What Owners Corporations and Strata Committees Need to Know

From 1 April 2026, important changes to the Strata Schemes Management Act 2015 (NSW) and the Strata Schemes Management Regulation 2016 came into effect. These reforms are the final stage of a multi‑year overhaul of NSW strata legislation, designed to improve transparency, long‑term maintenance planning, and accountability across strata schemes.

If you are a lot owner, strata committee member, or owners corporation, understanding these changes is essential to remain compliant and avoid future disputes or unexpected costs.

Why Were NSW Strata Laws Changed in 2026?

The NSW Government introduced the 2026 strata reforms to address common issues across strata schemes, including:

• Poor long‑term maintenance planning
• Inconsistent capital works fund plans
• Inadequate disclosure to buyers
• Under‑funded buildings and special levies
• Weak accountability in new developments

The new laws focus on standardisation and forward planning, making it easier for owners to understand the financial and structural health of their building.

Mandatory Standardised 10‑Year Capital Works Fund Plans

What Has Changed?

From 1 April 2026, any new, reviewed, or replaced 10‑year capital works fund plan must be prepared using a prescribed standard form issued by the NSW Government.

Key Requirements:

• Asset‑by‑asset planning (lifts, fire systems, waterproofing, roofing, pumps, etc.)
• A year‑by‑year breakdown of anticipated works and costs
• Clear forecasts showing fund balances, levies, and expenditure
• Alignment between the 10‑year plan and annual budgets
• Mandatory consideration of sustainability and future infrastructure

What This Means for Owners Corporations:

• Existing plans remain valid until reviewed, but future updates must comply
• Poorly funded schemes are now more visible
• Better planning reduces unexpected special levies

New Rules for Initial Maintenance Schedules (IMS)

Applies to New Strata Developments

For strata schemes with a first AGM on or after 1 April 2026, developers must:

• Prepare the Initial Maintenance Schedule using a mandatory standard form
• Provide the IMS at least 14 days before the first AGM

Additional Requirement for Multi‑Storey Buildings:

Developers must also appoint an independent surveyor to:

• Certify the IMS complies with the prescribed form
• Certify that the proposed first‑year levies are realistic and adequate

This change improves handover quality and prevents early funding shortfalls.

Expanded Strata Information Certificates (Section 184)

Buyers are now entitled to more detailed disclosures when purchasing a strata property.

New Information Must Include:

• Whether the building has embedded or exclusive utility networks
• Details of certain compliance matters or orders
• Recent and upcoming meeting information
• Improved clarity around financial and maintenance planning

These changes help buyers make better‑informed decisions and improve market transparency.

Increased Focus on Maintenance Records and Compliance

While the core duty to maintain common property remains unchanged, the new laws significantly raise expectations around:

• Documentation
• Asset maintenance records
• Long‑term funding strategies

Strata schemes that fail to plan adequately may face higher insurance premiums, funding issues, or disputes under section 106 of the Act.