This Regulation sets out detailed rules about how strata schemes in New South Wales run certain administrative, financial, governance, building-defects and records processes. It translates high‑level duties in the Strata Schemes Management Act 2015 into practical requirements: who must do what, how and by when, and what forms, fees and penalties apply.
Key mechanical changes and requirements:
Voting and meetings: it permits electronic ways of voting (including pre‑meeting electronic voting where adopted by resolution) and prescribes how electronic ballots must be run, stored and counted (clauses 14, 14A, 15–17). It also sets rules for in‑person ballots, nomination processes and how strata committees are elected (clauses 9–11, 10).
Records and reporting: owners corporations must retain and provide specific records (e.g. electronic voting records for 13 months) and provide annual information to the Secretary on a prescribed timetable and form (clauses 41, 43–43C). The Secretary may publish or share some of that information with emergency services and other agencies (clause 43C).
Financial management: the Regulation prescribes how budgets and accounts are calculated and kept, what must appear in receipts and levy registers, limits on discretionary spending and rules for payment plans for overdue contributions (clauses 21–25, 17J–18B, 19). It also prescribes fees for services and fines (Schedule 4; Schedule 5).
Building work, defects and protections: it establishes detailed processes for building inspectors, inspection reports, building bonds and decennial insurance requirements. It prescribes who can be on strata inspector panels, what documents a developer must provide, how building bond amounts and maturity are determined, and criteria for decennial insurance (clauses 44–55C).
The Strata Schemes Management Regulation 2016 (the Regulation) supplies the operational machinery that gives practical effect to the Strata Schemes Management Act 2015 (the Act). While the Act creates the high-level framework for owners corporations, strata committees, financial management and building defect remediation, the Regulation prescribes the precise steps, forms, time limits, voting mechanics and record-keeping obligations that must be observed.
Part 1 contains preliminary provisions. Clause 3 defines key terms such as “approved form”, “pre-meeting electronic voting” (cross-referencing cl 3A), “benefit” for Part 2A purposes (cl 17C), and confirms that notes do not form part of the Regulation. The Regulation commenced on 30 November 2016, with Part 8 (building defects) commencing on 1 January 2018 (cl 2, as amended by 2017 No 25).
Part 2 governs owners corporations and strata committees. Clause 4 lists functions that may only be delegated to a strata committee member or strata managing agent: fire safety inspections (s 123 of the Act), work health and safety compliance, contracts for common property maintenance (excluding parcel-specific contracts), record inspections under s 183, and certificates under s 184. Clause 5 prescribes additional first AGM agenda items where a tenant representative is nominated or where a building inspector must be appointed under Part 11 within 12 months of the initial period ending. Clause 6 requires the original owner or lessor to deliver specific documents before the first AGM: building valuations, maintenance manuals, utility service agreements, building contracts (including variations) and the most recent BASIX certificates.
Clauses 7 and 8 set out the detailed process for tenant representative nomination and vacation of office. A convenor must hold a tenants’ meeting with 14 days’ notice (or 7 days for replacement meetings), quorum of one, majority vote, and the representative’s term begins at the end of the AGM. Vacation occurs on ceasing to be an eligible tenant, resignation, death or at the next committee election; a replacement meeting must then be convened.
Current sections
Direct links to the current provisions in Strata Schemes Management Regulation 2016.
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Official source available
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Building managers: the Regulation defines who is and is not a building manager, sets duties to disclose relationships, benefits and pecuniary interests, and requires prompt reporting of maintenance, repair or safety problems (Part 2A: clauses 17C–17H).
By‑laws and conduct: it provides model by‑laws (Schedule 3), continues pre‑1996 by‑laws (Schedule 2), and specifies particular content rules (e.g. minor renovations, window safety devices) (clauses 27–31, 28, 30).
Who the rules primarily affect
Owners corporations and strata committees: responsible for adopting voting methods, keeping accounts and records, responding to payment‑plan requests, insuring buildings, approving by‑laws, and providing annual data to the Secretary (clauses 14, 21–25, 17J–18B, 43–43C).
Secretaries and strata managers: specific operational duties for electronic ballots, notices, record keeping and providing information to the Secretary (clauses 15–17, 41, 43A).
Developers and builders: obligations to supply documents to building inspectors, lodge building bonds or decennial insurance, and follow nomination and disclosure steps for building inspectors (clauses 45E, 46A, 50–55C).
