NSW Strata Law Reforms from 1 July 2025: What Owners, Committees & Developers Need to Know

From 1 July 2025, sweeping reforms to NSW strata legislation have officially come into effect. These changes are designed to strengthen consumer protections, enhance transparency, improve accessibility, and modernise governance. While many of these updates have been discussed for years, they’re now live—and compliance is no longer optional.

Big changes have arrived in the strata world.

Below is your clear, jargon-free guide to what now applies from 1 July, with official terms kept as subheadings for ease of reference. At the end of this article, you’ll find the full recording of our recent expert webinar hosted by Premium Strata, Holding Redlich and LookUpStrata which breaks down all reforms in detail.

📌 Reporting of Delegated Authority

Strata managing agents must now formally report to the Owners Corporation on how they have exercised any delegated authority and must also provide a copy of all records kept over the past six months. This includes decisions or actions taken without specific committee approval—such as issuing work orders or paying expenses—under the terms of their agency agreement.

This measure strengthens transparency and helps ensure agents remain accountable when acting on the Owners Corporation’s behalf.

📌 Agency Agreements – Prohibited Terms

Fair Trading now has power to approve standard form agreements for strata and building managers. While we are still waiting for these templates to be released, their introduction could offer added legal clarity and assurance for Owners Corporations.

📌 Embedded Networks

Changes now limit exclusive supply contracts (e.g. electricity, internet, EV charging) to a maximum of 3 years, with stricter upfront disclosure:

• Developers and vendors must declare embedded networks in contracts.
• Buyers may rescind a contract if networks are not properly disclosed.
• Section 184 Certificates must now include network details.

“This is a win for buyer transparency—too many embedded deals have flown under the radar for too long.” — Leanne Habib

📌 Sustainability Changes

Capital Works Fund plans must now include estimated costs for sustainable infrastructure, such as solar panels, smart meters, and energy-efficient materials.

In addition, the plan must use a prescribed format and consider the developer’s initial maintenance schedule.

📌 Prohibition on Unfair Contract Terms in Standard Form Contracts

Standard form contracts (e.g. for strata management, building services) are now subject to unfair contract term prohibitions, mirroring national consumer law protections. This limits exploitative clauses in contracts that are offered on a “take-it-or-leave-it” basis.

📌 Promoting Inclusion for Residents with Assistance Animals

Rules have been simplified for residents requiring assistance animals:

• Only one piece of supporting evidence is now needed.
• This aligns strata practices with broader anti-discrimination principles.

📌 Records Inspection Fees

Digital records must now be securely stored and accessible. Strata managers must also comply with updated rules on record access and inspection, reinforcing digital security and proper governance.

📌 Managing Requests for Accessibility Infrastructure

Modifications to improve access for residents with disabilities (e.g. ramps, handrails) no longer require a special resolution. A simple majority vote now suffices—making it easier to upgrade older buildings that lack accessible features.

“This is a welcome and long-overdue change—especially for ageing buildings and residents.” — Ellie Ashley, Partner, Holding Redlich

📌 Developer Compliance at Scheme Establishment

For multi-storey buildings, developers must now:

• Use a prescribed format for the Initial Maintenance Schedule (IMS).
• Have levy estimates and the IMS independently certified by a qualified quantity surveyor or other prescribed person.
• Meet strict timing deadlines, or face daily penalties under new continuous offence provisions.

“We’d like to see these handover documents provided earlier. Right now, they’re due just 14 days before the first AGM—which isn’t enough time for proper review before considering them at the first AGM.” — Leanne Habib

📌 Strata Committees

A host of new obligations and safeguards now apply to strata committees:

✅ Committee Member Duties

• Act honestly, fairly, and in the best interest of the Owners Corporation.
• Use information appropriately and avoid unreasonable impacts on others.
• Mandatory training is now required—though the content and enforcement mechanisms are still being finalised.

✅ Chairperson Functions

• Must follow agendas, maintain order, and facilitate inclusive dialogue.
• Ensure fair participation from all owners, avoiding dominance by a few voices.

“Mandatory training is welcome—but it must be practical. We’re dealing with volunteers, not full-time professionals.” — Leanne Habib

🧭 What’s Next?

While some regulations (like templates for maintenance schedules or Strata committee training) are still awaiting finalisation, the majority of these reforms are already active. Schemes that delay action risk non-compliance—and unnecessary conflict.

A second round of legislative changes is expected to commence in October or November 2025, with further details to be released by NSW Fair Trading. These will likely address the more complex reforms still under development, including standardised agreements and strata committee training.`

As we adjust to this evolving legal landscape, it’s essential that committees, managing agents, and developers work collaboratively and stay informed.

Need help navigating the changes?

Contact the Premium Strata team for guidance on adapting your scheme to meet the new requirements. We’re here to help your community stay compliant—and thrive.