plan is at an end?

No. At this time future levies can’t be included in the payment plan. The payment plan request form prepared by Department of Fair Trading specifically says:

“This payment plan request only applies to your overdue contributions. You must continue paying all new contribution notices when they are due. You should consider this when proposing a payment plan. If you fall into arrears with any new contributions, you may request another payment plan to cover those contributions.”

Provided the lot owner is complying with the terms of the written payment plan the owners corporation cannot do anything further to recover the levies the subject of that plan.

The owners corporation CAN issue a new statutory demand for the levies not included in the payment plan and the lot owner can ask for a payment plan for those levies and the owners corporation must deal with that request in the same way as all other requests. This means that one lot owner could have multiple payment plans.

5. Can the owners corporation charge the lot owner for the costs of calling the committee meeting and setting up the payment plan?

No. The regulations specifically state at cl 18A:

“An owners corporation must not require an owner to pay a fee or other charge relating to the following:

a. Making a request to enter into a payment plan,

b. Entering into a payment plan,

c. Participating in a payment plan”

All costs associated with payment plans must be borne by the owners corporation.

6. Are there specific things that must be included in a payment plan?

Yes. The regulations set out in Regulation 18 specific items that must be included in a written payment plan. They are:

18 Payment plans for unpaid contributions: section 85(6) of Act

(1) A payment plan for the payment of overdue contributions is to be in writing and is to contain the following:

(a) the name of the lot owner and the title details of the lot,

(b) the address for service of the lot owner,

(c) the amount of the overdue contributions,

(d) the amount of any interest payable for the overdue contributions and the way in which it is calculated,

(e) the schedule of payments for the amounts owing and the period for which the plan applies,

          (f) the manner in which the payments are to be made,

(g) contact details for a member of the strata committee or a strata managing agent who is to be responsible for any matters arising in relation to the payment plan,

(h) a statement that a further plan may be agreed to by the owners           corporation by resolution,

          (i) the date the payment plan was agreed to.

7. Does an owners corporation have to waive interest?

No. There is no provision in the regulations for an owners corporation to waive interest. Whilst the payment plan request form allows the lot owner to request this, interest can still only be waived by a vote at a general meeting or strata committee meeting.

Simplify Payment Plans and Levy Recovery

Navigating statutory payment plan timelines, drafted agreements, and compliance checks adds a significant administrative burden to your day-to-day management responsibilities. A single procedural misstep can delay levy collection or invalidate recovery action altogether.

Let us handle the administrative and legal heavy lifting for you. Our specialist team offers a dedicated managed payment plan service, alongside our full-service strata debt collection options:

• End-to-End Payment Plan Management: We draft compliant payment plan agreements, liaise with owners within strict statutory timelines, monitor compliance, and ensure committee decisions meet all statutory requirements.
• Seamless Levy Recovery Services: When payment plans are refused, defaulted on, or unviable, our specialist strata legal team handles the entire recovery process efficiently to safeguard your scheme’s cash flow.

Protect your strata schemes and save your team valuable administrative hours.

Contact our specialist levy debt collection team today to learn how we can manage your payment plans and levy collections.

Get expert help with payment plans and levy recovery

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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Smart doorbells, Ring cameras, and digital peepholes have fast become standard home security upgrades for modern apartment living.

However, when a device mounted to an apartment door continuously records the shared hallway, captures a neighbour’s entry, or records private corridor conversations, what feels like personal security to one resident quickly becomes an immediate breach of privacy to another.

For Strata Committees and Strata Managers, these popular gadgets are sparking complex resident disputes. Navigating the boundary between an owner’s desire for safety, the rules governing common property modifications, and strict state surveillance legislation requires a clear, proactive legal framework.

The Legal Trilemma: Common Property, Privacy & the Law

When a resident installs a smart camera outside their front door, the conflict falls across three legal intersections:

1. Common Property & Model By-Law Deficiencies

Most standard model by-laws such as legacy rules covering ‘Damage to Common Property’ or minor cosmetic changes were never drafted to address digital recording devices.