Building managers and potential building managers: defined duties to disclose benefits and conflicts, and to report maintenance and safety issues (clauses 17D–17H).
Residents and lot owners: voting rights and processes, rights to request records, obligations (e.g. notice after installing window safety devices) and by‑law compliance (clauses 15, 24, 31, Schedule 2 & 3).
Why these technical rules matter (stated purpose and mechanical trade‑offs)
Official purpose claims: the Regulation operationalises the Act’s governance, financial and building‑defect provisions by prescribing forms, timeframes, approved providers and procedures (see, for example, Part 8 building defects and Part 3 financial management). Those prescriptions are presented as ways to make the Act workable in practice (clauses throughout Parts 2–8).
Costs, incentives and trade‑offs: the Regulation creates specific compliance tasks and timing obligations that transfer implementation costs to owners corporations, developers, building managers and applicants:
Recordkeeping and reporting impose recurring administrative costs and potential fees (e.g. information fee per lot) (clauses 41, 43; Schedule 4 item 1B).
Developers must provide documents and either lodge building bonds or certified decennial insurance before key approval steps; those requirements increase upfront cost and paperwork for developers and may change the cost of capital or insurance pricing for projects (clauses 46A, 52, 54, 55B–55C, 55A).
Building inspectors are accredited through authorised professional associations; associations must keep public registers, and the Secretary can impose conditions on inspectors — creating a market for accredited inspectors but also regulatory oversight and possible barriers to entry (clauses 45, 45A, 45B, 45C).
Owners asking for payment plans for overdue contributions are protected from fees but owners corporations can refuse on specified financial grounds to avoid fund deficits (clauses 17J, 18A–18B).
Implementation risk and bureaucratic discretion:
The Secretary has multiple powers that affect operation and enforcement: approving forms, publishing guidelines, imposing conditions on inspectors, disclosing information and conducting reviews of certain decisions (clauses 45B, 45C, 43C, 56). Those powers concentrate decision‑making with the Department and create points of administrative discretion.
Penalties and timelines are prescribed (e.g. 28 days for responses to payment‑plan requests, 14 days’ notice before bond payments) and non‑compliance attracts fines (clauses 18B, 55, Schedule 5). Failure to meet documentary requirements for bonds carries substantial penalties (clause 52).
Effects on private choice, enterprise and markets:
Developers: must comply with bond and insurance mechanics (clauses 50, 52, 54, 55A–55C), which can raise the cost of development or change contractual arrangements with builders and insurers.
Building inspector and quantity‑surveyor requirements (e.g. qualified members of specific professional bodies; restrictions on connections) structure who can provide services and how cost reports are prepared (clauses 45A, 50(2A)–(2C), 50(3)). That affects competition among professional service providers.
Strata managing agents face a modest limit on gifts ($60) and must comply with disclosure and signing rules when attesting electronic seals (clauses 63, 17A–17B).
Who pays, who decides, and what behaviour changes (concrete mechanics)
Who pays: developers pay lodging fees and may absorb building bond or insurance costs (Schedule 4 items 1 and 1A; clauses 54, 55B–55C). Owners corporations pay administrative fees and bear recordkeeping costs; individual owners may pay prescribed fees for certificates and inspections requested (Schedule 4 items 2–3; clauses 24, 23). Owners are not to be charged fees for requesting or participating in payment plans (clause 18A).
Who decides: owners corporations and their strata committees decide local governance choices (e.g. whether to adopt pre‑meeting electronic voting (clause 14) and whether to approve renovations or by‑laws (clauses 28, Schedules 2–3)). The Secretary decides on panel conditions, disclosure and can publish guidelines and procedures (clauses 45B–45C, 52, 55). Developers nominate building inspectors (clause 45E) but must provide specified information and meet timeframes.
Behaviour changes required: adoption of electronic voting or traditional methods; stricter document provision to building inspectors and the Department; public registers and retention of electronic voting records; formalised payment plan procedures and timelines (clauses 14, 15–17, 45A, 46A, 41, 17J–18B). Developers and builders must ensure bonds or insurance comply with technical rules and timelines (clauses 50, 52, 54, 55A–55C).
Compliance burden, penalties and discretion (selected citations)
Time limits and responses: owners corporations must give a written response to a completed payment‑plan request within 28 days (clause 18B). Building bond payment decisions require 14 days’ notice before payment (clause 55).
