The Minns Labor Government is delivering new protections for the 1.2 million people living in strata across New South Wales with four key changes now in force.

This means the following legal changes are now fully in effect:

·     Crucial consumer protection measures – helping owners pay off their strata debt by requiring owners corporations to offer a payment plan before taking debt recovery action and prohibiting blanket rules to refuse payment plans.

·    Practical assistance to owners in financial stress - a Financial Hardship Information Statement to be sent with every strata levy notice to make it easier for owners to stay on top of their levies and get help faster when they need it. 

·     New accountability and transparency standards for strata managing agents - requiring them to act in the best interests of their clients, with penalties of between $11,000 and $22,000 for breaches, and to disclose any conflicts of interest or kickbacks.

·         World-first strata regulation powers for 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. These changes will ensure serious maintenance issues and defects can be fixed without expensive and time-consuming litigation through the courts or tribunal.  

These important changes come alongside other key initiatives from the Minns Labor Government:

·         Increased penalties for strata agents who don’t disclose conflicts of interests or kickbacks.

·         A ban on unfair contract terms in strata or building management, cleaning and gardening contracts.

·         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.

The new laws are part of three tranches of strata reforms the Minns Government has introduced since November 2023. These reforms have been designed to restore consumer confidence in strata living which is vital to the Government’s housing agenda. More than 1.2 million people already live in strata, with that number set to rise under the Government’s strategic planning reforms. 

Compliance with the reforms will be led by the $8.4 million Strata and Property Services Taskforce within NSW Fair Trading, which has dedicated inspectors and investigators who examine issues across the real estate industry including strata. 

For more information on strata reforms, please visit Guide to strata law changes for strata committees and owners | NSW Government 

Member for Penrith, Karen McKeown OAM MP said: 

“The Minns Labor Government is committed to modernising strata laws so they better protect owners and residents in Penrith.

“The effective management of strata communities is a significant part of the Government’s plan to increase housing across NSW, with more than 50 per cent of Sydney’s total population predicted to live in strata by 2040.

“These new laws mean you can access practical financial assistance in times of stress and have confidence in the transparency and accountability of your strata managing agent.”

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said: 

“The Minns Labor Government is focused on giving the 1.2 million people living in strata schemes across New South Wales greater trust and confidence in how strata is regulated. 

“These changes build on successive reforms to our state’s strata laws that are lifting accountability for strata professionals, increasing transparency in the management process and putting owners back in control over how their schemes are managed.  

“Strengthening the owners corporation’s repair and maintenance obligation will drive strata communities to be more focused on building upkeep and safety for everyone who lives in or owns property in the scheme.  

“When schemes don’t meet their repair and maintenance obligations under strata laws, they risk their building falling into disrepair leading to cost blowouts to fix damage, safety issues, legal disputes, and limiting the insurability of the strata complex. 

“Anyone can experience financial hardship, and these reforms help provide more clarity and certainty for owners who may need more time to pay their levies, as well as for the strata scheme managing the levy payments.”