Pending reforms to strata management legislation, including the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025, are likely to commence later this year with a number of relevant changes. In particular:
The reforms include provisions:
- Imposing content requirements on strata management statements, including procedures for review of allocation of shared expenses.
- Permitting further requirements to be imposed by regulation, e.g. matters to be taken into account in the course of the review.
- Requiring that an allocation be reassessed if a review determines it to be unfair.
- Requiring implementation of a recommended reallocation, unless the BMC otherwise decides by unanimous resolution.
- Permitting the Supreme Court to direct amendment of an SMS to give effect to a recommended reallocation. This may make it practical to pursue an amendment effecting a reallocation of shared expenses, notwithstanding lack of agreement by one or more BMC members, particularly if a review has been undertaken and has recommended a reallocation of shared expenses. In contrast with the position in previous cases such as The Owners Corporation Strata Plan 70672 v The Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2011] NSWSC 973, where attempts to reallocate shared expenses were frustrated by some BMC members disagreeing to effect a reallocation, the new position will apparently be that a recommended reallocation must be implemented unless all BMC members disagree.
- Simplifying Registrar General requirements related to amendments effecting a recommended reallocation. This operates as follows:
- Section 104 of the Strata Schemes Development Act 2021 currently makes registration of an SMS amendment conditional on the amendment being signed by various parties, including:
- The owners corporation of each strata scheme for part of the building, with evidence of approval by special resolution of the owners corporation.
- Each person with an interest in the building not included in a part strata parcel.
- If a leasehold scheme, each person with a leasehold interest in the building not included in a part strata parcel.
- Registered mortgagees, chargees or covenant chargees of the interest referred to in the previous two bullet points.
- Section 104(3) currently provides that the Registrar General may in a particular case can waive a requirement for a signature without giving notice to any person.
- Sections 104(4) & (5) are to be added, providing that, without prejudice to Section 104(3):
- the Registrar General may waive the requirement of a signature and accompanying evidence if satisfied that the amendment is required to give effect to a change to the allocation of the costs of shared expenses as recommended by a reassessment under Section 105I.
- the Registrar General may request evidence that the situation is as outlined in the previous bullet point.
This post appears in Strata News #809.
David Bannerman Bannermans Lawyers E: enquiries@bannermans.com.au P: 02 9929 0226
This article has been republished with permission from the author and first appeared on the Bannermans Lawyers website.