Record retention and publication: electronic voting records must be kept for 13 months (clause 41); authorised professional associations must publish registers and retain entries for 7 years (clause 45A).
Penalties and fees: the Regulation sets monetary penalties for specific offences (Schedule 5) and prescribes fees for lodging building bonds, arranging inspectors and providing certificates (Schedule 4). Failure to provide required documents for bonds attracts high penalty units (clause 52).
Administrative discretion: the Secretary can impose conditions on building inspectors (clause 45C), publish guidelines for panels (45B), approve forms (multiple clauses) and disclose certain scheme data publicly or to specified agencies (clauses 43C, 45B, 45C).
Practical implications to watch for (market and administrative lens)
The rules create formal administrative markets: authorised professional associations run strata inspector panels and keep public registers (clauses 45–45A). That concentrates accreditation activity with specified professional bodies.
Developers face either bond or insurance obligations (clauses 54, 55A–55C), which can shift project cashflow and legal risk from owners corporations to developers or insurers.
Owners corporations gain clearer rights (e.g. about voting, disclosure by building managers, and access to records) but also take on ongoing administrative duties and potential fees for services (clauses 14–18, 17F–17G, Schedule 4).
Sources within the Regulation for the points above: clauses 14–18 (voting and electronic ballots), 17D–17H (building managers), 45–55C (building inspectors, bonds and insurance), 17J–18B (payment plans), 41 and 43–43C (records and reporting), Schedule 4 (fees), Schedule 5 (penalty notices).
Clauses 9–11 regulate strata committee elections. Nominations may be written or oral (with consent), the number of members is decided by the owners corporation, and a ballot is held if candidates exceed places. Clause 10 (as amended in 2022) prescribes ballot paper content, signing, capacity disclosure, proxy details and electronic return methods. Ties for the last place are resolved by show of hands, including electronic indication where the notice permits. Clause 11 governs officer elections (chairperson, secretary, treasurer) at the first committee meeting, with written or oral nominations and show-of-hands voting.
Clause 12 defines priority votes for expenditure exceeding $1,000 per lot. Clause 14 (substituted 2022) permits notices to specify electronic voting while participating, or pre-meeting electronic voting where adopted by resolution. Clause 14A restricts elections from being decided solely by pre-meeting electronic voting, requires warnings about possible amendments, and mandates minutes to record changes and qualified meeting requests under s 19 of the Act. Clause 14B lists reasonable steps for electronic participation: clear instructions, multiple non-internet options, and accessible technology. Clauses 15–17 detail electronic ballot papers, informal votes, and ascertaining results. The secretary must provide 7 days’ access, declarations of voter details, and secure storage; close of ballot is 24 hours before an owners corporation meeting or immediately before a committee meeting.
Clauses 17A and 17B (inserted 2022) authorise electronic affixing of the owners corporation seal, with strict witnessing requirements scaled by number of owners and attestation rules for strata managing agents that satisfy Electronic Transactions Act 2000 s 9.
Part 2A (inserted 2025) imposes duties on building managers. Clause 17C defines “benefit” broadly. Clause 17D excludes persons engaged solely for discrete repair or maintenance services (plumbing, electrical, lifts, cleaning, gardening) who are not appointed under a building manager agreement. Clauses 17E–17G require due diligence in reporting maintenance, repair or safety problems, written disclosure of benefits or connections when proposing contracts, and ongoing disclosure of supplier relationships, original owner connections and pecuniary interests. Clause 17H requires potential building managers to disclose benefits from agreement fees.
Part 3 addresses financial management. Clause 17I (2025) prescribes the Government Gazette form for the 10-year capital works fund plan. Clauses 17J–17K and 18–18B (updated 2025) regulate payment plans for overdue contributions: reasonable refusal grounds (insufficient funds for statutory obligations or s 106 duties), prescribed request form, prohibition on fees, 28-day response with reasons, and mandatory content of plans (lot details, amounts, interest, schedule, contact person). Clause 19 prescribes content for recovery notices. Clauses 21–24 detail budget calculation, accounting records, levy register entries and receipt particulars. Clause 25 sets the spending limit at $30,000 (updated 2023). Clause 26 caps legal services approvals at $15,000 with a $3,000 de minimis.
