Changes to strata scheme laws in 2023
The NSW Government is implementing changes to strata laws to make the system fairer and more transparent for everyone.
The changes commence 11 December 2023.
Key information
- Under the Strata Legislation Amendment Bill 2023 launch, changes have been made to the four key Acts regulating strata and community lands schemes
- The changes aim to improve the lives of everyone living in strata by addressing pain points that have been raised in recent years during public consultation.
- The changes are based on the recommendations in the 2021 Report on the Statutory Review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015.
- The changes impact key areas of strata management including renewal processes, conflict of interest disclosure requirements, pets, financial management, and by-laws.
- Transitional arrangements are in place for certain reforms.
Strata renewal process
- All owners must disclose any direct or indirect financial or other interest they have in a strata renewal proposal at key decision points as a renewal plan is developed.
- The Land and Environment Court (the Court) to consider potential conflicts of interest for both strata renewal applications and objections before making an order to approve a plan or endorse an objection.
The Court can award costs against dissenting owners in the renewal process who act unreasonably or in bad faith
The Court will have leeway to approve a renewal plan where the renewal process has not been strictly followed, providing there is no substantial injustice.
For more information, visit the Office of the Registrar General website
Pets and assistance animals
- Owners corporations cannot charge a resident a fee or bond for a pet, or require insurance for a pet kept on a lot.
- Clarification that by-laws cannot affect the ability of assistance animals to perform their duty on a lot or common property.
Clarification of the forms of evidence that schemes can request to establish an animal is an assistance animal in order to maintain the privacy of persons with an assistance animal.
Learn more about pets in strata
Strata committees
- Committee members are prevented from participating or voting on a matter where they have a financial interest (excluding the strata renewal process).
- It is now easier to remove committee members (majority vote of the owners corporation).
- A person will be prohibited from serving again on a strata committee for a period of one year after being removed.
Learn more about strata committees
Meetings
- The minimum period for giving notice of the annual general meeting has been extended to 14 days.
- Original owners (usually the developer) is required to provide key documents at least 14 days before the first annual general meeting.
- New restrictions on how many owners a power of attorney or company nominee can represent.
Learn more about annual general meetings
Finances and notices
- Clarification of the rules around repayment of money that has been transferred between administrative and capital works funds, or has been paid from one fund for expenses that should have been paid from the other fund.
- Schemes may require payment of levies in 14 days (instead of 30 days) for necessary repairs to mitigate a serious or imminent threat to a resident’s health or safety.
- All strata schemes are required to obtain at least two independent quotes for proposed expenditure over $30,000.
- A landlord’s agent is required to provide notice of a tenancy to the owners corporation.
- A landlord’s agent is required to give a copy of by-laws and any strata management statement to a tenant within 14 days of the tenant signing the rental contract unless notice has already been given under the Residential Tenancies Act 2010.
- A landlord's agent is required to give a copy of any changes to the by-laws and strata management statement to the tenant within 14 days of the change starting.
- Tenants are enabled to provide their own notice of their tenancy to the owners corporation where a landlord or agent has failed to do so.
- Schemes are required to keep new records in an electronic form – this begins on 11 June 2024.
Learn more about strata finances, levies and insurance
Managing agents
- Managing agents are required to give notice of the expiry of their contract within three to six months before contract expiry.
- The Commissioner for Fair Trading is given standing to seek the appointment of a compulsory managing agent at the NSW Civil and Administrative Tribunal (not yet commenced).
Learn more about roles in strata.
Two-lot schemes
- A notice to comply with a by-law can be issued without a resolution by the owners corporation.
- For voting on matters that need a special resolution, the original owner (usually the developer) will maintain their full unit entitlement.
By-laws
- Clarification that a consolidation of by-laws needs a special resolution, even though the consolidation doesn’t add, delete or change an existing by-law.
- Clarification that by-laws must comply with the Strata Schemes Management Act 2015 regardless of when they were made.
Learn more about strata by-laws