The Regulation defines or elaborates several key concepts:

Benefit (section 17C, inserted 2025) has a broad meaning for Part 3A: it includes a referral fee, commission, or a direct or indirect benefit. This definition triggers disclosure duties for facilities managers when proposing contracts or receiving advantages.

Close of the ballot (section 15(8)) differs for association meetings and committee meetings. For an association matter, it is 24 hours before the meeting begins. For a committee matter, it is immediately before the meeting commences. This timing determines the deadline for returning electronic ballot papers.

Eligible tenant (section 8(10)) means a tenant notified in a tenancy notice given in accordance with the Act. This concept is central to the tenant‑representative mechanism for neighbourhood schemes. Only eligible tenants may vote in a tenants meeting to nominate a tenant representative for the neighbourhood committee.

Pre‑meeting electronic voting (section 9A) is defined as voting on a matter by electronic means before the meeting at which the matter will be determined. It is distinct from voting electronically while participating in the meeting (which is a different voting method). Sections 14 to 17 regulate its use: it must be adopted by resolution of the association or committee; it cannot be used for elections; a motion to be determined wholly by pre‑meeting electronic voting must not be amended at the meeting; and a motion determined partly by it may be amended only if the amendment does not change the subject matter.

Connected persons (section 4) elaborates the Act’s definition. For a corporation (the principal person), a person is connected if they are a related body corporate, an associated entity, or hold an executive position in such entities, or hold a relevant financial interest or power that enables significant influence over the principal person’s management or operations. Section 4(1A) extends this to trusts: a beneficiary or certain family members of a beneficiary of a trust of which the principal person is trustee is connected, and a trustee of a trust of which the principal person is a beneficiary is also connected. This definition is used in the facilities manager disclosure obligations (sections 17F and 17G).

Facilities manager is defined by reference to the Act but the Regulation provides an exclusion (section 17D): a person engaged solely for one or more repair or maintenance services (e.g. plumbing, electrical, elevator maintenance, cleaning, gardening) is not a facilities manager if their engagement is limited to that service and they have not been appointed under a facilities manager agreement.

Insufficient funds (section 17I(2)) for a fund means the fund would be in deficit, or unable to comply with an undertaking accepted by the Secretary, a compliance notice, a court order, or (for the capital works fund) unable to meet the duty to maintain and repair association property, or (for the administrative fund) unable to pay expenses. This test determines when an association may reasonably refuse a payment plan.

Benefit (section 17C) and close of the ballot (section 15(8)) are also key concepts for facilities manager disclosure and electronic voting deadlines respectively.

The Regulation also distinguishes three levels of scheme (community, precinct, neighbourhood) through specific provisions: for example, the tenant representative mechanism applies only to neighbourhood schemes (Part 3, Division 1), and the levy register requirements vary depending on the type of association (section 22).

The Regulation directly affects anyone involved in the governance, management or occupation of community, precinct and neighbourhood schemes under the Community Land Management Act 2021. The primary duty‑bearers are associations (the body corporate for each scheme), their committees, and their officers (chairperson, secretary, treasurer). Section 5 stipulates that certain functions - ensuring Work Health and Safety compliance, entering maintenance or service contracts, arranging record inspections, and giving certificates - may only be delegated to a committee member or a managing agent. This imposes a constraint on associations that cannot delegate these functions to, for example, a sub‑committee of owners.

Original owners and lessors are affected by section 7, which requires them to provide documents (insurance valuation, maintenance manuals, service agreements, building contracts, most recent BASIX certificate) at the first AGM. Section 42 provides a transitional arrangement for original owners who would otherwise need to hold the first AGM during the period 1 December 2021 to 1 April 2022: they may instead hold it by 1 June 2022 without penalty.

Lot owners are directly affected by the financial provisions. They may request a payment plan for overdue contributions (sections 17I‑18B) using the prescribed form published in the Government Gazette. The association must not charge any fee for that process, must respond within 28 days, and may only refuse on specified grounds. Owners also benefit from the requirement that a by‑law limiting the number of adults residing in a lot has no effect if all adults are related (section 26), and from the evidence requirements for assistance animals (section 26B).

