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The latest NSW strata reforms have been introduced to strengthen resident protections, restore trust in the sector, and alleviate financial pressures on strata owners.
The NSW government has rolled out a suite of new strata reforms in its bid to restore trust in the industry and alleviate cost-of-living pressures.
Among the new reforms were measures to protect residents from financial stress, uphold property managers’ obligations, and enforce compliance with property maintenance requirements.
Under the new regulation, residents can pay off their strata debt by requiring owners’ corporations to offer a payment plan before taking debt recovery action and prohibiting blanket rules banning payment schemes.
To further assist strata owners in financial stress, the reforms, which started in late October, also require a Financial Hardship Information Statement to be sent with every strata levy notice.
According to the NSW government, the new regulations will make it easier for owners to stay on top of their levies and access help faster when they need it.
Additionally, the recent changes will also ensure increased accountability and transparency for building managers, holding them to the same standards as strata managing agents.
Under the reforms, building managers will be required to act in the best interests of their clients and disclose conflicts of interest or kickbacks, or risk facing fines of between $11,000 and $22,000 for breaches.
As a fourth measure, NSW Fair Trading will be able to issue compliance notices and enter enforceable undertakings with owners’ corporations that do not meet their duties to maintain and repair common property.
“These changes will ensure serious maintenance issues and defects can be fixed without expensive and time-consuming litigation through the courts or tribunal,” the NSW government said.
Rules compliance will be enforced by the Strata and Property Services Taskforce within NSW Fair Trading, with dedicated inspectors probing breaches across the industry.
The new regulations marked the third stage of reforms the Minns government has rolled out since November 2023 to assist the more than 1.2 million people living in strata.
“These reforms have been designed to restore consumer confidence in strata living which is vital to the Government’s housing agenda,” the NSW government said.
Changes in strata regulations were first introduced by the Minns Labor government in November 2023 and rolled out in different phases, starting in February 2025.
Among the reforms, new measures introduced included increased penalties for strata managing agents who fail to disclose conflicts of interest, as well as a ban on unfair terms in strata contracts.
The prior reforms also made it easier for owners to undertake minor renovations and to remove barriers to the adoption of sustainability measures, such as solar panels and electric vehicle charging.
NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, said the newly introduced changes would ensure increased accountability for strata professionals and transparency in the management process.
“Strengthening the owners corporation’s repair and maintenance obligation will drive strata communities to be more focused on building upkeep and safety for everyone who lives in or owns property in the scheme,” he said.
He added that schemes failing to meet their repair and maintenance obligations could lead to buildings falling into disrepair, causing cost blowouts, safety issues, legal disputes, and limited insurability of the strata property.
“Anyone can experience financial hardship, and these reforms help provide more clarity and certainty for owners who may need more time to pay their levies, as well as for the strata scheme managing the levy payments,” he concluded.
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