How to Meet NSW Fair Trading's New Strata Maintenance Rules (2026 Guide)
NSW Fair Trading gained expanded enforcement powers in October 2025, including mandatory repair orders and stricter Initial Maintenance Schedule requirements. Here's what strata managers and owners corporations need to do right now to stay compliant in 2026.
NSW strata maintenance compliance in 2026 looks materially different from what most managers and committees were used to. Since October 2025, NSW Fair Trading has held expanded powers to investigate maintenance failures, issue binding repair orders, and impose financial penalties on non-compliant owners corporations. If your scheme hasn't revisited its maintenance practices since the changes took effect, this guide covers exactly what you need to know — and what to do about it.
What Changed in October 2025 for NSW Strata Maintenance?
The short answer: NSW Fair Trading moved from a largely complaint-responsive role into a proactive enforcement one. The regulatory amendments that took effect in October 2025 strengthened the framework under the *Strata Schemes Management Act 2015* (NSW) in several important ways:
- Expanded investigation powers — Fair Trading inspectors can now enter and inspect strata common property to assess maintenance standards without waiting for an Adjudicator referral in many circumstances.
- Binding repair orders — Fair Trading can issue repair orders directly against an owners corporation requiring specific remedial work within a defined timeframe.
- Financial penalties for non-compliance — Failure to comply with a repair order or to maintain an adequate Initial Maintenance Schedule can attract penalty notices and, in serious cases, civil penalty proceedings.
- Greater scrutiny of Initial Maintenance Schedules (IMS) — The IMS has always been required for new schemes, but enforcement of its ongoing use and update obligations is now much more active.
These aren't merely administrative tweaks. They represent a genuine shift in how Fair Trading approaches strata building maintenance, and the burden falls squarely on owners corporations and their managing agents to have their documentation and processes in order.
What Is an Initial Maintenance Schedule and Who Needs One?
An Initial Maintenance Schedule is a document that must be prepared by the developer and provided to the owners corporation when a new strata scheme is registered. It outlines the maintenance requirements for the building's common property — specifying what needs to be maintained, how often, and at what estimated cost.
Under the *Strata Schemes Management Act 2015*, the IMS forms the foundation of the scheme's 10-year capital works fund plan. It covers items like:
- Lifts, fire safety systems and mechanical plant
- Roofing, waterproofing and external facades
- Pools, gyms and other shared amenities
- Structural components and common-area finishes
Who needs to act on it? Every owners corporation managing a new strata scheme (generally those registered after July 2016) must have received an IMS. Post-October 2025, Fair Trading expects committees and strata managers to demonstrate they are *actively using* the IMS — not just filing it away after the first AGM.
For older schemes, the absence of a formal IMS doesn't eliminate the maintenance obligation. The 10-year capital works fund plan still governs future expenditure, and Fair Trading can assess whether it genuinely reflects the building's maintenance needs.
How Do Mandatory Repair Orders Work?
A repair order is a formal direction from NSW Fair Trading requiring an owners corporation to carry out specified maintenance or repair work on common property.
When can Fair Trading issue a repair order?
Fair Trading can issue a repair order when:
- A complaint is lodged by a lot owner or occupier about a failure to maintain or repair common property
- An inspection by a Fair Trading officer identifies a maintenance deficiency
- An owners corporation has failed to act on a previous direction or adjudication order
The order will specify the works required, the standard to which they must be completed, and a compliance deadline. Owners corporations are legally obliged to carry out the work within that period.
What happens if you ignore a repair order?
Non-compliance can result in:
- Penalty infringement notices issued against the owners corporation
- Civil penalty proceedings in the NSW Civil and Administrative Tribunal (NCAT), where courts have the power to impose significant fines
- Fair Trading arranging works and recovering costs from the owners corporation in extreme cases
It's worth stressing that the penalty exposure falls on the owners corporation as a legal entity — which ultimately means lot owners bear the financial consequences through levies.
Building a Maintenance Compliance Framework That Satisfies Fair Trading
Getting ahead of enforcement is far less costly than responding to it. Here's a practical framework strata managers and committees can implement.
1. Audit your current IMS and capital works fund plan
Pull out your IMS and your 10-year capital works fund plan and compare them. Ask:
- Does the plan include all assets listed in the IMS?