Part 4 covers property management. Clause 27 prescribes the 30 November 2016 Common Property Memorandum (non-modifiable except to exclude items). Clause 28 lists minor renovations exempt from approval (carpet removal, rainwater tanks, clotheslines, split-system air-conditioners, glazing, heat pumps, ceiling insulation) provided they comply with s 110(7) of the Act. Clause 29 prescribes the 2025 Gazette form for initial maintenance schedules. Clauses 30–31 impose window safety device requirements for residential buildings (openable windows <1.7 m above floor, >2 m above ground) and 7-day notification of installation. Clause 36 exempts family-related occupancy limits; cl 36A (2021) lists circumstances in which keeping an animal causes unreasonable interference (noise, chasing, attacks, damage, odour, non-compliance with Companion Animals Act orders, restricted dogs). Clause 37A (2025) lists acceptable evidence that an animal is an assistance animal.
Part 5 adopts model by-laws (Schedule 3) and transitional by-laws for pre-1996 schemes (Schedule 2). Part 6 prescribes approved insurers, damage policy calculation methodology (estimated cost plus 24-month escalation plus taxes), and $20 million public liability minimum. Part 7 mandates retention of electronic voting records for 13 months (cl 41), inspection rights (cl 42), and annual information lodgment (cl 43–43C, inserted 2021, amended 2022) covering strata plan details, lot uses, fire safety statements, replacement values, office-holder contacts, building manager details and capital works fund balance. The Secretary may publicly disclose certain data and share emergency contacts with emergency services.
Part 8 (commencing 2018, substantially amended 2020) establishes the building defect regime. Clause 44 defines terms and lists authorised professional associations. Clause 45 allows those associations to maintain strata inspector panels. Clauses 45A–45E regulate panel registers, Secretary guidelines, conditions on inspectors, professional association liability and developer nomination requirements. Clause 46 requires disclosure of prior developer employment within 2 years. Clause 46A lists extensive documents the developer must supply (contracts, specifications, warranties, development consents, fire safety reports, regulated designs under the Design and Building Practitioners Act 2020). Clauses 47–49 prescribe report forms and owner notification content. Clause 49A lists reasons a new builder may be appointed. Clauses 50–55AA govern building bonds: contract price determination (including quantity surveyor cost reports), maturity periods, lodgment documents, application timing, prescribed percentages (2 % until 2026, then 3 %), payment notice requirements, review rights (cl 56), and cancellation where no defects or only non-bond defects exist. Clauses 55A–55C (2023) set criteria and notice obligations for decennial insurance as an alternative to bonds.
Parts 9–10 cover alternative dispute resolution practice, connected persons (cl 62, expanded 2025 to include trusts), gift limits ($60), fees (Schedule 4), penalty notices (Schedule 5), savings provisions and statutory amendments to the Act’s Schedule 3.
In aggregate the Regulation translates the Act’s principles into enforceable, auditable processes that minimise ambiguity in strata governance, protect owners from defective construction, and facilitate transparent electronic participation.
Who it affects
The Regulation casts a wide net. Owners corporations bear the bulk of compliance: they must convene tenant meetings (cl 7), conduct elections according to cll 9–11, keep prescribed accounting records (cl 22), maintain levy registers (cl 23), issue compliant receipts (cl 24), observe spending caps (cl 25), adopt or amend by-laws, retain voting records (cl 41), lodge annual information (cl 43, maximum penalty 50 penalty units), and manage building defect processes.
Developers face stringent obligations under Part 8. They must nominate qualified building inspectors (cl 45E), disclose prior relationships (cl 46), supply comprehensive documentation (cl 46A), lodge building bonds or decennial insurance certificates (cll 52, 55B–55C), and face recovery action if defects are identified. Maximum penalties reach 200 penalty units for corporations.
Strata managing agents and building managers (Part 2A) are subject to restricted delegation rules (cl 4), electronic seal attestation standards (cl 17B), and mandatory disclosure of benefits, relationships and pecuniary interests (cll 17F–17H). Agents must also respond to payment plan requests within 28 days (cl 18B).
Lot owners and occupiers must comply with by-laws (Schedules 2 and 3), notify window safety device installation (cl 31), keep animals only in accordance with cl 36A and 37A, avoid creating noise or obstructions (Schedule 3 cll 1, 4, 6), and may request payment plans (cl 17K). Owners who are also developers carry dual obligations.
