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New Strata Laws for 2025 | In Parliament

Posted 27 November 2024

Category: Strata

Strata Management Legislation Amendment Bill 2024

In a continuation of the spotlight on strata management practices and to address some of the 122 items identified in the 2021 Review of the Strata Schemes Management Act 2015, we have another sweeping round of amendments to keep those in strata industry completely on their toes, if not off balance. Let’s dive into this Strata Schemes Legislation Amendment Bill 2024 (Bill) which was proposed in Parliament on 20 November 2024. For the sake of clarity, we are not talking about the Strata Managing Agents Amendments Act 2024 which many of you are already struggling with, which commenced in part on 8 November 2024, with the balance on 3 February 2025.

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Who needs to be concerned? Basically, anybody involved in the strata sector. There is something here impacting on day-to-day activities of virtually everyone involved in the sector. For example:

  • Strata managing agents have significant new obligations, including disclosure obligations and restrictions on agency agreement provisions and need to review those agreements and their procedures generally.
  • Building managers are even more significantly impacted, with significant new obligations and restrictions on management agreement provisions and also need to review their agreements and procedures generally.
  • Strata committee members have had their duties and obligations significantly expanded, resembling more and more those imposed on company directors. Further, they now need to complete specified training or have their office vacated.
  • Owners corporations, community associations and their committees have a number of operational issues to deal with, the amendments impacting on matters such as accessibility infrastructure, sustainability infrastructure, budgeting, levy determination, levy recovery, insurance, by-laws, AGMs, approval of renovations and common property repair. This will also impact on their agents and other advisers.
  • Developers have increased accountability, particularly in relation to the documents and information to be provided to new schemes prior to the first annual general meeting.

Focus areas:

  • Developer accountability, including information for first AGM such as initial maintenance schedule and levy estimates.
  • Strata manager accountability, including application of Commonwealth unfair contract terms legislation.
  • Building manager accountability, including enhanced duties and application of Commonwealth unfair contract terms legislation.
  • Embedded networks, including measures protecting owners corporations and purchasers of strata lots “off the plan”.
  • Accessibility infrastructure, including measures to facilitate implementation of accessibility infrastructure.
  • Sustainable infrastructure, including measures facilitating implementation and ongoing assessment of sustainable infrastructure.
  • Common property repair and maintenance, including changes to the owners corporation’s statutory duty to repair and maintain common property and owners’ rights regarding strata committee approval of minor renovations.
  • Levy recovery, including measures assisting owners in financial hardship.
  • Strata committee accountability, including enhanced duties and training requirements.
  • New South Wales Fair Trading investigative and enforcement powers.

 Related articles

New Strata Laws for 2024

New Laws for Community and Strata Schemes for 2023!

For Compliance Pack members, LOGIN HERE for more information in our fact sheet:

New Strata Laws in 2025 – Comprehensive Guide.

Not a member? Click here for more information and to find out how to get a demo/trial of the biggest strata library in NSW.

 

***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.


Bannermans Lawyers

Published 27 November 2024

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