Community land law changes in 2025

What’s changing? 

The association cannot delay making repairs to the association property if the delay:

• affects the safety of buildings, or
• affects a person’s access or use of the common property or a lot. 

This only applies where an association has taken action against an owner or other person for damage to the association property. 

A member will have six years (up from two years) to bring a damages claim against the association for failure to maintain and repair association property.

What do schemes need to do? 

Schemes should be aware of the above changes.  

What can I do if an association property repair has been delayed which impacts safety? 

If an association commenced action against a member after 1 July 2025, and the association has delayed repairs to the association property, you can:  

• contact your managing agent or association committee and let them know about the new law,
• contact NSW Fair Trading for assistance, including for free mediation.  

What's changing

Unfair contract terms will be banned in standard form contracts for the supply of goods or services to an association.

A standard form contract is a contract where the business uses a pre-written contract for the association. The association can’t change any or a majority of the terms of the contract. They can only take it or leave it. 

Examples of contracts for goods or services:

• management contracts
• facilities management contracts
• cleaning or gardening contracts.

The change applies to contracts entered into on or after 1 July 2025, or existing contracts renewed or varied on or after 1 July 2025.

What are the banned terms? 

An unfair term: 

• causes a significant imbalance in the parties’ rights and obligations
• is not reasonably necessary to protect the interests of the party that would benefit from the term or
• would cause financial or other loss to a party if it were to be applied.

Examples of terms that may be unfair are terms that:

• allow one party (but not the other) to avoid or limit their responsibilities under the contract
• allow one party (but not the other) to end the contract
• penalise one party (but not the other) for breaching or ending the contract
• allow one party (but not the other) to change the terms of the contract.

The unfair contract term law does not apply to terms that:

• are specifically required or permitted by another law
• set out the upfront price to be paid
• define the main subject matter of the contract.

What can you do if you think a term is unfair? 

If you think a term in your contract is unfair, you should first try and resolve the issue with the business. Learn more about what you can do if you think a contract term is unfair.
 

What's changing

New duties for association committees will include to: 

• behave honestly and fairly when carrying out their role
• not behave in a way that would unreasonably affect another person’s use or enjoyment of a lot in the scheme or the association property
• comply with their obligations under the community land laws
• ensure that when using or disclosing information obtained in the course of their role as an association committee member (including information about an owner of a lot), that it is authorised under the law or required to carry out their role.

New functions for the chairperson will include:

• follow the agenda at meetings
• maintain order at meetings
• encourage attendees to discuss items on the agenda in a fair, constructive and open manner.

What do association committee members need to do? 

Stay informed and understand the new obligations to ensure your committee is following these requirements.

What's changing

A ban will apply to by-laws (association rules) which prevent sustainability infrastructure being installed because of the external appearance of a lot or association property. This will not apply where the property is heritage-listed or in a heritage conservation area. 

Associations will need to consider sustainability at each annual general meeting (AGM). An item must be included on the AGM agenda to consider environmental sustainability within the scheme, including consideration of the association property annual energy and water consumption and expenditure.

Associations will also need to consider costs for sustainability infrastructure, such as electricity meters, solar panels and sustainable building materials, when preparing estimates for the capital works fund each year.

This includes costs for the installation, replacement or repair of any sustainability infrastructure, fixtures or fittings.

What do schemes need to do?  

• Review your by-laws and update them if they conflict with this law change.
• Your secretary (or managing agent) should ensure your AGM agenda includes an item to consider sustainability in the scheme.    
• The treasurer or managing agent responsible for preparing capital works fund estimates each year will need to consider sustainability infrastructure installation, repair or replacement costs as part of this process.

It will be easier to make changes to association property to help a person with a disability have access to a lot in the association scheme or association property. Instead of a special resolution, only a majority vote is needed.  

What do schemes need to do?  

Understand the new voting threshold when considering requests to change the association property to improve accessibility.

What’s changing? 

