Those who live in, rent out, invest in, manage, or build strata properties in New South Wales should prepare for major changes in 2025. The NSW Government has launched an extensive reform package that represents the largest overhaul of state strata laws in decades through a bold multi-stage process. These reforms advance recommendations from the 2021 statutory review and address public demands to fix insurance kickbacks and developer shortcuts while closing governance black holes to bring strata out of its legal grey zone and establish modern accountability standards. Since over 1.2 million residents live in strata properties throughout the state, and that figure continues to rise, these reforms represent more than just routine legislative changes. The reforms function as a statewide examination of our residential practices in growing vertical urban environments.
Strata Agents Under Scrutiny: No More Hidden Commissions
The primary target of this shake-up is a crackdown on the often-unclear realm of strata managing agents. The Strata Managing Agents Legislation Amendment Act 2024 (NSW), which came into effect from February 2025, prohibits strata managing agents from maintaining hidden operations. Strata managing agents need to disclose all commissions and kickbacks from the past to the future through detailed itemisations that include three insurance quotes showing broker fees, GST, base premiums, and the distribution of payments. Agents cannot hide information because they have to report to the owner’s corporation biannually while filing disclosures about relationship changes immediately and must obtain written permission before they accept any benefits.
Strata Committees: From Casual Governance to Corporate Responsibility
The Strata Schemes Management Act 2015 (NSW) has been retooled to demand greater transparency: The Strata Schemes Management Act 2015 allows nominations and appointments to take place during AGMS or extraordinary meetings, with submission options either verbal or written. A minor renovation proposal will receive automatic approval if the committee fails to provide a written rejection within three months. It will be automatically approved. Committee members now face removal unless they demonstrate fair, diligent, and honest behaviour as required by law. Members must now complete mandatory training as their roles evolve into active corporate boardroom functions instead of passive supervision.
Renters Rejoice: No More ‘No Grounds’ Evictions
Renters will finally obtain their long-awaited relief starting 19 May 2025. The Residential Tenancies Act 2010 (NSW) amendments will eliminate the possibility of ‘no grounds’ evictions. In its place: The amendments to the Residential Tenancies Act 2010 (NSW) introduce reinforced protections for leases and tenant pets, along with stronger defences against unwarranted rent increases. Renters now enjoy equal status among all residents. The legal system is finally adapting to the fact that many people now view renting as their permanent way of living instead of a short-term solution.
Accessibility and Sustainability: Upgrades Made Simpler
Accessibility initiatives have moved beyond the difficult-to-implement category. Do you need to install a wheelchair ramp or stairlift, and consider accessible bathroom improvements? Before the change, achieving a 75% vote was essential despite the building’s friendly environment. Now, a simple majority will do. This change represents a significant advancement in disability accommodation while moving us closer to inclusive housing solutions. Sustainability gets a boost too: Buildings can no longer reject solar panels, EV charging stations, and water-saving technology due to aesthetic concerns unless they hold heritage status. Owners’ corporations need to integrate yearly sustainability planning with regular energy consumption tracking for shared spaces. Form meets function meets climate responsibility.
Embedded Networks Exposed: Developers Must Disclose or Face Consequences
And developers? They’re not just being watched they’re being audited. The regulations introduced in 2025 establish unprecedented obligations for off-the-plan property sales. Developers need to provide a formally verified maintenance timeline that eliminates deferred maintenance promises and deliver precise budget calculations for administrative and capital projects alongside full disclosure of embedded utility systems. The requirement mandates developers to conduct the first AGM within two months after the development period ends. Failing to hold the first AGM within two months will result in daily fines in addition to the base charge of 100 penalty units.
A Structural Shift for Strata: Transparency, Accountability, and the Future
In short, these reforms aren’t tinkering they’re transformative. These reforms change the existing power structure among agents, developers, owners and residents. The NSW Government believes future generations will benefit from a strata landscape that achieves greater security, transparency, inclusivity, and sustainability.
The strata living sector in NSW has begun a new phase, which demands attention from everyone, including first-time buyers and long-time committee members, to developers working on blueprints.
If you or someone you know is a Lot Owner or an Owners Corporation an require advice, you can contact our team of experts by calling us at 9525 8688 or emailing wmd@wmdlaw.com.au.
Sources:
https://www.nsw.gov.au/housing-and-construction/strata/serving-on-a-committee/strata-laws
https://www.holdingredlich.com/from-cradle-to-grave-nsw-s-strata-reforms-explained
https://www.strataplus.com.au/what-the-new-strata-laws-mean-for-you-in-2025/
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