New reforms to NSW strata legislation will take effect in stages over the next year, bringing practical changes to how strata schemes are managed, maintained, and governed. These updates aim to improve accountability, fairness, and transparency across strata communities, while giving owners and committees clearer processes to follow.
A staged rollout of new requirements
The reforms are being introduced progressively to allow owners corporations, developers, and managing agents time to adjust. The most significant changes start on 27 October 2025, followed by additional requirements on 1 April 2026.
Earlier reforms began in July 2025, setting the foundation with new standards for accessibility upgrades, contract fairness, and maintenance obligations.
Stronger focus on building management and transparency
New responsibilities for building managers will apply from October 2025. These include acting in the best interests of the owners corporation, ensuring prompt attention to safety and maintenance issues, and disclosing any financial benefits linked to contractor recommendations.
Building managers must also declare relationships with suppliers, developers, or service providers. These measures aim to promote clear decision-making and prevent conflicts of interest.
Owners corporations will also have expanded powers to review or end management agreements through the NSW Civil and Administrative Tribunal when obligations are not being met.
Financial hardship support and levy payment plans
Starting in October 2025, every strata levy notice will include a Financial Hardship Information Statement issued by NSW Fair Trading.
This statement ensures that all owners are informed about their rights and available support if they face financial difficulties. It includes:
- A standardised form for requesting a payment plan of up to 12 months.
- The option to seek interest waivers as part of a payment plan request.
- Contact details for free financial counselling through the National Debt Helpline (1800 007 007).
- Access to mediation for disputes about levy payments.
- Translated versions for non-English-speaking community members.
By making this information a mandatory inclusion with every notice, the system encourages early communication, consistency, and fairness across all schemes.
Fair and Consistent Rules for Payment Plans
Financial hardship can happen to anyone, and the new legislation makes the process for handling overdue levies fairer and more structured.
Owners can now formally request a payment plan for overdue contributions using the approved NSW Fair Trading form. The key rules include:
- The plan can extend for up to 12 months.
- Committees must consider each request individually and respond in writing within 28 days.
- No administrative fees can be charged for making or maintaining a payment plan.
- A refusal must be based on clear financial reasons, such as insufficient funds for essential repairs or day-to-day expenses.
While owners are following an approved payment plan, recovery action cannot proceed. If a plan is refused, the owner can request mediation and, if unresolved, apply to NCAT.
These rules ensure owners are treated fairly and committees make transparent, evidence-based decisions.
Standardised documentation for new schemes
Starting 1 April 2026, new developments will be required to use standard forms for the Initial Maintenance Schedule (IMS) and 10-year Capital Works Fund Plan. For multi-storey schemes, both the IMS and levy estimates will need certification by an independent surveyor before the first annual general meeting.
Developers will also need to include details of embedded utility networks in the strata information certificates provided to buyers, ensuring clearer disclosure during sales.
Continuing improvements
Later stages of reform are expected to include mandatory training for strata committee members and further measures supporting sustainability and energy efficiency.
These changes reflect ongoing recommendations from the 2021 statutory review of NSW strata laws and feedback from owners, residents, and industry professionals.