Tenants gain rights to nominate tenant representatives (cl 7) and are protected by occupancy limit exceptions for related adults (cl 36) and assistance animal evidence rules (cl 37A).
Building inspectors and authorised professional associations must maintain registers (cl 45A), observe Secretary conditions (cl 45C), and face liability provisions (cl 45D). Quantity surveyors preparing cost reports must be independent (cl 50(2B)).
The Secretary (Department of Customer Service) receives annual information, building bonds, decennial insurance notices, may impose inspector conditions, publish guidelines, disclose data to emergency services and councils, and determine reviewable decisions (cl 56).
Local councils, Fire and Rescue NSW, NSW State Emergency Service, Ambulance Service and NSW Police Force receive targeted disclosures under cl 43C.
Builders are indirectly affected through defect rectification obligations, disclosure of prior relationships, and potential appointment as replacement rectifiers (cl 49A).
Key duties and rights
Owners corporations hold duties under cl 4 (non-delegable functions), cl 17A (electronic seal witnessing), cl 18A (no payment plan fees), cl 18B (28-day response to payment plan requests), cl 22–24 (accounting records, levy registers, receipts), cl 41–42 (record retention and inspection), cl 43 (annual information lodgment) and Part 8 (defect inspection coordination). Rights include adopting pre-meeting electronic voting by resolution (cl 14), refusing unreasonable payment plans (cl 17J), and claiming building bonds (cl 53).
Developers must deliver documents before first AGM (cl 6), nominate inspectors with full particulars (cl 45E), supply design and construction records (cl 46A), lodge bonds or insurance (cll 52, 55B–55C), and disclose connections (cl 46). They enjoy the right to a review of bond payment decisions (cl 56) and cancellation of bonds where no actionable defects exist (cl 55AA).
Building managers owe duties of prompt reporting of maintenance or safety problems with proposed solutions (cl 17E), written disclosure of benefits and connections when proposing contracts (cl 17F), and ongoing disclosure of supplier, original owner and pecuniary relationships (cl 17G). Potential managers must disclose benefits from agreement fees (cl 17H). They gain the right to be excluded from the definition if engaged solely for discrete repair services (cl 17D).
Lot owners and occupiers have rights to nominate tenant representatives (cl 7), request payment plans (cl 17K), install minor renovations listed in cl 28, install complying window safety devices (cl 30), keep animals unless unreasonable interference is proven (cl 36A), and rely on prescribed evidence that an animal is an assistance animal (cl 37A). Duties include notifying safety device installation (cl 31), complying with model by-laws (Schedule 3), and avoiding actions that reduce fire safety (Schedule 3 cl 10).
Strata committees must chair tenant meetings (cl 8(4)), declare election results (cl 9(4)), and ensure minutes record amendments to pre-meeting electronic votes (cl 14A(e)).
The Secretary holds rights to approve forms, publish guidelines (cl 45B), impose conditions on inspectors (cl 45C), receive and disclose information (cl 43C), and determine reviews (cl 56). The Secretary’s guidelines bind authorised professional associations (cl 45B(1)).
Penalties and enforcement
Penalty levels reflect the seriousness of non-compliance. Clause 43(1) annual information failure attracts 50 penalty units. Clause 43B(2) failure to correct information carries 20 penalty units. Clause 45E nomination breaches attract 40 penalty units (corporation) or 20 (individual). Building bond lodgment and information failures under cl 52 carry 200/100 penalty units. Clause 55B–55C decennial insurance notice failures carry 200 penalty units plus 50 per day continuing.
Schedule 5 lists offences under the Act and Regulation. Act offences include s 57(2) gift breaches ($1,100 individual/$2,200 corporation), s 70A(1) building manager duty breaches ($2,200 individual/$4,400 otherwise), s 115(2) initial maintenance schedule failures ($1,100 individual/$5,500 corporation), and s 160 insurance failures ($220). Regulation offences include cl 43(1) ($220) and cl 45E ($55/$110).
Enforcement occurs via penalty notices, Tribunal orders, civil recovery of unpaid contributions (with interest), bond claims (cl 53–55), and Secretary-initiated inspections or reports under Part 8. Review rights under cl 56 allow interested persons (including builders per cl 56(4)) to challenge bond decisions, final inspection arrangements and time variations within 14 days.
