Progressive Strata Services

Understanding the Proposed NSW Strata Reforms

Published: Wednesday 14 January 2026

Understanding the Proposed NSW Strata Reforms

Strata legislation in NSW has been evolving steadily over recent years, with a focus on clearer governance, stronger accountability, and more consistent processes. The latest step in that process is the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025, which has now been introduced to NSW Parliament.

This Bill is proposed legislation and has not yet passed. Even so, it provides a clear indication of where regulation is heading and the standards that committees and managing agents are increasingly expected to meet.


Where This Bill Fits in the Reform Program

The Bill represents the fourth stage of a broader reform agenda that has unfolded over several years. Earlier changes addressed levy transparency, record-keeping requirements, committee responsibilities, and meeting procedures.

Some of those reforms have already taken effect, which we covered in our article on Strata Changes: 27 October 2025. This Bill builds on those confirmed changes by refining processes and reducing areas of ambiguity rather than introducing a new framework.


What the Proposed Changes Are Aiming to Do

At a practical level, the Bill focuses on three things.

First, it seeks to clarify roles and responsibilities across strata schemes, particularly around record-keeping, levy recovery, managing agent appointments, and disclosure requirements.

Second, it aims to bring greater consistency to how common governance processes operate, regardless of scheme size or complexity.

Third, it strengthens accountability by formalising processes and enforcement mechanisms so expectations are clearer for committees, owners, and managing agents alike.

These changes reflect the growing scale of strata living in NSW and the need for regulation to support a more mature and professional sector.


What This Is Likely to Mean in Practice

For many schemes, the proposed changes are unlikely to feel disruptive. Committees and managing agents who already rely on structured processes, clear documentation, and transparent communication will recognise much of what the Bill is seeking to formalise.

The impact is more likely to be felt in areas that have historically been handled informally. This includes how records are maintained, how levy arrears are managed, how appointments are documented, and how disclosures are communicated.

Rather than introducing entirely new obligations, the Bill reinforces the importance of doing the fundamentals well and doing them consistently. These same fundamentals already influence areas such as insurance renewals, which we explored recently in What Committees Need to Know About Strata Insurance Renewals.


What Committees and Managing Agents Can Do Now

Because the Bill is still before Parliament, there is no need for immediate change. However, it does provide a sensible prompt to review current practices.

Committees can consider whether records are complete and accessible and whether key decisions are properly documented. Managing agents can review appointment terms and disclosure processes to ensure they align with current expectations.

Staying informed and avoiding reactive changes remains the most practical approach at this stage.


Looking Ahead

The Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 signals the next phase of NSW’s ongoing strata reform. While its final form is not yet settled, the direction is clear. Greater clarity, consistency, and transparency will continue to shape how strata schemes are governed.

Well-managed schemes and professionally run buildings are already aligned with much of what the Bill proposes. For others, the reforms provide a clear roadmap rather than a cause for concern.