Community land law changes in 2025 and 2026

What changed?

There are information requirements for association levy notices to assist owners in financial hardship to get help early.

Levy notices must be provided with a Financial Hardship Information Statement or include the information from the Statement, which includes contact details for the National Debt Helpline.

This is a free, confidential and independent financial counselling service.

What do schemes need to do?

Schemes should:

• Download and use the Financial Hardship Information Statement, and
• Ensure their managing agent or association committee includes the Statement or the information from the Statement in all levy notices.

What changed?

An owner who wishes to request to enter into a payment plan with their association or association committee for overdue contributions (levies) needs to use the new standard form.

Request for payment plan for overdue contributions standard form.

Payment plans are only for a period of up to 12 months, but another plan may be agreed to after the previous plan ends.

A payment plan cannot cover future contributions.  

Rules for considering requests

There are rules for associations and association committees around payment plans, including that they must:

• consider a lot owner’s request to start a payment plan,
• not make a resolution at a meeting to refuse all payment plans,
• not charge an owner a fee or other cost for making a request for starting or continuing with a payment plan,
• give a written response within 28 days to an owner requesting a payment plan, and
• if a request is refused, include written reasons for the refusal and how those apply to the owner’s request.

About refusals

A request for a payment plan may be reasonably refused if starting the payment plan would result in the association’s capital works fund or administrative fund having insufficient funds.

You may have insufficient funds if:

• your fund would fall into deficit,
• there would not be enough money in the capital works fund for the association to meet its duty to repair and maintain the association property,
• there would not be enough money in the administrative fund to pay for expenses, or
• there would not be enough money to comply with:
  • an enforceable undertaking entered into with Fair Trading,
  • a compliance notice issued by Fair Trading, or
  • another order issued under another Act

If an owner believes a refusal of their request for a payment plan was not reasonable, they can apply to the Tribunal for an order the refusal was unreasonable and the association must agree to the request.

Other requirements

Repayments made under a payment plan must be applied first to overdue levies in order of due date, then to any interest repayments due, then to any costs for recovering the overdue contributions. This requirement applies unless a Court or Tribunal order, or the owner themselves, specifies how payments must apply.

There are also requirements for how and when associations can take action on overdue levies, interest and recovery costs:

• action cannot be taken to recover overdue levies where there is a payment plan in place for those levies, and the plan is being followed properly, and
• if action will be taken against an owner, the association must provide the owner at least 30 days’ notice.

What do schemes need to do?

Schemes should be aware of the above changes and use the standard Request For Payment Plan form.

What changed?

Fair Trading now has compliance powers to help ensure associations meet their legal duty to repair and maintain association property.

Fair Trading can use these powers to investigate potential breaches of this duty, including being able to require documents and answers, record a person, make records and enter premises.

Where a breach is found, Fair Trading has a range of enforcement actions available to it, including:

• seeking an enforceable undertaking – this is a formal, voluntary written commitment made by an association to address a breach of its duty to maintain and repair association property,
• issuing a compliance notice – this would require an association to do specific actions such as fix damage, meet particular standards, or use licensed professionals.
• issuing a penalty infringement notice – this is a monetary penalty (fine) if an undertaking or compliance notice is not complied with.
• applying to the Tribunal for an order – an order can require an association to stop or fix a breach of its duties, or could be for the compulsory appointment of a managing agent to take over management of the scheme.

Download a copy of the new Common Property Repairs and Maintenance Compliance and Enforcement Policy. 

What do schemes need to do?  

Association committees and managing agents should be aware of the changes. Associations must meet their legal obligations to repair and maintain their scheme’s association property.

What’s changing?

Currently, the original owner of a scheme is required to prepare an initial maintenance schedule (IMS) and provide this to the association at least 14 days ahead of the first Annual General Meeting (AGM) of the association.

From 1 April 2026, all IMS must be prepared using a new standard form.

The standard form is now available. This will allow all original owners to ensure that the IMS for schemes with AGMs on or after 1 April 2026 are prepared using the standard form.

