From 1 April 2026, significant changes to New South Wales strata law, as outlined in the Strata Schemes Legislation Amendment Act 2025 (NSW), will take effect.
This will introduce new requirements and obligations for developers, particularly regarding the preparation, review, and disclosure of Initial Maintenance Schedules (IMS) and initial levy estimates.
These changes form part of a suite of staged reforms introduced to enhance transparency, long-term planning, and accountability in new strata developments. If you’re a developer, builder, or part of an owners’ corporation preparing for a first annual general meeting (AGM), now is the time to understand what’s changing and how to prepare.
From 1 April 2026, developers will be required to use a mandatory standardised form when preparing the IMS for new schemes in New South Wales.
Historically, IMS’s have varied significantly between developments. Inconsistent documentation has often led to gaps in maintenance planning, unexpected costs, and even premature deterioration of common property assets. By introducing a standardised format for the IMS, the NSW Government aims to help owners corporations with better long-term maintenance planning, reduce unforeseen expenditure during a building’s early life cycle, and minimise disputes after handover.
The official new standardised IMS form is already available for download from the NSW Government website. Developers are encouraged to start using it now for schemes with AGMs scheduled on or after 1 April 2026.
The IMS is a formal document provided at the first AGM of a new strata scheme. This document, prepared by the developer, outlines the inspection requirements and estimated costs for common property maintenance.
It serves as a key reference point for owners corporations when preparing 10-year capital works fund forecasts for future repairs and maintenance. These forecasts are now also required to be prepared in a prescribed format, increasing the importance of having a clear, consistent, and accurate IMS from the outset. This is especially important for multi-storey strata schemes, where complex systems, such as lifts, fire safety equipment, and HVAC units, require precise planning.
Section 115 of the Strata Schemes Management Act 2015 requires the original owner (developer) of a strata scheme to prepare an IMS for the common property.
The schedule must comply with the relevant regulatory requirements and is intended to provide the owners corporation with clear information about maintenance obligations and associated costs from the outset.
When completing the IMS form, developers need to provide the following details for each prescribed common property item:
Additional independent certification requirements will apply to developers for multi-storey schemes from 1 April 2025. This includes apartments and buildings with more than two storeys above ground level, where lots are stacked vertically.
This new rule is part of the Strata Schemes Legislation Amendment Act 2025 (NSW) and is designed to strengthen building quality assurance and protect owners from costly defects that have plagued high-rise developments in recent years.
Currently, developers must prepare and provide the owners corporation with an IMS and initial levy estimates. Under the new law, these documents must also be reviewed and certified by an independent surveyor before the first AGM for multi-storey schemes. This extra step adds a layer of accountability for developers to maintain transparent and accurate financial planning and maintenance obligations from the start.
Independent certification acts as a quality checkpoint before the first AGM. This is completed by a surveyor who will review the IMS and levy the estimated amount prepared by the developer, and confirm that the:
The certifier will then issue a formal report, which must be provided to the owners corporation before the first AGM. This report will become part of the building’s official records.
This certification must be carried out by an independent, qualified, third-party surveyor who is not connected to the developer or original owner, and be either:
For multi-storey schemes, developers must provide the owners corporation with the Certified documents and evidence of the surveyor’s independence at least 14 days before the first AGM. This may be provided as a written statement or supporting documentation, confirming how the below requirements have been met:
These reforms also carry significant penalties for non-compliance, helping encourage developers to deliver quality and comply with regulations. This underscores the NSW Government’s intent to help lift standards in the delivery of new strata developments and protect incoming owners.
Developers who fail to meet these new requirements and first AGM obligations can incur fines of up to $11,000, plus $220 per day, as well as:
With the new strata law changes commencing 1 April 2026, these new requirements will fundamentally change how developers and owners corporations manage handovers, risk, and responsibilities. Both developers and owners corporations should familiarise themselves with the new requirements to verify compliance, minimise risk, and facilitate smooth handovers.
The mandatory NSW IMS form is already available and should be used as soon as possible for schemes with AGMs on or after 1 April 2026. Where possible, developers should plan early and integrate this into the early stages of the project to better understand what is required, identify documentation gaps, and avoid rework closer to handover.
For multi-storey schemes, independent surveyor certification of the IMS and levy estimates is now essential. Allow sufficient time for review, revisions, and formal reporting, and ensure the surveyor's independence is clearly documented. Where helpful, PICA Group’s Developer Advisory team can assist by coordinating suitably qualified professionals and supporting the certification process. This can help streamline timelines and support developers in meeting the new documentation and first AGM requirements.
Many obligations are tied to the first AGM. Map completion dates against AGM timing and work backwards to ensure certified documents are provided at least 14 days before the meeting.
Owners corporations should familiarise themselves with the standardised IMS and, where applicable, the independent certification report. These documents are vital for budgeting and long-term maintenance planning.
Confirm whether the IMS and levy estimates will need to be reviewed and certified by an independent surveyor who meets the qualifications outlined by the NSW Government.
Owners corporations should discuss responsibilities and timelines with the developer well in advance of the first AGM.
In addition to the new requirements for initial maintenance schedules and levy estimates, developers should also prepare for the disclosure of embedded networks.
From 2026, all off-the-plan contracts must clearly state if the building includes exclusive supply networks, such as embedded electricity or gas systems. This helps buyers understand who controls essential services and any cost implications before signing.
At PICA Group, our developer services go beyond legislative compliance. Each quarter, we support new communities through practical, on‑the‑ground engagement, including:
These touchpoints help reduce early confusion, improve owner confidence, and support smoother transitions from development to community living.
With more than 185,000 lots under management, PICA Group’s specialist property developer services team provide practical guidance based on best practice expertise.
IMS’s and levy estimates set the financial foundation for a new strata scheme. When these documents are poorly prepared, owners corporations can face unexpected repair costs, underfunded capital works funds, and financial strain early in the building’s life.
These NSW strata law changes taking effect in April 2026 represent a meaningful shift toward better planning, fairer levies, and stronger protections for owners corporations. While they introduce new responsibilities for developers, they also offer greater confidence and clarity for owners from day one by facilitating:
Certified maintenance schedules and levy estimates give owners clarity and reduce financial surprises.
Accurate levy estimates help owners corporations budget effectively for the year ahead.
Standardised documentation minimises misunderstandings between developers and owners.
Independent certification ensures maintenance plans are practical and support long-term building health.
This article is edited by Lauren Shaw Regional General Manager and Licensee-in-Charge on February 2026.