How it interacts with other laws
The Regulation is expressly subordinate to the Strata Schemes Management Act 2015, cross-referencing over 40 of its sections. It also interacts with the Strata Schemes Development Act 2015 (Part 10 strata renewal committees, cl 41(2), cl 43A(1)(t)), Environmental Planning and Assessment Act 1979 (BASIX certificates cl 6(e), occupation certificates cl 43A(1)(i), fire safety statements cl 43A(1)(j), Building Code of Australia definitions cl 30(4), cl 44), Design and Building Practitioners Act 2020 and its Regulation (regulated designs cl 46A(2)), Companion Animals Act 1998 (cl 36A(g)–(h)), Work Health and Safety Act 2011 (cl 4(b)), Electronic Transactions Act 2000 (cl 10(3) note, cl 17B(2)), Interpretation Act 1987 (cl 3(1) note), Property and Stock Agents Act 2002 (cl 43A(1)(o)(iv)), Building Energy Efficiency Disclosure Act 2010 (NABERS cl 43A(2)), Land Tax Management Act 1956 (build-to-rent exclusion cl 44A), Disability Discrimination Act 1992 (assistance animals cl 37A note), and Insurance Act 1973 (Cth) (Lloyd’s underwriters cl 38).
Transitional clauses (cll 66–68B) preserve pre-1996 by-laws (Schedule 2), adjust strata managing agent terms, and grandfather pre-30 September 2022 electronic voting ballots. Clause 44A excludes build-to-rent properties meeting State Environmental Planning Policy (Housing) 2021 criteria from Part 11.
Recent changes and why
The Regulation has been amended more than a dozen times since 2016, reflecting evolving policy priorities.
The 2022 (564) amendments substantially modernised meeting and voting procedures. They inserted cl 3A (definition of pre-meeting electronic voting), substituted cl 14, added cll 14A–14B (restrictions, reasonable steps), amended cll 10, 11 and 15, and inserted cl 17A–17B (electronic seals) plus transitional cl 68B. These changes responded to COVID-19 remote participation demands and sought to reduce meeting friction while protecting against uninformed amendments.
2025 amendments (2025 (505), 2025 No 14, 2025 No 65) introduced Part 2A building manager duties (cll 17C–17H) to combat undisclosed commissions and conflicts, prescribed new forms for capital works plans, payment plan requests and initial maintenance schedules (cll 17I, 17K, 29), prohibited payment plan fees (cl 18A), required reasoned refusals (cl 18B), updated assistance animal evidence (cl 37A), adjusted building bond percentages (cl 54), and expanded connected persons to trusts (cl 62). These address consumer protection failures exposed in strata defect litigation and rising living costs.
The 2023 No 44 insertion of decennial insurance (cll 55A–55C, cl 54A) provided an insurance alternative to cash bonds, reducing developer capital tie-up while maintaining owner protection. The 2021 (773) annual information regime (cll 43–43C) and 2020 (323) overhaul of Part 8 responded to the Building Stronger Foundations report and Opal Tower defects, aiming to detect and remediate construction faults before the initial period ends.
Each change narrows loopholes, embraces digital processes, and shifts risk toward developers and managers.
Court challenges and controversies
The source text does not record specific judicial decisions; however, the Regulation’s text itself reveals legislative responses to recurring disputes.
Controversies around animal keeping are addressed in cl 36A (unreasonable interference circumstances) and cl 37A (assistance animal evidence). The exhaustive list in cl 36A—persistent noise, chasing, attacks, damage, health risks, odour, Companion Animals Act breaches, menacing or restricted dogs—seeks to reduce Tribunal hearings by providing objective criteria. The 2025 expansion of acceptable evidence in cl 37A (identity cards, Assistance Dogs International standards, government cards, local council documents, badges, health practitioner statements) responds to disputes over what constitutes sufficient proof.
Occupancy limits in cl 36 exempt related adults (including Indigenous kinship) to prevent indirect discrimination claims. By-law controversies appear in Schedule 3 cll 5, 9 and 17 (smoke penetration, waste, change-of-use notification), reflecting ongoing tension between short-term letting, vaping, and neighbour amenity.
Electronic voting provisions (cll 14–17, 14A–14B) were inserted after disputes about proxy manipulation and inaccessible technology; the “reasonable steps” list in cl 14B and amendment warnings in cl 14A are designed to pre-empt natural justice arguments.
