The third set of amendments to the Strata Schemes Legislation Amendment Act 2025 and the first set of changes to the Strata Schemes Legislation Amendment Regulation 2025 commence on 27 October 2025. This summary sets out the key reforms and the steps Owners and Committees should take to prepare and remain compliant.

1) Strengthening compliance for repairs and maintenance

What’s changing: NSW Fair Trading will have new investigative and enforcement powers to ensure owners corporations meet their legal duty to repair and maintain common property. Fair Trading may require documents and answers, record a person and make records, and enter premises to investigate. If a breach is found, Fair Trading may seek an enforceable undertaking, issue a compliance notice, issue a penalty infringement notice, apply to the Tribunal (including compulsory appointment of a strata managing agent), or initiate prosecution in court where necessary.

2) Assisting owners in financial hardship

What’s changing: From 27 October 2025, levy notices must include a Financial Hardship Information Statement with details of the National Debt Helpline (free, confidential, independent counselling).

3) Standardised payment plans for overdue levies

A new standard form must be used for payment plan requests: Form 1 – Request for a Payment Plan for Overdue Contributions (PDF).

Key rules (effective 27 October 2025)

• Plans are for a maximum of 12 months (renewable after expiry).
• Owners corporations and committees must: consider each request, not pass blanket resolutions refusing all payment plans, not charge a fee for requests, respond in writing within 28 days, and provide written reasons if refusing.

Reasonable refusal grounds include

• Funds would fall into deficit;
• Capital works fund inadequate for repairs; or
• Administrative fund inadequate for expenses or compliance (including undertakings or notices).

If a refusal is disputed

1. Apply to NSW Fair Trading for mediation;
2. Apply to the Tribunal for an order;
3. If the Tribunal finds refusal unreasonable, the plan must be approved.

Additional changes

• Repayments must apply first to overdue levies, then interest, then recovery costs.
• No recovery action while a plan is in place and being followed.
• Provide 30 days’ notice before commencing recovery action.

4) Clarifying the role and duties of building managers

Who is not a building manager: Service providers such as electricians, gardeners, cleaners or plumbers engaged only for repairs/maintenance under limited terms are not considered building managers.

New duties for building managers

• Act in the owners corporation’s best interests (unless unlawful).
• Act promptly and diligently to: notify owners of maintenance, repair or safety issues; and propose short- and long-term solutions.
• Provide written notice of benefits/commissions when recommending contracts.
• Disclose supplier connections, links to the original owner, and any direct or indirect financial interests.

Rules for candidates & Tribunal powers

• Candidates must disclose benefits that may affect proposed fees (e.g. referral fees, commissions) so owners corporations can compare services fairly.
• From 27 October 2025, owners corporations can apply to the Tribunal to change or end a building manager agreement or a strata managing agent agreement where the manager/agent acts unlawfully (e.g. breaches strata law duties).

Further information

Official NSW Government guide: Guide to strata law changes for strata committees and owners.

If you have any further questions regarding this release, please contact your strata manager.