If you sit on a strata committee in NSW, you have almost certainly heard the phrase “strata reforms” mentioned more than once over the past couple of years, often without much explanation of what it actually means for your scheme. This guide sets out the full picture in plain terms: why the reforms exist, what has already changed, what is still coming, and what practical steps your committee should be taking right now.
Why strata living has become a policy priority
Strata living is no longer a niche corner of the NSW property market. Around a quarter of the state’s population now lives in strata or community title schemes, a figure the government expects to keep rising sharply over the coming decades as apartment living becomes the norm rather than the exception in greater Sydney and beyond.
That growth has changed what strata schemes actually are. Many now manage assets worth tens of millions of dollars, run annual budgets comparable to a small business, and house hundreds of residents with genuinely competing interests and expectations. A structure originally designed for small blocks of units is now being asked to govern complex, high value property portfolios, often run by volunteer committee members with no formal training in governance, finance, or law.
This mismatch between the scale of what strata schemes now handle and the informal way many of them are still run is the reason NSW embarked on one of its most comprehensive strata law reform programs in over a decade in Australia.
Where the reforms came from
The current reform program traces back to a 2021 statutory review of the Strata Schemes Management Act 2015 and the Strata Schemes Development Act 2015. That review identified a set of persistent, systemic problems across the sector:
- Maintenance obligations being deferred or ignored, sometimes for years, until defects became expensive to fix or dangerous to residents.
- Governance practices varying enormously from scheme to scheme, with little consistency in how committees kept records, disclosed conflicts of interest, or made financial decisions.
- Owners and committee members frequently unaware of their legal obligations, simply because no formal training or plain English guidance existed.
- A managing agent market where transparency around fees, commissions, and conflicts of interest was inconsistent at best.
Rather than legislate all of this in one sweeping act, the NSW Government chose a staged reform program running from 2023 through to 2026 and beyond. This means changes have been landing progressively, some already in force, others still working their way through Parliament and regulation. For committee members, that staged approach is important to understand, because it means “the reforms” are not a single event you can read about once and file away. They are an ongoing program that will continue to shape obligations for years to come.
What has already changed
Several significant changes are already in effect. If your scheme has not addressed these yet, they are worth raising with your managing agent as a priority.
1. Capital works and maintenance planning
New strata schemes are now required to prepare standardised, ten year capital works fund plans using a standard form, alongside standard form Initial Maintenance Schedules. The intent is to remove the guesswork and inconsistency that previously existed in how schemes planned for major expenses like roof replacement, facade repairs, or lift upgrades.
Existing schemes are not yet required to hold an Inspection Maintenance Schedule, but there is a clear and growing expectation that they should. An IMS demonstrates proactive compliance, supports more accurate budgeting, protects the scheme in the event of a Fair Trading investigation, and provides valuable documentation during property sales and refinancing. Increasingly, buyers and their conveyancers are asking to see this kind of documentation before settlement, which means schemes without one may find themselves at a disadvantage.
2. Fire safety compliance under AS1851
Apartment buildings are now required to have their fire safety systems regularly inspected and tested in accordance with the Australian Standard AS1851. Responsibility sits with building owners and owners corporations collectively, which means every unit owner shares in the compliance obligation, whether or not they personally use or understand the fire systems in question.
The consequences of non compliance are real. Fair Trading has the power to investigate complaints, issue repair orders with defined timelines, and impose penalties. In more serious or repeated cases of non compliance, it can go as far as applying for the appointment of a compulsory strata manager, effectively removing control from an underperforming committee or agent. Beyond the regulatory risk, non compliance can also affect insurance claims and property values, since lenders and insurers increasingly expect to see evidence of proper fire safety maintenance.
3. Developer handover obligations
Developers of new schemes now face strengthened handover obligations, including standardised documentation requirements. This is designed to give incoming committees in new buildings a much clearer, more consistent starting point, rather than inheriting incomplete records or ambiguous maintenance histories, which has historically been a common source of dispute between owners and developers.
4. Plumbing and common property responsibility
Responsibility for plumbing has also been clarified, at least in principle. Owners corporations are responsible for common property plumbing, including pipes servicing multiple lots, shared hot water systems, roof plumbing, and drainage. Individual owners remain responsible for plumbing within their own lot boundaries. Where the situation is ambiguous, the strata plan and by laws should be the first reference point, and NCAT remains available to compel repairs where disputes cannot be resolved between the parties directly.
What is still coming
Several further reforms are expected to take effect later in 2026 and beyond. These are the changes committees should be actively preparing for now, rather than waiting to react to once they commence.
1. Mandatory committee training
This is, without question, the reform generating the most discussion in the sector at the moment. Under the Strata Schemes Legislation Amendment Act 2025, every member of a strata committee, not just office bearers such as the chair, treasurer, or secretary, will eventually be required to complete prescribed training.
Based on draft guidance and NSW Fair Trading’s public statements, the training is expected to be a free, self paced, one hour online course covering the essentials of the role:
- Understanding legal duties and governance responsibilities
- Keeping proper records of meetings and decisions
- Understanding the broader obligations that come with sitting on a committee.
New and returning committee members will need to complete the training within three months of appointment. Once the annual requirement takes effect, committee members will need to repeat the training each year to remain eligible to serve.
The enforcement mechanism attached to this reform is significant. A committee member who fails to complete the required training will automatically cease to be a member of the committee. Regulations are expected to include a formal notice process, warning a non compliant member before removal takes effect, but the underlying consequence is clear: training will no longer be optional or aspirational, it will be a condition of eligibility.
