NSW strata laws are changing from 1 July Significant changes are coming to strata and community land laws in NSW from 1 July 2025. These reforms are designed to make …
The next round of changes to NSW strata and community or association land laws will take effect from 27 October 2025. These updates continue the government’s efforts to make strata living fairer, safer, and more transparent for everyone.
Whether you’re an owner, committee member, or resident in a strata and community or association scheme, here’s what you need to know and do.
The roles and responsibilities of building and facilities managers have been more clearly defined.
Under the law, people acting voluntarily, casually, or as committee members, are not considered building managers. This means if someone performs repair or maintenance tasks but hasn’t been formally appointed under an agreement to manage or control the common property, they are not classified as a building manager.
Those formally appointed building managers now must expressly act in the best interests of the owners corporation and avoid breaching any duties prescribed by regulation. A building manager must promptly disclose if they are connected with suppliers, original owners (the developers), or have a direct or indirect financial interest in the scheme. They must also provide written notice to the scheme if they might receive a benefit that could affect the fees they charge under their agreement.
Importantly, the NSW Civil and Administrative Tribunal (NCAT) now has expanded powers to terminate or vary management agreements if a building or facilities manager is found to be operating in a way that is contrary to law, particularly when supplying services to owners corporations, individual owners, or occupiers.
If your scheme has a building manager, it is important you check in with them to help ensure they are aware of these changes and their new obligation. You can also ask your strata manager for assistance with communicating these updates to them.
Further reforms aim to support owners facing financial hardship and improve transparency in levy recovery. Some of the key charges are as follows:
All levy notices must include a hardship information statement with support contacts.
Owners can request a 12-month payment plan using a prescribed form. Once the form is received, the strata committees must respond within 28 days. They can only refuse requests for valid, legal reasons, such as material impacts on the scheme’s ability to maintain the common property. When a payment plan request form is received, your strata manager will provide the committee with a copy of the form and guidelines to help them consider the request. You can access our online form here.
Owners must be given at least 30 days’ notice before debt recovery starts and offered a payment plan. Further debt recovery action through formal legal proceedings or a third-party agent cannot commence if a valid payment plan is in place.
Levy payments received must be applied first to overdue levies, then interest, and lastly recovery costs, unless the owner has requested a different arrangement or through a tribunal order.
Owners corporations cannot recover or pass on administrative costs incurred for setting up and monitoring payment plans.
Committees are encouraged to access and share the updated ‘Payment plan for levies and fees’ online form with any owners experiencing financial difficulty in meeting levy obligations. Owners considering a payment arrangement may begin using the standard form before the official rollout on 27 October 2025.
To help ensure strata properties are properly maintained, NSW Fair Trading has expanded its powers to intervene when owners corporations fail to meet their legal obligations. These new regulatory tools include the ability to:
These changes are designed to support better resident outcomes and improve strata communities’ accountability. Committees should promptly address repair and maintenance issues on common property. The NSW Government’s Strata Building Health Check Tool can provide tips and insight to help owners corporations in fulfilling this duty.
We’ve updated internal processes and collateral to reflect the latest levy payment plan changes and debt recovery procedures. Our team is fully trained on the amendments and is ready to assist.
We are also offering additional training material to building managers to help them feel supported on these changes.
The NSW Government are planning more changes for April next year. They include the following:
All new or updated 10-year capital works fund plans must use a standardised format. This will support clearer, more consistent long-term financial planning for strata schemes.
Developers will be required to provide certified initial maintenance schedules and accurate levy estimates. Stricter penalties will apply for non-compliance, improving accountability and helping to protect owners.
From April 2026, Section 184 certificates must include details of embedded networks. Embedded networks are exclusive supply arrangements. They refer to contracts where a building agrees to source services like electricity or gas from a single provider. In these cases, individual owners may not be able to choose their own supplier, and the network operator sets pricing. Including these details in strata certificates helps buyers and owners understand what service limitations or costs may apply, improving transparency for prospective buyers and owners.
Further reforms are scheduled for later in 2026, with implementation dates to be confirmed.
All committee members will be required to complete training on their roles and legal responsibilities. Details of the training program are yet to be announced. In the meantime, you can explore our committee member training video series.
Developers will need to disclose embedded network arrangements in contracts for off-the-plan sales. This change aims to improve transparency for buyers and reduce future disputes.
Before renewing your agreement, take a moment to compare your options. Our quick and easy form can be completed in less than 30 seconds.
These reforms are about making strata living more responsive, inclusive, and future-ready. Taking a few steps now will help you stay compliant and make the most of your property.
This article is edited by Lauren Shaw Regional General Manager and Licensee-in-Charge on October 2025.
NSW strata laws are changing from 1 July Significant changes are coming to strata and community land laws in NSW from 1 July 2025. These reforms are designed to make …
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