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Secret commissions, repair failures, excessive fees: NSW’s strata crackdown
NSW’s latest string of strata reforms will further crack down on owners corporations that fail to fulfil their repair duties and building managers that don’t disclose their commissions.
The NSW Parliament has passed new reforms to crack down on strata misconduct, protect owners and improve transparency for apartment and duplex owners across the state.
The reforms follow the state government’s finding that applications to its mediation service for strata disputes rose 30 per cent during the last financial year, with repairs and maintenance the biggest source of issues.
The Schemes Legislation Amendment (Miscellaneous Bill) 2025, passed on Thursday, was designed to reduce red tape for owners, improve fairness for lot owners, boost compliance and provide clarity.
Under the changes, NSW Fair Trading will have expanded powers to publish compliance actions taken against owners corporations on its website.
As a result, prospective buyers can see whether there are any repair and maintenance issues in the building before purchasing.
The reforms also allow the NSW Civil and Administrative Tribunal to terminate a building manager’s agreement if they breach their duties, including failing to disclose that they receive commissions.
In addition, unnecessary red tape will be removed for two-lot schemes such as duplexes, no longer requiring them to form committees, hold meetings and submit annual reports to NSW Fair Trading.
There will also be fairer limits on when owners corporations can charge strata residents a bond or fee, such as access keys or swipe cards that are excessively higher than the replacement cost.
Further, owners will now have the right to install electric vehicle charging on their own lot without fear of unreasonable objection from their strata committee.
NSW Better Regulation and Fair Trading Minister Anoulack Chanthivong said the strata laws introduced over the past three years would help to build confidence in apartment living.
“More people will be living in higher-density development as we build the homes our community needs across NSW,” he said.
"Owners and residents want clearer rules, greater transparency and stronger protections, and this legislation delivers through stronger oversight, better consumer protections and greater support for those experiencing financial hardship.”
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