Guide to 2025 strata law changes

What’s changing?

To refuse an owner’s request for a minor renovation, the strata committee will need to provide the reasons in writing within three months of receiving the request. If they fail to do this, the minor renovation is automatically approved.  

This only applies if there is a by-law that allows the strata committee to decide on minor renovation requests. For more information about renovations, visit the strata renovation rules page.

Owners corporations must keep a record of any minor renovations approved for a period of 10 years.

What do strata committees need to do?   

Strata committees should be aware of the change, if the committee decides on minor renovation requests.

Encouraging the uptake of sustainability

What’s changing?

Currently some schemes have by-laws (strata rules) that ban sustainability infrastructure to be installed if it impacts on the external appearance of common property or the owner’s property.

These by-laws will be banned unless the building is heritage-listed or in a heritage conservation area.

The owners corporation will need to consider sustainability at each AGM. An item must be included on the AGM agenda to consider environmental sustainability within the scheme, including consideration of the common property annual energy and water consumption and expenditure.

Owners corporations 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 strata schemes need to do?  

• Review your by-laws and update them so they comply with the law change.
• Your secretary (or strata managing agent) should ensure your AGM agenda includes an item to consider sustainability in the scheme.    
• The treasurer or strata manager will also need to consider sustainability as part of the process for preparing the capital works fund estimates each year. This includes cost estimates for installing or upgrading sustainability infrastructure.

What’s changing?

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

Examples of contracts for the supply of goods or services:

• strata management contracts
• building management contracts
• cleaning or gardening contracts.

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

The change will apply to contracts entered into on or after the start date for the new laws, or existing contracts renewed or varied on or after the new laws start.

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 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, or
• 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. Lean more about what you can do if you think a contract term is unfair.

Making it easier to install accessibility infrastructure in schemes

It will be easier for an owner or the owners corporation to make changes to common property to enable a person with a disability to have access to their property or common property. Instead of a special resolution, only a majority vote is needed.  

What do schemes need to do?  

Understand the new process and voting threshold for requests to change the common property to improve accessibility.

What’s changing?

New duties for strata committees will include that its members must: 

• 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 their property or the common property
• comply with their obligations under the strata laws
• only use or disclose information you receive as a committee member (including information about an owner), if you are allowed to under the law or need to as part of carrying out your role.

New duties for the chairperson will include: 

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

Learn more about strata committees.

What do strata committee members need to do? 

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

What’s changing?

If an owner or other person has damaged common property and the owners corporation has taken legal action against them, the owners corporation will no longer be able to delay making repairs to the common property if a delay would affect a person’s access or use of the common property or a lot.

For example, if an owners corporation sues an owner for causing a large crack in the stairs to the lobby with their motorbike, this damage affects a person's use of the stairs. So, the owners corporation cannot delay getting this repair done.

Other changes include:

• An owner will have six years (up from two years) to bring any damages claims against the owners corporation if they have failed to maintain and repair common property.
• If the owners corporation passes a special resolution to change common property, it must state if the owners corporation or lot owner is responsible for the ongoing maintenance.
• When preparing the first 10-year plan, the owners corporation must consider the initial maintenance schedule which is prepared by the developer and given to the owners at the first AGM.  

Learn more about repairs and maintenance including repairs to common property and the repairs process.

What do strata schemes need to do?

Owners corporations should be aware of the changes to their rights and obligations for repairs and maintenance.  

What if there’s a delay in a common property repair that’s a safety risk or affects a person's use or access?

From 1 July, if the owners corporation delays a common property repair because they have taken legal action against an owner or other person for causing damage which poses a safety risk or affects a person's use or access, you can:  

1. Contact your strata manager or strata committee and let them know about the new law.
2. Contact NSW Fair Trading for further assistance if needed, including for free mediation.

What’s changing?

A strata resident (e.g. tenant, owner) will only need to provide one form of evidence about their assistance animal if requested. The expanded 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.  

Learn more about pets in strata.

What do strata schemes need to do?

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

Inspection of records is important to help maintain accountability and enable prospective owners to get more information about the scheme before they buy.

What’s changing?

The fees for inspecting strata records (online or in person) will increase from 1 July 2025. The increase will not apply to existing owners within the scheme. Fees (including GST) increase from:

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

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

What do strata committees need to do?  

Strata committees and/or their strata manager must update their fees for people (other than owners) requesting access to the records.

Learn more about record keeping requirements. 

What’s changing?

Strata managing agents will have to report every 6 months to the owners corporation on the work that they do on behalf of the owners corporation. For example, chairing an AGM and organising repairs to common property.

