New South Wales Strata Reform Bills

The New South Wales Government has finally introduced the Strata Schemes Management Bill 2015 and the Strata Schemes Development Bill 2015 (the Bills) into Parliament after plans to reform NSW strata and community scheme laws have been proposed since 2012. The Bill re-enacts current laws relating to strata schemes and makes a number of other changes.

To read our previous coverage on the new Strata Bills, please see our previous articles:

• NSW New Strata Scheme Changes Announced

• NSW Strata Title Reform Position Paper Released

• NSW Reform of Strata Scheme Laws

The Bills

The main objectives of the bills are to improve strata living by minimising regulatory burdens imposed on occupants and by improving the democratic processes within strata schemes. The new democratic process will see a better process of collective sale and renewal of strata schemes as well as redevelopment of aged strata schemes. Some of the main proposed changes are:

Collapse of Strata

In the current law, to collapse a strata scheme, the owners’ corporation would require unanimous support from all owners of the scheme. However, the new law proposes a 75% approval of all owners for this function. Checks and balances will be introduced into the system to ensure that owners are not unfairly disadvantaged.

Owner Renovation

The reforms will endeavour to ease the process by which an owner may make minor renovations within his/her lot. Under the new laws, minor renovations will only require an ordinary resolution; i.e. 50% of votes.

Building Defects

The reforms will introduce mandatory defect inspection reports as well as a building bond for the construction of high rise strata buildings. Building developers would be required to carry out a defect inspection through an independent inspector at their cost, between 12 to 18 months after completion.

Management Agents

The reforms will make strata management agents more accountable to owners’ corporation. Managers must disclose any conflict of interest in their duties and their terms will also be limited. 

The Bills are currently in Second Reading Debate in the Legislative Assembly.

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Strata Schemes Management Bill 2015 as reproduced on TimeBase LawOne

Strata Schemes Development Bill 2015 as reproduced on TimeBase LawOne

Strata redevelopment - potential in the strata reforms