NSW: Phase two strata laws on the horizon: Proposed changes

This article is about the new strata laws set to commence in 2025 in NSW.

A Second Phase of Reform

New South Wales is gearing up for significant changes in strata law, as the second phase of recommendations from the statutory review is set to be implemented. The proposed changes, introduced to the NSW Parliament on 20 November 2024, aim to address a range of issues affecting strata communities across the state.

Key Proposed Changes

While specific details may vary, the proposed changes are expected to cover a broad spectrum of areas, including:

Accountability for Developers

Enhanced Developer Responsibility: Developers will be held more accountable for the accuracy of initial maintenance schedules and levy estimates provided for new strata developments.

Improved Strata Management

• Stricter Oversight: Increased oversight of strata management agreements to ensure transparency and fairness.
• Building Manager Duty: Introduction of a statutory duty on building managers to uphold specific obligations.

Protecting Owners’ Rights

• Fair Contract Terms: Safeguarding owners corporations from unfair contract terms in standard form contracts.
• Stronger Committee Governance: Imposing new duties on strata committee members to improve governance and decision-making.
• Common Property Maintenance: Reinforcing owners corporations’ obligations to maintain and repair common property.
• Enforcement Powers: Granting NSW Fair Trading additional powers to enforce common property maintenance obligations.

Sustainability and Accessibility

• Sustainability Focus: Encouraging sustainable practices by requiring owners corporations to consider sustainability in annual general meetings and levy estimates.
• Embedded Network Protections: Enhancing protections for owners and owners corporations regarding embedded networks.
• Accessibility Improvements: Facilitating the installation of support infrastructure for owners with additional needs.

Other Enhancements

• Clarity and Efficiency: Implementing various changes to streamline strata law processes and improve clarity.
• Financial Hardship Support: Providing assistance to owners facing financial difficulties.

Impact on Strata Owners and Committees

These proposed changes are likely to have a significant impact on both strata owners and committees. Strata owners can expect increased protection and greater involvement in decision-making processes. Strata committees, on the other hand, may face additional responsibilities and regulatory requirements.

What’s Next?

As the proposed changes progress through the legislative process, it’s crucial for strata managers, strata owners and committees to stay informed. By understanding the implications of these reforms, you can better prepare for the future and ensure the smooth functioning of your strata communities.

Adrian Mueller
JS Mueller & Co Lawyers
E: [email protected]
P: 02 9562 1266

This post appears in Strata News #723.

If you have a question or something to add to the article, please leave a comment below.

Disclaimer: The information contained in this article is provided for your personal information only. It is not meant to be legal or professional advice nor should it be used as a substitute for such advice. You should seek legal advice for your specific circumstances before relying on any information herein. Contact JS Mueller & Co for any required legal assistance.

JS Mueller & Co Lawyers has been servicing the strata industry across metropolitan and regional NSW for over 40 years. We are a specialist firm of strata lawyers with in depth and unmatched experience in, and comprehensive knowledge of strata law and levy collection.

Read next:

• NSW: Tough new strata laws pass Parliament
• NAT: Many strata managers who handle apartments are conflicted: here’s how

This article has been republished with permission from the author and first appeared on the JS Mueller & Co Lawyers website.

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