A range of important updates have recently been made to the Strata Schemes Management Act 2015 and will be coming into force on 1 July 2025. These changes introduce new duties, procedures, and compliance requirements for owners corporations, committees, building managers, and procedures relating to meetings.  

Strata Sense wrote another recent blog post on this that you may have seen, but we wanted to provide a more comprehensive overview given the nature of the changes.  

If you are a strata committee member, these changes will have an impact to the way you and your fellow committee members function and thus this article is aimed at providing a summary of the key changes that may affect your scheme. There are a huge number of changes coming up, and we’ve tried to cover as many as possible below however there are a few we’ve left out. If there is something you’d like to know more about please reach out directly to our office so we can assist.  

In this update we are covering the following: 

• Strata Committee Member Duties 

• Chairperson Duties  

• Building Management Duties 

• Environmental Sustainability  

• Approval of Legal Services 

• Minor Renovation Requests 

• Other important changes of note 

• New powers of investigation for Fair Trading 

 

Strata Committee Member Duties 

What’s New? 

Strata committee members are now legally required to: 

• Exercise their functions with honesty, fairness, due care and diligence 

• Act always for the benefit of the owners corporation, as far as practicable 

• Comply with the Act and regulations 

• Handle confidential information responsibly 

• Avoid unreasonably interfering with others’ use of their lot or common property 

• Potentially of most significance, there is set to be mandatory training for all committee members. The legislation also confirms that failure to complete this training will mean you lose your position as a strata committee member. At this stage, there are no details published as to what the training will comprise of. Fair Trading have confirmed that they are currently looking to roll something out and that should this eventuate, they are looking for this to be a complimentary service.  

Why Is It Important?  

Whilst most of this isn’t new in terms of the expectations on a strata committee member, this is the first time that they have become legal requirements with penalties (potentially) imposed for failure to comply.  

This is also the first time training has become a legal requirement. It aims to ensure that all committee members understand their responsibilities and how to act in the best interests of the scheme. 

What Happens Next? 

Don’t let the new rules intimidate you – these have always been expected of committee members and we know most members would have already been acting with this level of integrity. Whilst we don’t anticipate any issues with members complying, you should expect that there may be owners holding you to a higher standard than previously and you should consider whether you need to adapt any of your processes accordingly. As professional strata managing agents, we have been bound to comply with this set of rules for a long time now and therefore are well positioned to help your committee understand whether there are any adjustments to be made to your practices and can guide you should you wish to contact our office.  

We recommend that you take ten minutes at the start of your next strata committee meeting to discuss how you will approach these rules and whether any changes are needed to your usual operations.  

With respect to the training component – the NSW Government is still set to release training program details.  

These changes will be incorporated into section 37 of the Strata Scheme Management Act 2015 (NSW). 

 

Chairperson Duties 

What’s New? 

The law now clearly outlines the responsibilities of the chairperson during meetings. These include: 

• Presiding over meetings and ensuring the agenda is followed 

• Ruling on procedural matters and quorums 

• Maintaining order 

• Facilitating fair, constructive and open discussions 

• Encouraging participation 

Why Is It Important? 

This change formalises what many chairpersons already do but provides clear legal backing to their role and authority during meetings. You have hopefully noticed that your strata manager, no matter the company, has already been running your meetings in a similar fashion so there shouldn’t be too much of an impact accompanying this change.  

Meetings are a formal, structured, decision making platform, they are not a town-hall scenario or a space to lobby opinions. These new rules may appear to be encouraging discussion and participation but it is important to understand that this is not for the means of extending the purpose of the meetings – I have underlined the word “constructive” above, as this is an important note. There is a balance between facilitating a discussion and encouraging participation to be struck against ensuring that you are still have constructive (i.e. productive and effective) discussions that lend to decision-making at the meeting.  

What Happens Next? 

At the start of your next meeting, your strata manager or the Chairperson (if your strata manager does not chair your meetings) should quickly run through these rules to ensure that everyone understands how the meeting will be run. If you are a chairperson who chairs the meetings for your owners corporation (rather than requesting the agent to do so under delegated authority) and would like to discuss how to approach these changes, please don’t hesitate to reach out tour office for some guidance.   

These changes will be incorporated into section 42 of the Strata Scheme Management Act 2015 (NSW). 

 

Building Management Duties 

What’s New? 

Building managers now have formal legal duties, rather than just contractual obligations. They must: 

• Act in the best interests of the owners corporation (unless doing so would breach laws or the Regulations) 

• Comply with any further duties prescribed by the Regulations 

Why Is It Important? 

These duties are now enforceable and there are penalties that may be imposed outside of contractual penalties for breach of contract.  

What Happens Next? 

