NSW Strata Law Changes 2025-2026: What Every Apartment Owner Needs to Know

Your strata committee has been sitting on your renovation request for four months. Your neighbour is three levies behind and nobody knows what happens next. The building manager recommended an insurance policy that costs twice what it should. And the developer who built your complex set the initial levies so low that the sinking fund was underwater before the first AGM.

Sound familiar? The NSW Government thought so too. That's why they've passed the most comprehensive overhaul of strata law since the Strata Schemes Management Act 2015 was introduced - and it's rolling out across five phases from early 2025 through late 2026.

Over 1.2 million NSW residents live in strata schemes. If you're one of them, these reforms affect you directly. Some changes are already in force. Others are months away. Here's what's happened, what's coming, and what you should be doing about it.

If you're new to strata, start with: What Are Body Corporate Fees? for the fundamentals, and Understanding Your Body Corporate Statement to make sense of what you're actually paying for.

The Big Picture: Four Reform Bills, Five Phases

This isn't one piece of legislation - it's four separate bills rolling out in stages:

1. Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2023 - sustainability provisions
2. Strata Managing Agents Legislation Amendment Act 2024 - strata manager accountability (commenced 3 February 2025)
3. Strata Schemes Legislation Amendment Act 2025 - the major reform package (rolling out February 2025 through April 2026)
4. Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 - the final package (commencement dates still being set for later 2026)

Together, they implement over 65 recommendations from the 2021 statutory review of strata law. The changes range from small administrative tweaks to fundamental shifts in how committees operate, how developers are held accountable, and how disputes get resolved.

Let's go through each phase.

Phase 1: February–March 2025 (Already in Force)

Removing Bad Committee Officers Just Got Easier

Previously, removing an underperforming chairperson, secretary, or treasurer required a special resolution - 75% of votes. In practice, that was nearly impossible. Most schemes struggled to get enough people to vote at all, let alone hit a 75% threshold.

Now it takes an ordinary resolution. A simple majority at a general meeting is enough to vacate a committee officer. If your chairperson has been ignoring maintenance issues or your treasurer hasn't produced accounts in two years, the barrier to change is dramatically lower.

Strata Managers Under the Spotlight

Under the separate Strata Managing Agents Legislation Amendment Act 2024 (commenced 3 February 2025), strata managers now face significantly tougher disclosure requirements:

Before being appointed, they must disclose:

• Any connections with the original owner (developer)
• Any financial interest in the strata scheme
• Connections with suppliers who routinely provide goods/services for other schemes they manage
• Any advice given to the developer in the past two years

For insurance, strata managers must now obtain at least three insurance quotations including a breakdown of all charges, commissions, and broker fees. No more steering owners toward the policy that pays the highest kickback.

The penalty for failing to provide timely, complete information? Up to $110,000.

Related: Is Your Strata Manager Taking Secret Commissions? digs into how hidden kickbacks inflate your fees - and what the industry is doing about it.

Phase 2: 1 July 2025 (Already in Force)

This phase brought the most far-reaching changes. If you haven't noticed them yet, you will.

The 3-Month Deemed Renovation Approval

This one addresses a problem every apartment owner knows: you submit a renovation request and it disappears into a black hole. Weeks pass. Months. Nobody says yes, nobody says no. You're stuck in limbo while tradies move on to other jobs.

Now, if a strata committee fails to provide a written refusal with reasons within 3 months of receiving a minor renovation request, the request is automatically approved. Deemed consent. Done.

The conditions: your scheme needs a by-law in place authorising the committee to approve such works. And all approved renovations - including deemed approvals - must be recorded and kept for at least 10 years.

Related: Apartment Renovations: What Needs Body Corporate Approval covers the full framework for what counts as cosmetic, minor, and major works.

Six Years to Claim for Maintenance Failures

Previously, owners had just 2 years to claim damages against their owners corporation for failure to maintain common property under Section 106. That window has been extended to 6 years.

This matters because maintenance failures - leaking roofs, crumbling balconies, failed waterproofing - often take years to become visible. By the time damage shows up in your apartment, the old two-year clock may have already expired. The new six-year window gives owners a realistic timeframe to discover problems and take action.

And there's a related change: owners corporations cannot delay urgent repairs to common property while pursuing legal claims against responsible parties. No more "we'll fix the leak after we sue the developer" excuses.

Related: Building Defects & Your Body Corporate: The 6-Year Window covers warranty timeframes across all states.

Sustainability Becomes Mandatory Business

Three changes here that committees can't ignore:

By-laws banning solar panels and EV chargers based on appearance are now prohibited (except for heritage-listed buildings). If your scheme has a by-law that prevents sustainability installations because they "look ugly," it's no longer enforceable.

