From 1 July 2025, a series of important changes to NSW strata and community land laws will come into effect. These reforms are the first in a staged rollout that will continue into late 2025, giving schemes the opportunity to focus on the most immediate updates before preparing for the next phase.
The reforms apply to all strata and community land schemes across the state. They aim to make it easier for residents to make accessibility upgrades, gain approval for minor renovations, and provide evidence for assistance animals. The changes also introduce new committee responsibilities, promote sustainability, protect owners from unfair contract terms, and improve transparency and professionalism in strata management.
A summary of the changes
1. Minor Renovation Requests: Automatic Approval if No Response
Strata committees will now have three months to respond to a minor renovation request from an owner. If they don’t respond in writing within that time, and the scheme has a by-law allowing the committee to approve such works, the request is automatically approved. All approved minor renovations must be recorded and retained for 10 years.
2. Sustainability: New AGM and Budget Requirements
Schemes will now be required to consider sustainability at every Annual General Meeting. This includes discussing energy and water use and considering related infrastructure such as solar panels, smart meters, or sustainable building materials as part of capital works planning. By-laws that prohibit sustainability upgrades on the basis of appearance alone will no longer be valid (except in heritage-listed buildings).
3. Unfair Contract Terms: Greater Protection for Owners
New consumer protection laws will prevent strata management and supplier contracts from including unfair terms, giving owners corporations stronger legal safeguards.
Key examples of what’s no longer allowed include:
- Passing on an agent’s insurance costs or liability to the owners corporation—particularly where the policy is required to cover the agent’s own professional services. This ensures the owners corporation is not made to pay for the agent’s mistakes.
- Limiting a contractor’s responsibility for the service they provide, such as cleaning or gardening, through restrictive clauses that shift risk or reduce accountability.
These reforms apply to all contracts entered into, renewed, or varied on or after 1 July 2025. They aim to ensure that managing agents and service providers are held to fair and transparent standards, improving protections for owners and committees across NSW.
4. Accessibility Upgrades: Easier to Approve
If an owner proposes upgrades to improve access for people with disabilities—like ramps or lifts, these can now be approved by a simple majority vote (instead of a special resolution). This makes it quicker and easier to create more inclusive buildings.
5. New Responsibilities for Committees and Chairpersons
Strata committee members will be required to act honestly and fairly, comply with the law and use information appropriately and avoid unreasonable interference with others’ use of property. Chairpersons must run meetings in an orderly, open, and fair manner, encouraging constructive discussion on agenda items.
6. Repairs and Maintenance: Stronger Compliance Obligations
Owners corporations can no longer delay essential repairs due to legal disputes if the damage impacts safety or access. Other key changes include:
- Owners now have six years (up from two) to lodge a claim for failure to maintain common property
- Special resolutions to change common property must state who is responsible for future maintenance
- Long-term maintenance plans must reference the initial schedule provided by the developer
7. Assistance Animals: Clearer Evidence Requirements
Owners and tenants now only need to provide one form of evidence to support a request to keep an assistance animal. Acceptable documents include permits, ID cards, council registrations, or letters from registered health practitioners.
8. Records Access: Fee Increases and Secure Digital Delivery
From 1 July, inspection fees for non-owners will increase to:
- $60 for the first hour
- $30 for each additional half hour
- Amounts are inclusive of GS
All electronic access to records must now be provided through secure platforms to ensure confidentiality and accountability.
9. Strata Manager Reporting: New 6-Monthly Reports
Strata managing agents will be required to submit reports to the owners corporations and associations every six months. These reports must outline the work carried out under their contract, such as coordinating repairs, chairing meetings, or managing finances. Contracts must also not include clauses that make the owners corporation liable for the manager’s insurance or limit their liability unfairly.
10. Embedded Networks and Utility Contracts
For utility agreements entered into after 1 July 2025, any embedded network electricity contract must expire by the first AGM (if signed beforehand) or within three years (if signed later). This rule now extends to other utility contracts involving water, gas, EV charging, stormwater systems, and more. Contracts must also now clearly disclose embedded network details in sales documentation and section 14 and section 174 certificates
11. Increased Accountability for Developers
Developers must hold the first AGM within two months of the end of the initial period and provide all required documents at least 14 days before the meeting. Failing to do so may result in penalties of up to $11,000, plus $220 for each day the breach continues.
What’s Coming Later in 2025?
Additional changes expected later this year include mandatory training for all strata committee members, further clarity around developer obligations, and enhancements to governance and compliance frameworks. More details will be provided as these reforms are finalised.