Tenants in neighbourhood schemes are affected by Division 1 of Part 3. If at least half of the lots are tenanted, the convenor of the AGM must call a tenants meeting to nominate a tenant representative. The process is tightly prescribed: at least 14 days notice, meeting no earlier than 7 days after notice, quorum of one, and majority vote. Tenant representatives hold office until the next committee election or earlier if they cease to be an eligible tenant, resign or die (section 9). This gives tenants a direct voice in committee decisions.

Managing agents face specific restrictions: they cannot receive gifts worth more than $60 (section 38), and they must attest to electronic affixing of the association’s seal if they are present (section 17B). Their record‑keeping obligations are also extended - the association must make available for inspection the accounting records held by the managing agent (section 32).

Facilities managers, a new category introduced in 2025, are subject to three positive duties (sections 17E‑17G) and one pre‑contractual disclosure obligation (section 17H). They must act with due diligence to bring maintenance, repair or safety problems to the association’s attention, disclose benefits and connected‑person relationships when proposing contracts, and disclose ongoing relationships and pecuniary interests. A person who is merely a plumber, electrician, gardener or similar, engaged only for that service, is excluded from being a facilities manager (section 17D).

Finally, the penalty notice regime in Schedule 2 directly affects individuals and corporations who contravene specified provisions of the Act, with fines ranging from $110 to $5,500.

The Regulation imposes numerous duties on associations, their committees, officers, managing agents and facilities managers, while also conferring rights on owners and tenants.

Duties of associations. An association must hold its first AGM within the prescribed time (subject to the transitional arrangement in section 42). It must adopt pre‑meeting electronic voting by resolution before it can be used (section 14). When conducting a ballot by pre‑meeting electronic voting, the secretary must ensure the electronic ballot paper contains instructions, the question, and means of indicating choice; give access at least 7 days before the meeting; and handle secret ballots so the voter’s identity cannot be ascertained (section 15). The association must keep electronic voting records for secret ballots for 13 months (section 31(1)). It must maintain accounting records including consecutively numbered receipts, deposit/withdrawal statements, cash record and levy register (section 21), and the levy register must contain detailed entries for each lot (section 22). Receipts must include date, amount, form of payment, name of payer, and allocation if for contributions (section 23). The association must not charge any fee for a payment plan request, entry or participation (section 18A). It must respond to a completed payment plan request within 28 days, with reasons if refused (section 18B). It must make available for inspection the accounting records held by the managing agent (section 32). It must keep records relating to electronic voting for motions (section 31(2)).

Duties of committee members and officers. The chairperson must announce candidates, call for nominations, and declare elections (section 10). The secretary must comply with the electronic ballot paper and pre‑meeting voting requirements. The treasurer must issue receipts with prescribed content (section 23).

Duties of facilities managers. A facilities manager must act with due diligence and promptly bring maintenance, repair or safety problems to the association’s attention and propose how to address them (section 17E). When proposing a contract for goods or services, they must give written notice of any benefit they may receive (including the person providing it and the monetary value or calculation method) and any connected‑person relationship with the prospective contractor (section 17F). They must also give written notice as soon as practicable of any supplier connected to them, any connection with the original owner, and any direct or indirect pecuniary interest in the scheme (section 17G). A person who may be appointed as facilities manager must disclose any benefit they may receive in relation to fees under the proposed agreement (section 17H).

Duties of managing agents. They must attest to the electronic affixing of the seal if the seal is affixed in their presence (section 17B). They may only be delegated certain functions (section 5).

Rights of owners. An owner may request a payment plan for overdue contributions using the prescribed form (section 17J). The association must not ask for additional information beyond the form (section 17J(2)). No fee may be imposed for the plan (section 18A). If the plan is refused, the owner is entitled to reasons (section 18B(2)). An owner may also request a written statement of payments made under an agreed plan (section 18(2)). Owners may inspect records, with fees set in Schedule 1 (section 39, Schedule 1). Owners may also challenge by‑laws that limit occupancy if all adults are related (section 26), and may rely on specific evidence to prove an animal is an assistance animal (section 26B).

Rights of tenants. Eligible tenants must be given notice of a tenants meeting to nominate a tenant representative (section 8). They have the right to attend, nominate themselves or others, and vote by majority. If a tenant representative vacates office early, a further tenants meeting must be held (section 9(2)).

