Dear Owners,

We wish to inform you of important legislative changes to NSW strata laws commencing 1 April 2026, which will impact all strata schemes across the state.

These reforms form part of the NSW Government’s broader initiative to strengthen confidence in strata living and investment, enhance long-term asset planning, and improve transparency and accountability across the sector.

At Strata Partners, we are committed to ensuring your scheme remains compliant, well managed, and positioned for long-term financial and structural sustainability.

Key Reform: Mandatory Standard Form for 10-Year Capital Works Fund Plans

All strata schemes are required to have a 10-year capital works fund plan, which helps plan and budget for future repairs and maintenance of common property, with only limited exemptions applying to certain two-lot schemes that meet specific criteria under the legislation.

From 1 April 2026, a new standard format must be used whenever a plan is prepared, updated, or replaced.

The updated plan must clearly outline anticipated works over the next 10 years, associated costs (including inflation), and how the fund will be managed to ensure sufficient funds are available each year.

For each year of the plan, the following must be included:

• Planned capital works and maintenance, categorised (e.g. structural, roofing, electrical, plumbing, fire safety, lifts, waterproofing)
• Forecasted costs adjusted for inflation
• A detailed cash flow forecast, including:

1. Opening fund balance
2. Annual Levy contributions
3. Interest earned
4. Projected expenditure

Importantly, the new format does not assume reliance on special levies or loans. Instead, it reinforces the expectation that adequate funding is built progressively through regular contributions, supporting more effective long-term planning and reducing the likelihood of unexpected levies.

How does this affect existing buildings with a current capital works fund plan?

The new requirements are not retrospective, meaning existing capital works fund plans remain valid until they are next due for review (within 5 years), replacement, or update.

From 1 April 2026, any new plan prepared, or any existing plan that is revised or replaced, must be completed using the prescribed standard form to ensure compliance.

How are we supporting you?

We will review your current 10-year capital works fund plan as part of the AGM process and guide your scheme on when an update is required under the new framework.

Where a plan is due for review or replacement, we recommend engaging a qualified building consultant or quantity surveyor to ensure the plan meets the updated legislative requirements and reflects accurate long-term forecasting.

Additional Legislative Changes (Effective 1 April 2026)

1. Section 184 Certificates (Strata Information Certificates)
   A new prescribed Section 184 certificate must be used when issuing information to prospective purchasers, improving consistency and transparency in strata disclosures.

This is the responsibility of the strata manager when issuing certificates.

How this affects you: There is no direct action required from owners; however, committees should be aware that updated disclosure requirements apply when information is provided to buyers, and processing may follow the new format and standards.

2. Developer Accountability (New Schemes)
   Developers are now required to prepare an Initial Maintenance Schedule (IMS) using a prescribed standard form. This provides clearer visibility of maintenance obligations and expected costs for new owners corporations, with additional requirements applying to multi-storey developments.

This is the responsibility of the developer at the time of establishing the strata scheme.

How this affects you: This primarily impacts newly registered schemes. For existing schemes, there is no direct change; however, for new buildings, this will result in improved transparency around maintenance expectations and costs from the outset.

For further information, you may visit nsw.gov.au/strata.

Should you require any assistance, please contact our office.

Yours sincerely,
Strata Partners