If requested, a person will only need to provide one form of evidence about their assistance animal. The list of evidence the person can choose from has been expanded and includes:

• an animal identity card, pass or permit from an assistance animal training organisation,
• evidence the animal has completed a training program that meets the standards of Assistance Dogs International
• evidence from an Australian government agency that the animal has been accepted as an assistance animal, for example transport pass/permit, government issued access card
• evidence the local council recognises the animal as an assistance animal
• a dog badge, medallion, harness, cape, coat or vest supplied by an assistance animal dog training organisation
• written statement from a registered health practitioner that the animal is an assistance animal. The health practitioner must hold a general or specialist registration under the Health Practitioner Regulation National Law (NSW) 2009, for example in one of the following health professions:
  • Aboriginal and Torres Strait Islander health practice
  • Chinese medicine
  • medical
  • nursing
  • occupational therapy
  • pharmacy
  • physiotherapy
  • psychology.  

What do schemes need to do? 

Review your by-laws – you will need to update them if they conflict with this law change.

What’s changing?

Managing agents will have to report every six months to the association on the work that they do on behalf of the association. For example, chairing an annual general meeting (AGM) and organising repairs to association property. 

Terms in managing contracts that require an association to pay for the agent’s professional indemnity liabilities will be banned. Terms that limit an agent’s liability to a specific amount will also be banned, unless the agreement is covered by a current professional standards scheme approved by the Professional Standards Council.

If a managing agent has breached a duty delegated to them by the association, the agent will not be prosecuted if the association caused the breach and the agent took all reasonable steps to prevent the breach.

What do schemes need to do?  

• Be aware of the new reporting requirements and ask your agent for the report if you have not received one.  
• If an association is signing a strata management contract on or after 1 July 2025, check that it does not contain the following two terms:
  • a term requiring an association to pay for the agent’s professional indemnity liability, or
  • a term limiting an agent’s liability to a specific amount, unless the agreement is covered by a current professional standards scheme approved by the Professional Standards Council.
• If the contract does contain these terms, first try and resolve the issue with the business.
• If you are unable resolve the issue, lodge a complaint with NSW Fair Trading. 
   

What’s changing?

An embedded network is a private energy network for services such as electricity, hot and cold water, gas, and other utilities.

An agreement for the supply of electricity through an embedded network entered into on or after 1 July 2025, will expire:

• at the first AGM if the agreement was made before the meeting, or
• three years from the start date of the agreement. 

The new laws will also be clarified so that the same rule applies to all utility agreements, including embedded network utility agreements, entered into by the association. This includes utilities such as waste removal, air conditioning, stormwater retention and filtration, sewage, recycling and electric vehicle charging. 

What do schemes need to do?  

• Check the term length before signing a contract for the supply of electricity through an embedded network after 1 July 2025.
• If the contract does contain these terms, first try and resolve the issue with the business.
• If you are unable resolve the issue, lodge a complaint with NSW Fair Trading. 

Inspection of records  is important in maintaining accountability and enabling potential lot owners to understand more about a scheme.

What’s changing?

The fees for inspecting association records is increasing from 1 July 2025. The increase will apply to persons, other than owners, requesting access such as prospective buyers. 
Fee (including GST) increase:

• from $31 to $60 for the first hour
• from $16 to $30 for each half hour after the first hour.

The fee increase does not apply to owners requesting access to their records.

The same fee applies regardless of whether the inspection is carried out in person or online.   

The new laws will also require electronic access to records to be through secured means.

What do schemes need to do?  

Schemes and agents must update their fees for persons (other than owners) requesting access. 

Penalties on developers will increase if they do not hold the first annual general meeting (AGM) on time or fail to provide certain documents to members of the association 14 days before the meeting. 

A penalty of up to $11,000 can apply to a breach, plus $220 for each day the meeting is not held  within two months of the initial period or the documents are not given to members 14 days before the meeting. 

What’s changing?

Generally, an association must get approval at a general meeting of the association before obtaining legal services. The new laws provide that approval can state a maximum amount or an unlimited amount for legal services.

There are exceptions to this approval requirement such as for non-urgent legal services less than $3,000. 

The new laws will extend the consent that is required of a person before the making of a by-law that grants rights or special privileges (i.e. allowing for the exclusive use or portion of the association property to a specific owner) to also require the person’s consent before amending or revoking the by-law. The person’s consent cannot be unreasonably refused.  

What do schemes need to do?  

Schemes should familiarise themselves with the new laws.

Changes include:   

Increasing NSW Fair Trading’s powers to respond if associations have not met their legal duty to maintain their building. These include compliance notices, and agreements that are legally-binding for schemes (‘enforceable undertakings’). 

