NSW Strata & Community Title Laws 2025 & 2026
What Owners and Residents Need to Know
If you own, live in, or manage a strata or community-title property in NSW, whether it’s an apartment, townhouse, villa, or community-land scheme it’s worth understanding the law change that have happened and what is in store. These reforms are designed to make strata living fairer, safer, and more transparent for everyone involved.
Quite simply it has been huge. Based on the feedback from our subscribers we have compiled all the details here.
Key Legislation
The 2025 changes come from the Strata Schemes Legislation Amendment Act 2025 which updates the Strata Schemes Management Act 2015 and related laws. For community-title schemes, updates also affect the Community Land Management Act 2021 and associated regulations. These changes follow a statutory review of related laws in 2021 and are being introduced in stages to give owners corporations, community associations, committees, owners and managers time to adapt.
February 2025
Some reforms began early, focusing on improving transparency and disclosure by strata managers:
Strata managing agents must disclose more information upfront, including relationships with suppliers, commissions, or prior advice to developers.
Insurance disclosure is clearer, with agents required to provide itemised quotations showing actual costs rather than vague totals.
Extended claim period under section 106 of the Strata Schemes Management Act 2015. Lot owners now have up to six years (previously 2 years) to bring a claim against an owners corporation for failing to maintain or repair common property, measured from the date they first became aware of the loss. This gives owners more time to pursue legitimate maintenance or repair claims.
These February reforms laid the foundation for the broader July and October changes later.
July 2025
Several important reforms took effect on 1 July 2025, focusing on sustainability, approvals, and governance.
Sustainability measures: By-laws that unreasonably restrict sustainability upgrades like solar panels or EV chargers on appearance grounds are generally invalid. Exceptions apply for heritage-listed or conservation buildings. Schemes are also encouraged to consider sustainability at their Annual General Meetings and capital works planning.
Minor renovations: If by-laws allow the committee to approve minor works, a lack of response within a set period (e.g., 3 months) may result in automatic approval. Committees must keep a record of such approvals for 10 years.
Accessibility upgrades: Changes to common property to improve access for people with a disability require only a majority vote.
Assistance Animals: Specifically, if a by‑law asks for evidence that an animal is an assistance animal, the resident only needs to produce one item of evidence, from an expanded list. Acceptable evidence may include: an official assistance‑animal ID/pass/permit, evidence of completion of a recognised training program, a government‑issued access card or permit, or a written statement from a registered health practitioner.
Committee duties: Committee members must act honestly, fairly, and in accordance with the law. Chairpersons are expected to run meetings in an orderly way, ensuring open discussion and fair decision-making.
Strata managing agents: Agents must provide six-monthly reports on key delegated activities (e.g repairs, levies, certificates, meetings and compliance matters). Certain one-sided contract terms such as broad indemnities or limits on liability are now restricted also.
Embedded networks: New utility contracts, such as for electricity or water, are generally limited in duration, often ending at the next AGM or after three years, to give owners more flexibility.
Other update: Higher fees for non-owner inspections of records (around $60 for the first hour).
October 2025
On 27 October 2025, additional reforms came into effect, covering finances, maintenance, and enforcement.
Financial hardship protections: Levy notices must now include a standard Financial Hardship Information Statement. Owners can request a payment plan (commonly up to 12 months). Committees must respond promptly (usually within 28 days) and the owners Corporation cannot charge a fee. Unreasonable refusals can be taken to the NSW Civil and Administrative Tribunal.
Fair Trading powers: NSW Fair Trading now has stronger powers to investigate maintenance failures, issue notices, and seek tribunal orders for repairs or to replace a building manager.
Building managers: The reforms clarify who counts as a building manager (excluding contractors doing ad-hoc work). Building managers must act in the best interests of the owners corporation, disclose benefits or conflicts, and report maintenance or safety issues promptly.
Changes 2026
More reforms are scheduled from 1 April 2026 mainly for new or recently established schemes:
Standard forms for 10-year capital works plans.
Developers must provide an initial maintenance schedule (IMS), with independent surveyor certification for multi-storey schemes, before the first AGM.
Updated strata information certificates will disclose any embedded utility networks.
Later in 2026, mandatory committee training and off-the-plan contract disclosures may be introduced.
What This Means for Owners, Committees, and Managers
These reforms are designed to:
Strengthen governance and accountability.
Protect owners financially and legally.
Improve maintenance and safety of common property.
Provide clearer information for prospective buyers.
Encourage sustainability and accessibility upgrades.
Action Steps
For those involved in strata schemes:
Review capital works plans to prepare for new standard forms.
Developers: Arrange surveyor certification for IMS and levies.
Update agreements for building managers and strata agents to reflect new duties and disclosure requirements.
Prepare levy notices with the Financial Hardship Information Statement.
Check utility and embedded-network contracts for compliance with new limits.
Final Thoughts
The 2025–2026 reforms modernise NSW strata and community title laws, making them fairer, safer, and more transparent. It remains to be seen if these reforms will be adopted by other states and territories.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction
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