On July 1, a suite of legislative changes affecting strata and community titles took effect across New South Wales, reshaping governance protocols and compliance responsibilities for property managers, insurers, and related stakeholders.
The Strata Community Association (SCA) said the reforms aim to improve operational transparency, align practices with broader sustainability goals, and address longstanding issues within contract and dispute resolution frameworks.
Among the most notable adjustments, minor renovation requests submitted under an approved by-law must now be approved automatically if not addressed by the strata committee within three months. These decisions must also be documented and retained for a minimum of ten years.
Sustainability measures are also embedded in the legislative changes. By-laws can no longer restrict installations like solar panels or electric vehicle charging infrastructure solely for aesthetic reasons – excluding heritage-listed properties.
Additionally, environmental sustainability has become a compulsory discussion item during annual general meetings, requiring owners corporations to assess water and energy usage and related expenditures.
All contracts between strata schemes and service providers, including those with strata managers, must now adhere to updated consumer protection laws prohibiting unfair terms in standard form contracts. These adjustments reflect a broader move to enhance transactional fairness and ensure clearer accountability among service providers.
Accessibility-related upgrades, such as installing lifts or ramps, can now be approved with a simple majority vote, streamlining decision-making on disability-related improvements.
The criteria for approving assistance animals have also been simplified, with a broader range of supporting documentation now accepted.
Strata managing agents are now required to provide detailed written reports to owners corporations every six months. These reports must outline the tasks performed under their contract and provide transparency over the agent’s activities.
Developers face new compliance timelines. The first annual general meeting must occur within two months of the initial period ending, and all documentation must be distributed at least 14 days beforehand. Failure to meet these obligations can attract fines up to $11,000, with ongoing penalties accruing daily.
As these new rules come into force, advocacy groups are urging the NSW government to proceed with a proposed ban on insurance commissions paid to strata managers.
Consumer groups argue that commissions create conflicts of interest and undermine price transparency in strata insurance arrangements.
Karen Stiles, policy director at the Owners Corporation Network, said past reviews had exposed poor conduct in strata insurance procurement.
“The government’s own investigations have exposed extensive misconduct in strata insurance. These practices have cost lot owners dearly – in trust, transparency, and inflated premiums. The proposed ban on commissions is a vital step toward restoring integrity in the system. We cannot allow commercial interests to undermine consumer protections,” she said.
Tyrone Shandiman, chair of the Australian Consumers Insurance Lobby, expressed similar concerns.
“The problems in strata insurance are not isolated incidents – they’re the result of systemic, unethical behaviour that has gone unchecked for too long. There must be consequences. If an industry can profit through poor conduct and then lobby its way out of reform, it sends the message that the risk was worth it. That cannot be the legacy of this government’s reform agenda,” he said.
Some industry leaders have voiced concerns that removing insurance commissions could affect business viability.
Bobby Lehane, CEO of strata management firm PICA Group, cautioned that commission removal could significantly impact operating margins across the sector.
“The strata management sector has endured a sustained period of declining profitability and viability, so any significant changes to remuneration from insurance at this time represents an existential threat,” he said.
PICA’s internal survey showed mixed preferences among property owners in NSW. Thirty-four percent supported keeping commissions, while 38% preferred a fixed-fee model funded by insurers, and 29% supported eliminating commissions if other fee structures were adjusted.
