Get a quote
Skip to Main Content

Strata laws in NSW

Basic rules and responsibilities all owners corporation committees should know

Are you across all the latest in NSW?

If you're a member of an owners corporation strata committee in Sydney or wider New South Wales, then you probably already know that you have quite a lot of obligations under the various acts and regulations that deal with owners corporations.

Strata laws can be be confusing so we've provided a helpful summary of the relevant legislation.

Each state is different, but in NSW, the three key pieces of legislation are the Strata Schemes Management Act 2015, the Strata Schemes Development Act 2015, and the Strata Schemes Management Regulations 2016.

The Strata Schemes Management Act 2015 in particular, is the law that deals most extensively with strata committees and owners corporations.

Three ways the Strata Schemes Management Act 2015 can help owners corps

The Strata Schemes Management Act 2015 is designed to help strata committees, owners and residents live and work together for the benefit of the strata community. Three key features include:

  1. The 18 model by-laws that owners corporations can adopt or amend, to ensure they have all the normal things covered. You don't need to start from scratch!
  2. Additional rules to help everyone live together, for example helping owners corporations address noise.
  3. Detailing the financial reporting requirements to ensure that reports into the administrative fund, the capital works fund, and any other fund kept by the owners corporation are made available at the end of each reporting period.

 Strata Schemes Management Act 2015

In addition to the above features, the Act aims to provide greater clarity around strata management. This includes who is responsible for what in a strata property, the things that owners corporations are legally required to do (such as taking out strata insurance), and how disputes should be resolved.Strata Schemes Management Act 2015 In addition to the above features, the Act aims to provide greater clarity around strata management. This includes who is responsible for what in a strata property, the things that owners corporations are legally required to do (such as taking out strata insurance), and how disputes should be resolved.

The Act covers a huge range of topics, such as:

  • Setting up an owners corporation and management (strata) committee
  • The constitution of the corporation
  • Strata meetings and AGMs
  • Allowing tenants to attend (but not vote at) strata meetings
  • Functions, obligations and responsibilities of the owners corporation
  • Roles of different committee executives
  • Appointing external strata managers
  • Financial management and responsibility
  • Property and asset management
  • Functions and responsibilities of building managers
  • Making and enforcing by-laws
  • What consent owners need to get to make cosmetic or minor changes to their property
  • Responsibility for building repairs and defects
  • Compulsory building and liability insurance
  • Requirements for developers/builders to pay a Building Bond to cover the cost of rectifying defects in new buildings
  • Disputes and how to resolve them

Strata Schemes Development Act 2015

The Development Act is focused more on planning and building strata properties than the actual management of them once residents have moved in. However, this Act does cover the ways that a strata scheme can be changed or wound up by the Supreme Court of NSW, at the request of the owners corporation or the owner of a lot, amongst others.

Strata Schemes Management Regulation 2016

The Strata Schemes Management Regulations 2016 provide a more detailed, practical explanation of the rules and obligations created by the Strata Schemes Management Act 2015.

Where the Act deals more with broad policy surrounding strata schemes, the Regulations deal with the nuts and bolts of strata management, and tend to go into a lot more detail. If something in the Act is confusing or vague, the Regulations may be able to assist in providing the answer you're looking for.

Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020

An amendment to the current law has been proposed in NSW to help make it easier for owners corporations to install sustainability infrastructure. The amendment reduces the percentage of owners corporation votes required to approve green changes, from 75% in favour currently to 50%.

Sustainability infrastructure includes alterations, modifications or installation of things designed, for example to reduce greenhouse emissions, reduce energy or water consumption (or increase efficiency), facilitate recycling, lower the amount of waste going landfill, or help encourage sustainable transport (e.g. installing electric vehicle charging stations).

Still not quite clear?

The way laws are written can often be dry and confusing, but if you have an external strata manager, they should be able to advise you further as they are experts in NSW strata laws and regulations. If you don't have an external strata manager, getting advice from a solicitor specialising in property law may be a wise investment.

A wise first step...

Taking out the correct strata insurance is an important and valuable first step to take. But not all insurers know the unique features of NSW strata laws. That's why it makes sense to chat to an expert at Flex Insurance, because we are strata and owners corporation insurance specialists. Or you can call your broker if you prefer.

Strata insurance is our key focus, so we have the expertise to make sure you'll have the right strata cover, for the right price, and flexibility to add extra cover if you need.

Learn more about NSW Strata insurance Get a quote

References - original legislation:
Strata Schemes Management Act 2015
Strata Schemes Development Act 2015
Strata Schemes Management Regulation 2016
Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020

Don't be confused by out-dated laws

The laws listed above have abolished and replaced a number of old strata laws in NSW including:

Strata Schemes Management Act 1996
Strata Schemes Management Regulation 1997
Strata Schemes Management Regulation 2005
Strata Schemes Management Regulation 2010