• Mounting a device to an entrance door frame or outer wall involves fixing equipment to common property.

• Standard model by-laws lack clear boundaries regarding field of view, continuous recording, or audio capture over shared spaces.

2. The Surveillance Devices Act 2007 (NSW)

Under Section 8 of the Surveillance Devices Act 2007 (NSW), it is generally an offence to knowingly install or use an optical surveillance device on property without the express or implied consent of the owner or occupier if it captures private activity.

Furthermore, capturing audio of private conversations in common hallways without the consent of all parties involved can trigger severe statutory penalties.

3. Nuisance & Unreasonable Interference

Under Section 153 of the Strata Schemes Management Act 2015 (NSW), an owner or occupier must not use or enjoy their lot, or common property, in a manner that causes a nuisance or unreasonable interference with another resident. A camera pointed directly at a neighbor’s front door or living area often constitutes a legal nuisance under NCAT precedent.

Why Standard Schemes Are at Risk

Relying on informal agreements or generic model by-laws leaves Owners Corporations vulnerable:

• Unregulated Fields of View: Cameras capturing neighbour doorways, interior lot views when doors open, or shared lifts.

• Audio Recording Exposure: Uncontrolled continuous audio capture exposing residents and the scheme to Surveillance Devices Act breaches.

• NCAT Disputes: Without a tailored by-law, committees lack a direct enforcement mechanism to compel the immediate removal or repositioning of intrusive devices, leading to costly tribunal proceedings.

The Solution: A Tailored ‘Smart Security & Surveillance Devices’ By-Law

Rather than banning security tech outright or dealing with escalated resident complaints after a camera is installed, proactive committees adopt a specialised, scheme-wide framework.

A bespoke ‘Smart Security & Surveillance Devices By-Law’ provides a clear approval pathway while setting enforceable operational conditions:

Protect Your Scheme Today

Don’t wait for a hallway surveillance conflict to escalate into a formal NCAT dispute or privacy breach. Establishing clear, legally sound parameters protects your committee, upholds resident privacy, and keeps your scheme compliant with NSW law.

• Drafting custom ‘Smart Security & Surveillance Devices By-Laws’ tailored specifically to your building layout and entry systems.

• Reviewing existing scheme by-laws and advising committees on pending camera approval applications.

• Representing owners corporations in NCAT proceedings regarding unapproved devices, common property alterations, and nuisance claims

Speak to our specialist strata legal team today about implementing a custom ‘Surveillance By-Law’ for your scheme.

Facing a smart camera dispute or looking to update your security rules?

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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

In multi-unit strata schemes, a single lithium-ion battery fire can compromise shared building structures, block critical fire exits, and release toxic gases across common corridors.

Because high-density living amplifies structural and fire safety risks, owners corporations, strata committees, and strata managers cannot afford a reactive approach.

Establishing a robust, tailored lithium battery by-law provides your scheme with clear legal authority to regulate common property charging, enforce safe storage practices, mitigate escalating insurance excesses, and safeguard lives.

Why Are Lithium-Ion Batteries Uniquely Dangerous?

Unlike conventional fire risks, lithium-ion battery failures are chemical in nature and escalate with extreme speed:

• Thermal Runaway: When a cell fails due to manufacturing defects, physical impact, or overcharging, it triggers an unstoppable, self-sustaining chemical reaction that generates extreme heat exceeding 1,000C.

• Vapour Explosions & Debris: Rapid internal pressure build-up can cause violent casing ruptures, ejecting molten metal, toxic gas clouds, and sharp shrapnel.

• Lethal Toxic Gas Release: Thermal runaway releases high volumes of dense, highly toxic gases—including hydrogen fluoride and carbon monoxide—that quickly fill apartments and fire stairwells.

• Stranded Energy & Reignition: Even after visible flames are extinguished, residual electrical energy in neighbouring undamaged cells can cause the battery to reignite hours or even days later.

• Rapid Flame Spread: Lithium battery fires accelerate to maximum intensity within seconds rather than minutes, leaving residents virtually no time to evacuate safely.

