NSW Strata Law Reforms from 27 October 2025: What Owners & Committees Need to Know

The next stage of NSW strata law reforms takes effect on 27 October 2025, bringing with it important changes that will impact every owners corporation.  These changes are also designed to strengthen protections for owners, improve fairness, and make sure buildings are managed safely and with clarity.

Here’s what you need to know about the upcoming reforms, how they affect you as an owner, and how we will be helping committees and communities adapt.

The Key Changes

1. Stronger Oversight of Repairs and Maintenance

From 27 October 2025, Fair Trading is empowered to ensure owners corporations meet their legal duty to repair and maintain common property by investigating issues, requesting documentation, issuing compliance notices, and, in serious cases, appointing new management or taking court action.

Fair Trading can now:

• Require documents and written responses from owners corporations, it’s agents or managers
• Record conversations and interactions during investigations
• Create official records and documentation
• Enter premises (in certain circumstances) to assess compliance with maintenance obligations
• Issue compliance notices requiring specific action (e.g. complete repairs or engage licensed trades).
• Issue penalty infringement notices
• Applying to NCAT (Tribunal) for orders, including compulsory appointment of a strata managing agent.
• Initiating court prosecutions where appropriate with the NSW Government

With us, you are already well-positioned to meet these requirements. Our dedicated Repairs & Maintenance team works closely with your Strata Manager to ensure issues are actioned promptly, and our My Portal by SMATA platform gives committees and owners real-time visibility of repair requests, work orders, and progress updates.

If your committee has fallen behind, we’ll work closely with you to review maintenance backlogs, update capital works planning, and address any risks early to help keep your building safe, compliant, and protected from Fair Trading intervention.

2. Financial Hardship Support with Levy Notices

Financial hardship can affect anyone and when it does, getting support early can make all the difference.

From 27 October 2025, every levy notice will include a Financial Hardship Information Statement prepared by NSW Fair Trading. This ensures all owners are aware of their rights and the support options available if they’re struggling to pay levies.

The statement outlines:

• Affordable payment plans of up to 12 months, requested through a new standardised form
• The ability to seek interest waivers as part of a payment plan request
• Access to free and confidential financial counselling through the National Debt Helpline on 1800 007 007
• Mediation services if disputes arise
• Translated versions of the information so it’s accessible to non-English speaking community members

Including this information with every levy notice ensures that all owners have access to the help that is available. It promotes early action, consistency, and fairness across all schemes, helping owners regain stability before arrears become unmanageable.

Our team is trained to respond with empathy, discretion, and clear guidance whenever an owner reaches out for help. We’ll ensure this information is included with every levy notice from 27 October, and we’ll continue to work closely with owners and committees to find sustainable solutions that protect both individuals and the wider community.

If you’re currently experiencing financial difficulty, don’t wait – contact us today to discuss your options. Early conversations lead to better outcomes for everyone.

3. A Fairer System for Payment Plans

Financial pressures can arise for many reasons, and these new reforms are designed to make it easier for owners to get back on track while keeping schemes financially stable. From 27 October 2025, a new, fairer system for levy payment plans will come into effect.

Owners who need extra time to pay overdue levies will use the new Request for a Payment Plan for Overdue Contributions form.  Plans can run for up to 12 months, and once one finishes, another can be agreed if needed.

How the process will work

Under the new rules, strata committees must handle payment plan requests in a fair and consistent way. They must:

• Consider each request individually — blanket refusals are no longer allowed
• Not charge a fee for submitting or maintaining a request
• Respond in writing within 28 days, giving owners certainty about when they’ll have an answer
• Provide clear written reasons if refusing a plan

These reforms don’t require committees to approve every request, but any refusal must be based on sound financial grounds.  A refusal can only be reasonable if approving the plan would leave the scheme without enough funds to meet its obligations. This may include situations where:

• The administrative or capital works fund would fall into deficit
• There would not be enough money for urgent repairs and maintenance
• The scheme could not pay for day-to-day expenses or comply with a Fair Trading notice, undertaking, or order.

