NSW Strata Reforms: Further Changes Commenced on 1 April 2026

If you are building or developing a strata property in New South Wales, there are new, stricter rules you need to follow.

The third and final tranche of amendments under the Strata Schemes Legislation Amendment Act 2025 (NSW) (2025 Amendment Act) came into force on 1 April 2026, tightening developers’ obligations around maintenance schedules, financial disclosures and utility arraignments. More changes are also on the horizon, with further legislation currently before NSW Parliament.

Where We Have Come From

The 2025 Amendment Act was introduced in three stages, with a clear theme running throughout: greater transparency, accountability and protection for lot owners. Earlier stages of the reforms already had significant implications for developers, including:

• Fairer Contracts with Owners Corporations: Developers often provide services to owners corporations after completion, for example, managing embedded energy networks or other building services. NSW law now makes it explicit that these agreements must be fair and reasonable. Agreements that are heavily one-sided may be void and can expose developers to civil penalties.

  
  

  If you have ongoing service agreements with owners corporations, they need to be genuinely reasonable and not just commercially favourable to you.

• Time Limits on Long-Term Service Agreements: Developers can no longer lock owners corporations into long-term supply contracts for services like electricity, telecommunications, or electric vehicle charging. If the cost of delivering those services cannot be recovered within the permitted timeframe, the shortfall remains with the developer - not the owners corporation.

What Changed from 1 April 2026

Four specific changes from the 2025 Amendment Act apply from 1 April 2026:

1. A Prescribed Format for Maintenance Schedules: Every new strata scheme must be accompanied by an initial maintenance schedule. From 1 April, this document must follow a prescribed template. The goal is to make sure owners corporations receive clear, consistent information, replacing maintenance schedules that previously varied widely in quality and detail. If you are using legacy templates, they will need to be updated.

2. Independent Surveyor Sign-off for Multi-Storey Schemes: Where a development is multi-storey, you must now engage an independent surveyor to confirm:

   • the maintenance schedule complies with the prescribed format; and

   • the financial estimates, specifically that the amounts proposed for the administrative fund and capital works fund are realistic and sufficient for the scheme’s first year of operation. 

   Surveyor involvement will need to be factored into project timelines and budgets early to avoid any unexpected surprises.

3. Stronger Financial Records: Before the first annual general meeting of the owners corporation, developers must provide evidence certified by a qualified person that the estimates of proposed financial contributions are appropriate for the scheme’s anticipated expenditure. This certification must be provided by a suitably qualified person and is designed to ensure owners corporations start on a sound financial footing.

4. Mandatory Disclosure of Embedded Networks: If a development includes an embedded network such as a private electricity grid, shared solar system or other utility arrangement, details must now be disclosed in the strata information certificate. This gives buyers a clear picture of the utility arrangements before they commit, rather than discovering them after settlement.

What Is Still to Come

A further Bill is currently making its way through the NSW Parliament that would make additional changes relevant to developers, two of which stand out:

• Broader Defects Insurance: While 10-year defects insurance already exists, it is not mandatory. The proposed change would expand both the scope and operation of this insurance, requiring coverage for a broader range of defects – beyond the current definition of major defects. If passed, this will likely materially affect risk allocation and project costs for multi-storey residential developments.

• New Building Administration Fund: The Government is proposing to establish a new fund, paid for in part through building-related fees.  The fund is intended to help administer building laws and resolve disputes more efficiently.

Although these changes have passed the lower house of Parliament, the upper house may still make further changes.

What This Means for You

For developers, builders, and advisers working in the strata space, the practical takeaways are:

• Update maintenance schedule templates to comply with the new prescribed format.

• Plan early for independent surveyor involvement on multi-storey projects.

• Ensure financial contribution estimates are properly certified by a qualified professional.

• Check strata information certificates for embedded network disclosures.

• Audit any ongoing service agreements with owners corporations for fairness and compliance.

The direction of travel in NSW strata law is clear: more transparency, more accountability, and stronger protections for owners and residents. Developers who adapt their standard processes now will reduce risks, delays and disputes later. 

If you would like assistance reviewing your strata documentation or understanding how these reforms affect an upcoming project, please contact our people. 

Eollyn Cortes 0478 727 395

Sagang Chung 0431 435 333

Helen Jeon 0457 811 882