Part 8 building bond review rights (cl 56) and quantity surveyor independence rules (cl 50(2B)) address perceived bias in defect processes. The exclusion of build-to-rent properties (cl 44A) reflects policy balancing between housing supply and defect protections. Penalty notice increases and maximum penalties in cl 55B–55C indicate legislative concern that earlier sanctions were insufficient.
Gotchas
Most practitioners miss the interaction between cl 14A and ordinary meeting motions. A motion voted on partly by pre-meeting electronic voting can be amended at the meeting only if the amendment does not change the subject matter; otherwise the pre-meeting votes are wasted and a qualified further meeting request under s 19 may be triggered. Minutes must record the change and the qualified request power—failure exposes the secretary to criticism in Tribunal proceedings.
The definition of “connected persons” in cl 62 now captures trust beneficiaries and their relatives (inserted 2025). A developer using a corporate trustee can inadvertently trigger disclosure obligations or inspector disqualification under cl 46.
Clause 17J’s “insufficient funds” test is broader than many realise: it includes not only deficit but inability to comply with any undertaking accepted by the Secretary under s 188T(3), any compliance notice under s 188X(1), any order under any Act, or the s 106 maintenance duty. A seemingly generous payment plan can be lawfully refused if it would jeopardise a fire safety undertaking.
Electronic seal witnessing (cl 17A–17B) scales with the number of owners. For schemes with more than two owners the default is secretary plus another committee member unless the corporation has resolved on two specific persons. Many older schemes have never made that resolution, rendering electronic seals invalid unless a managing agent attests.
The 13-month retention period for secret ballot records in cl 41(2) is shorter than the general 7-year document retention under the Act; practitioners who keep everything for 7 years may inadvertently destroy ballot evidence required for a later defect claim.
Clause 46A(3) deems documents provided if lodged by another person under the Design Act. This can catch developers who assume physical delivery is still required.
The $30,000 spending limit in cl 25 is per resolution; serial resolutions below the threshold to achieve the same outcome risk being struck down as an abuse.
How to comply
Owners corporations should:
Adopt pre-meeting electronic voting by resolution and update meeting notices to specify permitted methods (cl 14).
Maintain an up-to-date levy register in the exact format of cl 23 and issue receipts strictly complying with cl 24.
Before every first AGM, obtain and deliver the cl 6 documents; agenda must include tenant representative and building inspector items where applicable (cl 5).
For payment plans, use the prescribed 2025 Gazette form, respond within 28 days with reasons if refused, never charge fees (cll 18A–18B), and provide monthly statements on request (cl 18(2)).
Lodge cl 43 information within 3 months of each AGM, pay the per-lot fee, and correct material errors within 28 days of awareness (cl 43B).
For building defects, ensure the developer nominates a panel inspector with full cl 45A particulars; retain all cl 46A documents.
Review by-laws against Schedules 2 and 3 and cll 36–37A; update smoking, animal and waste provisions to match chosen Option A or B.
Developers must:
Engage an independent qualified quantity surveyor for cost reports where no arm’s-length contract exists (cl 50).
Lodge the building bond or decennial insurance certificate before occupation certificate application, with all cl 52 documents.
Provide the building inspector with every document listed in cl 46A, including all regulated designs.
Give 14 days’ written notice of inspector nomination containing cl 45E particulars.
Strata managing agents and building managers should maintain a disclosure register, issue cl 17F notices with exact monetary values or calculation methods before any contract proposal, and ensure electronic seal attestations comply with cl 17B(2) Electronic Transactions Act reliability tests. Agents must never accept gifts over $60 (cl 63).
Owners and occupiers must notify safety device installation within 7 days (cl 31), use only complying devices (cl 30(3)), keep animals in compliance with cl 36A, and give 21 days’ written notice of any change of use that could affect insurance (Schedule 3 cl 17).
All parties should monitor the NSW legislation website for further Gazette forms and Secretary guidelines. Regular reconciliation of the levy register against bank statements, annual review of the 10-year capital works plan, and documented “reasonable steps” for electronic meetings will substantially reduce Tribunal exposure. Compliance is not merely box-ticking; the detailed record-keeping and disclosure obligations create an audit trail that protects against allegations of breach of fiduciary or statutory duty.