On 1 April 2026, a major package of reforms to NSW strata law took effect. These changes, introduced by the Strata Schemes Legislation Amendment Act 2025 and the Fair Trading and Building Legislation Amendment Bill 2026, represent the most significant overhaul of strata regulation in NSW since the Strata Schemes Management Act 2015.
If you own an apartment, are buying one, or manage a strata scheme in NSW, here is what changed — and what it means for you.
1. Mandatory Standardised 10-Year Capital Works Plans
Every owners corporation in NSW is required to maintain a 10-year capital works fund plan. But until these reforms, there was no prescribed format. Some schemes had detailed, professionally prepared plans. Others had a few paragraphs in a Word document. Many had nothing at all.
All new or reviewed plans must now use a standardised digital format through the NSW Government's Strata Hub portal. The government has published a 10-year capital works fund plan planner tool that schemes must use when preparing a new plan or reviewing an existing one.
What this means in practice:
- Uniform reporting across all 88,000+ strata schemes in NSW
- Plans must be reviewed at least every five years
- Annual budgets must be directly informed by the 10-year forecast
- Schemes with an existing plan that are not yet reviewing it can continue using the old format — but the clock is ticking
The standardisation is designed to eliminate the inconsistency that has plagued strata financial planning. When every scheme uses the same format, it becomes dramatically easier to compare buildings, assess financial health, and spot underfunded schemes before you buy.
2. Sustainability Infrastructure Is Now a Legal Requirement
The new standardised planning tool includes mandatory categories for sustainability upgrades. For the first time, strata schemes are legally required to consider and budget for modern infrastructure as part of their capital works planning.
Schemes must now formally plan for:
- EV charging infrastructure — even if no residents currently drive electric vehicles
- Energy efficiency upgrades — solar panels, LED lighting, battery storage
- Climate resilience measures — stormwater drainage improvements, heat mitigation
This does not mean every building must install EV chargers tomorrow. But it means every scheme must include these categories in their planning and provide cost estimates. For buyers, this is useful context: a scheme that has already budgeted for EV infrastructure is better positioned for the future than one that has not even considered it.
3. Developers Must Use Standardised Maintenance Schedules
When a new strata scheme is registered, the developer is required to prepare an Initial Maintenance Schedule (IMS) — a document that outlines inspection requirements and estimated maintenance costs for common property. This schedule is presented at the first Annual General Meeting and serves as the foundation for the owners corporation's financial planning.
The problem? Previously, developers could present the IMS in whatever format they chose. Some were thorough. Many were not. There was a well-documented pattern of developers deliberately underestimating maintenance costs in the IMS to keep initial levies artificially low — making off-the-plan purchases look cheaper than they actually are.
All IMS documents must now use a mandatory NSW Government standard form. The standardised format requires specific cost categories, realistic timelines, and consistent methodology — making it much harder for developers to hide future costs behind vague estimates.
Why this matters for buyers:
Artificially low initial levies are one of the most common traps in new strata schemes. You buy at $800/quarter, then within three years the levies jump to $1,500/quarter as the real maintenance costs become apparent. The standardised IMS makes this bait-and-switch significantly harder to pull off.
4. Multi-Storey Developments Need Independent Surveyor Certification
This is the reform with the sharpest teeth. For new multi-storey strata schemes (apartment blocks and similar), developers must now engage an independent quantity surveyor to review and certify both the Initial Maintenance Schedule and the initial levy estimates before the first AGM.
The surveyor must:
- Be a Certified Quantity Surveyor (AIQS member) or Chartered Quantity Surveyor (RICS member)
- Have no connection to the developer — genuinely independent
- Certify that the IMS follows the standard form
- Verify that levy estimates accurately reflect expected expenses
- Provide all certified documents at least 14 days before the first AGM
This is a structural shift. Financial realism is no longer optional for developers of new apartment buildings. An independent professional must sign off that the numbers are real — and their reputation is on the line if they are not.
Penalties for non-compliance:
- Fines up to $11,000 plus $220 per day of ongoing non-compliance
- Potential suspension or cancellation of developer licences
- Stop-work orders and project delays
5. Expanded Strata Information Certificates (Section 184)
Section 184 certificates are the documents buyers (or their conveyancers) request before purchasing a strata lot. They contain financial details, by-law information, and other disclosures about the scheme. They are one of the most important documents in strata due diligence.
Section 184 certificates must now include new mandatory disclosures:
- Embedded network details — whether the building has exclusive supply arrangements for electricity, gas, hot and cold water, internet, or other utilities, and what services are provided through these networks
- Fair Trading compliance actions — any enforcement actions taken against the owners corporation
- Extended meeting history — meeting schedules and past meetings beyond the previous year
The embedded network disclosure is particularly significant. Embedded networks lock residents into a single energy or internet provider — often at above-market rates — and they have been a growing source of complaints in new developments. Previously, buyers might not discover their building has an embedded network until after settlement. Now, it must be disclosed upfront.
Will Levies Go Up?
Probably yes — for many schemes. When capital works plans are prepared using standardised methodology with realistic cost estimates, some schemes will discover their current levies are too low. The sustainability planning requirements add new budget categories that did not previously exist.
But this is not a bad thing. Modest, predictable levy increases are almost always preferable to sudden emergency special levies when a roof fails, a lift needs replacing, or a waterproofing membrane gives out. The whole point of these reforms is to prevent the financial surprises that have plagued NSW strata schemes for decades.
The buyer's perspective:
A building with higher levies and a well-funded capital works plan is a safer purchase than a building with low levies and no plan. These reforms make it easier to tell the difference. Look for schemes that have already adopted the new standard — it is a sign of proactive governance.
What Else Is Coming in 2026
The April 2026 changes are not the end of the reform program. Several more changes are scheduled for later in 2026:
- Mandatory strata committee training — committee members will be required to complete approved training. Those who do not will automatically cease to be committee members. Commencement date to be advised.
- Conveyancing disclosure reforms — additional disclosure requirements in the property sale process.
- Short-term rental amendments (Section 137B) — changes to how strata schemes can regulate Airbnb and similar platforms, expected August 2026.
What Should You Do Now?
If you're buying an apartment:
- Ask whether the building's 10-year capital works plan has been updated to the new standard format
- Check if the Section 184 certificate includes embedded network disclosures (if it does not, the certificate may have been issued before these changes took effect)
- For new developments, verify that the IMS was independently certified by a qualified quantity surveyor
If you're a current owner:
- Ask your strata committee when the 10-year plan will be updated to the new format
- Expect potential levy adjustments once realistic costings are applied
- Check whether your scheme has embedded network arrangements — these should now be more transparent
If you're a developer:
- Download the standard IMS form from the NSW Government website
- Engage an independent quantity surveyor well before your first AGM
- Budget for the certification process — penalties for non-compliance are steep
Note: This article provides general information about NSW strata law changes effective 1 April 2026. It is not legal advice. For specific questions about how these changes affect your scheme or purchase, consult a strata lawyer or your strata managing agent. Key sources: NSW Government Guide to Strata Law Changes, NSW Fair Trading — Changes to Strata Laws.
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