At a Glance
A new wave of NSW strata reforms takes effect on 1 April 2026 – the third and final stage of a major overhaul of strata legislation.
The key changes affect how your building plans for future maintenance costs, what buyers learn about a scheme before they purchase, and how developers of new buildings are held accountable.
There are also lesser-known changes that directly affect every day strata living, from EV charging rights to protections against excessive move-in bonds.
For most lot owners, no immediate action is required. But knowing what’s changing helps you ask better questions and make more informed decisions about your home.
A Third Round of Reforms And Why It Matters
NSW strata laws have been going through a significant transformation. There were reforms in July 2025 and October 2025, and now a third and final wave of changes arrives on 1 April 2026. These latest changes come from the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025, which implements the remaining recommendations from a major government review of strata legislation. Here’s what is actually changing, and what it means for you as a lot owner.1. How Capital Works Fund Planning Is Changing
Every strata scheme in NSW must maintain a 10-year capital works fund plan which is essentially a long-term savings plan that maps out what major repairs and maintenance your building will need over the next decade, and how much to set aside for them. Think roof replacements, lift upgrades, external painting, driveway resurfacing. From 1 April 2026, when an owners corporation prepares a new plan or reviews and replaces an existing one, it must use a new government-prescribed standard form. The form cannot be changed or modified.| What does the new form require? The standard form requires a detailed year-by-year breakdown of anticipated costs across categories like structural elements, mechanical systems, fire safety, plumbing, landscaping and more, along with a fund balance summary showing opening balances, levy contributions, interest earned and projected closing balances for each year of the plan. |
| Two-lot schemes (e.g. duplexes)
If your scheme has only two lots and the buildings in those lots are physically detached, you may be able to pass a unanimous vote to opt out of maintaining a capital works fund entirely. Speak to your strata manager if you think this might apply to your scheme. |
2. Stronger Protections If You’re Buying into a New Development
If you have ever bought into a brand-new strata scheme and then discovered that the levies were set far too low, or that the building’s maintenance needs were understated, you are not alone. It is one of the most common frustrations for buyers of new-build strata properties.
The April 2026 reforms introduce meaningful protections against exactly this.
From 1 April 2026, developers of new strata schemes must prepare their Initial Maintenance Schedule (IMS), a document detailing maintenance requirements and costs for all common property items, using a new standard form. The IMS must cover everything from roofing and external walls to lifts, fire safety systems, pools, security cameras and more, including estimated costs and manufacturer warranty details.
For apartment blocks and other multi-storey developments (any building where lots are stacked one above another), the obligations go further: the developer must engage an independent quantity surveyor to review and certify both the IMS and the initial levy estimates before the first AGM. The surveyor must confirm that levy estimates are adequate to cover the scheme’s actual expected expenditure in its first year.
| What does ‘independent surveyor’ mean? The surveyor must be genuinely independent from the developer and must hold a recognised professional qualification, either as a Certified Quantity Surveyor through the Australian Institute of Quantity Surveyors, or as a Chartered Quantity Surveyor through the Royal Institution of Chartered Surveyors. |
What this means for you : If you are buying into a new apartment block, you have the right to expect a properly prepared IMS and levy estimates that have been independently checked.
Substantial penalties apply to developers who don’t comply, and your strata manager can verify that the required documentation has been provided using the prescribed standard form before your first AGM.
3. What You Will Now Learn When Buying a Strata Property
A Section 184 Certificate (also called a strata information certificate) is one of the key documents your solicitor or conveyancer requests when you’re buying a strata property. It gives you a snapshot of the scheme’s financial health; current levies, any outstanding debts, approved special levies, by-laws, insurance, and legal proceedings.
From 1 April 2026, these certificates now must also disclose details about any exclusive supply networks, more commonly known as embedded networks, operating within the scheme.
| What is an embedded network? An embedded network is a privately owned utility network that supplies electricity, gas, water, internet or other services to multiple lots within the building. Rather than each owner contracting directly with a retail energy or utility provider, the network operator supplies the whole building and on-sells to individual owners. |
Why does this matter? Embedded networks are increasingly common in newer strata developments, and they can have real implications for you as a buyer or owner:
- You may be locked into a single supplier with less ability to shop around for better rates.
- There may be ongoing contractual obligations tied to the network that affect your costs or your choices as an owner.</li<>
- Exit fees or lock-in periods may apply if the owners corporation ever wants to change arrangements.
