NSW Strata Law Changes in 2026: What Owners Corporations and Managers Need to Know

NSW strata law is evolving fast. Here's a clear breakdown of the reforms already in force, the compliance deadlines approaching in 2026, and a practical checklist to help committees and managers stay ahead.

NSW strata legislation has been moving through a significant reform cycle, and NSW strata law changes in 2026 represent some of the most operationally impactful updates committees and managers will need to action. Whether you manage a boutique residential block or a large mixed-use scheme, understanding what has already changed — and what is still coming — is essential for staying compliant and protecting the interests of lot owners.

This article cuts through the noise and gives you a clear, state-by-state-accurate picture of where things stand under the *Strata Schemes Management Act 2015* (NSW) and related regulations, as well as the practical steps you should be taking right now.

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Why 2026 Is a Pivotal Year for NSW Strata

The NSW Government has been progressively rolling out reforms stemming from earlier legislative reviews and community consultation. Some changes were introduced by regulation and took effect in stages, meaning that deadlines which seemed distant a year or two ago are now very much live compliance obligations.

Strata managers, executive committee members, and self-managing owners who are not across these changes risk non-compliance, potential civil penalties, and — just as importantly — failing the people they represent.

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Key NSW Strata Law Changes Already in Force

Mandatory Costs Disclosure for Strata Managers

Strata managing agents are now required to provide detailed disclosure of any commissions, rebates, or other benefits they receive from third-party suppliers such as insurers or tradespeople. The intent is to eliminate conflicts of interest and ensure transparency for owners corporations.

What this means in practice:

  • Agents must disclose the dollar value (or reasonable estimate) of any benefit at or before the time of appointment, and annually thereafter.
  • Owners corporations should be reviewing their agency agreements to confirm this disclosure is happening correctly.
  • Committees have the right to ask for a full breakdown at any general meeting.

Digitisation of Records and Meetings

Amendments to the Act and regulations have expanded the circumstances under which strata schemes can hold electronic meetings and keep digital records, formalising practices that became common during the pandemic. Key points include:

  • Electronic voting and remote attendance at general meetings are now clearly supported within the legislative framework, provided the scheme's by-laws and notice requirements are followed.
  • Records kept electronically must still be accessible to lot owners on request.
  • Schemes should review whether their by-laws reflect and enable current digital practices — if they were last updated before 2021, they likely need a refresh.

Defect Bond and Inspection Regime (Larger Schemes)

The developer bond and building inspection regime — requiring developers of certain residential strata buildings to lodge a 2% bond redeemable against identified defects — continues to mature. Inspection timeframes are tied to building completion, so schemes built in recent years may be approaching key inspection windows. Committees in newer buildings should be actively tracking these dates.

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Compliance Deadlines and Reforms to Action in 2026

Cladding Remediation Reporting

Owners corporations with buildings affected by combustible cladding have ongoing obligations under both strata legislation and the *Environmental Planning and Assessment Act 1979* (NSW). If your scheme is on the Cladding Project register or has been assessed, 2026 may bring further remediation or reporting milestones. Engage your building manager and fire safety consultant to confirm your current status.

10-Year Capital Works Fund Plans

The Act requires all schemes to maintain a 10-year capital works fund plan (formerly known as the sinking fund forecast). If your plan was prepared in 2016 or 2017 and has not been updated since, it is almost certainly due — and possibly overdue — for a fresh independent review. An outdated plan is a red flag for prospective purchasers conducting due diligence, and can leave your scheme chronically underfunded.

Steps to take:

  • Check the date of your current plan.
  • Engage an accredited quantity surveyor or capital works fund planner.
  • Ensure the revised plan is adopted at a general meeting and properly minuted.

By-Law Consolidation and Review

NSW Fair Trading requires that a consolidated set of by-laws be registered with NSW Land Registry Services. If your scheme has passed numerous by-law amendments over recent years without registering a clean consolidated version, this is a compliance gap that should be resolved. Non-registration does not automatically invalidate a by-law, but it creates ambiguity and can cause problems in enforcement proceedings.

Strata Committee Governance

Reforms have tightened the rules around how strata committees operate, including conflict-of-interest obligations, spending limits before owners corporation approval is required, and proper minuting of decisions. Committees should:

  • Confirm that all committee members understand their duties and the scheme's delegation thresholds.
  • Ensure minutes are distributed within the required timeframe after each meeting.
  • Not delegate matters beyond what the Act permits.

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Practical Compliance Checklist for 2026

Use this checklist as a starting point for a governance health-check on your scheme:

For Strata Committees:

  • [ ] Review and update your 10-year capital works fund plan if it is approaching or past its five-year review point.
  • [ ] Audit by-laws — confirm a consolidated version is registered with NSW LRS.
  • [ ] Check cladding status and any outstanding remediation obligations.
  • [ ] Review strata manager's disclosure documents — are all commissions and benefits properly declared?
  • [ ] Confirm electronic meeting and voting procedures are reflected in by-laws.
  • [ ] Review committee spending limits and confirm all members are aware of them.
  • [ ] For newer buildings: confirm awareness of developer bond inspection timelines.

For Strata Managers:

  • [ ] Ensure annual disclosure of commissions and third-party benefits is documented.
  • [ ] Verify that record-keeping systems meet legislative requirements for accessibility and retention.
  • [ ] Advise committees on any scheme-specific compliance deadlines arising from building age, cladding status, or prior notices from regulators.
  • [ ] Check that all agency agreements reference current legislative requirements.

For Self-Managing Owners Corporations:

  • [ ] Consider engaging a strata lawyer or consultant for an annual governance review — the complexity of obligations makes self-management higher-risk than it was even five years ago.

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Where to Get Authoritative Guidance

NSW Fair Trading publishes guidance materials for owners corporations and strata managers, and the *Strata Schemes Management Act 2015* (NSW) together with the *Strata Schemes Management Regulation 2016* (NSW) remain the primary legislative references. Given that reforms are ongoing, it is worth checking the NSW legislation website (legislation.nsw.gov.au) regularly for any amendments that have commenced.

If your scheme is facing a specific compliance question — particularly around defects, cladding, or by-law enforcement — independent legal advice from a strata-specialist solicitor is strongly recommended.

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Practical Takeaway

NSW strata law changes in 2026 are not a distant horizon — many obligations are already live, and key deadlines around capital works fund plans, by-law registration, and cladding remediation are pressing. The most effective thing any committee or manager can do right now is conduct a structured governance review, identify gaps, and assign clear responsibility for resolving them before they become compliance problems.

Platforms like Orveya can help building and strata managers centralise compliance tracking, documentation, and reporting — making it easier to stay on top of these evolving obligations in one place rather than across scattered spreadsheets and email threads.

Start with the checklist above, loop in your strata manager and legal adviser where needed, and make 2026 the year your scheme gets its governance in genuinely good shape.

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