If you own, live in, or manage a strata property in New South Wales, there’s one law that sets the rules for how your building operates: the Strata Schemes Management Act 2015.
This law explains how strata properties are managed, how finances are handled, and how disputes are resolved. It also defines the rights and responsibilities of everyone involved owners, tenants, strata committees, and managing agents.
In simple terms, the Act is what keeps strata communities across NSW running smoothly, transparently, and fairly.
Purpose of the Strata Schemes Management Act 2015
The Strata Schemes Management Act 2015 was created to modernise how strata schemes operate in New South Wales. It replaced an older version from 1996, making the rules clearer and more practical for modern living.
The Act aims to:
-
Promote fair and transparent management of strata schemes
-
Clearly define the roles of the owners corporation, strata committee, and managing agents
-
Ensure proper financial management and accountability
-
Protect property values through maintenance standards
-
Provide fair ways to resolve disputes
These principles help strata communities stay well-managed, cooperative, and financially stable.
Who Does the Act Apply To?
The Act applies to everyone involved in the day-to-day running of a strata property. Understanding each person’s role helps avoid confusion and ensures things run properly.
Owners Corporation
All lot owners together form the owners corporation. They manage common property, enforce by-laws, set budgets, and make key decisions for the whole building.
Lot Owners
Lot owners hold ownership of their individual units and contribute to building upkeep through levies. They must also follow the scheme’s by-laws.
Strata Committee
This is a smaller group of owners elected to handle day-to-day decisions, such as repairs, quotes, and maintenance approvals.
Strata Managing Agents
Licensed professionals who manage the administrative and financial side of things. They collect levies, organise meetings, maintain records, and ensure compliance with the Act.
Building Managers
Also called caretakers or facilities managers. They take care of cleaning, maintenance, and general building upkeep.
Tenants
Tenants aren’t directly involved in management, but they must follow the building’s by-laws. In larger buildings where at least half the lots are tenanted, tenants can elect a tenant representative to attend meetings.
Key Areas Covered by the Strata Schemes Management Act
The Act outlines everything from how meetings are run to how maintenance and disputes are handled.
1. Meetings and Decision-Making
It sets the rules for annual general meetings (AGMs) and strata committee meetings — how motions are raised, votes are counted, and minutes are recorded.
2. Financial Management
It explains how to prepare budgets, set levies, and manage funds responsibly. Record-keeping and financial reporting are also required.
3. Maintenance and Common Property
The Act defines who is responsible for repairs and maintenance.
-
The owners corporation looks after common property such as roofs, stairwells, and shared facilities.
-
Lot owners are responsible for the inside of their unit and must report damage that affects common property.
4. By-laws
By-laws are the rules everyone in the building must follow. The Act provides a model set of by-laws but allows each scheme to create their own for issues like pets, renovations, noise, or short-term letting.
5. Dispute Resolution
The Act encourages owners to resolve issues within the scheme first. If that fails, disputes can go to NSW Fair Trading for mediation or to NCAT for a formal ruling.
What Changed from the 1996 Act
The Strata Schemes Management Act 2015 replaced the 1996 law to make strata management more transparent and practical.
Some key improvements include:
-
More Transparency
-
Managing agents must disclose any conflicts of interest and seek approval for certain expenses.
-
Owners corporations must keep records and provide access to them when requested.
-
-
Better Governance
-
“Executive Committees” became Strata Committees, with clearer election and voting processes.
-
Meetings were simplified to make decision-making more efficient.
-
-
Simplified By-Laws
-
All schemes were required to review and re-register their by-laws.
-
Harsh or unreasonable by-laws are now restricted.
-
-
Tenant Involvement
-
In buildings with many tenants, a representative can now attend meetings.
-
-
Building Defect Management
-
New rules were added for mandatory inspections and fixing building defects in new developments.
-
Where to Learn More
If you’re part of a strata scheme, understanding this Act is essential. Here are some reliable places to learn more:
NSW Fair Trading
Visit www.fairtrading.nsw.gov.au for official information, downloadable guides, by-law templates, and fact sheets.
Legal or Strata Professionals
If you’re dealing with a dispute or complex matter, you can contact:
-
A licensed strata manager
-
A specialist strata lawyer
-
Or the NSW Civil and Administrative Tribunal (NCAT)
Strata Communities Australia (NSW)
Visit nsw.strata.community for training, updates, and resources for owners and managers.
Final Thoughts
The Strata Schemes Management Act 2015 keeps strata properties in NSW fair, compliant, and well-organised. Whether you’re an owner, committee member, or tenant, understanding your rights and responsibilities helps you make better decisions and avoid costly issues.
For reliable, professional strata management, reach out to Elevated Strata Communities. We help NSW property owners enjoy a smoother, more transparent strata experience.