Article Originally Posted December 2023
Phase 1 of the Strata Legislation Amendment Bill 2023 (NSW) has officially commenced, marking a major milestone in strata legislation.
These reforms, shaped by insights collected from the statutory review of the Strata Schemes Management Act 2015 and the Strata Schemes Development Act 2015, alongside regulations governing community land schemes, are poised to elevate the overall strata living experience. Geared towards improving transparency, governance, and fairness, these reforms will secure assent to the Strata Legislation Amendment Bill 2023 by the end of November.
Key Changes
- Strata Renewal Process – Owners will be required to disclose any direct or indirect financial interests in a strata renewal proposal. The Land and Environment Court will consider potential conflicts of interest during both strata renewal applications and objections to renewal. Notably, the Court will have the authority to award costs against dissenting owners who act unreasonably or in bad faith.
- Pets and Assistance Animals – Owners corporations or associations are prohibited from imposing fees, bonds, or insurance requirements for pets kept on a lot. Furthermore, by-laws are explicitly prevented from affecting the ability of assistance animals to perform their duties on lots or common/association property. The reforms also emphasise the privacy of persons with assistance animals by outlining specific forms of evidence that schemes can request to establish an assistance animal’s status.
- Strata and Association Committees – Committee members are barred from participating or voting where they have a financial interest, excluding the strata renewal process. The number of committee members has also been increased from nine to fifteen, with underperforming committee members subject to a one-year prohibition on reappointment.
- Meeting Governance – The minimum notice period for Annual General Meetings (AGMs) is extended from seven to fourteen days. Original owners are now required to provide key documents at least fourteen days before the first AGM. Proxy voting restrictions are extended, placing limits on how many owners a power of attorney or company nominee can represent.
- Overall Governance of Schemes – Key provisions include clarifying rules around the transfer of funds between administrative and capital works funds, mandating two quotes for proposed expenditures over $30,000, and requiring landlord agents to provide notice of tenancy to the owners corporation or association.
- Strata Managing Agents – Strata managing agents are required to provide notice of contract expiry to the owners corporation or association three to six months before contract termination.
