17 February 2025 / Matt Blewitt

2025 strata law reforms in NSW

<h2>2025 strata law reforms in NSW</h2>

Strata laws are changing again, and the impact will be felt across every level of management. In 2025, new strata law reforms in NSW will affect owners, committees, managers and developers with a strong focus on transparency, accountability and fairer practices. Staying compliant will be essential to avoid penalties and keep operations running smoothly.

At All Suburbs Strata Management, we bring over 40 years of experience in residential strata management in Greater Sydney, Nepean and the Central Coast. We specialise in strata compliance, staying up to date with legislative changes and providing clear, accurate guidance to our clients.

What’s changing?

The Strata Schemes Legislation Amendment Bill 2024 is another major shift in NSW strata laws, following the extensive 2021 review of the Strata Schemes Management Act 2015. The reforms address key areas and introduce new compliance measures at various levels.

Introduced to Parliament on 20 November 2024, the bill follows closely behind the Strata Managing Agents Amendments Act 2024, which came into effect in stages from November 2024 to February 2025. Together, these changes reinforce the government’s focus on improving governance and accountability in strata schemes.

Strata manager accountability

Strata managers now have a host of new obligations, including stricter disclosure requirements—such as revealing any financial relationships with suppliers before being appointed. This aims to improve transparency and ensure owners corporations have all relevant information when selecting a manager.

Failure to provide timely and complete information can result in fines of up to $110,000. These rules are designed to prevent conflicts of interest that could put owners at a disadvantage.

Insurance quotes must also be more transparent, ensuring owners receive clear, competitive pricing. This change aims to eliminate hidden commissions and allow for more informed financial decisions within strata schemes.

Strata committee responsibilities and training requirements

Strata committee members now have increased legal responsibilities similar to those of company directors. This change holds them more accountable for decisions affecting owners and the overall management of the scheme.
Mandatory training will also be introduced to ensure committee members understand their duties. Those who fail to complete the required training risk automatic removal from their position.

There is also greater oversight on key financial and operational matters, including budgeting, levies, by-laws and common property maintenance. These measures aim to improve governance and protect owners’ interests.

Developer obligations

Developers must now provide an initial maintenance schedule and accurate levy estimates before the first annual general meeting. This is to ensure owners have a clearer understanding of ongoing costs from the outset.

Stronger protections are in place to stop off-the-plan buyers from being locked into unfair embedded network contracts. These changes prevent developers from setting up costly, long-term agreements that limit choice.

Additional documentation is needed to improve transparency and long-term financial planning. Owners corporations will have better access to key information, making it easier to manage expenses and maintain the property.

Common property repairs and levy recovery assistance

Owners corporations must now act faster and more efficiently when repairing common property. Delays in maintenance can lead to greater costs and legal risks.

Strata property owners seeking approval for minor renovations can now go through the strata committee, streamlining the process and reducing unnecessary delays for straightforward projects.

New levy recovery measures have been put in place to assist owners experiencing financial hardship. These changes provide more structured support while ensuring strata schemes can still recover outstanding funds.

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Why choose All Suburbs Strata Management?

Strata laws continue to evolve, bringing new expectations for how schemes are managed. The 2025 reforms are closing loopholes and strengthening protections for owners to improve overall operational efficiency.

Adjusting to the new rules requires preparation, and a proactive approach will help strata communities avoid issues and setbacks. Now is the time to review agreements, update policies and ensure compliance to prevent complications down the track.

At ASSM, we have over 40 years of experience in strata management for residential, community, commercial and industrial properties, and we specialise in compliance.

Are you looking for a reliable strata manager? Our team provides outstanding service and clear communication. The goal of everything we do is simple: to make life easier for you.

If you are considering buying into a strata scheme or want to secure a professional and qualified team, contact ASSM today.

Meet The Author

Matt Blewitt

Licensee in Charge / General Manager

Matt’s career began in property management, and he worked his way through a range of senior roles before returning to the family business. He now oversees ASSM strata portfolios with a practical focus on risk, consistency and keeping things running as they should. He believes clear communication, sound judgement and a willingness to own mistakes when they happen are the foundations of successful strata management.

What keeps Matt motivated is the people he works with, both within the team and across client communities. He understands the pressures owners and committees face and always balances compliance with common sense. This measured approach has been shaped by years on the ground and a genuine desire to do the job right, no matter the challenge.

We provide Australia’s most professional and comprehensive strata management services across Greater Sydney and other parts of NSW. Our expertise spans residentialcommunitycommercial and industrial strata schemes. It’s easy to switch to All Suburbs Strata Management. See the extensive range of suburbs our certified strata managers oversee below.

FAQs

What are the 2025 NSW strata law reforms about?

The 2025 strata law reforms introduced major changes to strata legislation in New South Wales that focus on transparency, accountability and fairer practices for owners, committees, strata managers and developers to improve how strata schemes operate.

When did the 2025 strata law reforms start taking effect?

The reforms are being rolled out in stages — with key changes commencing from 1 July 2025, additional reforms from 27 October 2025, and further obligations scheduled for 1 April 2026.

How do the reforms change strata managers’ responsibilities?

Strata managers now have stricter disclosure duties, including revealing financial relationships with suppliers before appointment. They must also provide clearer information about insurance quotes and other fees to improve transparency.

What new obligations do strata committee members have under the reforms?

Committee members are now subject to increased legal responsibilities similar to company directors. Mandatory training will also be introduced to help them understand their duties, with risks for failing to complete required training.

How do the reforms affect developers and new strata schemes?

Developers must now provide an initial maintenance schedule and accurate levy estimates before the first annual general meeting, giving owners clearer information from the outset. The reforms also tighten rules around embedded network contracts to protect future owners.

What changes help strata owners with levies and common property issues?

Owners corporations are expected to act more efficiently in repairing common property, while new levy recovery measures provide structured support for owners experiencing financial hardship, ensuring more balanced levy practices.

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