The New South Wales Government has ushered in a new era for strata living, implementing changes aimed at fostering fairness and transparency within the strata system. Effective from 11 December 2023, these reforms touch upon various aspects of strata management, addressing concerns raised during public consultations in recent years.
Under the Strata Legislation Amendment Bill 2023, changes have been instituted across four pivotal Acts regulating strata and community land schemes. Rooted in the recommendations from the 2021 Statutory Review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015, these changes impact critical areas, including strata renewal processes, conflict of interest disclosures, pet regulations, financial management, and by-laws.
Owners’ Disclosure: All owners must disclose any direct or indirect financial or other interest in a strata renewal proposal during the plan development.
Land and Environment Court (Court) Oversight: The Court evaluates conflicts of interest for strata renewal applications and objections, with the authority to award costs against dissenting owners acting unreasonably or in bad faith.
Flexibility in Approval: The Court may approve a renewal plan even if the renewal process deviates, provided there is no substantial injustice.
For more details, refer to the Office of the Registrar General website.
No Fees or Bonds: Owners corporations cannot charge fees or bonds for pets, and insurance for pets on a lot is prohibited.
Assistance Animals: By-laws cannot impede the duty of assistance animals on lots or common property. Specific evidence forms maintain privacy for persons with assistance animals.
Learn more about pets in strata.
Extended Notice Period: The minimum period for annual general meeting notices is now 14 days.
Original Owners’ Obligations: Original owners must provide key documents 14 days before the first annual general meeting.
Power of Attorney and Company Nominee Limits: New restrictions on the number of owners a power of attorney or company nominee can represent.
Uncover additional details on annual general meetings.
Financial Interest Restrictions: Committee members cannot participate or vote on matters where they have a financial interest, excluding the strata renewal process.
Removal and Prohibition: Easier removal of committee members through a majority vote, with a one-year prohibition on serving again after removal.
Discover more about strata committees.
Repayment Rules: Clarification on the rules regarding the repayment of transferred money between administrative and capital works funds.
Levy Payments: Schemes may require payment of levies in 14 days for necessary repairs to mitigate health or safety threats.
Independent Quotes: All strata schemes must obtain at least two independent quotes for proposed expenditure over $30,000.
Tenant Notifications: Landlord’s agents are obligated to provide various notices and information to tenants.
Learn more about strata finances, levies, and insurance.
Notice of Contract Expiry: Managing agents must give notice of the expiry of their contract within three to six months before expiry.
Commissioner for Fair Trading: The Commissioner for Fair Trading has the standing to seek the appointment of a compulsory managing agent at the NSW Civil and Administrative Tribunal (not yet commenced).
Explore different roles in strata.
By-Law Compliance: A notice to comply with a by-law can be issued without a resolution by the owners corporation.
Voting on Special Resolutions: The original owner maintains full unit entitlement when voting on matters requiring a special resolution.
Consolidation Process: Clarification that a consolidation of by-laws requires a special resolution.
Compliance Requirements: By-laws must comply with the Strata Schemes Management Act 2015, regardless of when they were made.
Navigate through the intricacies of by-laws.
As these reforms reshape the strata landscape, it’s crucial for all stakeholders to stay informed and adapt to the evolving legal framework. For personalised legal advice or assistance, contact our expert team today.
