The NSW Government announced more amendments to the Strata Schemes Management Act 2015 and Community Land Management Act 2021 that will impact owners corporations, strata committees, and managing agents.
These amendments are designed to further improve governance, transparency, and financial management in strata schemes. Below is a summary of the most important changes and what they mean for you.
These amendments should come into effect in the middle of the year; however we will keep you updated as soon as we know more.
The Proposed Changes & What They Mean for You
1. Mandatory Training for Committee Members
The NSW Government is proposing that committee members will need to complete mandatory training and failure to do so within a required timeframe may result in removal from the committee.
If you are a Strata or Association committee member, you may need to complete the training to continue serving. This ensures that committee members are well-equipped to manage strata affairs effectively.
2. Standardised Agency Agreements for Strata Managing Agents
The Secretary will now have the authority to approve standardised agreements for strata managing agents, ensuring greater consistency and clarity in agency contracts. This change aims to create fairer and more transparent terms between owners corporations and managing agents, reducing ambiguity and potential disputes.
3. Standardised Building Manager Agreements
Like strata managing agents, building manager agreements will also follow a standardised format approved by the government. This ensures uniformity in building management contracts, reducing potential disputes and ensuring fair terms for all parties.
4. More Flexible Payment Plans for Overdue Contributions
The government is proposing that owners corporations & Associations must offer reasonable payment plans for overdue levies before pursuing legal action, with plans available for up to 12 months and the option to renew. It is suggested that owners corporations cannot unreasonably refuse such requests, ensuring fairer and more flexible financial management for owners.
For those facing financial difficulties, it will provide more flexibility to arrange manageable payment plans and avoid unnecessary legal action.
5. Restrictions on Legal Action for Levy Recovery
These amendments also mean that owners corporations will not be able to take legal action to recover unpaid levies unless they first offer a reasonable payment plan, which the owner must decline or fail to respond to.
This aims to provide a fairer approach to debt recovery, ensuring that owners are given the opportunity to negotiate payment arrangements before facing legal consequences.
For more information on how Strata laws in NSW are evolving, watch our webinar where Jamesons Strata Management’s Paul Culbi and Strata Specialist Lawyer Colin Cunio sat down for an insightful chat about the latest legislative updates, what they mean for strata owners, and the impact on committees and managers.
