Apartment owners get better protections and greater rights as fourth strata bill passes Parliament

Passed by NSW Parliament last night, the Strata Schemes Legislation Amendment (Miscellaneous Bill) 2025 reduces red tape for owners, modernises the industry, improves fairness for lot owners, strengthens compliance with strata laws, and provides clarity on rules and procedures.

Under the new laws, unnecessary red tape will be removed for two-lot schemes such as duplexes, which make up more than 30 per cent of strata schemes, so they no longer need to form committees, hold meetings and submit annual reports to NSW Fair Trading.

There will be fair limits on when an owners corporation can charge strata residents a bond or fee. For example, bonds for access keys or swipe cards that are exorbitantly higher than the replacement cost will no longer be allowed.

Owners now also have the right to install electric vehicle charging on their own lot without fear of unreasonable objection from their strata committee.

NSW Fair Trading will have increased powers to publish compliance action taken against owners corporations so prospective buyers can know if there are any issues with repairs and maintenance in the building.

The reforms also empower the NSW Civil and Administrative Tribunal to order termination of a building management agreement if they breach their duties, including if a building manager fails to reveal they receive commissions.

This Bill complements three earlier tranches of strata reforms, including:

• Requiring payment plans to be offered to owners in financial hardship before debt recovery action can be taken and prohibiting blanket rules to refuse payment plan requests.
• Protections for owners from bill shock by requiring developers to have initial levy estimates in new strata buildings to be independently certified, including increased penalties for non-compliance.
• Introducing itemised insurance quotes so owners know exactly how much is going to agents and brokers in commissions and fees.
• Making it easier for owners to do minor renovations.
• Removing barriers to the uptake of sustainability measures such as solar panels and electric vehicle charging by prohibiting bylaws that block the infrastructure due to external appearance.
• Ensuring goods and services are obtained at competitive prices, by requiring owners corporations to get a second quote when the bill for work will be over $30,000.
• Banning strata managing agents from taking a commission on insurance products when they don't play a role in finding the best deal for owners.
• Increased penalties for strata managing agents who don't disclose conflicts of interest or kickbacks to owners.
• Allowing NSW Fair Trading to issue compliance notices and enter enforceable undertakings with owners corporations that do not meet their duties to maintain and repair common property. This will ensure serious maintenance issues and defects can be fixed without expensive and time-consuming litigation through the courts or tribunal.

For more information on recent strata law changes, please visit: Changes to strata laws | NSW Government

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:

"More people will be living in higher-density development as we build the homes our community needs across NSW. That's why the Minns Labor Government has overhauled strata laws over the past three years to help build confidence in apartment living.

"Owners and residents want clearer rules, greater transparency and stronger protections, and this legislation delivers through stronger oversight, better consumer protections and greater support for those experiencing financial hardship.

"The Minns Labor Government is changing how strata communities operate and modernising the way NSW Fair Trading regulates both the professional standards of the industry and the rights of people living in apartments."