NSW Strata Reforms 2025: What They Mean for Owners, Committees, and the Future of Strata Living

From 1 July 2025, sweeping reforms will reshape how strata and community land schemes operate across New South Wales. These aren’t just regulatory tweaks, they’re a call to raise the bar across the industry.

At Bettr Strata, we’ve always believed that strata living should be fairer, more inclusive, and future ready. These reforms reinforce that belief and bring long-overdue clarity and accountability to the way our communities are governed.


Why these reforms matter

Strata titles were first introduced in NSW in 1961, and today, more than one in five people in the state live in a strata-managed property. These reforms, part of the most comprehensive update to the Strata Schemes Management Act since 2015, reflect the growing complexity and expectations of modern strata living.

They also respond to years of consultation with owners, tenants, managers, and legal professionals. The result is a legislative package that aims to simplify processes, strengthen protections, and future-proof our communities.


Key changes at a glance

1. Empowering owners

  • Automatic approval for minor renovations: If a committee doesn’t respond within three months, approval is assumed, provided a by-law is in place. This change removes unnecessary delays for straightforward works like installing blinds or replacing flooring.
  • Simplified accessibility upgrades: Changes to common property for accessibility now require only a majority vote, not a special resolution. This is a big win for residents with mobility needs and reflects a broader push for inclusive design.

2. Lifting professional standards

  • Mandatory reporting by strata managers: Managers must now report to the owners corporation every six months, ensuring greater transparency and accountability.
  • Unfair contract terms banned: Examples include clauses that:
    • Shift liability to the owners corporation for the agent’s professional indemnity insurance
    • Limit the agent’s liability unless covered by a professional standards scheme
    • Automatically renew contracts without proper notice

These changes align with broader consumer law protections and help level the playing field for owners.

3. Sustainability and futureproofing

  • Sustainability must be on the agenda: Every AGM must now include sustainability planning, and capital works funds must consider environmental upgrades.
  • Appearance-based bans are out: By-laws can no longer prohibit sustainability upgrades (like solar panels or double glazing) purely on aesthetic grounds—unless the building is heritage-listed.

This is a clear signal that strata communities must play their part in the state’s broader climate goals.

4. Stronger governance

  • Expanded duties for committees and chairpersons: These roles now come with clearer expectations around fairness, diligence, and transparency.
  • Chairpersons must maintain order and encourage open discussion at meetings—no more rubber-stamping or shutting down debate.

These changes aim to foster more respectful, inclusive, and effective decision-making.


What this means for you

If you’re an owner, committee member, or developer, these changes will affect how you operate. But if you’re already working with Bettr Strata, you’re ahead of the curve.

We’ve long advocated for:

  • Transparent communication
  • Inclusive decision-making
  • Sustainable planning
  • Ethical contract management

 

These reforms simply codify what we’ve always believed: that strata communities thrive when people come first.


What you should do now

With 1 July fast approaching, here’s how to prepare:

✅ Review and update your by-laws, especially around renovations, accessibility, and sustainability.
✅ Add sustainability to your AGM agenda
✅ Audit your contracts for any terms that may now be considered unfair.
✅ Educate committee members on their new duties and responsibilities.
✅ Ensure your strata manager is ready to meet the new reporting requirements.

You can also download the NSW Government’s official guide or check out the LookUpStrata Action List for a more detailed breakdown.


Final Thoughts

There’s been some excellent commentary from colleagues in strata law unpacking these reforms—well worth a read. I won’t single anyone out, but with the deadline looming, there’s really no excuse for not being across what’s coming.

These reforms are a chance to reset expectations and raise the standard of strata living across NSW. At Bettr Strata, we’re ready, and we’re here to help our communities thrive in this new chapter.

Cheers,

JM

A disclaimer as my lawyer said I should add it here: This article is intended to provide general information only and does not constitute legal advice. You should seek independent legal advice tailored to your specific circumstances before acting on any of the information provided.

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