Strata living has always had its layers of complexity, but the latest reforms coming into effect across 2025 and 2026 introduce some meaningful changes designed to boost transparency, improve building upkeep and give owners stronger protections.

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At Netstrata, we’ve broken down what’s changing, why it matters and what owners should do to stay ahead.

Why are these changes happening?

The NSW Government has introduced a package of reforms to:

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• strengthen maintenance and safety standards
• create clearer financial processes for owners
• improve governance and accountability across strata schemes
• ensure better protections for new buildings and their future planning

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These aren’t minor tweaks. They’re structural upgrades that shift expectations on owners’ corporations, managers, developers and contractors. Understanding them now puts you in a stronger position and helps avoid surprises later.

The Key Changes and What They Mean for You

1. Stronger Maintenance Obligations and More Oversight

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Starts 27 October 2025

One of the big changes is based around how strongly the owners’ corporation must respond when common property isn’t maintained.

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What’s changing:

• NSW Fair Trading now has more power to investigate owners’ corporations that fail to maintain common property.
• If an issue affects access or safety, repairs cannot be delayed because a scheme is involved in legal action.
• Owners now have six years (up from two) to claim damages if their owners’ corporation fails to maintain common property.

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What it means for owners

If your building has ongoing issues (think lifts, waterproofing, façades or shared amenities), you now have stronger grounds to expect action and enforce accountability.

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Netstrata recommendation

Ask your committee or strata manager whether your maintenance plan is up to date and whether high-risk items have been prioritised. Early planning protects the building and lowers long-term costs.

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2. Better Support for Owners Experiencing Financial Hardship

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Starts 27 October 2025

The reforms recognise that financial challenges happen and introduce more consistent protections.

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What’s changing:

• Levy notices must now include a Financial Hardship Information Statement.
• Owners requesting a payment plan for overdue levies must receive a written response within 28 days.
• Owners’ corporations cannot simply resolve to reject all hardship requests.

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What it means for owners

If you hit a rough patch, there is now a clear process and timeline for seeking support rather than immediately facing debt recovery.

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Netstrata recommendation

If you receive a levy notice without the required hardship information, get in touch. If you need a payment plan, speak to your manager early, we can guide you through the process and ensure you receive the appropriate support.

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3. Fairer Contracts, Clearer Duties and Greater Transparency

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Changes from 1 July and 27 October 2025

Governance across strata is tightening, particularly around contracts and conflicts of interest.

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What’s changing

• Unfair contract terms are banned in standard form agreements for goods or services provided to an owners’ corporation.
• Building managers now have clearly defined duties, including acting in the best interests of the scheme, disclosing financial interests and notifying the owners corporation about major repair needs.

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What it means for owners

These changes protect your building from being locked into unfavourable agreements and ensure building managers operate with greater accountability.

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Netstrata recommendation

Review any new or renewing service contracts. If something looks one-sided or unclear, raise it with your strata manager, transparency now avoids disputes later.

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4. More Protection for New Buildings and Long-Term Financial Planning

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Starts 1 April 2026

New developments will benefit from stronger early-stage requirements.

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What’s changing

• A standard form will be required for all new or reviewed 10-year capital works fund plans.
• Developers of multi-storey buildings must engage an independent surveyor to certify the initial maintenance schedule and levy estimates.
• Strata information certificates will soon need additional disclosure about embedded or exclusive supply network.

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What it means for owners

These changes help prevent underfunded schemes and inaccurate levy estimates, a common issue in newer buildings.

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Netstrata recommendation

If your building is new, recently completed or approaching its first AGM, ask whether these standards have been met. It’s one of the easiest ways to protect your future levies.

What Owners Should Do Next

A few simple steps can put your scheme in the best position:

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• Speak with your committee or strata manager about how your building is preparing for the reforms.
• Review your maintenance plan and capital works fund plan to ensure they align with the new requirements.
• Check whether upcoming contracts comply with the new unfair contract rules.
• Increase transparency in your scheme — ask for reports, updates and clarity where needed.

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Netstrata will be proactively guiding our buildings through the transition to ensure compliance, smoother operations and better outcomes for owners.

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Want to read more? Visit the NSW government website here:

'Guide to strata law changes for strata committees and owners'