Requirements for multi-storey schemes

For the original owner of a new multi-storey scheme, additional requirements will apply.

The original owner will need to engage an independent surveyor to review and certify that the IMS was prepared using the standard form.

The independent surveyor will also need to review the initial levy estimates prepared by the original owner and certify that they meet the expected expenditure for the year following the first AGM, based on expenses provided by the original owner.

Then the original owner of the multi-storey scheme will need to, at least 14 days before the first AGM, deliver the evidence to the association to show that:

• the initial maintenance schedule was prepared using the approved form,
• the estimates of contributions to the administrative fund and capital works fund meet the expected expenditure for the year ahead (based on the expenses provided by the original owner),
• the person who reviewed and certified the initial maintenance schedule is an independent surveyor, and
• the person who reviewed and certified the estimates of contributions to the administrative fund and capital works fund is an independent surveyor.

The evidence for this can include a written statement or other document to the association confirming how these requirements have been met.

A multi-storey scheme will have more than two storeys above ground level, with lots allocated one on top of another. For example, multi-storey schemes include apartment blocks.

An independent surveyor is a person who is not connected to the original owner, and who is:

• a member of the Australian Institute of Quantity Surveyors and holds the designation Certified Quantity Surveyor, or
• a member of the Royal Institution of Chartered Surveyors and a Chartered Quantity Surveyor.

Substantial penalties apply where an original owner does not meet these new obligations.

What do schemes need to do?

Associations, lot owners and strata managers for a new scheme should be aware of the changes. Original owners should begin using the standard form when it is available, so that schemes with their first AGM on or after 1 April 2026 have their IMS prepared in the required form.

Associations, lot owners, and any managing agent for a new multi-storey scheme should also discuss the need for the IMS and initial levy estimates to be reviewed and certified by an independent surveyor.

Original owners of a multi-storey scheme with their first AGM on or after 1 April 2026 should also allow plenty of time in advance to:

• engage an independent surveyor,
• have the surveyor review and certify the IMS and initial levy estimates, and
• provide the required evidence to association at least 14 days before the AGM.

What’s changing?

A community land information (‘section 174’) certificate provides information about a lot within a community land scheme, including financial details. These certificates are typically requested by a potential buyer as part of the sale of a lot.

From 1 April 2026, these certificates will require need to include information about exclusive supply networks (often referred to as an embedded networks) and the nature of the service provided by these networks.

An exclusive supply network is a privately owned network that supplies multiple lots within a site with electricity, gas, hot and cold water, internet access, or other utilities.

An updated standard form for the information certificate will be made available on the nsw.gov.au website ahead of 1 April 2026.

What do schemes need to do?

Associations and managing agents should note the changes. They are also encouraged look at the updated standard form information certificates when it is available so they are familiar with what changes will be needed from 1 April 2026.

What changed?

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 6 years (up from two years) to bring a damages claim against the association for failure to maintain and repair association property.

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 changed?

New duties for association committees included 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 included:

• 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 changed?

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

Associations must 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 must 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.

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, only a majority vote is needed.  

For more information, visit the Installation, financing and by-laws for sustainability infrastructure page.

What changed?

If requested, a person only needs to provide one form of evidence about their assistance animal. The list of evidence the person can choose from 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 changed?

Managing agents must report every 6 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 have been banned. Terms that limit an agent’s liability to a specific amount are also 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.

For more information, visit the Responsibilities of a managing agentpage.

What changed?

An exclusive supply network (sometimes called 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 exclusive supply network entered into on or after 1 July 2025, expires:

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

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.

For more information, visit the Managing association finances page.

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

What changed?

The fees for inspecting association records increased on 1 July 2025. The increase applies 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.

Electronic access to records must be through secured means.

For more information, visit the Record keeping for associations.

Penalties on developers apply 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 2 months of the initial period or the documents are not given to members 14 days before the meeting.

For more information, visit the Meetings and voting page.

What changed?

Legal services

An association must get approval at a general meeting of the association before obtaining legal services. 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.

Association property rights by-laws

The laws 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.  

For more information, visit the Managing association finances page.