Confirmation of any additional duties via regulation is yet to occur. In the meantime, building manager’s should ensure that they continue to act always in the best interests of their owners corporations.  

These changes will be incorporated into section 70A of the Strata Scheme Management Act 2015 (NSW). 

 

Environmental Sustainability 

What’s New? 

All AGMs must now include a mandatory agenda item to consider environmental sustainability. This includes consideration of energy and water consumption and expenditure for common property areas. The owners corporation also need to consider any improvements that can be made.  

To accompany this, each year the budget will be required to take improvements or upgrades into consideration when the owners corporation are setting their estimated expenditure for the year ahead. 

Why Is It Important? 

This change places sustainability front and centre in your scheme’s annual planning and budgeting process. Some schemes have already been giving consideration to these matters and therefore won’t consider there is much to be done – for others it may start some important conversations among owners.  

What Happens Next? 

This agenda item should now appear on all AGM notices moving forward and for Strata Sense clients this will automatically be done.  

Committees should start considering opportunities for sustainability upgrades (e.g. LED lighting, water-saving taps, or solar). Along with building management, Strata Sense can help you review your current usage or explore improvement options should you wish to contact us.  

These changes will be incorporated into section 79 of the Strata Scheme Management Act 2015 (NSW). 

 

Approval of Legal Services 

What’s New? 

Changes to Section 103 of the Act mean owners corporations or committees must not obtain legal services involving payment unless: 

• A general meeting resolution approves unlimited costs, or 

• A general meeting resolution approves a maximum cost limit. 

Why Is It Important? 

This closes a previous loophole and ensures that all paid legal services are properly and transparently authorised. Previously, the owners corporation would need to approve legal services (over $3,000) at a general meeting, but there was no requirement that it be for a fixed or unlimited cost, meaning there was no transparency as to costs in some cases and they could easily blow out without owners knowing.  

What Happens Next? 

Before engaging legal services, the agent should ensure your scheme holds a valid general meeting resolution approving the costs. Strata Sense is able to guide clients through this process when the need arises. 

This change is retrospective, meaning it also impacts any owners corporation with ongoing legal matters. If this is applicable to your scheme: you will likely need to convene an EGM shortly to ensure that costs are appropriately approved if the previous resolution did not address a limitation on costs. If you wish to get some guidance on whether this is applicable to your situation, please feel free to reach out to our offices.   

These changes will be incorporated into section 103 of the Strata Scheme Management Act 2015 (NSW). 

 

Minor Renovation Requests 

What’s New? 

Strata committees now have stricter rules for processing minor renovation requests: 

• If a request is refused, written reasons must be provided within 3 months. 

• If no response is given within 3 months, the request is deemed approved. 

• Approved works must be recorded and kept for 10 years. 

Why Is It Important? 

Failure to respond on time could result in automatic approval of works. This highlights the need for committees to manage and track requests formally and efficiently. The managing agent should take care of this for you in most cases to ensure you are complying with these new rules.  

What Happens Next? 

Strata Sense already follow best-practice procedures, but we’ll continue to help our clients monitor timeframes and prepare the necessary documentation to ensure compliance. It is somewhat rare for a minor renovation application to take 3 months to be processed in any event, but with the new laws it gives us and the committee reason to move these on promptly for owners.  

These changes will be incorporated into section 110 of the Strata Scheme Management Act 2015 (NSW). 

 

Other important changes of note 

In addition to the above, there are a number of other changes worth highlighting. They don’t warrant a full paragraph or description, but are nonetheless important to be aware of. If there are any that appeal to you or you think may have an impact for your owners corporation and you’d like to look into this further please feel free to reach out to our office.  

• Section 55 records coming to secretary 2x per year now 

The Managing Agent should provide you with a “section 55 report” around the time of each annual general meeting. The legislation now requires this be provided 6-monthly so you can understand the services they have undertaken under delegated authority during that period. The secretary for your strata scheme should receive this moving forward.  

• Payment plan and debt recovery changes 

There are more stringent rules around payment plan processes and the ability of an owners corporation to on-charge reasonable costs incurred in recovery levies where recovery action is taken through the court system. Your strata manager should ensure you are up to date on the payment plan details separately.  

• Owner claims for compensation 

Under section 106 of the Act, an owner has the ability to make a claim against the owners corporation for damages if they have suffered a loss due to the owners corporation’s failure to maintain and repair the common property and that loss was reasonably foreseeable.  

Previously such claims had to be made within 2-years of the owner becoming aware of the loss, however this has now been extended to 6-years.  

It is important that you and your fellow strata committee members continue to attend to prompt rectification of any issues relating to common property to avoid potential claims arising.  

• Accessibility infrastructure  

The threshold for approval of accessibility infrastructure has been reduced, so owners wanting to change the common property to make it more accessible no longer need a special resolution to support this.  

