Strata Reforms – Closing the embedded network trap
Posted 25 May 2026
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Pending reforms to strata management legislation — including the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 — are expected to commence later this year. These reforms introduce several important changes for strata managing agents, owners corporations and service providers. One of the key areas of reform relates to the regulation of exclusive supply agreements.
Exclusive Supply Agreements (Embedded Networks)
The reforms introduce a new regulatory framework for embedded networks, now formally referred to as exclusive supply agreements. These agreements will be governed by a new provision with several significant features. Key features of the new provision include:
Transitional provision excludes agreements entered into before commencement of the section or prescribed by regulation.
These reforms will have practical implications for strata managing agents. In particular, agents will need to:
Overall, the reforms aim to reduce financial pressure on schemes and prevent providers from leveraging infrastructure ownership to secure long‑term commercial advantage — but they also place a greater administrative and advisory burden on managing agents.
We have considerable experience with these reforms and could assist you with any practical issues you may be experiencing or expect.
If you are a Compliance Pack member, please click here to download the Strata Reforms Guide.
***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.
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