NSW: Association committees will soon have more powers

What are the key changes affecting community associations?

The Statute Law (Miscellaneous Provisions) Bill 2026 introduces small but meaningful amendments to the Community Land Management Act 2021 (CLMA). The key changes are that association committees will soon have the ability to waive interest on overdue contributions and to provide written reasons to an owner on refusing a request to enter into a payment plan for overdue contributions.

Previously, it was limited to general meeting decisions, which was slower and more costly to convene. This amendment makes the process faster and more cost‑effective for community associations.

How does the amendment work?

The Bill amends section 90 of the CLMA in two ways:

1. Associations will soon be able to waive interest

The amendment removes the word “general” from section 90(3), clarifying that an association may determine either generally or in a particular case that a contribution bears no interest.

This means a community association will be able to:

• waive interest for all owners (general resolution), or
• waive interest for a specific owner or specific circumstances (case‑by‑case resolution).
2. Committees may be required to give written reasons for refusing requests for a payment plan

A new reference in section 90(7)(h) allows regulations to prescribe requirements for association committees to give written reasons when refusing an owner’s request for a payment plan.

Are there other changes worth noting?

The remainder of the Bill contains definition updates and minor technical corrections across various Acts, including the Strata Schemes Management Act 2015, Community Land Development Act 2021, Environmental Planning and Assessment Act 1979 and others.

***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.

Bannermans Lawyers
E: enquiries@bannermans.com.au
P: 02 9929 0226

This post appears in Strata News #794.

This article has been republished with permission from the author and first appeared on the Bannermans Lawyers website.