- Are the maintenance frequencies and cost estimates still realistic?
- Has the plan been updated to reflect building changes (e.g. new equipment, defect rectifications)?
If there are significant gaps, engage a quantity surveyor or building consultant to update the capital works fund plan before your next AGM. Presenting an outdated or clearly inadequate plan is now a red flag for Fair Trading.
2. Implement a preventive maintenance register
A maintenance register is a live record of all maintenance tasks — scheduled, in progress and completed — for common property. It should include:
- Asset or item description
- Required maintenance task
- Frequency (monthly, annual, etc.)
- Date last completed
- Contractor or responsible party
- Next scheduled date
This register is your primary evidence of compliance if Fair Trading ever inspects or investigates. Spreadsheets can work for smaller schemes; purpose-built strata management platforms are more reliable for larger or more complex buildings.
3. Prioritise essential safety measures
Under NSW legislation, essential safety measures (ESMs) — fire systems, exit lighting, emergency warning systems — carry their own compliance obligations and inspection certificates. Fair Trading and local councils can both scrutinise these. Ensure your Annual Fire Safety Statement is current and that deficiencies identified in fire safety inspections are actioned promptly. Delayed repairs to ESMs are among the most common triggers for enforcement action.
4. Keep committee meeting minutes current and detailed
When the committee approves maintenance spending or defers work, record the reasons clearly. If Fair Trading investigates, they will often look at committee minutes to understand the decision-making process. A documented, reasonable decision to stage works differently from the IMS is far more defensible than no documentation at all.
5. Respond to lot owner maintenance requests in writing
The October 2025 changes make it easier for lot owners to escalate maintenance complaints to Fair Trading. A simple process — acknowledge receipt, investigate, provide a written response with a timeline — reduces the likelihood that a dissatisfied owner escalates before you've had a real chance to resolve the matter.
What Strata Managers Should Be Doing Right Now
If you manage strata schemes in NSW, maintenance compliance should be a standing agenda item in your client reporting, not a task that surfaces only when something breaks.
Practically, this means:
- Reviewing all managed schemes for current IMS status and capital works fund adequacy before mid-2026
- Briefing committees on the new Fair Trading powers at their next AGM or committee meeting — many committee members are still unaware of the changes
- Checking contractor compliance — all maintenance contractors should hold current licences and relevant insurance; keep copies on file
- Escalating defect matters — if a scheme has known defects in common property (particularly those affecting safety or waterproofing), factor these into the maintenance plan and get legal advice if developer liability is in play
Orveya's building management tools can help strata managers centralise maintenance registers, track contractor compliance and document IMS obligations in one place — reducing the administrative overhead of meeting these requirements.
Frequently Asked Questions
What is an Initial Maintenance Schedule in NSW strata?
An Initial Maintenance Schedule (IMS) is a document prepared by a strata scheme's developer that sets out the maintenance requirements for all common property. Under the *Strata Schemes Management Act 2015* (NSW), it must be provided to the owners corporation on registration of the scheme and forms the basis of the 10-year capital works fund plan.
Can NSW Fair Trading inspect my strata building without a complaint?
Yes. Since the expanded enforcement powers took effect in October 2025, Fair Trading officers have broader authority to proactively inspect common property to assess maintenance standards, not only in response to a formal complaint from a lot owner.
What are the penalties for not complying with a repair order in NSW?
An owners corporation that fails to comply with a repair order can receive penalty infringement notices and face civil penalty proceedings in NCAT. In serious cases, Fair Trading may arrange for works to be carried out and recover the costs from the owners corporation, with the expense ultimately passed on to lot owners through levies.
How often should a capital works fund plan be updated?
Under the *Strata Schemes Management Act 2015* (NSW), the capital works fund plan must be reviewed at least every five years. However, best practice — and what Fair Trading now expects — is to review it whenever significant building works occur, when the IMS is found to be materially inaccurate, or when a new 10-year cycle commences.
Does the IMS requirement apply to older strata schemes registered before 2016?
The IMS requirement applies to schemes registered after the commencement of the *Strata Schemes Management Act 2015* (broadly, July 2016). Older schemes are not required to have an IMS, but they are still required to maintain a current 10-year capital works fund plan and to keep common property in good repair — obligations that Fair Trading can still enforce.