Every AGM must now include sustainability as a standing agenda item. The committee must review common property energy and water consumption and expenditure. This isn't optional.

Capital works fund plans must include sustainability infrastructure costs - solar panels, electricity meters, EV charging stations, and sustainable building materials. These items are no longer "nice to have" extras; they're part of your long-term financial planning.

Accessibility Infrastructure: Lower Voting Threshold

Installing accessibility features for people with disabilities - ramps, lifts, handrails, grab rails - now requires only a majority vote instead of a 75% special resolution. A significant reduction in the barrier for owners who need these modifications.

New Statutory Duties for Committee Members

Committee members now have formal duties that the Act describes as "similar to those of company directors." They must:

• Act honestly and fairly
• Exercise due care and diligence
• Act in the best interests of the owners corporation
• Avoid unreasonably affecting anyone's lawful use of their lot
• Only use information obtained about owners for legitimate committee purposes

Chairpersons have additional duties: follow agendas, maintain meeting order, conduct meetings in an "orderly, open, and fair manner," and encourage fair discussion.

These aren't just aspirational guidelines. They're statutory obligations.

Related: Committee Member Liability: Are You Personally at Risk? covers what personal exposure committee members actually face.

Strata Manager Six-Monthly Reporting

Strata managing agents must now submit six-monthly activity reports detailing all work performed on behalf of the owners corporation - repair coordination, meeting administration, financial management, everything. If you've ever wondered what your strata manager actually does for their fee, you'll now have a documented answer twice a year.

Developer Utility Contracts Capped at 3 Years

Developers could previously lock buildings into utility supply contracts - embedded electricity, internet, gas - for up to 10 years. That's now capped at 3 years. Pre-existing contracts entered before 1 July 2025 must expire by the first AGM or the three-year anniversary, whichever comes first.

This extends to water, gas, EV charging, and stormwater systems.

Unfair Contract Terms Protection

Standard form contracts for goods and services to owners corporations - strata management, building management, cleaning, gardening - cannot contain unfair terms. Clauses requiring owners corporations to cover a manager's indemnity liabilities? Banned. Clauses limiting a manager's liability? Banned unless covered by an approved professional standards scheme.

This applies to contracts entered into, renewed, or varied on or after 1 July 2025.

Phase 3: 27 October 2025 (Already in Force)

NSW Fair Trading Gets Real Enforcement Powers

This is arguably the most significant structural change in the entire reform package. For the first time, NSW Fair Trading has genuine investigative and enforcement authority over strata schemes that fail to maintain common property.

Previously, if your committee was ignoring a crumbling facade or a flooded basement, individual owners had to take the matter to NCAT themselves - expensive, time-consuming, and often ineffective.

Now Fair Trading can:

• Demand documents and answers from owners corporations
• Enter buildings and record evidence
• Issue enforceable undertakings (formal voluntary commitments)
• Issue compliance notices (requiring specific actions)
• Issue penalty infringement notices (fines)
• Apply to NCAT to have a compulsory strata manager appointed
• Commence prosecution proceedings in serious cases
• Publish compliance actions, so prospective buyers can identify buildings with maintenance problems before purchasing

That last point is worth highlighting. If your building has been subject to enforcement action, it could become publicly visible - affecting property values and buyer confidence.

Levy Payment Plans: New Rights for Owners

If you're struggling to pay your levies, you now have formal rights:

Every levy notice must include (or be accompanied by) a Financial Hardship Information Statement with National Debt Helpline contact details.

Payment plan requests use a prescribed form, and owners corporations:

• Must consider every request (no blanket refusal policies)
• Must respond within 28 days with written reasoning if refused
• Cannot charge any fees for making or entering into a plan
• Cannot request information beyond the prescribed form

Plans run for up to 12 months, covering overdue levies only (not future contributions). Further plans can be agreed if needed.

Debt recovery protections have been strengthened too:

• Owners corporations must offer payment plan options before pursuing recovery
• 30 days' notice required before commencing recovery action (up from 21 days)
• Recovery is prohibited while the owner is complying with an active payment plan
• Payment allocation follows a set priority: overdue levies (oldest first), then interest, then recovery costs

If a payment plan request is refused, the owner can challenge it through mediation or at the Tribunal.

Related: What to Do If Your Body Corporate Fees Are Too High covers practical strategies for managing fee pressure.

Building Manager Reforms

The definition of "building manager" has been tightened. Service providers engaged solely for specific repair or maintenance work - your electrician, gardener, plumber - are not building managers. Only formally appointed individuals qualify.

