More than 1.2 million people who live in strata homes across the state are set to benefit from another suite of reforms being introduced to NSW Parliament in the final stage of the Minns Labor Government's ambitious program to modernise strata laws.
The new legislation is the Minns Labor Government's fourth strata reform package since March 2023 and finalises the legislative response to the recommendations made in a 2021 statutory review of strata laws, following inaction by the former government.
The Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 forms part of the Government's holistic approach to addressing the housing challenge and will ensure that the State's strata laws give people the confidence to live and invest in strata.
Reforms in the Bill include:
- Allowing compliance action taken by NSW Fair Trading against an owners corporation to be proactively published so prospective buyers can know if there are any issues with repairs and maintenance in the building,
- Giving owners the right to install electric vehicle charging stations on their own lot without fear of unreasonable objection from their strata committee,
- Better protect owners corporations with embedded network supply agreements, such as for electricity, so they are not charged unfair infrastructure costs if they terminate an agreement,
- Removing unnecessary red tape for two-lot schemes such as duplexes, which make up more than 30 per cent of strata schemes, so they no longer need to form committees, hold meetings and submit annual reports to NSW Fair Trading,
- Setting fair limits on when an owners corporation can charge strata residents a bond or fee, for example bonds for access keys or swipe cards that are exorbitantly higher than the replacement cost will no longer be allowed,
- Allowing the NSW Civil and Administrative Tribunal to terminate an owners corporation's agreement with a building manager if they breach their duties.
This Bill follows three earlier tranches of strata reforms, which include:
- Increased penalties for strata managing agents who don't disclose conflicts of interest or kickbacks to owners,
- Requiring payment plans to be offered to owners in financial hardship before debt recovery action can be taken and prohibiting blanket rules to refuse payment plan requests,
- A world-first in strata regulation by allowing NSW Fair Trading to issue compliance notices and enter enforceable undertakings with owners corporations that do not meet their duties to maintain and repair common property. This will ensure serious maintenance issues and defects can be fixed without expensive and time-consuming litigation through the courts or tribunal,
- Protections for owners from bill shock by requiring developers to have initial levy estimates in new strata buildings to be independently certified, including increased penalties for non-compliance,
- Banning strata managing agents from taking a commission on insurance products when they don't play a role in finding the best deal for owners,
- Introducing itemised insurance quotes so owners know exactly how much is going to agents and brokers in commissions and fees,
- Making it easier for owners to do minor renovations,
- Removing barriers to the uptake of sustainability measures such as solar panels and electric vehicle charging by prohibiting bylaws that block the infrastructure due to external appearance,
- Ensuring goods and services are obtained at competitive prices, by requiring owners corporations to get a second quote when the bill for work will be over $30,000.
This Bill also follows NSW Fair Trading's recent steps to make it easier for people living in strata to find the right strata manager, and to better understand the strata insurance broker fees they are paying. The Strata Managing Agent Engagement Planner on the NSW Strata Hub helps people assess their current and prospective strata management fees by giving like-for-like comparisons on costs and services from different strata managing agents.
NSW Fair Trading has also this week released a report by John Trowbridge OAM which examines insurance broker fees and commissions on strata insurance. The Benchmarking Strata Insurance Broker Pricing report sets out the typical prices strata insurance brokers charge for their services and gives consumers an understanding of what they may reasonably be expected to be charged by insurance brokers arranging insurances.
Feedback from key stakeholders has informed the final Bill to ensure it will deliver intended benefits and meet the evolving needs of strata residents, owners, industry and the broader community. For more information on strata law changes, please visit: www.nsw.gov.au/departments-and-agencies/fair-trading/news/changes-to-strata-laws
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.
"Effective and transparent strata management is a significant part of this Government's plan to improve housing quality in New South Wales, and we are delivering on it.
"This final suite of legislative changes in response to the statutory review into strata laws is a key milestone for NSW.
"This ensures our laws are up to date for what is expected when living in multi-dwelling complexes."
Strata and Property Services Commissioner Angus Abadee said:
"While this has been a huge uplift in the rights for residents and responsibilities for owners corporations, it is not the end of the journey for modernising strata living.
"Work will continue to ensure the benefits of the Government's strata reform agenda are not only realised but sustained through fair, transparent, and responsive regulation.
"These changes ensure we have the right rules for strata - backed up with more support from NSW Fair Trading to ensure strata living is fair for all."
