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Strata reform continues in New South Wales

On 19 November 2025, NSW Parliament introduced another set of proposed changes to the Strata Schemes Management Act 2015 (SSMA), the Community Land Management Act 2021 (CLMA), the Strata Schemes Development Act 2015 (SSDA) and the Conveyancing Act 1919 (CA), in the form of the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 (Miscellaneous Amendment Bill).

This bill marks the fourth tranche of strata reform initiated by the Minn Labor Government and continues to implement recommendations in response to a statutory review of the SSMA in 2021, following the similarly named Strata Schemes Legislation Amendment Act 2025. Though the previous amendment act is yet to fully commence till April 2026, the government is losing no momentum in rolling out further statutory changes for stakeholders in strata living.

To read more about the previous amendment act, please see our previous article: https://bagl.com.au/strata-schemes-legislation-amendment-act-2025/

Set out below are some of the key changes proposed by Miscellaneous Amendment Bill:

Proposed Changes to the Strata Schemes Management Act (SSMA)

1. Exemptions for 2-Lot Strata Schemes

Two-lot schemes will be exempt from several SSMA requirements. They will no longer need to pass special resolutions, hold general meetings, form a strata committee, prepare a 10-year capital works plan, provide regulatory information to the Secretary, or comply with other prescribed requirements.
Decisions will instead be made by written resolution, which becomes the only record the owners corporation must retain for seven years.

2. Term Extensions for Strata Managing Agents

A strata manager will be allowed to extend their appointment term by three months through written notice issued at least one month before the current term expires.
However, this extension cannot occur if the owners corporation provides at least two months’ written notice stating the manager will not be reappointed.

3. Disclosure of Commissions and Training by Strata Managers

Strata managers must disclose all commissions received or expected, as well as any training services provided, including details of who paid for or delivered those services.
NSW Fair Trading may introduce an approved form for this disclosure report.

4. Term of Appointment for Building Managers

The maximum appointment term for building managers will be significantly reduced—from the current 10 years down to 3 years.
Regulations may set different terms for certain classes of building managers.

5. Termination of Building Manager Agreements

NCAT will be empowered to terminate a building manager’s contract where the manager has breached a duty prescribed in the regulations.

6. Expanded Scope of Payment Plans

Payment plans may include more than overdue contributions. They may also cover:

  • interest on overdue contributions

  • contributions already levied but not yet due

  • any other matter prescribed in regulations

7. Mandatory Reminder Notices for Unpaid Levies

Owners corporations must issue a reminder notice between 7–10 days after a contribution becomes overdue.
The notice must include: due date, amount owing, interest details, payment methods, all information normally included with a levy notice, and any other prescribed requirements.
No recovery action may begin until this reminder notice has been issued.

8. Debt Recovery Restrictions and Requirements

Regulations may introduce additional circumstances restricting recovery action, as well as new procedural requirements for commencing recovery proceedings.

9. Clarification on Order of Applying Payments

The Bill clarifies that “recovery expenses” apply only to the owners corporation’s costs of recovering contributions ordered under section 86.
Payments must continue to be applied in this order: contributions → interest → recovery expenses.

10. Rules Regarding Bonds

Bonds charged by an owners corporation must be reasonable, based on the likely risk of damage to common property.
Terms of the bond must be provided, and any by-law inconsistent with these requirements will have no effect.

11. Owners Corporation Fees

Any fee charged by an owners corporation for providing goods or services must be no more than the reasonable cost of providing them.

12. Changes to “Cosmetic Work” and “Minor Work” Definitions

Definitions have been updated:

  • Cosmetic work: attaching fixtures, applying coverings, or decorating internal surfaces of walls, floors or ceilings.

  • Minor work: repairs, replacements or alterations to a lot that do not affect a building element, plus any works prescribed by regulation.

13. Window Safety Devices

Owners corporations will be responsible for maintaining window safety devices.

14. Exclusive Supply Agreements

New provisions will regulate exclusive supply networks. Suppliers cannot require an owners corporation to pay capital costs or buy network infrastructure at the end of a contract.
A supplier also cannot remove infrastructure without the owners corporation’s consent.

15. EV Charging Stations

Lot owners may install an EV charging station within their lot after giving an installation notice and receiving a no-objection notice from the committee.
Committees must not unreasonably object.

A by-law cannot prevent reasonable installation of EV chargers.

The lot owner must cover installation costs and indemnify the owners corporation for maintenance and repair costs.

16. Publication of Undertakings and Compliance Notices

NSW Fair Trading may publish information about undertakings or compliance notices issued under the Act.

17. Approval of Training Providers

Training required for strata committee members must be delivered by approved training providers, with regulations to outline the approval process.

18. Tenancy Vacate Notices

Landlords or agents must notify the owners corporation within 14 days when a tenant vacates a lot.
If they fail to do so, the tenant must give the notice.

19. Strata Hub Fund

A new Strata Hub Fund will be created to receive payments made to Fair Trading relating to the maintenance of strata information on Strata Hub.

20. Meeting Procedures

Meeting procedures for the owners corporation and strata committee—currently in Schedules 1 and 2—will be moved to the regulations.
Updated procedures will be released once the Amendment Bill is passed.

21. NCAT Powers

NCAT will gain expanded powers, including orders allowing costs to be levied only on specified lots.
NCAT will also be able to order repayment of unreasonable bonds or fees, and award damages for breaches of statutory duties under sections 26, 106 and 140.


Proposed Changes to the Community Land Management Act (CLMA)

The same reforms outlined above will also apply, with necessary adjustments, to community schemes regulated under the CLMA 2021.


Proposed Changes to the Strata Schemes Development Act (SSDA)

1. Maximum Terms for BMC-Appointed Agents

Agents appointed by a building management committee will have a maximum term of 5 years.

2. Record-Keeping Requirements

BMCs must keep extensive electronic records, including contact details, management statements, insurance, financial records, minutes, proxies, delegated function records, and a register of building-related contracts.
All records must be kept for 7 years and be accessible for inspection.

3. Amendments to Strata Management Statements

The Supreme Court may amend a management statement on application by an eligible party.
The Court must consider compliance with the statement’s requirements and any reassessment of shared costs.

4. Signature Requirements

The Registrar-General may waive existing signature requirements where amendments relate only to cost reallocations following reassessment.

5. Novation of Building-Related Contracts

Outgoing owners of non-strata buildings may notify a purchaser of building-related contracts.
If accepted within 14 days, those contracts are automatically novated to the purchaser.

6. Shared Facility Costs

Shared facility cost allocations must be reviewed every five years.
If a reassessment recommends changes, the SMS must be amended unless unanimously rejected.

7. New Mandatory Content for SMS

Strata management statements must now include:

  • officeholder details

  • meeting procedures

  • voting rights methodology

  • record inspection procedures

  • agent appointment processes and delegations

8. BMC Representatives

An owners corporation’s BMC representative must be a strata committee member and must vote according to written directions from the OC.


Proposed Changes to the Conveyancing Act (CA)

The CA will be updated to reflect the same changes applying to building management statements under the SSDA.

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This article was first published on 1 December 2025. It was written by Coco Chen (Solicitor) from our Sydney office, and peer reviewed by Emma Smythies (Partner).

© Bugden Allen Group Legal Pty Ltd. This is general information only and not legal advice. You should not rely on this information without seeking legal advice tailored to your specific circumstances.