NSW Strata Law Reforms: A New Era of Transparency and Accountability

Commercial, Construction, NSW, Property

From 1 April 2026, the third stage of the Strata Schemes Legislation Amendment Act 2025 (NSW) has commenced, introducing substantial amendments to the Strata Schemes Management Act 2015 (NSW) (SSMA).

These reforms strengthen financial transparency, enhance developer accountability, and improve consumer protection. For owners corporations, strata committees, and developers, compliance is now a strict statutory obligation rather than a matter of best practice.

Set out below are the key reforms now in effect.

Mandatory Standardisation of 10-Year Capital Works Plans

Section 80 of the SSMA now requires most strata schemes, subject to limited exceptions such as certain two-lot schemes, to adopt a prescribed standard form when preparing their 10-year capital works fund plans.

From 1 April 2026, all strata schemes must use a new mandatory standard form whenever they:

  • Prepare a new 10-year plan;
  • Replace an existing plan; or
  • Revise a current plan.

This uniformity ensures that maintenance budgeting is consistent and transparent, helping schemes avoid the “bill shock” of emergency special levies.

Enhanced Disclosure in Strata Information (Section 184) Certificates

Amendments to section 184 of the SSMA expand the disclosure requirements for Strata Information Certificates, which remain a critical document in property transactions. These certificates must now be issued using an updated standard form with expanded disclosure requirements:

  • Schemes must now disclose any “exclusive supply networks” such as privately owned electricity, gas, or internet networks. This gives buyers transparency regarding utility costs and provider restrictions before they commit.
  • Any orders or compliance actions taken by NSW Fair Trading against the Owners Corporation must be disclosed.
  • Details of general meetings from the past year and any upcoming scheduled meetings must be included.

These enhanced disclosure obligations provide prospective purchasers with a clearer understanding of potential financial liabilities, governance issues, and compliance risks within a scheme.

Strengthening Developer Accountability for New Schemes

The reform Introduces significant new obligations in relation to the handover of new strata developments, particularly multi-storey schemes (being buildings exceeding two storeys with vertically stacked lots). To combat the issue of “low-balled” initial levies, the reforms introduce strict new hurdles for developers of new strata schemes.

  • Standardised Initial Maintenance Schedule (IMS): Developers must use a prescribed form to outline common property maintenance obligations.
  • Independent Surveyor Certification (Multi-Storey Schemes): For buildings with more than two storeys, an independent qualified surveyor (AIQS or RICS) must now review and certify the IMS and the first-year levy estimates. They must confirm that the proposed levies are sufficient to meet the building’s actual expected expenditure.

The certified IMS and evidence of the surveyor’s independence must be provided to the Owners Corporation at least 14 days before the first AGM, in accordance with section 115 of the SSMA.

 Takeaways

These reforms are designed to build confidence in strata living by ensuring that financial planning is realistic and disclosure is comprehensive.

For developers, failure to comply with the new certification and documentation requirements carries significant penalties. For owners corporations, these changes provide a more robust framework for long-term asset management.

Contact our team to ensure your scheme or development meets the requirements of the 2026 reforms.

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