Everyday Lithium-Ion Products in Strata Apartments

Residents rely on lithium-ion technology across a vast range of daily devices:

• E-Mobility & Personal Transport: E-bikes, e-scooters, electric skateboards, hoverboards, and mobility scooters.

• Power & Garden Tools: Cordless drill battery packs, lawnmowers, line trimmers, leaf blowers, and hedge trimmers.

• Household Appliances: Cordless stick vacuums, robot vacuum cleaners, portable rechargeable fans, and electric mops.

• Personal Tech & Wearables: Laptops, smartphones, tablets, smartwatches, wireless earbuds, and portable power banks.

• Grooming & Lifestyle Devices: Electric toothbrushes, shavers, hair straighteners, massage guns, and e-cigarettes / vapes.

• Hobbies & Entertainment: Wireless gaming controllers, handheld consoles, drones, action cameras, and portable speakers.

• Apartment Infrastructure: Video doorbells, wireless security cameras, smart door locks, uninterruptible power supplies (UPS), and solar battery energy storage systems (BESS).

Fires Are Rising and Difficult to Extinguish

Lithium-ion battery fires are now recognised as the fastest-growing fire hazard in high-density schemes. Traditional extinguishers cannot stop thermal runaway because the chemical reaction generates its own heat and oxygen internally.

Because battery fires erupt within seconds, protecting residents depends entirely on prevention and keeping escape routes clear. Unmanaged charging in corridors or stairwells creates lethal toxic gas clouds that trap residents during an evacuation.

This escalating danger directly impacts building insurance. Insurers are now raising excesses and scrutinising claims where unmanaged charging occurs. Implementing clear protocols is an owners corporation’s primary line of defence to safeguard lives, prevent catastrophic loss, and satisfy insurer requirements.

How Can Strata Schemes Reduce Battery Risks?

To manage liability and protect high-density communities, owners corporations and strata managers should implement a clear operational risk strategy:

1. Keep Egress Pathways Clear: Strictly enforce a zero-tolerance policy for storing or charging e-bikes, e-scooters, or batteries in common corridors, stairwells, or near main apartment exit doors.

2. Mandate Safety-Certified Equipment: Require all devices, replacement batteries, and chargers brought onto the scheme to display mandatory Australian electrical safety approval marks (such as the Regulatory Compliance Mark / RCM).

3. Prohibit Unattended Overnight Charging: Educate residents never to leave high-capacity devices charging overnight, while unattended, or on combustible surfaces like carpets, sofas, or bedding.

4. Establish Battery Disposal Protocols: Advise residents that household batteries are strictly prohibited from apartment rubbish chutes and wheelie bins, directing them instead to approved council or B-cycle drop-off points.

5. Enact a Dedicated Lithium Battery By-Law: Register an enforceable, legally sound by-law that grants the owners corporation direct regulatory powers, clear compliance pathways, and cost-recovery mechanisms if breaches occur.

Protect Your Scheme with a Specialist Lithium Battery By-Law

Educating residents is essential, but education alone does not provide legal authority. Without a registered by-law, strata committees lack the statutory leverage needed to enforce charging restrictions, remove hazardous items from common property, or hold non-compliant lot owners accountable for insurance liabilities.

A robust, scheme-specific Lithium-Ion Battery By-Law bridges this gap providing clear legal grounds to safeguard common property and maintain building compliance.

Protect Your Scheme with a Specialist Lithium Battery By-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

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Under the Strata Schemes Management Act 2015 (NSW) (SSMA), an owners corporation and a lot owner can enter into a formal payment plan to pay off overdue strata contributions in manageable installments.

While lot owners have the right to request a payment plan, an owners corporation is not legally obligated to accept every proposal and may reasonably refuse a request. However, owners corporations must exercise caution: adopting a blanket policy of automatically refusing all payment plan requests is unreasonable and non-compliant with strata governance standards.

Under the Strata Schemes Management Regulation 2016 (NSW) (SSMR), an owners corporation or strata committee must provide a formal written response within 28 days of receiving a completed payment plan request from an owner.

