AAA is delighted to advise that the Strata Schemes Legislation Amendment Bill 2025 was passed by the NSW Parliament on 18 February 2025.
The Bill implements 37 recommendations from the 2021 Report on the Statutory Review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015. The Bill also includes additional reforms identified since the review.
The Bill enhances protection for those living in strata and community land schemes and includes key changes to:
require the initial maintenance schedule and initial levies to be independently certified,
lower the voting threshold (majority vote) for the installation of accessibility infrastructure,
require strata managing agents to report every six months, instead of every 12 months, to the owners corporation and association on the functions they exercise,
prohibit terms in strata management agreements that pass an agent’s professional indemnity liability to the owners corporation (or association) or limit the agent’s liability,
introduce a new ground to terminate strata managing agents and building manager agreements at the Tribunal if they carry on a business in a way that is contrary to law,
require building managers to act in the best interests of the owners corporation and association,
require committees to undergo training,
give NSW Fair Trading powers to issue compliance notices and enter into an enforceable undertaking with an owners corporation or association to comply with their duty to maintain and repair common property,
prescribe a form for the 10-year capital works fund plan and initial maintenance schedule,
prohibit unfair contract terms in standard form agreements with an owners corporation or association,
require levy notices to be accompanied by information with help available to pay levies, and
make it easier for owners to enter into a payment plan with an owners corporation or association.
The Bill was also changed during Parliament and includes the following additional amendments:
NSW Fair Trading may prescribe the form of strata managing agent and building manager agreements ,
a regulation making power to issue reminder notices to committee members who have failed to complete required training,
if required under a by-law, an owner only needs to provide one form of evidence, of their choosing, about an assistance animal,
owners corporations and associations must consider all requests to enter into a payment plan for unpaid levies, and
owners corporations and associations can only recover expenses incurred in recovering unpaid levies and interest from a lot owner through a court or Tribunal order, and if a payment plan has been offered to the owner.
Most of the provisions in the Bill are expected to be rolled out from mid-2025. This is to allow time for the sector to get ready for the reforms and to develop supporting regulations, forms and training.
To hear more please view this video that AAA recorded with Paul Wiseman of Bannermans.
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