Building managers now have statutory duties to:

• Act in the owners corporation's best interest
• Promptly highlight maintenance, repair, and safety issues
• Provide written benefit notices when recommending supplier contracts (including commission values)
• Disclose supplier relationships, developer connections, and financial interests

Owners corporations can apply to NCAT to modify or terminate building manager agreements where the manager acts unlawfully or breaches these duties.

Phase 4: 1 April 2026 (Now In Force)

10-Year Capital Works Fund Plans: New Standard Form

All new and reviewed 10-year capital works fund plans must use a new standard form now available on the NSW Strata Hub. This isn't a suggestion - it's a requirement.

The plan must cover:

• Building exteriors (repainting, roof, guttering)
• Common area interiors (hallway carpets, foyers)
• Building infrastructure (lifts, mechanical systems)
• Grounds and boundaries (fencing, driveways)
• Shared amenities (pools, common furniture)
• Sustainability infrastructure (solar, EV charging, smart meters)

Each item needs condition assessments and remaining lifespan estimates. The NSW Government has published a Capital Works Fund Planner digital tool to help create compliant plans.

Existing plans not yet due for review remain compliant. The standard form applies when your scheme is preparing a new plan or reviewing an existing one. Formal reviews must happen at least every 5 years.

Related: Body Corporate Special Levies: Everything You Need to Know explains what happens when the capital works fund falls short.

Developer Levy Estimates Must Be Independently Certified

This one is long overdue. Developers have a financial incentive to set initial levies as low as possible - low fees make apartments look cheaper to buyers. The result: new owners inherit an underfunded scheme and get hit with massive levy increases after the first AGM.

From 1 April 2026, for multi-storey buildings (more than two above-ground storeys) with their first AGM on or after this date:

• Developers must engage an independent surveyor to review and certify the initial maintenance schedule
• The surveyor must certify that initial levy estimates meet expected first-year expenditure
• Evidence of compliance must be provided to the owners corporation at least 14 days before the AGM
• The surveyor must be completely independent of the developer and hold either an Australian Institute of Quantity Surveyors (AIQS) Certified designation or a Royal Institution of Chartered Surveyors (RICS) Chartered designation

Penalties are substantial: up to 100 penalty units (approximately $11,000) for individuals and 500 penalty units (approximately $55,000) for corporations.

This is a massive shift. For the first time, developers can't just pick a number that looks attractive on a sales brochure.

Section 184 Certificates Must Disclose Embedded Networks

Strata information certificates (Section 184) and Section 174 certificates must now include details on embedded networks - locked-in electricity, gas, internet, or water suppliers - and the types of services provided.

Vendors must also warrant that no embedded networks exist unless properly disclosed. This means buyers will know before purchasing whether the building is locked into a single energy provider with potentially above-market rates.

Phase 5: Second Half 2026 (Dates Not Yet Confirmed)

The fourth and final reform bill - the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 - introduces several more changes. Commencement dates are still being determined.

Mandatory Committee Training

Every strata committee member will need to complete prescribed training or lose their position. This isn't a gentle recommendation - committee members who fail to complete training will automatically cease to be committee members. Before removal, regulators must issue formal notice specifying a compliance timeframe.

Completing training will become a prerequisite for nomination and re-election at AGMs.

The exact curriculum, duration, and delivery format are still being finalised. NSW Fair Trading has indicated it's exploring providing the training as a free service. The training is expected to cover committee members' roles, legal responsibilities, and proper execution of their duties.

Related: Body Corporate Committee Performance: How to Evaluate and Improve covers what good committee governance looks like.

EV Charging: Standalone Approval Process

A new standalone approval process for EV charging station installation on an owner's lot. Owners give the committee written notice of their intention to install. The committee cannot unreasonably object and must respond within 3 months - otherwise deemed consent applies.

This operates as a standalone provision, outside the cosmetic/minor/major works framework. The owner pays all installation costs and indemnifies the owners corporation.

Related: EV Charging in Body Corporates: Who Pays, Who Decides? covers the current landscape across all states.

Two-Lot Scheme Simplification

Over 30% of NSW strata schemes are two-lot arrangements - duplexes and similar. Under the reforms, these schemes will no longer need to form committees, hold formal meetings, or submit annual reports to NSW Fair Trading. A significant reduction in red tape for the simplest strata structures.

