NSW Introduces Strata Law Reforms to Strengthen Community Protections

In April 2026, the latest phase of these reforms was introduced, focusing on tighter oversight of strata managers and stronger safeguards for owners' corporations. This initiative responds to growing concerns about accountability and governance within the strata sector.

A significant catalyst for these reforms was a major fraud case involving a former strata manager in Coffs Harbour. The individual was found to have transferred over $2 million from multiple strata scheme accounts into personal accounts, leading to a lifetime ban from the property and strata industry. This incident underscored the urgent need for stricter regulatory measures to prevent such misconduct.

The reforms encompass several key areas:

• Enhanced Disclosure Requirements: Strata agents are now subject to stricter rules regarding conflicts of interest, with increased penalties for non-compliance.
• Regulatory Intervention Powers: Authorities have been granted stronger powers to intervene in maintenance disputes, ensuring timely resolution and adherence to standards.
• Consumer Protections: New measures have been introduced to prevent unfair contract arrangements and support owners facing financial hardship, particularly concerning strata levies.
• Accountability Standards: Building managers are now held to higher standards of transparency and accountability, fostering trust within strata communities.

Looking ahead, the NSW Government plans to implement additional reforms, including mandatory training for strata committee members and the disclosure of exclusive supply networks in off-the-plan sales contracts. A significant consideration is the potential transition from a commission-based model to a direct fee-for-service structure for strata insurance, aiming to enhance trust and transparency between strata managing agents and owners.

These reforms represent a concerted effort to address the complexities of strata management, ensuring that the rights and interests of property owners are safeguarded through improved governance and accountability.