New South Wales underwent three waves of significant reform to its strata laws throughout 2025.
Unpacking these sweeping changes is strata lawyer and principal at Vinc Legal, Anna Minassian. Anna explains the key details around the three waves of reforms, how they aim to enhance accountability and consumer confidence across the strata sector, and offers practical guidance for legal practitioners navigating these significant updates to the Strata Schemes Management Act 2015.
Key changes introduced under the new strata reforms
“There have been 3 waves of strata reforms this year, which affect the Strata Schemes Management Act 2015 (SSMA),” Anna explains.
“The first set of reforms came into effect in February 2025, and largely focused on the strata manager’s requirements to disclose information like commission and training, and if they are a connected person with any other service provider (such as a building manager),” she says.
For reference, please see s57(3A) and (3B) of the SSMA.
The second set of reforms came into effect on 1 July 2025. Included among these reforms were procedural methods to streamline approvals for minor renovations and greater emphasis on sustainable infrastructure.
Specifically, these reforms include provisions such as:
- All minor renovations are deemed approved if the committee do not provide written reasons for rejecting the request for minor renovations within 3 months of receiving the request: see s110(6A) SSMA;
- The owners corporation must keep a record of all minor renovations for 10 years: see s110(6C) SSMA;
- Emphasis on sustainability infrastructure, including that each owners’ corporation must pass a sustainability infrastructure motion at each AGM: see sch 1(6)(f) SSMA and have a line item on sustainability infrastructure at each annual budget: see s79 SSMA;
- An owner now has 6 years (instead of the previous 2 years) to bring a claim for loss (such as loss of rent or alternate accommodation costs) which has been caused by an owners corporation’s failure to repair and maintain common property: see s106(5) of the SSMA.
The third and most recent set of reforms came into force on 27 October 2025. As Anna explains, these provided for Fair Trading to be granted additional investigative powers, including the power to:
- Record interviews with residents
- Examine and copy records
- Use “reasonable force” to access areas, including floors and walls, and to take samples as required
- Seize and destroy items
- Issue compliance notices and penalty infringement notices
Further information on Fair Trading’s new powers can be found here: Common Property Repairs and Maintenance Compliance and Enforcement Policy.
“The October reforms also provided additional information and support for owners experiencing hardship to pay their quarterly levies,” Anna says. “These included further application and enforcement of payment plans: see s85(5A) SSMA.”
Further reforms expected in 2026
“The next wave of reforms is likely to hit in early 2026. These will address issues such as mandatory training for strata committee members,” Anna says. “Developers will also need to provide initial maintenance schedules for all new builds using a standard form to ensure consistency across all buildings.”
“A new section, s86(2AA)SSMA, will also require that the owners’ corporation offer payment plans before suing for interest and recovery costs.”
The rationale behind the reforms: Making strata living more attractive
“With approximately 91,000 strata schemes registered in New South Wales, we have about 1.2 million people living in strata in this state,” Anna observes.
New South Wales has a population of approximately 8.6 million, so this reflects a significant section of our society. As the Minister for Better Regulation and Fair Trading, Anoulack Chanthivong said: “If we want more people living in higher-density developments, then we need to make the experience of strata living as attractive as possible.”
“The aim of the strata reforms is accountability and consumer confidence,” Anna explains. “With strata management under the media microscope recently, the new legislation seeks to reflect the intention of fair and clear management across all bodies. You will notice that the reforms target not only strata managers but also strata committee members, owners, and developers alike.”
The world of strata is about transparency and clear communication.
Getting up to speed: Key resources and legislative provisions
How can you get across these reforms? Anna recommends heading to the Department of Fair Trading as a starting point, as it has a “wealth of information” about the recent changes.
She also recommends the NSW Government’s Guide to strata law changes for strata committees and owners | NSW Government.
“In addition, have a read of the relevant sections within the SSMA, which reflect these changes,” Anna advises. “Some of the key sections were referenced above. Whether you are a property lawyer with a client buying into a strata scheme, or a disputes lawyer involved in litigation affecting an owners corporation, it is imperative that you’re across the recent changes.”
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