Enhanced NCAT Powers

• Strata schemes can no longer impose bonds or fees exceeding replacement costs (no more $500 charges for a $20 access fob)
• NCAT can order repayment of unreasonable bonds or fees
• NCAT can order that money payable by an owners corporation be paid from contributions of specific lots only, rather than spread across all owners - addressing situations where one owner's actions caused the cost

What You Should Do Right Now

These reforms aren't abstract policy. They change what you can do, what your committee must do, and what protections you have. Here's a practical action list:

If you're on a strata committee:

• Review your scheme's by-laws for any provisions that conflict with the new rules (sustainability bans, renovation approval processes, building manager agreements)
• Prepare for sustainability to be a standing AGM agenda item
• Start planning for the 10-year capital works fund standard form if your plan is due for review
• Watch for details on mandatory training requirements - get ahead of it

If you're struggling with levies:

• Know your rights: you can request a formal payment plan using the prescribed form
• Your owners corporation must consider the request and respond within 28 days
• They cannot pursue debt recovery while you're complying with an active plan

If you're buying an apartment in NSW:

• Check the Section 184 certificate for embedded network disclosures (from April 2026)
• For new buildings, ask whether the developer's levy estimates have been independently certified
• Look up whether the building has been subject to any Fair Trading compliance actions

If you're unhappy with your strata manager:

• Request their six-monthly activity reports
• Ask for evidence of three competitive insurance quotes
• Check whether they've disclosed all commission arrangements and supplier relationships

For any NSW apartment owner:

• Benchmark your fees against similar properties using our fee comparison tool - these reforms are designed to make the strata system fairer, but knowing where your fees sit compared to your neighbours is the first step toward ensuring you're getting fair value

The Timeline at a Glance

Frequently Asked Questions

Does the new 3-month deemed renovation approval apply to all renovation types?

No. Deemed consent only applies to minor renovation requests (cosmetic or low-impact works). Major structural changes and works requiring a special resolution still go through the full process regardless of how long the committee takes. Your scheme must also have a by-law in place that authorises the committee to approve those works. If no such by-law exists, deemed consent doesn't apply.

Can my owners corporation still refuse a levy payment plan?

Yes, but only with written reasons provided within 28 days. They cannot impose a blanket "no payment plans" policy. If refusal is unreasonable, you can challenge it through Fair Trading mediation or at NCAT. The standard for refusal is high; they need substantive grounds, not just inconvenience.

What does the new Fair Trading enforcement power actually mean for owners?

For the first time, you don't have to personally take your owners corporation to NCAT to force action on neglected maintenance. You can now report ongoing maintenance failures to NSW Fair Trading, which can investigate and issue compliance notices directly. Persistent failures can result in compulsory strata manager appointments. This is particularly useful where committee members are also the source of the problem.

My building has a utility contract longer than 3 years. Does it have to end now?

If the contract was entered before 1 July 2025, it must expire by the earlier of: the first AGM after the 3-year anniversary of the contract start date, or the 3-year anniversary itself. The scheme cannot renew or extend it beyond 3 years. Check your building's embedded electricity, internet, or gas contracts now, particularly if they were set up by the developer before handover.

When will mandatory committee training start?

The exact date hasn't been confirmed. The legislation (Phase 5) is still awaiting commencement dates as of mid-2026. NSW Fair Trading has indicated it intends to provide free training. Committee members should watch for announcements from their strata manager or the NSW Strata Hub. When training becomes mandatory, failure to complete it will automatically end your committee membership, with no grace period once it starts.

Do these changes apply to two-lot schemes?

Most changes apply to all strata schemes regardless of size. However, Phase 5 specifically simplifies rules for two-lot schemes, removing the requirement to form committees, hold formal meetings, and submit annual reports. These simplifications aren't in force yet. Until Phase 5 commences, two-lot schemes continue to operate under existing rules.

Can I use the new capital works fund standard form now?

The standard form is available on the NSW Strata Hub and has been required for all new and reviewed 10-year capital works fund plans since 1 April 2026. If your existing plan isn't due for review yet, you can continue using it. But if you're reviewing or creating a plan now, the standard form is mandatory. Download it from the NSW Strata Hub.

Related Reading

Understanding your fees:

• What Are Body Corporate Fees? Complete Guide
• Are My Body Corporate Fees Too High?
• Body Corporate Special Levies: Everything You Need to Know

Governance and management:

• Is Your Strata Manager Taking Secret Commissions?
• Body Corporate Committee Performance
• Committee Member Liability: Are You Personally at Risk?

Building issues:

• Building Defects & Your Body Corporate: The 6-Year Window
• Body Corporate Insurance Crisis: Why Premiums Doubled Since 2019

Compare body corporate fees across Australia at BodyCorporateFees.com.

This article is for informational purposes only and should not be considered legal advice. Strata legislation is complex and changes frequently. Consult a qualified strata lawyer for advice specific to your situation. Information is current as of February 2026.