What it does
The Strata Schemes Management Act 2015 (the Act) establishes a comprehensive statutory framework for the governance, operation and maintenance of strata schemes in New South Wales. A strata scheme is the legal structure that allows individual ownership of lots (units) within a larger building or group of buildings while creating collective ownership of common property (s 8, read with the definition of “strata scheme” in s 4(1)). The Act’s core function is to constitute an owners corporation as the body corporate responsible for managing that common property and administering the scheme as a whole (s 9(1)–(2)).
The legislation operates in tandem with the Strata Schemes Development Act 2015, which deals with the creation and subdivision of strata titles. Together they replace the former dual regime of the Strata Schemes Management Act 1996 and the Strata Schemes (Freehold Development) Act 1973. The 2015 Act is divided into 14 Parts. Part 1 contains objects (s 3), extensive definitions (s 4) and rules for resolutions (s 5). Part 2 establishes the owners corporation, allocates its core functions (ss 9–13) and imposes strict controls during the initial period (ss 26–27). Part 3 creates the strata committee as the executive arm (ss 29–48). Part 4 regulates the appointment, functions and accountability of strata managing agents and building managers (ss 49–72). Part 5 sets out detailed financial management rules, including mandatory administrative and capital works funds (ss 73–78), estimates, contributions, 10-year capital works plans (ss 79–80) and accounting records (ss 92–99). Part 6 imposes duties to maintain common property (s 106), distinguishes cosmetic work (s 109), minor renovations (s 110) and major works (s 108), and contains powers of entry (ss 122–124). Part 7 governs by-laws, including model by-laws, restrictions on harsh rules, and common-property rights by-laws (ss 133–150). Part 8 details owner and occupier obligations (ss 151–159). Part 9 mandates building insurance (ss 160–163) and other insurance (s 164) while regulating claims and disclosures. Part 10 requires a strata roll and records (ss 176–181) and regulates information certificates (s 184). Part 11, inserted by later amendment, imposes a mandatory building-defect inspection regime, interim and final reports, and a building bond system (ss 189–215). Part 12 confers broad dispute-resolution jurisdiction on the Civil and Administrative Tribunal (NCAT) (ss 226–248). Part 13 creates offences and enforcement powers, including investigation powers inserted in 2018 (ss 249–252). Part 14 contains miscellaneous provisions on service, seals, Crown binding and regulation-making.