The Regulation creates a penalty notice regime under the Act, section 210. Schedule 2 lists each provision of the Act that is an offence for which a penalty notice may be served, along with the prescribed penalty for individuals and corporations. Offences from the Act include: failure to hold first AGM (section 12(1)) - $2,200 for both individuals and corporations; failure to provide documents at first AGM (section 14(1)) - $2,200; failure to give or receive certain documents (section 14(1A)) - $1,100 individual, $5,500 corporation; accepting a gift over the prescribed limit (section 61(2)) - $1,100 individual, $2,200 corporation; facilities manager failing to comply with duties under section 74A(1) - $2,200 individual, $4,400 corporation; failure to prepare initial maintenance schedule (section 115(2)) - $1,100 individual, $5,500 corporation; failure to insure (section 148) - $220 corporation only; and various record‑keeping and information offences. Some offences have zero penalty for individuals (e.g. section 148 and section 209(4) - $220 corporation only). The lowest penalties are $110 for individuals and $220 for corporations for failing to comply with certain notice or information requirements (section 219(1),(2),(3)).

The Secretary has enforcement powers under the Act, including accepting undertakings (section 177T(3)) and issuing compliance notices (section 177(1)). The Regulation refers to these in the context of whether a fund would be insufficient to comply (section 17I(2)(b)), which is relevant when an association refuses a payment plan. Non‑compliance with a compliance notice or undertaking is itself a penalty notice offence (section 177T(4) - $2,200; section 177ZB - $2,200).

Part 9 establishes alternative dispute resolution procedures for mediation under the Act section 180. The Secretary may give written directions on practice and procedure for mediation sessions (section 34). Parties must attend or send a representative with consent of all other parties (section 35). Other persons may attend with the mediator’s leave. Each party pays their own costs (section 36). A mediator may terminate the mediation at any time, and any party may terminate by giving notice (section 37). These procedural rules support the enforcement framework by encouraging early resolution of disputes without formal proceedings.

It is important to note that the penalties in Schedule 2 are penalty notice amounts, not court‑imposed maximum penalties. The Act itself would provide higher maximum penalties for prosecuted offences, but the Regulation only prescribes the amounts for which an infringement notice can be issued.

The Regulation explicitly references several other statutes, creating a network of interactions.

Community Land Management Act 2021 - This is the parent Act. The Regulation is made under it and every provision cross‑references a specific section of the Act. For example, section 5 refers to Act section 11(1)(h), section 6 refers to section 13(2)(o), and so on. The Regulation supplies the detail the Act leaves to regulation. The Act also contains definitions that affect interpretation (section 3 note).

Community Land Development Act 2021 - Section 29 prescribes the qualifications of a person making insurance valuations by reference to the Dictionary of that Act, paragraphs (a)-(d), for the purposes of the Community Land Management Act section 150(2).

Corporations Act 2001 (Cth) - Section 4 defines “associated entity” as having the same meaning as in the Corporations Act, which is used in the connected‑persons test. This means federal corporate law concepts apply to determine whether a person is connected to a corporate principal person.

Electronic Transactions Act 2000 (NSW) - Section 11(2) includes a note referencing section 9 of that Act regarding electronic signature requirements for ballot papers. Section 17B(2) also adopts the Electronic Transactions Act framework for managing agent signatures on electronically affixed seals: a method to identify the person and indicate intention, as reliable as appropriate, or proven in fact, with consent.

Work Health and Safety Act 2011 (NSW) - Section 5(a) provides that ensuring compliance with WHS requirements is a function that may only be delegated to a committee member or managing agent. This ensures WHS obligations are not delegated to persons without appropriate authority.

Companion Animals Act 1998 (NSW) - Section 26A lists circumstances where an animal unreasonably interferes with another occupant’s use and enjoyment, including failure to comply with orders under sections 31 or 32A of that Act, or a dog being declared dangerous, menacing or restricted. This means by‑laws restricting animals may be enforced based on non‑compliance with the Companion Animals Act.

Health Practitioner Regulation National Law (NSW) - Section 26B(f) allows a written statement from a registered health practitioner as evidence that an animal is an assistance animal, but only if the practitioner is registered under Part 7, Division 1 or 2 of that Law.