The Legal Gap: Who Has the Authority to Decide?

Importantly, neither the SSMA nor the SSMR explicitly specifies who within the scheme’s governance structure must make the decision to approve or refuse a proposed payment plan.

There is no statutory requirement that payment plans can only be determined by the owners corporation at a general meeting, nor is there a requirement restricting the decision strictly to a strata committee meeting. Equally, the legislation contains no prohibition against delegating this decision-making authority to a strata managing agent.

Because the legislation remains silent on a single designated decision-maker, authority typically falls to one of three entities.

1. The Owners Corporation at a General Meeting

The owners corporation holds ultimate decision-making power for the scheme. It can vote to approve or refuse a lot owner’s payment plan proposal by ordinary resolution at an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM).

2. The Strata Committee

The strata committee is empowered to exercise the functions of the owners corporation, provided those decisions do not run counter to a decision of the owners corporation or involve matters restricted by law or by a resolution of the scheme. Unless the owners corporation has specifically restricted the committee’s power regarding financial recovery, the strata committee can formally vote on and decide a payment plan request.

3. The Strata Managing Agent

A strata managing agent can approve or refuse a payment plan if the relevant authority has been expressly delegated to them through their agency agreement or a resolution of the owners corporation or strata committee. So long as that delegated authority remains active and has not been limited or revoked the agent can legally act on behalf of the scheme to resolve levy payment plan requests.

Determining Your Scheme’s Decision-Making Authority

Whether a strata managing agent, strata committee, or owners corporation holds the legal standing to sign off on a payment plan depends entirely on the specific governance arrangements, agency contracts, and delegated authority instruments of that particular scheme.

Failing to follow correct delegation rules or missing the statutory 28-day response window can complicate levy recovery actions and expose schemes to unnecessary disputes at the Civil and Administrative Tribunal (NCAT).

Need Expert Guidance on Strata Levy Recovery and Compliance

Recovering overdue levies requires a balanced approach: protecting your scheme’s finances while remaining strictly compliant with statutory frameworks.

Our specialist team provides plain-English legal support for owners corporations and strata managers. We assist with:

• Levy Recovery Service: Full end-to-end management so you can focus on running your scheme.

• Delegated Authority: Clear policies and frameworks for managing payment plans.

• Governance Reviews: Ensuring your processes align with NSW strata legislation.

Levy Debt Recovery: Expert Advice or End-to-End Management

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, strata disputes, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Matters dealing with strata and community title disputes in NCAT are normally heard in the Consumer & Commercial Division of that Tribunal. In that Division, leave of the Tribunal is required for a party to be legally represented. Further, the question of legal costs is governed by Section 60 of the Civil & Administrative Tribunal Act which determines that such costs are payable only when “special circumstances” apply.

Sometimes the Tribunal refuses leave for an owners corporation to be legally represented (particularly if an Applicant lot owner is not legally represented) and it has been generally understood that in those circumstances the owners corporation is unable to recover any legal costs which it incurs in preparing for those proceedings.

NCAT Decision: Recovering Preparation Legal Costs Without Leave for Legal Representation

In a recent decision, Brandes v. Community Association DP No. 270482 (No. 2) [2026] NSWCATAP 225, NCAT’s Appeal Panel determined there was no reason in principle why an owners corporation or community association should not be entitled to claim legal costs incurred in assisting it to prepare for a hearing, including assisting a party in drafting documents which are required by the Tribunal.

This means that, in theory, an owners corporation or community association which is required to appear at proceedings in NCAT itself because leave for legal representation has not being granted, can still engage legal advisors to assist it with preparation of materials required by NCAT, including documents and submissions and, provided the “special circumstances” test is met, can make an application that its opponent pay its legal costs of those proceedings.

