NSW Strata Reforms 2025-2026: What's Actually Changed

NSW Fair Trading has rolled out four rounds of strata law changes between February 2025 and April 2026 — with more still to come. Here's the quick version: what's now in force, what's coming, and what it means for a small townhouse or villa scheme.

If you own in strata, you don't need to memorise every detail. But you should know roughly what's changed, because some of it affects how renovations get approved, how levies are recovered, how solar gets installed, and what your strata manager has to tell you.

The reforms have been deliberately rolled out in stages so schemes can adjust one bit at a time. Below is each stage, in plain English.

Stage 1 — 3 February 2025: Strata manager disclosure

Strata managers must now tell the owners corporation more about who they are connected to and how they get paid. This includes:

• Before they're appointed — disclosing connections with suppliers they routinely use and whether they've advised the developer in the past 2 years.
• During their appointment — providing real-time written notice when new connections arise, and disclosing connections at every AGM.
• Insurance quotes — must be clearly itemised, showing the base premium, GST, and any commission or broker fee separately.
• Strata managers are banned from collecting an insurance commission if the owners corporation arranged the policy independently.

In short: more transparency, fewer hidden commissions.

Stage 2 — 1 July 2025: The big package (12 changes)

This was the largest single tranche. The headline changes affecting townhouse schemes:

• Minor renovations are auto-approved if the committee doesn't respond within 3 months (where a by-law allows the committee to decide on them).
• By-laws banning sustainability infrastructure are banned (unless the building is heritage-listed). Sustainability must now appear as an AGM agenda item.
• Accessibility infrastructure for residents with a disability now only needs a majority vote, not a special resolution.
• Unfair contract terms are banned in standard form contracts with the owners corporation (strata management, building management, cleaning, gardening).
• Damages claims window against the owners corporation for failure to repair common property extended from 2 years to 6 years.
• Assistance animals — only one piece of evidence required, and the acceptable list has been broadened.
• Record inspection fees increased — $60 for the first hour, $30 per half-hour after (up from $31 / $16).
• Strata managers must report every 6 months on the work they do.
• Embedded network utility agreements expire at the first AGM or after 3 years.
• Developer penalties apply if the first AGM is held late or documents aren't given on time — up to $11,000 plus $220/day.
• Legal services need owners corporation approval at a meeting (except non-urgent matters under $3,000).
• New conduct duties for committee members and the chairperson — honesty, fairness, following the agenda.

Stage 3 — 27 October 2025: Hardship and oversight

• Fair Trading now has compliance powers over owners corporations that fail their duty to repair and maintain common property — enforceable undertakings, compliance notices, penalty notices.
• Levy notices must include a Financial Hardship Information Statement with the National Debt Helpline contact details.
• A new standard form is required for owners requesting a payment plan for overdue levies. Committees must respond in writing within 28 days, can't refuse all plans by blanket resolution, and can't charge fees.
• Building manager role clarified — gardeners, cleaners, plumbers etc. are not building managers; appointed building managers have new disclosure and best-interest duties.

Stage 4 — 1 April 2026: Planning, developers, and certificates

• 10-year capital works plans must use a new standard form when being revised or replaced.
• Developers must prepare an Initial Maintenance Schedule using a standard form, given to the owners corporation 14 days before the first AGM. Multi-storey schemes require an independent surveyor to certify it.
• Section 184 Certificates (used in sales) must now include details of embedded network utilities, Fair Trading compliance action, and recent or upcoming meetings.

What's still coming in 2026

• Mandatory training for strata committee members.
• Embedded network disclosure in off-the-plan contracts for new strata sales.

Fair Trading hasn't published a start date for these yet. We'll cover them in their own articles when commencement dates are confirmed.