Insurance Act 1973 (Cth) - Section 27 provides that a Lloyd’s underwriter authorised under that Act is an approved insurer for the purposes of the Act’s insurance requirements.

Environmental Planning and Assessment Regulation 2000 - Section 7(2) defines BASIX certificate by reference to that repealed regulation. The definition is used to require the most recent BASIX certificate to be provided at the first AGM.

Interpretation Act 1987 (NSW) - Section 3 notes that this Act contains definitions and provisions affecting interpretation.

The Regulation does not create any direct interaction with the Strata Schemes Management Act 2015, but practitioners should be aware that community land schemes are a different legal structure. The Regulation’s provisions on by‑laws, meetings and insurance are specific to community land schemes and not the strata regime.

The Regulation has been amended multiple times since its commencement on 1 December 2021. Tracking these amendments is essential for correct application, as several provisions were inserted or substantially changed after the original version.

2021 (657), sec 3 - Inserted section 42 (transitional arrangement for first AGM), effective from commencement or shortly after.

2022 (557), Sch 1 - A substantial amendment: inserted definition of “pre‑meeting electronic voting” in section 3; inserted Part 3 Division 1 heading and Division 2 heading; added sections 9A (definition), 14A‑14B (pre‑meeting electronic voting and reasonable steps), 17A‑17B (electronic seal affixing and managing agent requirements); substituted section 14 (ways of voting); amended sections 11 and 12 (ballot and officer election procedures to accommodate electronic voting); inserted section 42A (transitional arrangement for pre‑meeting electronic voting). Also inserted the definition of “eligible tenant” in section 3 originally? Actually section 3 definition of eligible tenant was in original, but the amendment added the definition for pre‑meeting electronic voting. This amendment came into force on 30 September 2022.

2023 No 45, Sch 5.2 - Inserted section 23A (spending limit of $30,000 for associations); amended Schedule 2 to add or adjust penalty notice offences.

2024 No 65, Sch 4 - Amended section 4 (connected persons) to add subsection (1A) dealing with trust relationships; amended Schedule 2 penalty notice offences.

2024 (543), Sch 1 - Inserted section 26A (keeping of animals - circumstances of unreasonable interference), effective from gazettal.

2025 No 14, Sch 3.1 - Amended section 6 (agenda for first AGM to include tenant representative nomination); inserted section 26B (restrictions on by‑laws - evidence animal is assistance animal); amended Schedule 1 fees (updated amounts) and Schedule 2 penalty notice offences.

2025 (505), Sch 2 - A major amendment: inserted Part 3A (facilities managers) with sections 17C‑17H; inserted sections 17I‑17J and 18A‑18B (payment plan provisions); substituted section 25 (initial maintenance schedule form); amended section 18 (payment plan content) and section 3 (definition of “benefit”). Also amended Schedule 2 penalty notice offences.

The original Part 11 (sections 43‑46) was inserted and then repealed multiple times - it was inserted by 2021 (718), repealed by 2021 (601), re‑inserted by 2022 (263), and repealed again by 2021 (601) (note the unusual sequence suggests drafting corrections). In any case, there are currently no sections 43‑46 in force.

The Regulation itself does not cite any case law, and none of its provisions refer to judicial decisions. As a subordinate instrument, its validity and interpretation may be tested in the NSW Civil and Administrative Tribunal (NCAT) or the Supreme Court of NSW, but the source text provides no information on litigation. The parent Act (Community Land Management Act 2021) is relatively recent, so there is limited judicial precedent on its provisions. The Regulation’s provisions on electronic voting, facilities manager duties, and payment plans are new (most inserted in 2022‑2025) and have not yet been the subject of reported decisions. Practitioners should monitor NCAT decisions on community land management disputes for guidance on how these provisions are being applied.

The Regulation does contain transitional provisions (sections 42 and 42A) which suggest the drafters anticipated practical difficulties in the early operation of the new regulatory framework. However, no litigation is noted. Sections 14B (reasonable steps for electronic participation) and 14A (limitations on amending motions after pre‑meeting electronic voting) may be fertile ground for disputes if associations do not follow the rules carefully. Similarly, the 28‑day response requirement for payment plan requests (section 18B) could give rise to NCAT applications if associations fail to respond or give inadequate reasons.

