Strata Reform Is Here: What Every NSW Owner Needs to Know

Strata living continues to evolve across New South Wales, and in 2026 a new round of reforms has come into effect, from 1 April, that all apartment owners should understand. Whether you are on an exiciting path to purchased your first unit or have owned in a strata scheme for years, these changes are designed to improve transparency, financial planning, maintenance standards and accountability within apartment buildings.

For many owners, strata legislation can feel confusing or distant until it directly affects levies, repairs, disputes or the value of your property. That is why these updates matter. They are intended to help owners corporations run more efficiently, reduce unexpected costs, and create better managed communities.

Stronger Long-Term Financial Planning

One of the most important changes relates to 10-year Capital Works Fund Plan (CWFP). Every strata scheme is required to maintain a long-term plan for future repairs and major building expenses such as painting, roofing, waterproofing, lifts, driveways or common area upgrades. From 2026, these plans must now follow a standardised format when they are reviewed or renewed.

For owners, this is a positive shift. It means there should be clearer forecasting of future costs, better consistency between schemes, and fewer surprises when major works arise. If your building has not reviewed its capital works plan recently, now is a good time to ask whether it remains realistic and compliant.

Having a CWFP in place is only part of the equation, the key is actually raising levies in line with that plan. Too often, owners try to keep levies low by reducing contributions to the capital works fund, which can create shortfalls later. When major repairs or upgrades eventually arise, the result is often a large special levy that could have been avoided with consistent long-term funding.

Better Protections for Buyers in New Buildings

The reforms also place stronger obligations on developers of new strata buildings. Historically, some new schemes have faced issues where budgets were underestimated, maintenance needs were unclear, or owners inherited problems shortly after settlement. Under the new rules, developers must provide more detailed handover documentation and use prescribed formats for maintenance schedules.

For buyers in new apartment buildings, this means improved transparency from day one. It should become easier to understand what maintenance is required, what levies may look like, and whether the scheme has been set up responsibly. For first-time buyers especially, this added protection is valuable.

Yes, new buildings often have lower expenses in the early years, as major plant and equipment are less likely to fail and many items may still be covered under warranty. However, if the proposed levy is noticeably lower than comparable buildings nearby, it is worth taking a closer look at the budget. In some cases, unrealistically low levies can simply delay the true cost of running the building, leading to higher increases later on.

Independent Review of Initial Budgets and Maintenance Plans

Another significant update is the introduction of independent certification for multi-storey developments. Initial levy estimates and maintenance schedules now require review by an independent professional. A multi-storey scheme has three or more storeys above ground level, with lots allocated one on top of another.

This is an important safeguard because it reduces the risk of unrealistically low levies being presented during the sales process. Some owners in the past have moved into new buildings only to face sharp levy increases soon after purchase. Independent oversight is designed to create fairer and more accurate budgeting from the beginning.

Improved Disclosure for Purchasers

There are also improvements to buyer disclosure requirements. Information certificates used during the sale of strata properties now require broader details in some cases, including utility arrangements and other key scheme information such as orders and certain compliance action against the owners corporation.

For anyone purchasing into strata, this is welcome news. Better disclosure allows buyers to make more informed decisions before committing to a property. It can also highlight issues that may affect future costs or building management.

Higher Standards for Strata Committees

Mandatory training for strata committee members have been announced for a while but commencement dates are still to be confirmed, however, the direction is clear: committee members are expected to take a more informed and professional approach to governance.

This is a sensible step. Strata committees make important decisions on behalf of all owners, including budgets, repairs, contracts and dispute resolution. Better training can only improve decision-making and help reduce conflict within schemes.

What These Changes Mean for Existing Owners

For current owners, 2026 is a smart time to review how your building is operating. Is your capital works fund healthy? Are repairs being planned proactively? Is your committee functioning effectively? Are owners being kept informed? Is your strata manager helping the scheme stay compliant and organised?

These reforms reward buildings that stay proactive rather than reactive.

What These Changes Mean for New Owners

For new owners, these reforms should provide more confidence. NSW is continuing to strengthen the rules around how strata communities are established and managed. While no system is perfect, the trend is toward better planning, clearer information and stronger protections for owners.

This means buying into strata should become a more transparent and informed process, especially important when some reports indicate half of Sydney could be living in strata-titled property by 2040.

Final Thoughts

Ultimately, these changes are about protecting the long-term value of strata property while making apartment living more stable and transparent for everyone involved.

Whether you are a new owner trying to understand your responsibilities or an existing owners corporation wanting to stay compliant and better organised, Compass Strata is here to help.

We work with Sydney strata communities to simplify complex issues, improve communication, strengthen financial planning and ensure buildings are managed proactively.

If your scheme is ready for a more responsive and professional approach to strata management, contact Compass Strata today and discover how better management can protect your property and give owners greater peace of mind.