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NSW strata shake-up cuts red tape, boosts high-density profits
NSW has introduced new strata reforms to boost investor confidence to buy high-density housing, including two-lot schemes, by cutting red tape and improving transparency.
The Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 enables NSW Fair Trading to proactively publish compliance actions taken against an owners corporation, so that buyers remain aware of issues with repairs or maintenance.
For owners, the reforms will allow for the installation of electric vehicle charging stations unless faced with reasonable objections, while also setting fairer limits on when an owners' corporation can charge a bond or fee.
The changes will also remove red tape around two-lot schemes such as duplexes, which make up more than 30 per cent of strata properties, meaning they will no longer need to form committees, hold meetings or submit annual reports to Fair Trading.
Additionally, the reforms will give the NSW Civil and Administrative Tribunal the right to terminate an agreement between an owners corporation and its building manager if it is found to have breached its duties.
The introduced changes marked the fourth round around strata properties since 2023, which the NSW Government said finalised the response to recommendations made in a 2021 statutory review of the laws.
The reforms followed earlier changes this month, which increased accountability and transparency for building managers, requiring them to disclose conflicts of interest.
Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, said the changes would make it more attractive for buyers to live in high-density areas.
“Effective and transparent strata management is a significant part of this Government’s plan to improve housing quality in NSW, and we are delivering on it,” Chanthivong said.
Strata and Property Services Commissioner Angus Abadee said the new reforms ensured proper rules were in place.
“While this has been a huge uplift in the rights for residents and responsibilities for owners' corporations, it is not the end of the journey for modernising strata living.”
“Work will continue to ensure the benefits of the government’s strata reform agenda are not only realised, but sustained through fair, transparent, and responsive regulation,” Abadee concluded.