Given the absence of cited cases, the deep dive must simply note that no litigation history is provided in the Regulation, and that interpretation will ultimately be determined by the Tribunal and courts on a case‑by‑case basis.

Several provisions contain traps for the unwary.

Connected‑persons test is broad. Section 4 goes beyond simple corporate relationships. It includes trust beneficiaries and family members of beneficiaries, and uses the Corporations Act definition of associated entity. A facilities manager or contractor may be unaware that a relationship with a trust of which they are a beneficiary makes them connected to the principal person (the association or another corporation). This triggers disclosure obligations under sections 17F and 17G.

Pre‑meeting electronic voting cannot be used for elections. Section 14A(a) is explicit: an election must not be determined by pre‑meeting electronic voting. This means committee elections and officer elections must be conducted at the meeting, either by show of hands or paper ballot (sections 11 and 12). Associations that try to hold committee elections via electronic pre‑vote will breach this regulation.

If a motion is to be determined wholly by pre‑meeting electronic voting, it cannot be amended at the meeting (section 14A(c)). This means associations must be certain of the wording before sending out ballot papers. If a committee or meeting wishes to amend the motion, they cannot - the pre‑meeting vote is final. For motions determined partly by pre‑meeting electronic voting, amendments are allowed only if they do not change the subject matter (section 14A(d)). Even then, the minutes must be accompanied by notice of the change and a statement about the power to request a further meeting (section 14A(e)).

The close of the ballot for association meetings is 24 hours before the meeting (section 15(8)(a)). This is a long lead time. A member who votes early may later learn new information that would change their vote, but they cannot revote. For committee meetings, the close is immediately before the meeting (paragraph (b)).

Informal votes in pre‑meeting electronic voting. Section 16(2) requires that if a voting website or application is used, it must provide a warning message to a person casting an informal vote. If the system does not do this, the association may face a challenge over the validity of the vote. However, the provision does not say that failure to warn makes the vote formal - it remains informal under subsection (1).

The tenant representative quorum is one eligible tenant (section 8(8)). This is an extremely low quorum. It means a single tenant can attend and nominate themselves (or someone else) and be elected. This could lead to a tenant representative who does not truly represent the tenant body, but the regulation allows it.

Occupancy by‑laws are void if all adults are related. Section 26(1) provides that a by‑law limiting the number of adults who may reside in a lot has no effect if all the adults residing there are related. The definition of “related” is very broad, including carers, extended family (for Aboriginal or Torres Strait Islander persons per kinship systems), and relatives of former spouses. This may catch by‑laws that attempt to limit occupancy to a fixed number regardless of familial relationships.

Assistance animal evidence requirements are prescriptive. Section 26B lists six specific forms of evidence. An owner cannot simply provide a doctor’s note - it must be from a registered health practitioner under the National Law, Part 7 Division 1 or 2. A letter from a general practitioner who is not registered under that specific Division may not suffice.

Payment plan fee prohibition is absolute. Section 18A prohibits any fee or charge relating to making a request, entering into a plan, or participating in a plan. This includes administrative fees, processing fees, or monthly account‑keeping fees. Associations cannot circumvent this by imposing a “plan establishment fee” or similar.

Reasonable refusal of a payment plan is limited. Section 17I(1) says a refusal is reasonable if entering into the plan would cause insufficient funds in the capital works fund or administrative fund. The definition of insufficient funds (subsection (2)) includes deficits, inability to comply with undertakings, compliance notices, court orders, or (for capital works fund) inability to meet maintenance duties, or (for administrative fund) inability to pay expenses. An association cannot refuse simply because it prefers lump‑sum payment; it must demonstrate the plan would cause fund insufficiency.

The initial maintenance schedule must be in the form published in the Government Gazette (section 25). This is not a generic form - associations must use the specific document published on 29 August 2025. Using a different form may constitute a breach of the Act section 115(2), which carries a penalty notice of $1,100 for individuals and $5,500 for corporations.

Electronic affixing of the seal requires specific attestation. Sections 17A and 17B set out who must be present when the seal is affixed electronically, and require the managing agent (if used) to attest to the fact and date. For a corporation managing agent, the attestation must be by the president, chairperson, principal officer, or an authorised staff member. The signature requirement can be met electronically if the signatory uses a reliable method with consent (section 17B(2)). Failing to comply may affect the validity of documents executed under seal.

