Escalating building defects and skyrocketing insurance premiums have pushed New South Wales into action, prompting the introduction of new strata laws for 2025. If you’re a strata or building manager, the Strata Schemes Legislation Amendment Bill 2025 (1) isn’t just another regulatory tweak, it’s a sweeping legal overhaul that changes how you approach compliance, maintenance, and contract management. And it all comes into effect on 1 July 2025.
Whether you manage a high-rise in Sydney or a medium-density complex in Newcastle, these new strata laws demand your attention and action. MJ Engineering Projects is here to help you navigate the shift with confidence.
The Strata Schemes Legislation Amendment Bill 2025: Key Reforms at a Glance
Coming into force on 1 July 2025, the Strata Schemes Legislation Amendment Bill 2025 introduces new duties and oversight mechanisms for owners corporations, strata managers, and building managers. From increased transparency to stricter enforcement, the new strata laws aim to address long-standing issues around building quality, maintenance, and accountability.
Key dates:
| Date | Action Required |
| 1 July 2025 | New legislation takes effect |
| Q3 2025 | Fair Trading begins proactive audit activities |
| By December 2025 | Maintenance plans, contract reviews, and record checks are due |
| 2026 | Random audits and enforcement actions expand |
Why This Law Changed: The Defect Crisis Behind the Reforms
Over the past decade, NSW has seen a surge in reports of building defects, from water ingress and cladding issues to façade failures. According to the NSW Building Commissioner, nearly 4 in 10 buildings constructed since 2000 have reported serious structural defects within six years (2).
This increase in defects, coupled with rising insurance premiums and growing consumer complaints, has led to intense scrutiny and pressure for new strata laws. As the Department of Customer Service noted in consultation documents, owners corporations have borne the financial and emotional burden of preventable defects for far too long.
The Strata Schemes Legislation Amendment Bill 2025 is the government’s response, placing legal obligations on all stakeholders to get proactive about building integrity.
The 2025 Reform Pillars (What You Need to Act On)
The Strata Schemes Legislation Amendment Bill 2025 introduces a series of structural reforms across six key areas, each designed to close longstanding compliance gaps, improve accountability, and protect property owners from avoidable costs. These changes go beyond surface-level tweaks, they reshape how buildings are governed, how decisions are made, and how risks are managed.
Understanding these pillars is not just important for compliance, though it’s critical for long-term planning, budgeting, and stakeholder trust. The new strata laws compel strata managers, building managers, and committee members to adapt quickly and work collaboratively to meet the new expectations. Here’s what you need to act on now.
1. Strengthened Maintenance Obligations
Owners corporations must now repair and maintain common property promptly. Deferrals are only allowed under strict circumstances. These changes reinforce proactive maintenance to avoid costly future disputes.
MJ Engineering Projects supports this with diagnostic investigations, remedial scope design, and façade and waterproofing remediation services, ensuring your building’s condition meets new standards.
2. Enhanced Committee Responsibilities
Strata committee members now have defined legal duties to act honestly, diligently, and in the best interest of the owners corporation. Mandatory training for committee members is being introduced to help them fully understand their strata committee responsibilities.
This aims to reduce negligence in decision-making and ensure committees are better informed when handling complex issues like capital works, tenders, and remedial projects.
3. Improved Transparency in Management Agreements
Strata managers must clearly disclose all fees, commissions, and supplier relationships. Effective contract management strata is essential, as contracts must define the scope of services transparently, and “unfair terms” are now a major focus for NCAT.
MJ Engineering Projects offers contract administration and tender management services that align with these new compliance expectations, so you get the right contractors with clear, accountable deliverables.
4. Accessibility and Sustainability Initiatives
It will now be easier to approve sustainability and accessibility upgrades. Motions for infrastructure like EV chargers, solar panels, and lift retrofits require only an ordinary resolution, not a special one.
Each AGM must now include a standing item on sustainability infrastructure, encouraging more eco-responsible capital works projects to comply with the new strata laws.
5. Developer Accountability Measures
Developers who fail to conduct the first AGM on time or deliver documents properly now face higher penalties. These changes are designed to protect new owners and reduce handover risks in off-the-plan schemes.
MJ Engineering Projects works with owners corporations to audit and verify post-construction conditions before or after developer handover, identifying risks early to comply with the new strata laws.
6. Expanded Enforcement Powers
NSW Fair Trading has been granted enhanced investigation powers. Officers can now conduct random audits, issue improvement orders, and escalate matters to NCAT with fewer procedural delays.
Owners corporations and strata managers must have clear maintenance plans, inspection records, and contractor compliance documents readily available to comply with the new strata laws.
Timeline & Compliance Checklist
A clear action plan ensures your scheme stays compliant with the new strata laws and avoids costly consequences:
| Deadline | Action Item |
| Now | Conduct a diagnostic investigation of structural systems |
| Q2 2025 | Prepare a 12-month common property maintenance plan |
| Q3 2025 | Review strata and building manager contracts for compliance |
| By December 2025 | Submit plans and prepare for random audits |
The Hidden Costs of Non Compliance
Many schemes don’t realise they’re at risk until it’s too late. The new strata laws place a higher burden on transparency, record-keeping, and proactive maintenance. Strata managers who don’t prepare now may face costs far beyond regulatory penalties, including disputes, insurance impacts, and loss of owner confidence:
- Fines of up to $11,000 per breach
- Special levies for unplanned repairs due to neglected maintenance
- Devaluation of lots due to visible deterioration or legal disputes
- Ineligibility for certain insurance coverages or increased premiums
- Tribunal disputes and legal fees from poor governance or contract issues
Closing Thoughts
With the Strata Schemes Legislation Amendment Bill 2025 taking effect on 1 July, now is the time for strata managers and owners corporations to act decisively to ensure compliance with the new strata laws Preparing early not only protects your building from penalties and costly repairs, but it also ensures you’re ready for the 2026 audit cycle, where compliance will no longer be optional, but expected.
Contact us today to discuss how MJ Engineering Projects can help you meet the new requirements with confidence.
