NSW Strata Law Update – Key Changes from 1 July 2025

From 1 July 2025, significant updates to the Strata Schemes Management Act 2015 have come into effect. These reforms bring new responsibilities for committees, building managers and owners corporations, and they also give NSW Fair Trading stronger enforcement powers.

Here’s a clear overview of the main changes to be aware of:

1. Strata committee member duties

Committee members must now meet defined legal standards — including acting honestly, fairly, and with due care. Importantly, mandatory training for all committee members will be introduced. If a member fails to complete the training, they will lose their position.

2. Chairperson responsibilities

The role of chairperson has been formally set out in law. Chairpersons must preside over meetings, maintain order, encourage participation, and ensure decisions are made constructively and fairly.

3. Building manager duties

Building managers now have legally enforceable obligations to act in the best interests of the owners corporation (unless this would breach other laws). These duties were previously only contractual.

4. Sustainability on the agenda

Every Annual General Meeting must now include an item on environmental sustainability. Committees must consider energy and water use in common areas and explore potential upgrades such as LED lighting, water-saving fixtures, or solar.

5. Legal services approval

Owners corporations must now approve legal costs with either a set maximum or unlimited cap by general meeting resolution. This change ensures full transparency around legal spending and prevents cost blowouts.

6. Minor renovation requests

Committees must process renovation requests more formally:

• If rejected, written reasons must be given within three months.

• No response within three months means the request is automatically approved.

• Records of approved works must be kept for 10 years.

7. Other Notable Changes

• Section 55 reports must now be issued twice yearly to secretaries.

• Debt recovery rules are stricter, with clearer processes for payment plans.

• Compensation claims against owners corporations can now be made up to six years after loss, not two.

• Accessibility upgrades have a lower approval threshold.

• Sustainability infrastructure cannot be blocked by restrictive by-laws.

• Maintenance approvals must state who is responsible for ongoing upkeep.

• Records inspection fees have increased (mainly impacting buyers).

• Capital works fund plans must follow a standardised format (details pending).

8. Fair Trading’s new enforcement powers

Perhaps the most significant change is that NSW Fair Trading will have expanded powers to:

• Investigate repair and maintenance breaches (even without a complaint).

• Demand records or answers from committee members.

• Issue compliance notices with strict deadlines.

• Impose heavy fines for non-compliance.

This means owners corporations must stay proactive with repairs to avoid regulatory intervention.

Final thoughts

These are the most substantial reforms to strata law in nearly a decade. While they bring added responsibility, they also provide clarity and stronger protections for owners.

At Centric Strata, we’ll be guiding our clients through these updates to ensure committees and owners corporations remain compliant, confident, and well-supported.