NSW Strata Law Changes Are Now in Effect. Here’s How They Impact You

From 1 July 2025, important changes to NSW strata laws, part of the Strata Schemes Legislation Amendment Act 2025, have come into effect, aimed at making strata living more sustainable, fair, and easier to manage. Whether you're an owner-occupier, investor, or a member of your strata committee, it's essential to understand how these updates may impact your property and community.

Here’s a breakdown of the key changes and what they mean for you:

1. Sustainability Initiatives

   Strata communities can now more easily embrace environmentally friendly improvements. These reforms make it simpler for owners corporations to approve and install sustainability infrastructure such as:

   • Solar panels

   • Battery storage systems

   • Electric vehicle (EV) charging stations

   • Energy-efficient upgrades

   The aim is to reduce the red tape previously involved in getting approval for these improvements. Strata owners are encouraged to work together to make their buildings greener and future-ready, benefiting the environment and potentially reducing long-term costs.

2. Clearer Duties for Strata Committees Strata committees play a vital role in the smooth running of a scheme. Under the new laws, their responsibilities, particularly for chairpersons, are now spelled out in more detail. This includes:

   • Clearer guidelines for chairperson conduct and decision-making

   • Greater accountability for committee actions

   • More transparency to ensure all owners have confidence in the committee's role

   For owners, this means better governance and more confidence that the committee is acting in the community's best interests.

3. Protection Against Unfair Contract Terms

   The new reforms bring greater protections for owners corporations when entering into contracts. This helps prevent unfair terms that may have previously disadvantaged strata schemes. Key improvements include:

   • More scrutiny of service contracts

   • Protection against long-term or lock-in agreements that don't serve the owners' interests

   • More transparency and fairness in dealings with service providers

   This is particularly important when negotiating contracts for maintenance, repairs, or strata management services.

4. Streamlined Approval for Minor Renovations

   If you've ever been frustrated by the process of getting approval for small upgrades to your property, there's good news. The new laws simplify the process for minor renovations within strata schemes, such as:

   • Installing air-conditioning units

   • Adding floorboards

   • Renovating bathrooms or kitchens (where structural changes aren't involved)

   If a strata committee doesn’t provide written reasons for refusing a minor renovation request within three months, the request will be automatically approved. This creates a more practical, owner-friendly approach to keeping your property updated, while still respecting common property and neighbours' rights.

5. Improved Repairs and Maintenance Obligations

   The owners corporation's duty to properly maintain and repair common property has been strengthened. NSW Fair Trading has also been given more power to keep things in check, including:

   • Issuing compliance notices

   • Entering into enforceable undertakings

   
   

   And here's an important one, the timeframe for owners to claim damages if the scheme fails to maintain common property has been extended from two years to six years. That gives owners more time to seek compensation if maintenance isn’t being handled properly.

   
   

6. Protection from Unfair Utility Contracts (Embedded Networks)

   If your building uses an embedded network for electricity where the power comes through a single supplier arranged by the developer or building management, there are now stricter rules:

   • Maximum term limits for new embedded network agreements entered into after 1 July 2025

   • New disclosure requirements to give owners greater transparency

   
   

   It’s all about ensuring owners know what they’re signing up for and preventing long-term, unfavourable lock-ins.
   

7. Easier Accessibility Modifications & Assistance Animal Approvals

   The reforms recognise the importance of inclusivity and accessibility in strata communities. It is now easier to:

   • Install accessibility features like ramps or handrails

   • Provide evidence that an animal is an assistance animal under the law

   These changes make it simpler for people with disabilities to live comfortably and safely in strata schemes, while also helping committees handle these requests fairly and lawfully.

8. Increased Penalties for Developers

   Developers are now held to a higher standard with increased penalties for breaches of strata laws. Before the first AGM, developers will now be required to have the initial maintenance schedule and initial levy estimates independently certified. This aims to:

   • Improve building quality and compliance

   • Discourage poor development practices

   • Fewer chances of levies suddenly skyrocketing after you’ve bought in

   For owners and residents, this is a step towards greater confidence in the long-term integrity of new strata developments.

9. Financial Hardship Information on Levy Notices

   Later in 2025, all levy notices issued by strata schemes must include a Financial Hardship Information Statement. This is designed to:

   • Provide clear information to owners experiencing financial difficulties

   • Help owners understand their options for support or payment plans

   • Promote fairness and understanding within strata communities

   It’s a welcome step in acknowledging that financial challenges can arise and that support should be accessible.

These latest reforms make it clear that the NSW Government is committed to building fairer, more transparent, and sustainable strata communities. More information is available from NSW Government. As always, Compass Strata is ready to guide owners through the complexity of community management, speak to us today.