Behind the Strata Reforms – Rights, Rules & Realities for Owners and Committees

On 7 May 2025, Premium Strata hosted a live webinar with Nikki Jovicic from LookUpStrata and Elly Ashley from Holding Redlich exploring the latest changes to NSW strata legislation—some already in force from 1 July 2025, and others expected later in the year.

Here’s a clear summary of what’s changed—and what’s still ahead.

✅ Changes Effective from 1 July 2025

🛠️ Accessibility & Minor Renovations

Approval for accessibility modifications to common property now requires a majority vote, rather than a special resolution. This simplifies the process for buildings seeking to enhance access for residents with disabilities—particularly important for older buildings lacking essential facilities.

🐾 Assistance Animals

The process to keep assistance animals has been simplified, now requiring only one piece of supporting evidence.

🌿 Sustainability Initiatives

Capital Works Fund plans must now include estimates for sustainable infrastructure, such as solar panels, smart meters, and eco-friendly materials.
AGM agendas must also include an item to consider environmental sustainability within the scheme, including a review of annual energy and water consumption and costs.
By-laws that ban sustainability infrastructure due to appearance are no longer valid (unless heritage restrictions apply).

📜 Strata Committee & Chairperson Duties

Committee Members:
Strata committee members must act honestly, fairly, and in the best interests of the Owners Corporation. They must avoid actions that unreasonably impact other residents and use information only for authorised purposes.

Chairperson Functions:
Chairpersons must now:
• Follow meeting agendas carefully
• Maintain order
• Encourage inclusive and open discussions to ensure all owners can contribute

📂 Strata Manager Obligations

Strata managers must:
• Provide records to the Owners Corporation every six months (previously annually)
• Avoid contract terms that require the Owners Corporation to pay the manager’s professional indemnity liability, or that limit liability, unless covered by a professional standards scheme
• Maintain transparency and compliance in recordkeeping and conduct

💼 Developer Accountability

Developers of multi-storey buildings now face:

• Mandatory provision of a prescribed Initial Maintenance Schedule
• Penalties for failing to hold the first AGM on time or to provide documents 14 days in advance
• A requirement that common property rights by-laws cannot be amended or repealed without consent from the benefiting lot owner—and that consent must not be unreasonably withheld

💸 Unfair Contract Terms

New reforms ban unfair terms in standard form contracts for services provided to strata schemes (e.g., cleaning, management, repairs).
Applies to all contracts entered into, renewed, or varied on or after 1 July 2025.

📁 Record Inspection Fees

• Fees for inspecting strata records have increased to $60 for the first hour and $30 for each subsequent half-hour, applicable to non-owners.
• Electronic access to records must be provided through secure means.

⚡Embedded Networks

• Embedded network contracts must be disclosed in sales contracts and off-the-plan statements
• These agreements are now capped at three years from the date of signing
• Applies to all utility agreements entered into on or after 1 July 2025

🔜 Changes Expected Later in 2025 (Likely October/November)

🏗️ Maintenance & Repair Obligations

NSW Fair Trading will gain stronger powers to enforce the duty to maintain common property. This includes the ability to:
• Issue compliance notices
• Accept enforceable undertakings from strata schemes
• Enforce use of a prescribed format for the 10-year Capital Works Fund plan and developer maintenance schedules

📘 Strata Committee Training

Mandatory training for strata committee members will be introduced to help volunteers make informed, lawful decisions in their roles.

🤝 Financial Hardship Support

Upcoming changes to support owners in hardship include:
• Levy notices must include hardship support details
• Strata committees will be able to approve payment plans (currently requires owners corporation approval)
• Owners corporations must consider all payment plan requests and cannot unreasonably refuse
• Minimum notice period for debt recovery will increase from 21 to 30 days
• Payments will be applied first to overdue levies, then to interest and legal costs

📂 Building Manager Conduct Requirements

New duties for building managers will include the obligation to act in the best interests of the Owners Corporation, in line with enhanced governance and accountability standards.

Please note: This article is for informational purposes only and does not provide a complete summary of the 2025 strata law reforms. For full details and legislative guidance, please refer to the official NSW Fair Trading page:
🔗 https://www.nsw.gov.au/housing-and-construction/strata/guide-to-2025-strata-law-changes