NSW Strata Law Reform Effective 1 July 2025

 

 

From 1 July 2025, New South Wales will introduce its most significant update to strata laws in over a decade. These reforms, developed through extensive consultation with government, industry experts, and the community, aim to modernise strata governance, improve transparency, and enhance liveability for tenants and owners across strata and community schemes.

 

Key Changes to Strata Management

 

Automatic Approval for Minor Renovations

Strata committees have three months to respond to requests for minor renovations. If no response is provided within this timeframe, the renovation is automatically approved. All approved renovations must be documented and retained for at least 10 years.

 

Sustainability and Accessibility Upgrades

Sustainability must now be a regular agenda item at Annual General Meetings (AGMs). Energy and water efficiency upgrades, including solar panels and electric vehicle chargers, cannot be prohibited on appearance grounds unless the property is heritage-listed.

Accessibility improvements, such as ramps and lifts, can now be approved by a simple majority vote, supporting more inclusive community environments.

 

Ban on Unfair Contract Terms

New protections prohibit unfair clauses in contracts between strata management and suppliers, such as shifting liability to owners corporations or limiting service accountability. These rules apply to all contracts entered into or renewed from 1 July 2025.

Enhanced Duties for Committees and Chairpersons

Strata committee members must now act honestly, fairly, and within the law. Chairpersons are required to conduct meetings openly and in an orderly fashion, promoting constructive discussion. These measures seek to professionalise committee operations and improve decision-making.

 

No Delays on Essential Repairs

Owner’s corporations can no longer postpone essential repairs affecting safety or access due to legal disputes. Additionally, owners have six years—up from two—to lodge claims related to maintenance failures of common property.

 

Simplified Evidence for Assistance Animals

Residents requiring assistance animals need only provide one form of evidence, such as a permit, ID card, or a letter from a registered health professional. This change reduces barriers and supports vulnerable residents.

 

Strata Manager Reporting and Record Access

Strata managing agents must report their activities to owner’s corporations every six months. Inspection fees for non-owners will increase to $60 for the first hour and $30 per additional half hour. All digital records must be provided through secure platforms.

 

Utility Contracts and Embedded Networks

Embedded network contracts for utilities—including water, gas, electricity, and EV charging—are now limited to a maximum of three years and must be fully disclosed in sales documentation.

 

Developer Accountability

Developers are required to hold the first AGM within two months after the initial period ends and provide all necessary documents at least 14 days prior. Failure to comply may result in fines exceeding $11,000.