The change means that from 1 April 2026, a prospective buyer must be told upfront, through the Section 184 Certificate, whether the building they are purchasing into has an embedded network, what type of service it supplies, and who the provider is. This is exactly the kind of disclosure that should happen before you commit to a purchase, not after.
The penalty for failing to comply with Section 184 requirements has also increased significantly, from 5 to 20 penalty units, reinforcing that this disclosure is taken seriously.
4. Other Changes Worth Knowing About
Beyond the three headline reforms above, there are several other changes that may affect your day-to-day strata life:
EV charging: a new right for lot owners. From 1 April 2026, lot owners have a structured right to install an EV charging station on their lot, even where some common property work is needed to do so. You can give the strata committee an installation notice, and the committee has 3 months to respond. If they do not respond within 3 months, consent is deemed given. The committee cannot unreasonably object, and any by-law that unreasonably prohibits EV charging has no force or effect. You bear the costs of installation and ongoing maintenance, but the process is much clearer than it used to be.
Move-in bonds and fees must now be reasonable. Owners corporations can no longer charge excessive bonds or fees from owners or occupiers. Bond amounts must be proportionate to the likely risk of damage, so a $5,000 bond for a minor move-in where a goods lift is available, for example, would now be challengeable at the Tribunal. Owners must also receive written terms explaining when and how a bond may be claimed or returned.
Levy hardship protections are strengthened. If you fall behind on levies, the process has been formalised and made more reasonable. The owners corporation must now send you a reminder notice between 7 and 10 days after a missed payment, before any recovery action can begin. Payment plans can also now cover not just overdue amounts, but interest and upcoming contributions too, giving owners in genuine hardship a more flexible path forward.
Renovations: clearer categories. The existing ‘cosmetic work’ and ‘minor renovations’ categories are being replaced with ‘cosmetic work’ and ‘minor work’, with clearer definitions. Cosmetic work (like attaching fixtures or decorating walls and ceilings within your lot) still requires no approval. Minor work (repairs or alterations that don’t affect a building element) requires owners corporation approval. Major work affecting structural or building elements still requires a special resolution.
Small two-lot schemes get a simpler governance framework. If you live in a duplex or other two-lot strata scheme, the April 2026 reforms introduce a simplified governance model. Two-lot schemes can make most decisions through written resolutions signed by both owners, rather than holding formal general meetings. This removes a lot of procedural overhead for what are effectively bilateral arrangements.
Developer voting power is clarified. Developers who haven’t sold all their lots can no longer use those unsold lots to push through decisions that favour themselves.
5. More Changes Are Still Coming Later in 2026
The April 2026 reforms are the third and final stage of the current legislative overhaul but the NSW Government has flagged additional changes expected later in 2026, including:
- Mandatory training for strata committee members, to ensure those governing your building have the knowledge to do so effectively.
- A requirement for embedded networks to be disclosed in off-the-plan contracts, extending transparency even further back in the buying process.
Dates for these changes haven’t been confirmed yet but we will keep you informed as details are released.
Frequently Asked Questions
I live in a new development. How do I know if the IMS has been certified?
I live in a new development. How do I know if the IMS has been certified?
For multi-storey schemes with a first AGM on or after 1 April 2026, the developer must provide evidence of independent surveyor certification to the owners corporation at least 14 days before the first AGM. If you are not sure, ask your strata manager.
What is an embedded network and does my building have one?
What is an embedded network and does my building have one?
An embedded network is a privately owned utility supply system (electricity, gas, water, internet etc.) that services the whole building rather than letting each owner arrange their own supply. If you’re unsure whether your building has one, check with your strata manager. From 1 April 2026, all Section 184 Certificates must disclose this information.
I want to install an EV charger — what's the process now?
I want to install an EV charger — what's the process now?
Submit an installation notice to your strata committee with the required information. The committee has 3 months to respond. If they don’t, consent is deemed given. They cannot unreasonably refuse, and any by-law that unreasonably prohibits EV charging is void. You cover all installation and maintenance costs.
My building is a duplex. How do these changes affect me?
My building is a duplex. How do these changes affect me?
Two-lot schemes now have a simplified governance framework. You can make most decisions through written resolutions signed by both owners, rather than holding formal general meetings. You may also be able to opt out of maintaining a capital works fund, if both lots are physically detached and a unanimous vote is passed.