Practical compliance steps for associations, committees, managers and facilities managers.

Meetings and voting. Ensure the first AGM is held within the statutory period (section 42 provides transitional relief until 1 June 2022 for schemes affected by the commencement). At the first AGM, include the required documents (section 7) and, if applicable, the tenant representative nomination item (section 6). For all meetings, give proper notice specifying the ways of voting (section 14). If using pre‑meeting electronic voting, pass a resolution adopting it first. Send electronic ballot papers at least 7 days before the meeting (section 15(3)). For secret ballots, ensure anonymity by separating declarations from ballot papers (section 15(5)). Provide a warning message on any electronic voting platform for informal votes (section 16(2)). At the meeting, announce the result of pre‑meeting votes (section 17(2)). Do not use pre‑meeting electronic voting for elections (section 14A(a)). For committee elections, follow sections 10 and 11: call for oral and written nominations, check consent, declare candidates unopposed if same as vacancies, or conduct a ballot. For officer elections, allow written or oral nominations (section 12) and hold a show of hands if contested.

Financial management. Maintain a levy register with the prescribed details for each lot (section 22). Issue receipts with all required content (section 23). Keep accounting records as listed in section 21. Before spending over $30,000, ensure compliance with the Act section 105A (section 23A). For legal services costs exceeding $15,000, obtain approval; for non‑urgent matters under $3,000, no approval needed (section 24). If an owner requests a payment plan, use the prescribed form (section 17J). Do not charge any fee for the plan (section 18A). Respond within 28 days with reasons if refusing (section 18B). If agreeing, prepare a written plan with the content in section 18(1). Provide a statement of payments on request (section 18(2)). Only refuse if the plan would cause insufficient funds as defined in section 17I(2).

Property and insurance. Insure buildings for at least the estimated cost of reinstatement plus 24 months of expected cost increases, including taxes (section 28). Obtain public liability insurance of at least $20 million per event unless the association resolves a different amount (section 30). Use an approved insurer including Lloyd’s underwriters (section 27). Prepare an initial maintenance schedule in the prescribed form (section 25).

Records and information. Keep voting papers for secret ballots for 13 months (section 31(1)). Keep records of electronic voting for motions (section 31(2)). Make accounting records held by the managing agent available for inspection (section 32). Set fees for inspection and certificates in accordance with Schedule 1.

Facilities managers. If a person falls within the definition of facilities manager (i.e. not excluded by section 17D), they must: (a) promptly bring maintenance, repair or safety problems to the association’s attention with a proposal (section 17E); (b) when proposing a contract, disclose any benefit they may receive and any connected‑person relationship (section 17F); (c) as soon as practicable, disclose any connected supplier, connection to the original owner, and any pecuniary interest in the scheme (section 17G). A prospective facilities manager must also disclose any benefit in relation to fees before appointment (section 17H). To avoid the facilities manager regime entirely, ensure the engagement is solely for specific repair or maintenance services, with no duties relating to managing association property or controlling its use, and no facilities manager agreement (section 17D). Regular tradespeople like plumbers and electricians are generally excluded, but if the association engages them on terms that include broader management duties, they may fall within the definition.

Tenant representatives. In neighbourhood schemes where at least half of lots are tenanted, the AGM convenor must call a tenants meeting at least 14 days before the AGM, with notice displayed or given in writing (section 8). Hold the meeting no earlier than 7 days after notice. A single eligible tenant constitutes a quorum. The tenant representative is elected by majority vote and their term starts at the end of that AGM (section 8(9)). If the representative vacates office early, hold a further tenants meeting (section 9(2)).

Electronic affixing of seal. If the association has only one member, the seal must be affixed electronically in the presence of that member or the managing agent (section 17A(1)). For two members, in the presence of both or the managing agent (subsection (2)). For more than two members, the presence of two nominated members, or the secretary plus another committee member, or the managing agent (subsection (3)). The managing agent must attest to the fact and date by signature (section 17B(1)). Electronic signatures are permitted if they meet the reliability and consent requirements of the Electronic Transactions Act (section 17B(2)).