Navigating Recent NSW Strata Reforms

To explain what has changed and what it means in practical, day‑to‑day terms, we sat down with Samantha Turnbull, Senior Strata Manager, and Shaun Harrison, Head of Compliance, to discuss the reforms owners should be aware of, and what to expect next.

What Has Changed Over the Last 12 Months?

The NSW Government has been rolling out strata reforms in stages, commencing on 3 February 2025, 1 July 2025, 27 October 2025, and most recently 1 April 2026. A full guide to these changes is available on the NSW Government website here.

One of the strongest and most consistent themes across these reforms is a greater focus on repairs, maintenance and long‑term planning.

As Samantha explains:

“The expectation now is that buildings are thinking ahead. Capital Works planning needs to reflect reality, not best‑case scenarios.”

While Owners Corporations have always been required to repair and maintain common property, recent reforms give NSW Fair Trading enhanced enforcement powers to ensure this obligation is being met.

This places greater importance on Owners Corporations planning maintenance carefully and budgeting realistically based on the condition and needs of their building. It remains common for schemes to underfund levies at the AGM, which can result in maintenance being deferred. Over time, this often leads to urgent, more costly works and increased risk for the scheme.

Although levies are often viewed as one of the few controllable costs, keeping them low can result in underfunded schemes, reliance on temporary fixes and inadequate capital works planning. Ultimately, this approach increases long‑term costs and exposure for owners.

The overall message is clear: Owners Corporations are expected to plan, maintain and fund their schemes more effectively, rather than managing buildings on a reactive basis.

Changes from 1 April 2026

Some of the most recent reforms commenced on 1 April 2026. Many of these changes apply primarily to new strata developments and developers, introducing higher levels of accountability and more detailed requirements at the handover stage.

For existing schemes, the most relevant change is the introduction of a new standard template for 10‑year Capital Works Fund Plans.

When a Capital Works Fund Plan is now reviewed or replaced, it must use the Fair Trading standard template. Existing plans do not need to be updated immediately, unless they are due for their 5 year review. The new format requires clearer detail about planned works, timing and funding.

The intent of this change is to improve consistency, transparency and long‑term financial planning across NSW strata schemes.

Compliance: Ongoing Management is Essential

Shaun notes that compliance is an area where expectations have increased significantly:

“Councils and Fair Trading are now much more proactive. Schemes are expected to demonstrate ongoing compliance, not rely solely on annual reporting.”

Key compliance obligations include:

Maintaining fire safety systems throughout the year and addressing faults promptly
Ensuring asbestos reports are in place for schemes registered before 2004 and reviewed every 5 years
Regularly checking window safety devices
Ensuring all contractors engaged are appropriately licensed and insured

Failure to meet these obligations can expose Owners Corporations to fines, formal orders and significant insurance implications.

What Is Next?

Further reforms are expected later in 2026, including the introduction of mandatory training for strata committee members.

From late 2026, committee members elected at the AGM will be required to complete training designed to ensure they understand their responsibilities and can confidently carry out their role. Fair Trading will provide further guidance on training requirements and access closer to the commencement date.

Supporting Owners Through Change

With the volume and pace of reforms increasing, Strata Management has become more complex. We will continue to support your Owners Corporations by helping you understand your obligations, plan effectively and manage compliance in a practical and structured way.

The reforms of the past year signal a clear shift towards better‑planned, better‑maintained and better‑governed strata buildings across NSW. While this brings increased responsibility for Owners Corporations, it also supports safer buildings, improved financial planning and stronger long‑term outcomes for owners.

If you would like assistance understanding how these reforms apply to your scheme, or support reviewing your maintenance or compliance requirements, please contact your Strata Manager.