If an owner believes their request has been unfairly refused, they now have stronger rights to challenge the decision. They can apply for mediation with NSW Fair Trading, and if that doesn’t resolve the matter, take it to the NSW Civil and Administrative Tribunal (NCAT). If NCAT finds the refusal was unreasonable, the scheme must approve the payment plan.

Other key protections for owners include:

• Repayments must be applied first to overdue levies (in order of due date), then to interest, then to recovery costs
• While a payment plan is in place and being followed properly, no recovery action can be taken
• If recovery action is planned, the owner must be given at least 30 days’ notice

These changes bring welcome fairness and clarity for everyone involved — protecting owners from unnecessary stress and ensuring committees can make balanced, transparent decisions that keep their scheme financially healthy.

To support you (the owners corporation), we will be:

• Making the new payment plan form available to any owner who is struggling with levies
• Ensuring every request is logged, tracked and responded to within the 28-day timeframe
• Supporting committees in assessing requests fairly, with guidance from our finance and compliance experts
• Providing training and resources so committees feel confident applying the new rules consistently.

4. Clearer Duties and Disclosures for Building Managers

From 27 October 2025, building managers will be subject to new legal duties and disclosure requirements, strengthening accountability and transparency across strata communities.

A building manager is someone formally appointed under a building manager agreement to oversee the day-to-day operations of common property. They are distinct from tradespeople such as electricians, plumbers, gardeners or cleaners who are engaged for individual jobs.

Under the new laws, building managers must:

• Act in the best interests of the owners corporation (unless unlawful) and with due diligence
• Promptly identify, report and propose solutions for maintenance, repair and safety issues
• Disclose any financial benefits or commissions they receive when recommending contractors or services
• Provide ongoing transparency around relationships with suppliers, developers, or any financial interests in the scheme

These disclosure requirements include:

• Relationships with suppliers and the original owner/developer
• The nature and value of any benefits or commissions
• Any direct or indirect financial interests in the scheme

These changes don’t prevent building managers from having business relationships with contractors, they simply ensure those relationships are open and transparent, so committees can make fully informed decisions. For new appointments, building managers must also disclose any benefits that affect their proposed fees, helping committees compare quotes fairly and confidently.

The NSW Civil and Administrative Tribunal (NCAT) has also been given stronger powers to terminate agreements if a building or strata manager acts unlawfully, giving owners an added layer of protection.

We’ve written to all building managers we work with to make sure they understand their new obligations and disclosure requirements. We’ve also provided them with an optional disclosure form they can complete and share with their committees. Committees can also use this form to formally request disclosure if they wish.

To read more about these changes, including examples of what building managers do and how the reforms protect owners, see our dedicated article here.

What’s Already Changed in 2025

The reforms began in February 2025 with stronger disclosure requirements for strata managing agents, clearer processes around insurance renewals, and updated rules supporting sustainability infrastructure.

From 1 July 2025, further changes came into effect, including:

• Easier approvals for accessibility upgrades
• Stronger obligations around repairs and maintenance
• New protections against unfair contract terms and
• Increased responsibilities for strata committees and chairpersons

Read our July reforms summary here

What’s Still to Come in 2026

As part of the ongoing strata law reforms, the next stage will commence on 1 April 2026, focusing largely on developers and newly established schemes. We’ll share detailed guidance early next year, but here’s a high-level look at what’s ahead:

• A new standard form for 10-year capital works fund plans
• Developers of new schemes to use a standard form initial maintenance schedule
• Independent certification of levy estimates and initial maintenance schedules for new multi-storey schemes before the first AGM
• Updated Section 184 certificates, which will now include details of embedded electricity networks

Later in 2026 (date to be confirmed), further reforms will introduce:

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• Mandatory training for all strata committee members
• New sustainability and energy-efficiency measures to help schemes operate more responsibly and cost-effectively

While the reforms may appear complex, their goal is simple – to create safer, fairer, and better-managed strata communities across NSW.

We are here to guide you through every step of these changes – keeping this clear simple and well-prepared.  Our priority is ensuring your building stays compliant, supported and ultimately, a place where everyone feels Happier at Home.

If you’d like to learn more, visit the NSW Government’s Guide to strata law changes for committees and owners and if you have any questions about what these updates mean for your scheme, please reply to this email or contact your Strata Manager directly.