The Minns Labor Government has introduced its third wave of strata reforms to the NSW Parliament today, continuing its work to confront the state's housing challenges and address cost of living pressures.
More than 1.2 million people are already living in strata communities in NSW, and that number is set to grow under the Government's comprehensive plan to build a better NSW.
The latest round of reforms builds on our commitment to working across all levels of Government and industry to encourage people to live and invest in strata.
The latest changes will:
- Strengthen developer accountability by requiring initial levies to be independently certified;
- Ensure a robust initial maintenance schedule is in place for new builds;
- Protect owners corporations from unfair contract terms;
- Help owners corporations in repairing and maintaining common property;
- Support the uptake of sustainability infrastructure in strata schemes such as solar panels, electric vehicle charging, and efficient water fixtures; and
- Give property owners more options to pay levies when facing financial stress.
With cost of living pressures biting many households, the sensible changes being proposed will require owners corporations to estimate how much money will be needed for the capital works fund each year, alongside their annual energy and water consumption and expenditure in common areas.
Owners corporations will also be better supported through increased professional standards and accountability for managing agents and building managers, improvements to strata management agreements, and improved committee governance.
The new laws also clamp down on developers who offer prospective buyers initially low strata levies that increase significantly in the second and successive years. By strengthening the accountability of developers we can avoid "bill shock" for residents.
This legislation follows the recent launch of the Strata Living Guide which provides strata property owners and prospective buyers clear advice in plain English on a range of topics aimed at improving decision-making in strata communities.
The new Guide has practical 'how to' information for those living in strata properties, such as how to run strata meetings and other key strata processes, how to manage strata finances, and how to raise issues.
The Guide also helpfully suggests ways to go about getting things done such as regular or emergency repairs and approvals for renovations, resolving disputes, and managing relationships with the owners corporation and strata manager.
These reforms build on the Government's ongoing work to make it easier for people living in strata properties to keep pets and assistance animals, and greater transparency requirements and higher penalties for strata managing agents who do the wrong thing.
For more information please visit: https://www.nsw.gov.au/housing-and-construction/strata
Quotes attributable to Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"The Minns Labor Government is continuing to improve the regulatory framework we need to build better homes and communities for the people of NSW.
"These reforms will ensure strata laws are modern, fit for purpose, and hold those involved accountable for their actions.
"Through the significant changes we have made to strata laws, we are getting the settings right to ensure people have the confidence to invest and live in strata properties.
"These new laws follow the recent launch of the Strata Living Guide which provides clear advice to people living in the 86,000 strata schemes in NSW, which will help them govern their strata schemes constructively and effectively."