Terms in strata management contracts will be banned that: 

• require an owners corporation to pay for the agent’s professional indemnity liabilities, or
• limit an agent’s liability to a specific amount, unless the agreement is covered by an approved professional standards scheme.

If a strata managing agent has breached a duty delegated to them by the owners corporation, the agent has a defence against any prosecution for the breach if:

• the owners corporation 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 owners corporation is signing a strata management contract on or after the new laws start, check that it does not contain the following two terms:
  • a term requiring an owners corporation to pay for the agent’s professional indemnity liability, or
  • a term limiting an agent’s liability to a specific amount.
• If the contract does contain these terms, first try and resolve the issue with the strata managing agency, such as by checking whether it is covered by an approved professional standards scheme.
• If you are unable resolve the issue, lodge a complaint with NSW Fair Trading. 

Learn more about agency agreements.

What’s changing?

An embedded network is a private network for the supply of 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 the new laws start, 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 the owners corporation enters into, including embedded network utility agreements. 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 terms and duration of the contract before signing a contract for the supply of electricity through an embedded network after the new laws start.
• If the contract goes beyond the first AGM or is longer than three years, first try and resolve the issue with the business.
• If you can’t resolve the issue, lodge a complaint with NSW Fair Trading.

What's changing?

Penalties on developers will increase if: 

• they do not hold the first AGM on time, or
• fail to provide certain documents to owners 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 owners 14 days before the meeting. 

What’s changing?

Generally, an owners corporation must approve obtaining legal services at a meeting of the owners corporation. There are exceptions, such as for non-urgent legal services less than $3,000. 

The laws clarify that the owners corporation’s approval can be obtained for costs to a maximum amount or an unlimited amount for the legal services.

The new laws will amend the Uncollected Goods Act 1995 to include goods left behind on an owner’s property.

This means the owners corporation will need to seek consent from the owner before taking any action to remove abandoned or uncollected goods from the lot.

The new laws will extend the consent required of an owner before a by-law is made that grants rights or special privileges. That is, allowing for the exclusive use or portion of the common property to a specific owner. This will require the owner’s consent before amending or revoking the by-law. The owner’s consent cannot be unreasonably refused.

What do strata schemes need to do?  

Schemes should familiarise themselves with the new laws.

You will need to discuss sustainability at each AGM. For example, you may consider installing solar panels on common property to benefit both owners and reduce energy costs. To proceed, you will need to obtain quotes and agree on how to finance this with the support of both owners.

Remember, two-lot schemes must hold an AGM each year. Read our AGM guide for two-lot schemes.

Strata rules (called by-laws) for two-lot schemes won’t be able to ban sustainability infrastructure being installed to maintain the external appearance of an owner’s property or the common property. The only exception is heritage-listed properties or those within a heritage conservation area.

Owners in two-lot schemes need to raise a resolution, the same as for larger schemes, if they want to install accessibility infrastructure. If both owners are at the meeting, both owners need to agree for the resolution to pass.

Two-lot schemes will be protected by the same contractual protections that will apply to all other schemes. That means, if they choose to have a strata management agency contract, they may be covered by the newly banned contract terms if it is a standard form agreement. So, it’s important to read and understand our guidance on unfair contract terms.

As with larger schemes, by-laws in two-lot schemes may require a person who keeps an assistance animal on their lot to provide one form of evidence to the owners corporation that the animal is an assistance animal.

For details, read the ‘expanded list of evidence’ a person will be able to choose from.

Changes include:   

• Increasing NSW Fair Trading’s powers to respond if owners have not met their legal duty to maintain their building. These new powers include compliance notices, and agreements that are legally-binding for schemes (‘enforceable undertakings’).
• Prescribing a standard form for the 10-year capital works fund plan and for the initial maintenance schedule for new schemes.

Changes include:   

• Training requirements for strata committee members.

Changes include:

• New information requirements for strata levy notices. This includes information to assist owners in financial hardship to get help early. The information that will need to be provided with the levy notice will include contact details for the National Debt Helpline. This is a free, confidential and independent financial counselling service.   
• Allowing strata committees to enter into payment plans with an owner in financial hardship. Currently, this requires owners corporation approval.
• Supporting owners in financial hardship who request a payment plan. Schemes must consider all requests to enter into a payment plan with an owner for unpaid levies.
• An owners corporation must enter into a payment plan with a lot owner who requests one, unless the owners corporation can refuse the request for one of the reasons allowed under the new laws.
• Giving an owner more notice before 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 strata 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 strata complex.  
• Increasing penalties for a developer who fails to meet these new obligations.

Changes include:

• New duties on building managers, for example a duty to act in the best interests of the owners corporation.

Changes include:

• The sale contract for a strata property will need to disclose certain information about embedded networks.