• Sustainability infrastructure 

This has not been a significantly wide issue to date, however it may have crossed the minds of some savvy committees out there. A previous round of changes to the law permitted a lower threshold for approving sustainability infrastructure (essentially a majority, rather than special resolution) however many schemes have by-laws in place that prohibit certain changes to the external appearance of their building, and changing infrastructure may contravene that by-law. A clarification has been made that such by-laws do not apply to sustainability infrastructure.  

• Mandatory maintenance obligations when approving changes to common property 

If an owner is given approval to make changes to common property, there is now a requirement that the motion approving this work address who is responsible for the ongoing maintenance and repair of that item/work.  

• Change in fees for inspections of books and records 

Fees payable to the owners corporation when someone inspects the books and records are increasing from $31 to $60 for the first hour, and from $16 to $30 for every half hour that follows this. Though the Regulations have not been published confirming this, this is only to apply to non-owners undertaking an inspection (eg. a buyer).  

It is important to note that Strata Sense only ever charge the minimum fee prescribed and allow access for a 24 hour period via online access.  

• Capital works fund plans 

Where a scheme is obtaining their first capital works fund plan (because it is a new building), the owners corporation are required to take into consideration the initial maintenance schedule when completing their plan. Additionally (and this impacts all schemes, not just new ones) there is likely to be a prescribed form released in the near future that all plans must take the format of.  

A note on the new powers of investigation for Fair Trading… 

There is another significant change for you to be aware of regarding Fair Trading’s powers to impose upon an owners corporation. This doesn’t directly impact how the committee function, or help the owners corporation with their day to day operations, but it is a change that comes with serious legal powers and consequences.  

The Strata Schemes Management Act 2015 is being updated to include a new enforcement framework (Part 10A), giving NSW Fair Trading (the Secretary) expanded powers to investigate and enforce compliance with section 106 — the duty of owners corporations to maintain and repair common property. 

What is Section 106? 

Section 106 requires the owners corporation to properly maintain and keep in good repair the common property. This duty is absolute and there is almost no lawful excuse the owners corporation can make to support a lack of maintenance or repair to the property.  

Key points 

1. Fair Trading can investigate directly 

Fair Trading (via the Secretary) may: 

• Investigate breaches of section 106 (including without a formal complaint) 

• Request records or documents 

• Require individuals to answer questions (in person or in writing) 

• Enter strata premises (common property) — and in some cases, with a search warrant 

• Examine, seize or test physical things related to a breach (e.g. building materials)

 

2. Fair Trading can issue notices requiring OC compliance 

If Fair Trading believes the owners corporation has breached its repair and maintenance obligations, they can issue a compliance notice that may: 

• Require repairs to be completed to a certain standard 

• Require the use of a licensed professional 

• Specify deadlines and stages for compliance 

• Be revoked only when the OC complies 

Non-compliance with a notice is an offence, with penalties of up to 200 penalty units (over $20,000), plus daily penalties for ongoing breaches. 

 

3. Failure to Cooperate = Penalties 

Owners corporations (or their representatives) may face significant fines if they: 

• Don’t comply with document requests 

• Refuse to answer questions 

• Obstruct or fail to assist Fair Trading officers 

 

4. Fair Trading can require Undertakings and request Orders 

Fair Trading may: 

• Accept undertakings from owners corporations to fix the issue voluntarily (with Tribunal enforcement if not followed) 

• Apply to the Tribunal for orders to remedy or restrain breaches, even without evidence of damage 

 

5. Administrative Review 

Owners corporations can challenge compliance notices by applying to the Tribunal within 28 days of receiving the notice. 

Why does this matter?  

While many owners corporations already take their repair obligations seriously, this new law gives Fair Trading a much stronger enforcement role and enables direct intervention where common property defects are not addressed. 

As a member of the strata committee, you also have added obligations to act in the best interests of the owners corporation and this extends to ensuring that there be no cause for Fair Trading to have any use for these powers at your building! You can do this by: 

• Ensure fellow committee members are aware of their obligations under section 106 

• Promptly provide instructions to building and strata management to act on any known repair issues 

• Instruct building and strata management to keep accurate maintenance records and evidence of action taken 

• Report any issues you see around the building to the appropriate person/s. 

 

Final Thoughts 

These reforms represent the most significant update to strata law in nearly a decade, and while they bring new responsibilities, they also provide clearer frameworks and stronger protections for owners and communities. Strata Sense is committed to guiding you and our clients through these changes and ensuring your community remains compliant, informed, and supported.  

If any part of this update raises questions or you’d like to explore how these changes may apply to your scheme, please don’t hesitate to reach out to your strata manager — we’re here to help.