1 July 2025: Key Strata Law Changes Now in Effect Across NSW

Strata Law Reforms Commence in NSW – 1 July 2025

Significant legislative reforms to the Strata Schemes Management Act 2015 (NSW) are now in effect as of 1 July 2025. These changes introduce new obligations for strata managers, developers, and committees. The reforms aim to enhance transparency, sustainability, and governance across all strata and community schemes in New South Wales.

These changes reflect the government’s commitment to modernising strata governance, supporting sustainability, and protecting owner rights. With more than a quarter of the state’s population living in strata schemes, these reforms have wide-reaching implications.

Key Changes Now in Force

1. Automatic Approval for Renovations

   If a strata committee does not provide written reasons for refusing a minor renovation request within three (3) months, the renovation is deemed approved.

2. Extended Claim Periods for Owners

   Owners can now lodge claims for failure to maintain common property within six (6) years, up from the previous two (2). This includes claims for alternate accommodation or rent loss.

3. Fairer Management Contracts

   Strata management contracts entered into or renewed after 1 July 2025 must not include unfair contract terms.

4. Increased Reporting Frequency

   Strata managing agents are now required to submit half-yearly reports to the owners’ corporation. Previously, this reporting occurred annually at the Annual General Meeting (AGM).

5. Sustainability-Friendly By-laws

   By-laws can no longer prohibit the installation of solar panels or EV charging stations purely on aesthetic grounds.

6. Tougher Developer Penalties

   Developers are now subject to increased penalties for failing to:

   • Hold the first Annual General Meeting (AGM) on time.
   • Provide key documents within the required timeframe.

How Madison Marcus Can Support You

The Strata Division at Madison Marcus is working closely with strata managers, developers, and owners’ corporations to help navigate these legislative changes.

We assist with:

• Reviewing and redrafting strata management contracts
• Preparing compliant reporting structures
• Advising on sustainability by-laws and owners corporation obligations
• Managing renovation disputes and compliance

This article is provided for general informational purposes only and does not constitute legal advice. While every effort is made to ensure the accuracy of the information provided, Madison Marcus Law Firm makes no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content. Readers are advised to seek professional legal advice tailored to their specific circumstances before taking any action based on this information. Madison Marcus Law Firm accepts no liability for any loss or damage incurred as a result of reliance on the information presented herein.