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Home » Maintenance & Common Property » Common Property NSW » NSW: Vermiculite Ceilings in Older Strata Buildings: Asbestos Risks, Maintenance Responsibility and Next Steps

NSW: Vermiculite Ceilings in Older Strata Buildings: Asbestos Risks, Maintenance Responsibility and Next Steps

Published March 26, 2026 By Pierrette Khoury Leave a Comment Last Updated March 26, 2026

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This article discusses vermiculite ceiling asbestos strata issues, covering asbestos risks, maintenance responsibility, and the appropriate steps owners corporations should take.

Question: Our old building has vermiculite ceilings throughout. The ceiling seems to be failing and particles of dust are falling in units and common areas. What do we do?

I am on the committee of a NSW strata titled unit block. All units and common areas have vermiculite ceilings. They were in vogue when the block was built about 40 years ago.

Tenants in one unit have raised a safety concern with the vermiculite ceiling regarding the asbestos content. The ceiling seems to be failing and particles of dust are falling from the ceiling.

Is the maintenance of the vermiculite ceiling the responsibility of the lot owner or the owners corporation?

In 2015, we had an asbestos report but no specific testing of the vermiculite in the common areas was done. At the time it was low concern.

No testing has been done in individual units. As part of the report, are we required to have the individual units tested for asbestos?

Answer: In some cases the presence of asbestos may be deemed low risk and should not be tampered with, however, only a qualified asbestos consultant can make this determination.

I recommend the owners corporation contact NSW Fair Trading as they may be able to assist with any asbestos testing. It is known that strata premises built before 1980 may contain loose-fill asbestos insulation. If there is concern that the property contains loose-fill asbestos insulation, the scheme should arrange for a licensed asbestos assessor to conduct a sample test at their own expense. The scheme as a whole will be impacted should testing confirm the presence of loose-fill asbestos insulation.

Should the test confirm the presence of loose-fill asbestos insulation, Service NSW should be contacted immediately to find out about the options available.

I would suggest that they be contacted first. Given the concerns, Fair Trading may be able to undertake testing.

In some cases the presence of asbestos may be deemed low risk and should not be tampered with, however, only a qualified asbestos consultant can make this determination.

This post appears in the June 2023 edition of The NSW Strata Magazine.

Pierrette Khoury
Khoury Lawyers
E: pierrette@khourylawyers.com.au
P: 0415 459 486

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About Pierrette Khoury

Pierrette Khoury was admitted in 2006 and has extensive experience in strata, building and construction and commercial litigation.

Pierrette is client focused, results and outcome driven. Pierrette successfully resolves disputes and should a matter not be capable of resolution will successfully advocate on your behalf in the Tribunal or Court.

Pierrette has extensive experience in contract drafting and review including AS 4000, Master Builders, NSW Fair Trading and Housing Industry Association contracts.

Pierrette appears in all courts including the Supreme Court, NSW Civil and Administrative Tribunal, District Court, Land and Environment Court and Local Court for hearings, interlocutory applications and Appeals.

Pierrette applies strategic decision making to matters and narrows the issues in dispute. Pierrette has successfully litigated matters at the interlocutory and hearing stages.

Pierrette resolves matters on behalf of clients through effective dispute resolution mechanisms through negotiation, attending Mediations and attending informal settlement conferences.

Strata advice and litigation services

The services include strata advice, general strata advice regarding strata management agency agreements, strata by law advice, by-law drafting, consolidation and registration, strata dispute advice, breach of strata by-laws and enforcement, insurance claims, levy recovery advice and enforcement. This also incluees high level litigation services including building defect disputes and appeals, home warranty insurance claims and general insurance claims including appeals.

Legal involvement and representation of strata disputes including litigation involving breach of by-laws and breaches of the Strata Schemes Management Act and Regulations.

Appearance and representation in all courts including the Supreme Court, NSW Civil and Administrative Tribunal, District Court, Land and Environment Court and Local Court.

Key highlights:

- Strata advice, by law advice, disputes including levy recovery;
- Large scale building defect claims, disputes and appeals;
- Home warranty insurance claims and general insurance claims;
- Acting on behalf of a number of Owners Corporations in relation to large defect claims including claims under the Design and Building Practitioners Act 2020. Successfully resolving large scale defect claims;
- Acting for home owners in excess of $1million build and advising on contractual rights, variation disputes, project disputes and successfully resolving;
- Advising home owners and Owners Corporations on rights under the Home Building Act 1989 and Design and Building Practitioners Act 2020;
- Acting on behalf of a number of Owners Corporations in relation to lot owners’ breaches of by-laws and enforcement in the NSW Civil and Administrative Tribunal;
- Advising on retaining wall and fence matters and mitigation.

Qualifications
- 2005 Bachelor of Laws (Macquarie University)
- Bachelor of Commerce (Professional Accounting) (Macquarie University)
- 2006 Graduate Diploma in Legal Practice (College of Law)
- 2011 Graduate Certificate in Legal Practice Management

Memberships
- Law society of NSW
- Marrickville Chamber of Commerce
- Marrickville Business Association
- Strata Community Association of NSW

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