NSW: Strata & Community Title Update 2025 – Part 3

This article is Part of a series by Allison Benson from Kerin Benson Lawyers detailing NSW strata law changes regarding accessibility infrastructure.

This is part three of a six part series on the legislative changes to our strata and community title schemes. This part deals with the changes to committees, particularly, the expanded duties of committees.

Catch up on the previous editions here:

Part 1: commissions and disclosures

Part 2: Accessibility Infrastructure

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These changes will be brought about by the Strata Schemes Legislation Amendment Act 2025 when it takes effect. Some minor changes have taken effect but the changes discussed below have not yet done so. It is expected that the changes will come into effect from mid 2025.

A committee member’s current duty to act for the benefit, so far as practicable, of their scheme with due care and diligence under Section 37, Strata Schemes Management Act 2015 SSMA is significantly expanded. In addition to acting with due care and diligence, committee members will also need to act with “honesty and fairness”, so as to comply with the Act and regulations and only use or disclose information obtained as a committee member (including information about a lot owner) as required to carry out their function or as authorised by law. A further new duty is that committee members must not behave in a way that “unreasonably affects a person’s lawful use or enjoyment” of a lot or the common property.

These new duties are combined with a requirement to complete mandatory training. The nature, method and extent of that training is not known. Time limits will apply to complete the mandatory training. These new duties impose onerous obligations on volunteers comprising the committee.

Clarifications have been made to the role of the chair at meetings including to encourage discussion by attendees at committee and general meetings: s42 SSMA.

It will also be easier for a scheme to vacate the office of chair, secretary and treasurer with only an ordinary resolution required at general meeting: s49(1)(d) SSMA.

Although references are made throughout to changes to the SSMA, these changes also affect the Community Land Management Act 2021 (NSW) (“CLMA”).

Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990

This is general information and should not be considered to be legal advice. You should obtain legal advice specific to your individual situation.

This post appears in Strata News #739.

This article has been republished with permission from the author and first appeared on the Thoughts from a Strata Lawyer… website.

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