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New Strata Law Reforms in NSW

New Strata Law Reforms in NSW: What You Need to Know

Strata laws in New South Wales have undergone major changes over the last three years. These reforms aim to improve governance, ensure transparency, and protect stakeholders in strata schemes. The 2025 Reforms and other recent updates are some of the most significant changes in Australia. They focus on homeowners, renters, investors, and strata committees. Let’s explore what these updates mean for you.

What’s New for Strata Committees?

Strata committees now have more responsibilities under the new laws. These changes aim to improve how strata schemes are managed. Here are the key updates:

  1. Mandatory Training

    • Strata committee members must now complete training.
    • This training explains their roles, legal duties, and ethical decision-making.

  2. Clearer Election Processes

    • The process for nominating and electing committee members is now more transparent.
    • This ensures fair representation for all owners.

  3. Conflict of Interest Disclosures

    • Committee members must disclose any conflicts of interest.
    • This prevents decisions that could unfairly benefit individuals.

  4. Simplified Accessibility Resolutions

    • Accessibility upgrades, like ramps or lifts, now need only a simple majority vote.
    • Previously, a 75% majority was required.

These changes aim to make strata committees more effective and accountable.

What’s Changing for Strata Managing Agents?

Strata managing agents face stricter rules under the 2024 Agents Act and the 2025 Reforms. These updates focus on accountability and protecting owners. Key changes include:

  1. Commission Disclosure

    • Agents must disclose any commissions they receive or expect to receive.
    • They must also report whether these commissions benefit the owners corporation.

  2. Insurance Transparency

    • Agents must provide at least three insurance quotes to the owners corporation.
    • Each quote must include a detailed breakdown of costs and any commissions.

  3. Increased Reporting Obligations

    • Agents must regularly report on financial and operational matters.
    • This ensures owners corporations stay informed and in control.

These updates aim to restore confidence in strata management.

What Do the Reforms Mean for Renters?

The 2025 Reforms also include changes to the Residential Tenancies Act 2010 (NSW). These updates provide better protections for renters. Here’s what’s changing:

  1. No More ‘No Grounds’ Terminations

    • Landlords can no longer end leases without a valid reason.
    • This provides renters with more stability and security.

  2. Limits on Rent Increases

    • The reforms aim to prevent unfair rent increases.
    • However, their effectiveness will become clearer over time.

These changes are designed to make renting fairer and more secure.

What’s New for Developers?

Developers face stricter obligations under the 2025 Reforms. These changes aim to improve transparency and protect buyers. Key updates include:

  1. Certified Maintenance Schedules

    • Developers must provide a certified initial maintenance schedule.
    • This ensures proper planning for future repairs and maintenance.

  2. Embedded Network Disclosures

    • Developers must disclose if a property includes, or is likely to include, an embedded network.
    • Failure to disclose this can allow buyers to cancel the contract.

  3. Stronger Compliance Penalties

    • Developers can face daily penalties for failing to meet key obligations.
    • For example, not holding the first annual general meeting within two months of the initial period.

These updates hold developers accountable and protect buyers from unfair practices.

Additional Changes to Note

  1. Accessibility Infrastructure

    • Resolutions for accessibility upgrades now require only a simple majority vote.
    • This makes it easier to install ramps, lifts, and other infrastructure.

  2. Embedded Networks

    • The reforms aim to protect owners from lock-in contracts for utilities.
    • Sellers must disclose if a property has an embedded network. Failure to do so may allow buyers to cancel the contract.

Key Takeaways

  • Strata committees must now complete mandatory training and disclose conflicts of interest.
  • Strata managing agents face stricter rules for commission disclosures and insurance transparency.
  • Renters benefit from the removal of ‘no grounds’ terminations and better protection against unfair rent increases.
  • Developers must meet new obligations, including certified maintenance schedules and embedded network disclosures.
  • Accessibility upgrades are now easier to approve, benefiting homeowners.

 

If you’re unsure how these changes affect your strata scheme, Elevated Strata Communities can help. Contact us today for expert advice and support.