The rollout of the amendments to the NSW Strata & Community Title legislation continues. The next tranche of amendments comes into effect on 27 October 2025. A brief summary of these changes is below.
- Improved Repairs and Maintenance Compliance
The office of Fair Trading NSW will gain stronger investigative and enforcement powers to ensure strata schemes maintain common property. This includes powers to enter premises (including the scheme and strata manager’s office) for inspections, powers to enter for the purpose of testing and to require documents. Fair Trading will also have powers to:
- Issue enforceable undertakings
- Issue compliance notices
- Issue penalty infringement notices; and
- Commence tribunal applications or prosecution.
This is designed to ensure that strata schemes proactively address maintenance issues. Tools such as the Strata Building Health check have been developed to assist with this.
- Financial Hardship Support
A new requirement designed to assist those in financial distress is that levy notices must include a Financial Hardship Information statement with contact details for the National Debt Helpline.
There are also Standardised Payment Plan request forms for strata levies. In considering a payment plan request scheme:
- Must consider each request individually
- Cannot impose fees
- Must respond in writing within 28 days; and
- Must give reasons if refusing a plan.
Schemes cannot pass a resolution to refuse all payment plan requests. Reasonable refusal is allowed if a payment plan if accepting would lead to insufficient funds. Legal action is paused on debt recovery if a plan is in place and followed.
- Changes to clarify the definition of a building manager
This means that tradespeople doing specific tasks without a broader management role will not be considered to be building managers.
There are also new duties as building managers which are:
- To act in the owners corporation’s best interest
- To promptly report and advise on repairs or safety issues; and
- To disclose any benefits, financial interests, or relationships. (e.g. referral fees)
A person seeking appointment as a building manager must declare benefits affecting fees.
Author: Allison Benson