Authority Updates - New South Wales - September 2016

Strata regulation released

The Strata Schemes Management Regulation 2016 has been published.

Comments and all submissions on the draft were considered to help ensure this Regulation operates effectively. 

The Regulation commences on the 30th November 2016. The building defect bond scheme will start later on 1 July 2017. 

Some key changes include:

  • strengthening the accountability of strata managers
  • allowing owners to adopt modern technology to conduct meetings, vote, communicate and administer their scheme
  • the need for owners to review by-laws (strata community rules) within 12 months
  • a process for the collective sale and renewal of a strata scheme
  • a simpler, clearer process for dealing with disputes
  • broadening tenant participation in meetings
  • a new option to manage unauthorised parking through a commercial arrangement between a local council and a strata scheme
  • a clearer and simpler three-tier renovations process, which waives approval for cosmetic renovations within the strata lot (for example, installing handrails for safety).

Complying with the new laws 

Strata schemes will have plenty of time to understand and adjust to new requirements after the reforms start.

Be aware that:

  • decisions already made and financial contributions already levied under pre 30 November laws remain valid once new laws start.
  • legal proceedings already underway will be dealt with under the former Act that was in place when proceedings began.

NSW Land and Property Information (LPI) is due to release the final Strata Schemes Development Regulation 2016 later this year.

For more information on the changes, visit the Major changes to strata laws on the NSW Fair Trading Website.

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.