Proving ‘Special Circumstances’ Under Section 60 of the NCAT Act

In the Brandes decision (and in any case where a party is making an application that the other party pay its legal costs), it is still necessary to demonstrate that “special circumstances” exist that warrant the making of a costs order, as normally each party is required to pay its own costs. In this case the Tribunal determined there were “special circumstances”, as it found the Appellant’s case was weak and misconceived and, therefore, there were special circumstances identified in Section 60(3)(e).

Key Takeaways for Owners Corporations and Strata Managers

This case identifies that a successful owners corporation or community association should consider the possibility of making an application for costs in NCAT proceedings even if it has not been granted leave to be legally represented in those proceedings. Although it may not recover all its legal costs as part of the costs assessment process, if it can demonstrate that “special circumstances” exist, then it may be able to recover a significant portion of those costs.

Need Expert Legal Guidance on Your NCAT Strata Dispute?

Navigating NCAT proceedings and seeking legal cost recovery requires strategic advice tailored to your specific situation. Whether your Owners Corporation or Community Association is preparing for a Tribunal hearing or considering a costs application, our experienced strata law specialists are here to guide you every step of the way.

Speak to an NCAT Strata Law Specialist

Warwick van Ede I BEc LLM I Executive Counsel

Since 1990, Warwick has specialised in strata law, property law and litigation. Recognised for his expertise, he is also a NSW Law Society Accredited Specialist in Property Law. In 2021 he was selected to serve on the Property Law Committee of the Law Society of NSW.  Profile I LinkedIn

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.

Many owners corporations enter into ongoing service contracts for essential services like waste management, gardening, cleaning, and lift maintenance. While these contracts provide routine and reliability, they often contain hidden traps – most notably automatic renewal (or “roll-over”) clauses.

These terms can silently lock your scheme into another full contract term unless written notice is served within a tight, specific window before the expiry date.

Legal Risk: Unfair Roll-Over Clauses in Strata Contracts

The Australian Competition and Consumer Commission (ACCC) has long scrutinised automatic renewal clauses in standard form contracts.

In a landmark enforcement action, the Federal Court confirmed that a 5-year automatic roll-over clause—alongside other restrictive terms—constituted an unfair contract term (Australian Competition and Consumer Commission v JJ Richards & Sons Pty Ltd [2017] FCA 1224).

Beyond automatic roll-overs, standard service agreements frequently hide other high-risk terms:

• Unilateral price variation clauses – Allowing service providers to raise fees without committee approval.
• Broad indemnity provisions – Shifting unnecessary legal risk onto the owners corporation.
• One-sided termination rights – Allowing the contractor to exit easily while keeping the scheme bound.

Why Early Contract Audits Save Schemes Money

Waiting until after a contract has automatically rolled over severely limits your legal options. Once the deadline passes, terminating early often incurs heavy penalty fees or protracted legal disputes.

For strata managers managing multiple properties and committee members overseeing budgets, auditing active service contracts well before their expiry date is essential risk management.

Quick Checklist: What Should Your Scheme Do?

1. Map your expiry dates: Identify all active service agreements and note their formal end dates.
2. Locate notice windows: Check if the contract requires 30, 60, or 90 days’ written notice to prevent automatic renewal.
3. Review for unfair terms: Identify any unilateral fee increases or restricted termination rights.
4. Seek plain-English legal advice: Get a legal review from our specialist strata lawyers before the notice window closes.

Protect Your Scheme from Unfair Contract Traps

Unsure whether an automatic renewal clause in your service agreement is legally enforceable? Or has a contract already rolled over without your consent?

Our specialist strata lawyers provide practical, plain-English legal advice to help owners corporations and strata managers navigate complex service contracts. We can review your existing agreements, identify unfair or risky terms, advise on termination rights, and assist with contract negotiations before costly deadlines pass.

Don’t get locked into an unfair contract.

Get an Expert Review Before Your Service Contracts Auto-Renew >

Need Expert Strata Law Advice?

Whether you are navigating a complex dispute or looking to protect your scheme, our specialist NSW and Sydney strata lawyers are here to help. We provide clear, practical advice on all aspects of strata law, including by-laws, building defects, and fast levy debt collections. Call our team on 02 9562 1266 or email us here today.