Changes include:   

Training requirements for association committee members.

Changes include: 

• New information requirements for association levy notices. This includes information to assist owners in financial hardship to get help early. A new Financial Hardship Information Statement will need to be provided with the levy notice and will include contact details for the National Debt Helpline. This is a free, confidential and independent financial counselling service.   
• Allowing association committees to enter into payment plans with a member of the association in financial hardship. Currently, this requires association approval.
• Schemes must consider all requests to enter into a payment plan.
• A scheme will need to let owners enter into a payment plan, unless they can reasonably refuse this.
• Giving a person more notice about when the strata scheme takes debt recovery action against them. Schemes will need to provide at least 30 days’ notice (up from 21 days).
• Overdue payments made by an owner first apply to their levies, followed by any interest and debt recovery costs. This is a fairer process for owners to help them to pay off their strata debt. 

Changes include: 

• Requiring the developer to have the initial maintenance schedule and initial levy estimates independently certified. This will support new owners to plan and carry out effective repairs and maintenance for their new complex.
• Increasing penalties for a developer who fails to meet these new obligations. 

Changes include:

New duties on facilities managers, for example a duty to act in the best interests of the association.

The sale contract for a lot in an association scheme will need to disclose certain information about embedded networks. The date for this change to start is yet to be confirmed.  

Changes include:

• prohibiting associations from charging a resident a fee or bond or requiring insurance for a pet kept on a lot,
• clarifying that by-laws cannot affect the ability of assistance animals to perform their duty on a lot or association property,
• maintaining the privacy of persons with an assistance animal by clarifying the forms of evidence that schemes can request to establish an animal is an assistance animal, and
• restricting associations from making by-laws or decisions that prohibit the keeping of a pet on a lot.

Since 1 November 2024, there are specified circumstances where a community scheme can refuse a resident’s pet. These circumstances are where the pet unreasonably interferes with another occupant’s use and enjoyment of their lot or the association property.

Unreasonable interference means the pet is a constant nuisance or a danger to residents, visitors or other animals. This could include:

• making constant noise that unreasonably affects the peace, comfort or convenience of another resident
• repeatedly running at or chasing another resident or animal
• attacking or threatening another resident or animal
• repeatedly causing damage to common property or someone else’s property
• risking the health of another resident, through infection or infestation
• causing a constant unpleasant smell in common property or someone else’s property.

It is also an unreasonable interference when:

• the owner of a cat or dog breaches a nuisance order placed on it
• a dog is classified as dangerous or menacing, or
• a dog is a restricted breed under the Companion Animals Act 1998.

Changes include:

• increasing the cap on the number of committee members from 9 to 15,
• prohibiting a person from serving again on a committee for a period of one year after being removed, and
• making it easier to remove committee members,
• preventing members from participating or voting on a matter where they have a financial interest.

Changes include:

• placing restrictions on how many owners a power of attorney or company nominee can represent.
• requiring original owners to provide key documents at least 14 days before the first annual general meeting of the association, and
• extending from seven to fourteen days, the minimum period for giving notice of the annual general meeting of a neighbourhood association.

Changes include:

• requiring community land schemes to keep new records in an electronic form – this started on 11 June 2024,
• enabling tenants to provide their own notice of their tenancy to the association where a landlord or agent has failed to do so, and
• requiring the landlord’s agent to give a copy of any changes to the by-laws and management statement to the tenant within 14 days of the change starting,
• requiring a landlord’s agent to give a copy of by-laws and any management statement to a tenant within 14 days of the tenant signing the rental contract,
• requiring a landlord’s agent to provide notice of a tenancy to the association,
• requiring associations to obtain at least two independent quotes for proposed expenditure over $30,000,
• allowing 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,
• clarifying 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.

Changes include:

• giving standing to the Commissioner for Fair Trading to seek the appointment of a compulsory managing agent at the NSW Civil and Administrative Tribunal (not yet commenced),
• requiring managing agents to give notice of the expiry of their contract with the association, within three to six months before contract expiry, and
• the appointment of strata managing agents, facilities managers or others who assist with the management, maintenance or repair of association property ends at the first annual general meeting.

Changes include:

• clarifying that by-laws must comply with the Community Land Management Act 2021 regardless of when they were made.