The exact commencement date has not yet been locked in. Guidance to date points to the second half of 2026, with some draft materials referencing a start as early as 1 July 2026. NSW Fair Trading has indicated it will update its own guidance closer to the commencement date. Given the uncertainty around the precise date, the sensible approach for committees is to treat this as imminent rather than distant, and to start having the conversation with incoming and existing committee members now.
There is genuine debate within the industry about how well this reform will work in practice. Some managing agents have raised concerns that an additional compliance burden could discourage owners from volunteering for committee positions at all, at a time when many schemes already struggle to find owners willing to serve. Others see it as a necessary and overdue step, given the scale of financial and governance decisions committees are now responsible for. Whichever view you hold, the requirement is coming, and committees that get ahead of it will be far better placed than those who wait to be caught out.
2. Expanded disclosure obligations
Further reforms will widen conflict of interest disclosure requirements for managing agents and schemes. Among the most notable is a new requirement to disclose embedded network arrangements, such as shared electricity or hot water agreements, in off the plan contracts for sale. This is particularly relevant for schemes that already operate under an embedded network, since transparency expectations in this area are only going to increase, and buyers are becoming more attuned to asking about these arrangements before purchasing.
3. The Strata Commissions Review
Separately, the NSW Productivity and Equality Commission has been seeking feedback through an issues paper as part of a Strata Commissions Review. This touches directly on how managing agents are remunerated, including commission structures on items such as insurance placement. For schemes with commission based arrangements in place, this is a space worth watching closely, since any resulting changes could directly affect transparency requirements and fee structures going forward.
The changing role of the strata manager, and what it means for your scheme
One further, less legislative but equally important theme has emerged alongside these formal reforms: the role of the professional strata manager is changing shape. Industry commentary throughout 2025 and into 2026 has consistently pointed to the same shift. The job is no longer defined simply by the number of lots or buildings in a portfolio. It is increasingly defined by complexity: navigating layered legislative requirements, managing sensitive negotiations between owners, and exercising judgment in situations that a checklist alone cannot resolve.
This shift has coincided with a genuine shortage of experienced strata managers across NSW, driven not simply by a lack of people entering the industry, but by the rising skill and judgment now required to do the job well under an increasingly complex regulatory framework. For committees, this has a very practical implication. The quality and experience of your managing agent now matters more than ever, not just for day to day administration, but for genuinely understanding and translating an evolving legal landscape into decisions your committee can act on with confidence.
What this means for your committee, practically
Pulling all of this together, here is a practical checklist your committee can work through over the next few months.
| Fire safety | Confirm with your managing agent that your scheme’s fire safety systems have been inspected and tested in line with AS1851, and ask for documentation, not just a verbal assurance. |
| Maintenance planning | If your scheme does not yet have an Inspection Maintenance Schedule, ask your managing agent whether adopting one would benefit your scheme, particularly if you are approaching a sale, refinancing, or a period of major capital works. |
| Committee training | Start talking to current and incoming committee members about the upcoming mandatory training requirement now, rather than waiting for a commencement date to be confirmed. Being ahead of this will make the eventual transition far smoother for your scheme. |
| Embedded networks | If your scheme has an embedded network arrangement for electricity or hot water, ask your managing agent what the new disclosure obligations are likely to mean in practice, and whether any changes to documentation or communication with prospective buyers are needed. |
| Ongoing engagement | Treat these reforms as an ongoing conversation with your managing agent, not a once off compliance exercise. A managing agent who proactively raises these changes with your committee, rather than waiting to be asked, is generally a strong signal of the level of service and expertise your scheme can expect going forward. |
A reform program, not a single event
The single most important thing to understand about the NSW strata reform program is that it is not a one off event you can read about once and set aside. It is a staged, multi year program, with some changes already in force, others expected later this year, and further detail still to be finalised through regulation. The reform agenda is, in the words of legal commentators tracking it closely, not yet complete.
The most useful thing any committee can do is maintain an ongoing relationship with a managing agent who treats these updates as part of everyday service, not an annual compliance exercise raised only when something goes wrong. If your current managing agent has not proactively raised fire safety compliance, maintenance planning, or the upcoming training requirement with your committee, that is a fair and reasonable prompt to ask why, and to consider whether your scheme is being as well served as it could be.
If you’d like a second opinion on where your scheme stands, TSM Group is happy to talk it through. Reach out to our team and we’ll walk you through what these reforms mean for your committee, at no cost and with no obligation.
Frequently Asked Questions
Is my scheme required to have an Inspection Maintenance Schedule right now?
Only new schemes are currently required to have one. Existing schemes are not yet mandated to hold an IMS, but adopting one voluntarily is increasingly seen as best practice and can support compliance, budgeting, and property transactions.
What happens if my building is not compliant with AS1851 fire safety requirements?
Non compliance can result in fines to building owners and owners corporations, and in more serious cases, Fair Trading enforcement action up to the appointment of a compulsory strata manager. It can also affect insurance outcomes and property values.
When does mandatory committee training actually start?
The exact commencement date has not yet been formally locked in. Current guidance points to the second half of 2026, potentially as early as 1 July 2026, though this remains subject to confirmation by NSW Fair Trading.
Will all committee members need to complete the training, or just the chair and treasurer?
All committee members will be required to complete the training, not just office bearers. This applies to both new and returning members.
What happens if a committee member does not complete the required training?
Under the current framework, a committee member who fails to complete the required training will automatically cease to be a member of the committee, subject to a notice and warning process expected to be set out in regulations.
Does my scheme need to disclose an embedded network arrangement?
New disclosure obligations are being introduced that will require embedded network arrangements to be disclosed, including within off the plan contracts for sale. If your scheme has such an arrangement, it is worth discussing the implications with your managing agent as these requirements take shape.
